Heimar Hf. · OMXICE:HEIMAR
Heimar Hf — Q1 2025 Earnings Presentation
35 slides from Heimar Hf's earnings presentation, May 2025
Slide 1: Q1 Earnings Preview – Investor Presentation
Q1 Earnings Preview – Investor Presentation May 2025 1
Slide 2: Stable Operations and Diverse Opportunities
Stable Operations and Diverse Opportunities Real Revenue Growth on Like-for-Like Portfolio Real Like-for- NIB – Financing From an Major Investment Dividend and Share Like Growth International Bank Initiatives in the Pipeline Buyback ▪ Rental income increases by ▪ Heimar and the Nordic ▪ Gróska – Pur
Slide 3: Strong Performance Driven by Heimar’s Core Areas
Strong Performance Driven by Heimar’s Core Areas Like-for-Like Revenue Growth Operations Profitability Financial Position 4.3% (1.2% real growth*) 1.4 bn. (3.9 bn.) 194.0 bn. (188.9 bn.) Profit after Tax InvestmentProperties Rental Income Increases year- over-year 3.2% (0.2%real decrease*) 1.5 bn. (
Slide 4: Purposeful Steps Toward Clear Goals
Purposeful Steps Toward Clear Goals Clear Strategic Focus Delivers Measurable Results Properties in the Portfolio Occupancy Rate Customers Proportion of Green Buildings 94 97% 400 38% m2 Located Within Public Entites and Listed Proportion of Green Investment Properties Core Areas Companies Financing
Slide 5: Heimar‘s Deliberate Steps Toward Long-Term Goals
Heimar‘s Deliberate Steps Toward Long-Term Goals The Company is Leading in Shaping Core Areas % of Rental Income Q1 25 Long Term Goal In recent years, Heimar has focused on investing in Core Areas 71% 70 - 80% properties in designated core areas. According to the company’s investment strategy, prope
Slide 6: Finance and Operations
Finance and Operations
Slide 7: Real Revenue Growth on a Solid Foundation on a Like-for-Like Basis
Real Revenue Growth on a Solid Foundation on a Like-for-Like Basis Lower Inflation Results in a Significant Reduction in Financial Expenses Income Statement Rental Income 3.069 Million ISK 3.242 3.276 3.439 3.341 Million ISK 3,341 3,490 3,504 3,716 3,486 4.3% Q1 24 Q2 24 Q3 24 4F 24 1F 25 Q1 24 – Q1
Slide 8: Strong Financial Position
Eiginfjárhlutfall Stong Financial Position Þróun frá 2023 Reduction in Leverage in Line With the Company’s Strategy Balance Sheet Equity Ratio Development since 2023 Million ISK 31.9% 31.8% 31.1% 31.0% 31.0% 30.7% 30.4% 31.03.25 31.12.24 29.8% 30.0% Investment Properties 193,983 191,427 Cash and Cas
Slide 9: 1.2% Real Revenue Growth on a Like-for-Like Portfolio
1.2% Real Revenue Growth on a Like-for-Like Portfolio Revenue Development Million ISK Q1 24 – Q1-25 +4.3% ▪ Rental income grew by 4.3% year-over-year. +1.2% -137 ▪ Price levels increased by 4.7% year-over-year. 40 -50 ▪ The sale of assets outside core areas has reduced year- 3,486 on-year revenue gr
Slide 10: Shareholder-Focused: Intrinsic Value is the Benchmark for Buybacks
Shareholder-Focused: Intrinsic Value is the Benchmark for Buybacks P/B Ratio Adjusted For Non-Interest-Bearing Deferred Tax Liability P/B Ratio Active Buyback Debt and Equity Development Over Time Program Billion ISK Initiation of 1,2 Share Buyback 207 1 0,8 0.78 Other Debt 125 0,6 0,4 P/B Deferred
Slide 11: 24 Lease Agreements Signed in Q1 2025
Skrifstofa Office Verslun og Services Retail and þjónusta Firfood 24 Lease Agreements S4S Reykjavíkurborg Signed in Q1 2025 Dúttl ehf 11 Renewed Agreements ~3,390 m2 Þula 13 New Agreements Klettabær Nox Medical - 12h. Wok to walk Gallery ~4,380 m2 VSB verkfræðistofa 24 Total Agreements ~ 7,770 m2 Vé
Slide 12: New Revenue
Tenant Property Square Revenue Meters Generating New Revenue IV Treatment Silfursmári 8 137.0 Q2 Verslunin Bræðurnir Eyjólfsson Hafnarstræti 18 87.6 Q2 Upcoming HS bílaréttingar og sprautun Miðhella 2 274.0 Q2 Deliveries Wok to Walk Borgartún 29 200.4 Q2 Mayroal Smáralind 100.0 Q2 Loccitane Smáralin
Slide 13: Global corporations continue to choose Hafnartorg
Global corporations continue to choose Hafnartorg Starbucks opens in Hafnartorg this Summer 13
Slide 14: A positive fair value adjustment of ISK 1.5 billion was recorded in the first quarter
A positive fair value adjustment of ISK 1.5 billion was recorded in the first quarter ▪ Fair value change in line with inflation. ▪ ISK 970 million was invested during the period. ▪ WACC remains unchanged at 6.46%. 14
Slide 15: Limited Refinancing Need in the Coming Years
Limited Refinancing Need in the Coming Years Enviable Debt Profile Refinancing Plan Million ISK 2025-2031 ▪ Minimal refinancing need in 2025 14,197 ▪ Bank loans maturing in 2026 have been 12,808 12,871 12,600 refinanced, extending the final maturity to 3,328 2031. 7,162 ▪ Green financing accounts fo
Slide 16: Operational Assets Generate Strong Cash Flow
Operational Assets Generate Strong Cash Flow Equity Adjusted for Non-Operating Assets – Associates Cash Flow From Operations 2024 Operational Equity at the Beginning of 2024 ISK Billion ISK Billion 5.0 1.6 51.1 4.6 Return on Funds used for: Operational 5.5 Equity 10.1 Payment of debts 57.8 and insta
