Heimar, a leading player in the Icelandic commercial real estate market, has reported robust financial performance and strategic portfolio adjustments. The company experienced a 7.9% growth in rental income and a 6.9% increase in EBITDA over the past year. This success is attributed to significant investments in property upgrades and acquisitions, as well as selective divestitures that have optimized the portfolio. The company also initiated a share buyback program and proposed a substantial dividend payment for shareholders. Looking ahead, Heimar aims to enhance profitability through continued development in core areas and exploration of new revenue streams.
Over the past few years, Heimar has strategically focused on enhancing its property portfolio. The company has made considerable investments in upgrading existing assets while acquiring new properties that align with its long-term goals. These efforts have paid off, with rental income increasing by 7.9% compared to the previous year. This growth reflects the strong demand for commercial spaces, particularly in key regions where Heimar operates. The company's management team has identified these areas as prime locations for expansion and development, contributing significantly to the overall financial health of the organization.
In addition to expanding its portfolio, Heimar has also been proactive in optimizing its asset base. Through strategic sales, the company reduced its total square footage by nearly 2%, resulting in more efficient operations. One notable transaction was the sale of properties worth ISK 3.3 billion, which fetched prices exceeding book value by over 10%. These asset sales not only generated capital but also allowed Heimar to focus on higher-performing properties. Furthermore, the company implemented a share buyback program to return value directly to shareholders, reinforcing its commitment to shareholder interests.
Looking forward, Heimar remains committed to improving profitability and competitiveness. The company plans to capitalize on opportunities in core areas, exploring new revenue streams and strengthening its group of shareholders. Management is actively working to enhance market valuation through strategic initiatives, including the acquisition of Gróska ehf., which owns a prominent property in Reykjavík. This acquisition is expected to create a hub for innovation and education, further diversifying Heimar's portfolio and opening up new avenues for growth.
The company's financial position remains solid, with an equity ratio of 31.8% and ample liquidity. Heimar's refinancing needs are limited, ensuring stability in the coming years. Additionally, the company has made strides in sustainability, with 38% of its portfolio now environmentally certified. Waste sorting rates have improved, reaching approximately 80%, and ongoing initiatives aim to reduce the carbon footprint across all operations. As Heimar continues to evolve, it presents an attractive investment opportunity, offering a mix of inflation-linked and turnover-based cash flows from a diverse tenant base.
With a strong foundation and clear strategic direction, Heimar is poised for continued success. The company's focus on enhancing profitability, optimizing its portfolio, and fostering sustainable practices positions it well for future growth. Management remains confident in achieving its goals and creating lasting value for stakeholders. The upcoming months hold numerous opportunities for increased value creation, driven by Heimar's commitment to excellence and innovation in the commercial real estate sector.