Heimar Real Estate Company (Heimar hf / HEIMAR) raised its 2026 outlook following a 16.1% year-on-year increase in rental income to ISK 8.1 billion in the first half of the year. Total operating income grew 15.4% to ISK 8.2 billion, while EBITDA reached ISK 5.8 billion, up 14.6% from the prior-year period.
The company reported a net profit of ISK 4.6 billion and a return on equity of 11.8%, supported by a 96% occupancy rate across its 98 properties totaling roughly 400,000 square meters. Fair value adjustments on investment properties added ISK 7.7 billion during the period, lifting the book value to ISK 243 billion. The loan-to-value ratio stood at 61.6%, while the equity ratio declined to 32.1% from 33% at year-end 2025.
Heimar increased its full-year rental income guidance by ISK 220 million to a range of ISK 16.8 billion to ISK 17.2 billion, with EBITDA projected at ISK 12.05 billion to ISK 12.4 billion. The company expects to maintain an investment run rate of more than ISK 6 billion annually and plans to repurchase ISK 2 billion of treasury shares in 2026, following ISK 1 billion already bought back in the first half.
Portfolio performance remained robust, with like-for-like revenue growth of 11.3% year-on-year and an average lease term of around six years. The company signed 26 new lease agreements in the second quarter covering approximately 9,000 square meters. Geographic concentration in Reykjavik’s core areas accounted for 74% of rental income, with 70% of properties located in the capital.
Sustainability metrics showed progress, with 43% of the portfolio classified as green assets and 44% of debt designated as green financing. The carbon footprint per square meter decreased by 8% compared to 2019. Heimar also highlighted a weighted average cost of capital of 6.47% and an effective average interest rate on indexed loans of 3.48%, up four basis points since year-end 2025.
The company’s stock traded at $34.8, up 1.75% on the day, while valuation metrics included a P/E ratio of 7.36 and a PEG ratio of 0.14. Foreign investors accounted for roughly 5% of the shareholder base.
