Heimar Real Estate Company hf, an Icelandic real estate investment trust, upgraded its 2026 guidance after reporting a 16.1% year-over-year increase in rental income to ISK 8.325 billion for the first half of 2026.
The company’s H1 2026 EBITDA rose 14.6% to ISK 5.83 billion, with a 70% margin relative to rental income. Net profit totaled ISK 4.568 billion, supported by a fair-value adjustment of ISK 7.634 billion on investment properties. Operating costs increased 21.6% to ISK 1.78 billion, while administrative expenses climbed 12.4% to ISK 480 million.
Rental income growth was driven by portfolio changes adding ISK 597 million, inflation contributing ISK 337 million, and revenue growth exceeding inflation by ISK 223 million. Like-for-like revenue increased 8.1%, with real growth of 3.1% after adjusting for Iceland’s 4.9% inflation rate. The company’s investment property portfolio expanded to ISK 243 billion from ISK 219 billion at mid-2025, while interest-bearing liabilities rose to ISK 146 billion.
Heimar’s leverage metrics improved, with an equity ratio of 32.1% and a loan-to-value ratio of 61.6%, down from 64% in June 2024. The effective average interest rate on indexed loans stood at 3.48% at quarter-end. The company purchased ISK 1 billion in treasury shares during H1 2026 and plans to buy back up to ISK 2 billion for the full year, alongside a dividend payment of ISK 780 million.
Guidance for full-year 2026 was revised upward, with rental income now projected at ISK 16.85–17.2 billion and EBITDA at ISK 12.05–12.4 billion, an increase of ISK 250 million. Investment spending is expected to exceed ISK 6 billion annually. The company’s portfolio comprises 98 properties totaling 392,000 square meters with a 96% occupancy rate, serving 420 tenants.
Heimar’s sustainability efforts advanced, with 43% of its portfolio qualifying as green assets and 44% of debt structured as green financing. The company’s 2026 Reitun sustainability score reached 85 points, with environmental and governance ratings upgraded to A3. Shares traded at ISK 34.80 on August 27, 2026, up 1.75% from the previous close.
