The investor presentation for the 6-month financial results for Heimar real estate company in Iceland. Earlier today, the Board of Directors approved the financial accounts for the first 6 months.

They have been published on OMX Iceland as well as on the Heimar website, heimar.is, where you can find this video both in Icelandic and English and all the relevant material regarding the half-year results, both available in Icelandic and English. If we begin at the beginning, we can see that we're reporting 16.1% revenue growth following significant investments in the portfolio.

The investments we've been making in the last few months have more or less been in core areas, and they're driving the real revenue growth of the portfolio. We see that rental growth was by 16.1% and total operating income was up by 15.4%.

EBITDA came in at 5.8 billion ISK, increasing, notably, by 14.6% year-on-year. Net profit for the period came in at 4.6 billion ISK.

The earnings guidance for the year has been updated to reflect inflation and the development of the rental income in the underlying portfolio. Observing the financial position of the company, the equity ratio remains strong at 32.1%, and the LTV ratio remains moderate at 61.6%.

The total investments in the portfolio amounted to just over 6 billion for the period, and the financing of investment projects and the extensive refinancing carried out during the year has been completely completed, as I will go into in more detail later on in the presentation. In addition, the green financing framework of the company has been renewed.

Looking at our strategy, we invest in high-quality properties in core areas, and that has been the key revenue driver in our growth. Treasury shares purchased for approximately 1 billion in the first half of the year, in addition to a dividend of 780 million ISK.

I highlight that the total purchase value of treasury shares could amount to approximately 2 billion throughout the year 2026. We say that Heimar is an is an attractive investment with solid fundamentals, and from left to right, a reliable and responsible investment opportunity, and you can see how we've shown steady EBITDA development for the last 5 years.

We invest in core areas where our clear strategy and strong execution, and we have a moderate LTV ratio roughly around 60%. We place sustainability and social responsibility at the forefront of our operations, with 43% of the company's portfolio qualified as green assets, with an even higher share targeted.

If you look at the key sustainability metrics, we have 44% of our financing is green financing, and we've seen a 8% drop in carbon footprint per square meter from 2019. We see strong revenue growth, 11.3% real growth year-on-year.

We see from the left-hand side to the right-hand side, looking at the operations, EBITDA is increasing by 14.6%. EBITDA as a percentage of rental income comes in at 70%, 70, and the occupancy rate in our portfolio remains extremely high at 96%.

Looking at profitability, we see that we're reporting 4.6 billion in profit after tax. The fair value adjustments of investment of our investment properties came in at 7.7 billion for the first 6 months, and the yield of investment properties came in at 5 5.1%, leading to a return on equity of 11.8%.

Our our financial position remains enviable. Investment properties are booked at 243 billion ISK, with interest-bearing liabilities around 146 billion, and as stated previously, the LTV ratio and the equity ratio remain very healthy.

In the past few years, we've been taking purposeful steps toward clear strategic goals. The property the portfolio comprises 98 properties.

We have a high occupancy rate. Our customer base is based on 420 customers, and 70% of all our investment properties are located within what we call core areas in the city of Reykjavik.

Public entities and listed companies are around 42% of our client base, and the total square meters of the portfolio come in just shy of 400,000 square meters, with the average lease term of around 6 years. We pride ourselves of on on having a clear strategy, which has been and continues to deliver strong results.

As stated before, core areas represent roughly 74% of our rental income, and our long-term goal in the portfolio is to be closer to 80%. Listed companies represent 11% of our rental income, and we expect that to rise in the next few years, with the ultimate goal of having roughly around 15% of our income stemming from listed companies.

The same applies for public entities, which are roughly 1/3 of our portfolio, and green assets, as stated before, represent roughly 44% of our rental income. Looking at finance and operations through the period, starting with the income statement, rental income is is increasing by 16.1% in the first 6 months, leading to an increase in EBITDA by 14.6%, and profit for the period came in at 4.6 billion ISK.

On the right-hand side, you see the rental income and the EBITDA development for the for the past 3 years, the first 6 months of the past 3 years. If we disaggregate the real revenue growth, we shall see that investments are driving strong revenue growth.