Slide 17: ISK 4.5 Billion Loan Agreement With the Nordic Investment Bank
ISK 4.5 Billion Loan Agreement With the Nordic Investment Bank Recognition of the Company’s Strategy and its Execution ▪ 12-year inflation-indexed loan of ISK 4.5 billion. ▪ The loan has been provided to finance three sustainable and strategically important infrastructure projects: • Sunnuhlíð in Ak
Slide 18: Significant opportunities in underutilized revenue streams
Significant opportunities in underutilized revenue streams Implementation is ongoing, and a revenue outlook will be presented in August Key Revenue Other Revenue Key Streams Streams Considerations ATMs LED Ad Screens ▪ Does the arrangement strengthen core areas? Assorted Services ▪ Does the arrangem
Slide 19: Successful Rebranding
Successful Rebranding ▪ Heimar was nominated as the best Icelandic brand in the corporate market for 2024 in the annual ‘Best Icelandic Brands’ awards hosted by Brandr. The recognition came just a few months after the Heimar wins the Lúður company unveiled its new name and visual identity Award for
Slide 20: Sustainability
Sustainability
Slide 21: Sustainability at the Forefront
Sustainability at the Forefront Ongoing projects are aimed at improving the operation of the company’s real estate assets, strengthening information management, and ensuring the continued integration of sustainability as an integral part of the company’s operations. BREEAM Certifications: ▪ Dvergshö
Slide 22: Development of the Property Portfolio
Development of the Property Portfolio
Slide 23: Two Major Transactions in Progress
Two Major Transactions in Progress Gróska Exeter Hotel ▪ Heimar has signed an agreement to acquire all shares ▪ Heimar has signed an agreement to acquire all shares in in Gróska ehf. and Gróðurhúsið ehf. Tryggvagata ehf. ▪ Gróska owns the property Gróska at Bjargargata 1, 102 ▪ Tryggvagata ehf. owns
Slide 24: Heimar‘s Core Areas
Heimar‘s Core Areas 95% 95% Acquired Properties Within Core Areas 98% 98% Sold Properties Outside Core Areas Properties Acquired from 2018 60 thousand m2 | 13 properties Sold Properties 41 thousand m2 | 42 properties Properties Sold in 2024 Properties in Core Areas 24 24 Acquired/Built Before 2018
Slide 25: Heimar‘s Largest Properties are in the Heart of Core Areas
Heimar‘s Largest Properties are in the Heart of Core Areas Key Properties in the Capital Area Höfðatorg Offices – 37,867 m2 Smáralind Egilshöll Hafnartorg Iceland‘s largest shopping center – 62,100 m2 Sport and entertainment – 33,057 m2 Retail and services – 11,354 m2 25
Slide 26: Other Significant Assets
Other Significant Assets High-Quality Properties in Prime Locations Mjölnisholt 12-14 Litlatún 3 Austurstræti 16 Hotels and Tourism – 6,742 m2 Retail and Services – 5,261 m2 Hotels and Tourism – 2,773 m2 Áslandsskóli Hafnarstræti 17-19 Suðurhraun 3 26 Eduaction and Sports – 6,162 m2 Hotels and Touri
Slide 27: Diverse Properties for Public Entities
Diverse Properties for Public Entities Number of Properties in Core Areas Leased and Operated for Public Entities Schools Sport Facilities Offices Other Primary Schools: Egilshöll in Reykjavík: Number of institutions rent offices • The National Museum – • Áslandsskóli in Hafnarfjörður from Heimar fo
Slide 28: Shareholders
Shareholders
Slide 29: 20 largest shareholders of Heimar
20 largest shareholders of Heimar Distribution Lífeyrissjóðir Pension Funds Einkafjárfestar Investors Nr. Name Shares % ∆* 1 Brú lífeyrissjóður 195,459,192 11.14% 2 Lífeyrissjóður starfsmanna ríkisins 186,787,919 10.64% 3 Lífeyrissjóður verzlunarmanna 159,684,560 9.10% Túnsteinn 4 Birta lífeyrissjóð
Slide 30: FTSE Russell - Vanguard
FTSE Russell - Vanguard Heimar Shares Included in FTSE Russell Indices ▪ In early 2025, Heimar was included in the OMXI15 index. This inclusion marks a significant milestone in the company’s development and reflects its strong financial position and growing market recognition. ▪ Subsequently, the co
Slide 31: Challenging Market Conditions
Challenging Market Conditions Resilient Trading in Heimar Shares Amid Market Volatility Heimar‘s Share Price Most Actively Traded Shares on Nasdaq Iceland Closing Price in ISK – Q1 2025 Average Daily Turnover in ISK - Q1 2025 -8.2% 895 41 40 737 39 38 493 481 37 Heimar hadthe7th 368 highestavgdaily
Slide 32: Heimar's Financial Calendar
Heimar's Financial Calendar Q2 2025 Results August 21, 2025 Q3 Earnings Preview October 22, 2025 Preliminiary Financial Report February 5, 2026 Q4 2025 Results March 4, 2026 AGM March 26, 2026 32
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Slide 34: Building Tomorrow Today
Building Tomorrow Today
Slide 35: Disclaimers
Disclaimers This presentation is based on information from Heimar hf. (hereafter “Heimar”), the company’s management’s plans and assessments, and public information where applicable. This presentation is intended solely for informational purposes and should not be used as part of or the basis for de