ANNUAL STATEMENT 2019 INVESTORS PRESENTATION WHAT STANDS OUT IN THE - PowerPoint PPT Presentation

ANNUAL STATEMENT 2019 INVESTORS PRESENTATION

WHAT STANDS OUT IN THE YEAR 2019? ✓ The configuration of the company‘s lessees is the main pillar for its strength. ✓ The introduction of a new strategy has and will change the company‘s focus and appearance in the future. ✓ Extensive and good results have been achieved in dealing with the costs of properties operations and the cost of operations in the properties. ✓ Excellent results achieved in leasing. ✓ Höfðatorg and Smáralind are the large core projects with extensive future expectations. ✓ Smáralind received environmental certification BREEAM In-use first of all buildings.

KEY FIGURES COMPARISON WITH THE YEAR 2018 LEASING RATIO EBITDA RATIO OF LEASING REVENUES REVENUES GROWTH BETWEEN YEARS EBITDA GROWTH BETWEEN YEARS Operations 72.4% 97.5% 20% 25% (70%) (97.5%) (17%) (19%) PROFIT AFTER TAX YEALD OF INVESTMENT PROPERTIES REAL RETURN ON EQUITY VALUATION CHANGE Profitability 4,486 m.ISK. 5.0% 10.6% 4,089 m.ISK. (3,226 m.ISK.) (4.9%) (8.9%) ( 2.921 m.ISK.) LEVARAGE INTEREST BEARING DEBTS GROUP‘S INVESTMENT PROPERTIES EQUITY RATIO Economics 60.9% 84.0 b.ISK. 138.0 b.ISK. 31.8% (62.5%) (80.5 b.ISK) (128.7 b.ISK.) (31.6%) CARBON FOOTPRINT HOT WATER ENVIRONMENTAL CERTIFICATIONS USE OF ECETRICITY Sustainability (m 3 ) ( kWh) (m 2 of portfolio) (tCO 2 e) ⇩ 10% ⇩ 6% ⇩ 3% 17%

FOURTH QUARTER 2019 INCOME STATEMENT 4Q 2019 4Q 2018 %Δ Leasing income Operational results before assessment change 2.421 2.306 2.304 2.290 2.251 Leasing revenues 2,421 2,306 5.0% 1.759 Revenues, operations in properties 145 138 5,.% 1.712 1.633 1.607 1.644 Revenues 2,566 2,444 5,0% Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Operational costs of investment properties -498 -466 6.9% Operations in properties -240 -235 2.1% Operational costs of investment properties -738 -701 5.3% Operational costs of invesment properties Administrative costs -116 -99 17.2% 21,6% 21,5% Operational profit before assessment change 1,712 1,644 4.1% 20,6% 20,2% 19,4% Operational costs versus leasing revenues 71% 71% 4F-18 1F-19 2F-19 3F-19 4F-19 Assessment change of investm. properties and depreciations 817 978 Operational profit 2,529 2,622 -3.5% Net financial expenses -1,321 -1,457 -9.3% Administrative costs 5,0% Profit before tax 1,208 1,165 4,8% 3.7% 4,8% 4,3% 3,9% Income tax -238 -206 4F-18 1F-19 2F-19 3F-19 4F-19 Net profit for the period 970 959 1.2%

THE YEAR 2019 COMPARISON WITH 2018 2019 2018 %Δ Leasing income Operational results before assessment change 2.421 2.306 2.304 2.290 2.251 Leasing revenues 9,266 7,737 19.8% 1.759 Revenues, operations in properties 582 551 5.6% 1.712 1.633 1.607 1.644 Revenues 9,848 8,288 18.8% Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Operational costs of investment properties -1,923 -1,700 13.1% Operations in properties -787 -820 -4.0% Operational costs of investment properties -2,710 -2,520 7.5% Operational costs of invesment properties Administrative costs -427 -378 13.0% 21,6% 21,5% Operational profit before assessment change 6,711 5,390 24.5% 20,6% 20,2% 19,4% Operational costs versus leasing revenues 72% 70% 4F-18 1F-19 2F-19 3F-19 4F-19 Assessment change of investm. properties and depreciations 4,075 2,910 Operational profit 10,786 8,300 30.0% Net financial expenses -5,170 -4,301 20.2% Administrative costs 5,0% Profit before tax 5,616 3,999 4,8% 40.4% 4,8% 4,3% 3,9% Income tax -1.130 -773 4F-18 1F-19 2F-19 3F-19 4F-19 Profit for the period 4,486 3,226 39.1%

REGINN’S SUSTAINABILITY POLICY RESPONSIBLE OPERATION FOR THE FUTURE • Reginn's sustainability policy is a guiding principle in all of Reginn's activities and is based on 6 of the 17 UN World Wide Goals, those influencing Reginn's activities mostly: Environmental sustainability Social sustainability Economical sustainability • Shared interests of investors, employees, customers and the community: • Reduced operational risk, both financial and reputation risk • Reduction of operating costs and lower environmental impact with better utilisation of resources and supplies • Important in employing and retaining good staff who are familiar with the policy • Increased customer demand for green properties • Contributes to increased quality of life and better society • Disclosure of non-financial aspects integrated with financial informatrion. • Over 20 measurable objectives, already financial and environmental benefits visible: • 6% decrease in use of electricity 2019 • 10% decrease in use of hot water 2019 • 17% of property portfolio has BREEAM certification