From left to right, inflation accounts for roughly 330 million of the changes, increase above inflation, that is real growth, is roughly 223%, and then what we call change in property portfolio net is the explanatory variable for roughly 600 million. Changes in the property portfolio positively affect year-on-year revenue growth.

The revenue growth of comes in at 8.1% on a like-for-like portfolio. In the quarter, or in the first 6 months, sorry, we signed 26 lease agreements in the second quarter for approximately 9,000 square meters.

Looking at our accounts receivable, we state that a strong tenant mix is mitigating risks going forward. As stated before, we have a high-quality tenant base with strong oversight with over our customers.

From left to right, we see the receivables, how they've developed for the past 4 years, but I note that from '23 to '25, these are year-end figures, and we but for for '26, we're only reporting the first 6 months, but we we feel we we are comfortable with these numbers, but of course we disclose this on a on a quarterly basis to the market. As before, we have a high equity ratio and a low leverage ratio.

At the year-end presentation for the financial year '25, I stated to investors that the LTV ratio was just around 60%, and that investors should expect should not continue to to fall from that point, and now it stands at roughly 61.6%, a level which we are very comfortable with. The same applies for the equity ratio, which stands at 32.1% after topping at 33% at year-end '25.

In the quarter, or for the first 6 months, we're reporting a positive fair value change of 7.7 billion. The weighted average cost of capital at the end of the quarter was 6.47%, as compared to 6.48% at year-end 2025.

It is important to highlight that that year to date, we have invested in our portfolio for roughly ISK 6.2 billion. This is a new slide, and it says that interest rate reductions will positively impact the portfolio valuation and and lower our interest interest expenses going forward.

The question we're posing is this: what impact will falling interest rates have on our operations and balance sheet? These are just illustrative examples that each investor can assess for themselves.

From left to right, what is the impact on the value of investment properties if interest rates drop? For example, if if we see a reduction in interest rates, that leads to lower yield requirements, and if the yields requirements or the weighted average cost of capital drops by 1/2%, the valuation of the investment properties can be expected to increase by 19 billion ISK.

On the right-hand side, you can see that the impact of interest payments from left to right, 0% up to 1%, in a 1% interest rate drop that will lead to reduction in interest payments on of 371 million on an annual basis. We have no refinancing need in 2026, and as is shown on the picture there where we show the final maturities for until 2031, the bond series Heimar 50 was increased by ISK 2.5 billion and another one by 1.4 billion during the quarter.

It's important to highlight that approximately 44% of the company's total interest-bearing debt qualifies as green financing, as stated before, and approximately 27% of interest-bearing loans are bank loans. The the effective average interest rates on index loans was 3.48% at the end of the quarter, an increase of 4 basis points since year-end.

Refinancing of bank loans maturing in 2027 has been fully completed. Based on the earnings we are reporting today, we are updating upwards our earnings guidance for 2026.

The earning guidance is being shifted up by 220 million ISK, now we're projecting the rental income to range from 16.8 billion ISK to 17.2, and our projected EBITDA for the full year is from 12 billion and 50 million to 12.4 billion. Finally, about our shareholders and our shareholder space: intrinsic value remains the buy the the the buyback benchmark that we follow.

As stated before, earlier this year, we went into share buyback program for ISK 1 billion, and I've said before, investors can expect that total share buybacks for the year will amount to 2 billion ISK. The 20 largest shareholders of Heimar, there's been minimal changes between quarters, and I highlight that foreign investors make up of roughly 5% of our investment base.

The share price was down 1.2% in the quarter. The market sentiment has been challenging here as as in many other markets, but we see that the the share the trade remains fairly well traded on the OMX Nasdaq, as is depicted on the right-hand side.

Finally, the financial calendar for the year: we will next meet here on November 5th later this year, and then the Annual General Meeting and the annual results will be in February and March 2027. I want to thank those who attended the conference call.

If anything, you can always reach me via email or phone. I I repeat that all the relevant information are available on our website and on the on Nasdaq OMX.

Thank you for tuning in. Goodbye.