Core Insights - The company is experiencing strong demand for commercial real estate, with rental income increasing by 4.3% year-on-year, while Like-for-Like portfolio growth stands at 1.2% [1][8][9] Operations and Performance - Operating revenues for Q1 2025 reached ISK 3,686 million, with rental income contributing ISK 3,486 million [8] - EBITDA for the quarter was ISK 2.45 billion, reflecting a 3.2% increase compared to the previous year [8][9] - Net profit decreased to ISK 1.4 billion from ISK 3.9 billion in the same period last year [8] - The company’s investment properties are valued at ISK 194 billion, with a fair value change of approximately ISK 1.5 billion in Q1 [8][10] - The occupancy rate of the portfolio is around 97%, based on income as a percentage of full occupancy potential [10] Strategic Initiatives - The company has sold assets worth ISK 3.3 billion in 2024, achieving prices over 10% above book value, resulting in a nearly 2% decrease in total square meterage of the portfolio since the end of 2022 [2] - A refinancing strategy has been implemented, extending bank loan maturities from 2026 to 2031, with no debt maturities in 2025-2026 except for an ISK 1,240 million bond maturing in July [3][20] Investment and Growth - The company plans to continue its share buyback program as long as market value remains below book value plus deferred tax liabilities [5] - The acquisition of Gróska is expected to add approximately 25,000 square meters to the asset base [6] - The company is pursuing additional acquisitions, including Tryggvagata ehf., with an enterprise value of ISK 6,375 million [14] Market Position and Outlook - Heimar is positioned as an attractive investment opportunity, with nearly half of its revenues coming from public entities and listed companies [7] - The company has signed 24 lease agreements covering nearly 7,770 square meters in Q1, reflecting strong demand for commercial space [15] - Renovations and new developments are underway, including a new office building expected to attract tenants by summer 2025 [15][16] Sustainability Efforts - Sustainability initiatives are a priority, with ongoing BREEAM certifications for three properties and the installation of electric vehicle charging stations [17][18] Financial Position - The company maintains a strong financial position, with an equity ratio of 31.9% and a leverage ratio of 62.8% [19] - Cash and cash equivalents at the end of the period were ISK 5.1 billion, with access to undrawn credit facilities totaling ISK 4.7 billion [19]

Heimar hf. (“Heimar” or the “Company”) has today signed an agreement to acquire all shares in Gróska ehf. (“Gróska”) and Gróðurhúsið ehf. (“Gróðurhúsið”) (the “Transaction”). Gróska owns the property Gróska at Bjargargata 1, 102 Reykjavík – an innovation hub and one of Iceland’s largest and most ambitious office buildings. The property comprises approximately 18,600 m², plus a 6,200 m² underground parking garage with 205 spaces, totaling approximately 24,800 m². Gróðurhúsið operates an incubator and cowork ...