REGINN‘S PROPERTY PROTFOLIO FUNCTION GROUPING AND BY SIZE 5% 17% Retail and service 33% Office Sport, entertainment and education Industrial and storage 13% Hotel 33% 116 PROPERTIES 377.000 SQUARE METRES

REGINN‘S 10 MOST VALUABLE PROPERTIES DIVERSIFIED AND WELL-KNOWN PROPERTIES 40% Egilshöll Smáralind Katrínartún 2 & Borgartún 8-16 Litlatún 3 Áslandsskóli Hafnartorg 57% Mjölnisholt 12-14 Ofanleiti 2 Hafnarstræti 83-89 *value og Reginn‘s property portfolio

TENNANTS AND LEASING REGINN‘S UNIQUENESS BASED ON SOLID TENNANTS Reykjavík City 14,9% Strong tenants characterise Reginn's clientele. The City of Reykjavik is the company's largest tenant, accounting for about 15% of rental State 9,8% income. Then comes the state with just under 10% , and Hagar, which together with other listed companies, accounts for about 9% of Listed companies 9,0% Reginn's rental income in 2019. The municipalities of Hafnarfjörður, Municipalities 4,1% Garðabær and Akureyri account for just over 4% . Banks are behind, just over 2% of rental income in 2019. = 40% Banks 2,4% The part of the state and banks will increase with new and newly signed contracts in the coming quarters. LEASED SQ. METRES ANNUALLY The year 2019 was characterised by very good results in the leasing and renewal of the company‘s leasing contracts. In 50.000 45.771 total, new contracts (renewal 1/3) were made for about 46 th. 45.000 square meters, which is an increase of 13% from the previous 40.000 year, and the average length of contracts is unchanged or 35.000 about 7-8 years. 30.000 25.000 There is a good balance in the company's leasing business 20.000 and demand for commercial properties is generally good. 15.000 Consistent with Reginn's leasing ratio for the year, which was just under 98%, it is clear that utilisation of the company‘s 10.000 5.000 properties is very high. It is the company's opinion that opportunities exist in further development of the portfolio. 0 1F 2F 3F 4F 2017 2018 2019

20 LARGEST SHREHOLDERS 10 TH FEBRUARY 2020* Nr. Nafn Hlutir % 1 Pension Fund of Commerce 185,105,301 10.14% 2 Gildi Pension fund ltd. 158,866,461 8.70% 3 State pension fund 130,000,000 7.12% REPURCHASE PLAN - CLOSED 4 Stefnir hf. - Investment fund 100,513,069 5.50% The former repurchase plan started June 7 th 2019 and • 5 Sigla hf. - Investment company 100,000,000 5.48% closed 30 th September 2019. 6 Birta pension fund ltd. 86,700,743 4.75% The latter repurchase plan started January 7 th 2020 • 7 Stapi pension fund ltd. 86,135,266 4.72% and closed last 27 th January. 8 Eaton Vance Management 64,930,238 3.56% 9 Frjálsi pension fund 63,679,504 3.49% • Purchased 43,091,859 shares ( 2.36% of issued share 10 Lífsverk - pension fund 51,404,808 2.81% capital) or for 967 m.ISK. 11 Söfnunarsjóður lífeyrisréttinda - pension fund 49,094,122 2.69% 12 Brimgarðar ehf. - Investment company 48,633,333 2.66% 13 Júpíter rekstrarfélag ehf. 48,261,978 2.64% 14 Festa - pension fund 47,061,245 2.58% 15 Íslandsbanki hf. 41,786,551 2.29% FINANCIAL CALENDER 16 Sjóvá - Almennar tryggingar hf.-insurance co. 40,204,307 2.20% 11 th March 2020 – Annual Meeting 2020 • 17 Arion banki hf. 37,570,000 2.06% 18 Landsbréf hf. - investment fund 35,441,728 1.94% 13 th May 2020 – Results 1Q 2020 • 19 Landsbankinn hf. 31,082,256 1.70% 20 Íslandssjóðir hf. - investment fund 28,689,495 1.57% Total 20 largest 1,460,366,224 79.97% • Foreing investors about 3,6% *Corrected 13 th February 2020

OPERATIONAL FORECAST THE YEAR 2020 • Based on the unchanged portfolio, the company's rental revenues are estimated to be around 9,750 m.ISK in 2020. (+/- 100 m.ISK), a 5% increase from 2019. • At the same time, operating profit before valuation changes and depreciation is expected to be around 7,000 m.ISK. (+/- 70 m.ISK) in 2020. • The company’s administration costs are estimated 4.5% of leasing revenues in the year 2020. • Operational costs of investment properties is estimated about 21% of leasing revenues in 2020.

ANNUAL PRESENTETION 2019 THANK YOU