Chairman’s of the Board Statement
It is necessary for a property company as Reginn to show awareness of all changes in the business and economical environment in the in order to cope with changes in the external environment. At any given time, it is important to participate in the business community and being able to provide Icelandic companies with suitable housing solutions, as to maintain the nature of the property portfolio as needed each time.
Last August, Reginn acquired 55% in FM-hús ehf., a property company that owns and operates primary schools and kindergarten in Hafnarfjördur and Garðabær. With this, Reginn was not only entering a new category of properties, but also a new way of expanding the property portfolio. Reginn’s objective is to buy the remaining 45% share in 2018. By this, it was possible to invest in a profitable project at the right time, to minimize funding and risk, as well as to get join with the seller in restructuring the company's operations and financial structure.
One of the most important project of the year 2017 was to form and negotiate a 70 b.ISK. bond framework for Reginn. Under the issuance framework, Reginn can issue bonds and other financial instruments with different features, depending on the company's needs and market conditions at any given time. Already two auctions under the framework have been successfully completed. The current series are indexed to 30 years, but more series will be issued as market conditions develop.
Finally, I would like to thank Reginn’s staff and management for well accomplished work. With the objectives and values of the company as a guiding principle, Reginn has become one of the largest and most powerful company in the country. I also thank all the customers and suppliers of the company for their cooperation this year.
The CEO’s Statement
Leases during the year was successful and 100 new lease contracts were signed, which totalled 38,000 leased square metres. Two thirds of the contracts were new lease contracts, while others were renewal of older contracts. Continuation of negotiations with government parties for leasing commercial properties was successful, it is now about 21% of the company's income is from public parties.
The year 2017 was extensive in investments and constructions for the company
A purchase agreement was signed for the acquisition of a 55% ownership in the properties company FM-hús ehf. at the beginning of the spring. FM-hús is a well established and financially strong properties company that owns and leases four schools at Vesturbrú 7 in Garðabær, Kríuás 1, Kríuás 2 and Tjarnabraut 30 in Hafnarfjörður, as well as a property at Bæjarhraun. FM-hús has been developed further and the company has invested in properties and properties company in Akureyri i.e. Njarðarnesi 3-7 and Reykir fasteignafélag ehf. which owns Glerárgata 26, 30 and 32. It is estimated that in 2018, the company will fully emerge into the Reginn Group by accusation of all of the shares of FM-hús.
Three smaller properties, Vatnagarðar 10, Selhella 13 and a floor at Þverholt 14 were purchased during the year.
Work on restructuring and upgrading at the Smáralind was ongoing, and is currently in the process of completion. The opening of the global retail chains Zara and H & M last autumn were noticeable, and their operations have been better than expected. There has been a significant increase in the number of customers in Smáralind and last three years the number has increased by 24%.
Buildings at Hafnartorg began to take shape during the year, and now all buildings are almost ready for interior work. The company got the first spaces delivered in December. Leasing of Hafnartorg is in good progress. Last autumn, it was decided to buy properties on adjoining site in the Eastern Harbour zone, i.e. site 5b and a purchase agreement was completed in last December. The site includes about 2,700 square metres of commercial properties on the first level, and construction has work started as has planning on which operations will be in individual units on the site. With these investments, the company has an extensive advantage in offering operators high quality retail and catering space in the best location in the centre of Reykjavík.
Number of properties has been sold by the company during the year, the purpose is to develop and shape the property portfolio to make it the very efficient in operation. During the year, an agreement was signed for the sale of a 50% stake in the company 201 Miðbær ehf. but the company owns a building rights on sites 03 and 04 south of Smáralind, in a neighbourhood that has been named Smárabyggð.
At the end of the year, a contract was signed for private negotiations and the main terms of the proposed purchase of all the shares of Fast-1 slhf. subsidiaries, HTO ehf. and Fast-2 ehf. The largest properties of the companies are Katrínartún 2 (Höfðatorg Tower) and Borgartún 8-16. Other properties include Skúlagata 21, Vegmúli 3 and Skútuvogur 1. Overall, the property portfolio is 44 thousand square metres as well as a car parking cellar with over 600 parking spaces. If the transaction will be completed, thit will be the largest transaction that the company has undertaken.
Internal activities
At the years end, Reginn and its subsidiaries have staff of 27, where 6 employees work directly at Smáralind and Egilshöll.
Continuous efforts are being made to strengthen the risk awareness of the board and management, the development and structure of work processes, the strengthening of the information system and improve the organizational structure. The work is under preparation for equal payment certification.
Last year, working sessions were held twice for various professional issues relating to the company and future projects. National and foreign expert consultants discussed, among other things, the Financial Market, the Retail Market, the Hotel Market and the Residential Market - Property Companies. These working sessions have been well received and inspired to us in various ways.
Reginn's Board of Directors
Experience: Owner of Sigla ehf and Klasi ehf. from the year 2007. Director of risk management, financial management and accounting at Fjárfestingarbanki atvinnulífsins, later Íslandsbanki/Glitnir bank, 1998-2007. In1990-1998 Head of loan supervision at Iðnlánasjóður.
Other employment and positions: Sigla ehf. (Director), Klasi ehf. (Chairman of the Board), Klasi Investment ehf. (Chairman of the Board), Gani ehf. (Chairman of the Board), Elliðaárvogur ehf. (Chairman of the Board), Heljarkambur ehf. (Chairman of the Board), Nesvellir ehf. (Director), NV lóðir ehf. (Director), NVL ehf. (Director), Sjóvá Almennar tryggingar hf. (Director), Grunnur I hf. (Director), Smárabyggð ehf. (Chairman of the Board), Traðarhyrna ehf. (Chairman of the Board) and Húsafell Resort ehf. (Director).
Shares in Reginn hf.: Through Sigla ehf., where Tómas holds half of the shares, owns 100,000,000 shares in the company or 6.43%.
Interests: There are no interests with the largest customers of the company, its competitors or shareholders holding more than 10% of shares in the company.
Tómas is Chairman of the Board of Smárabyggð ehf. but the company is developing a residential zone south of the Smáralind. Smárabyggð ehf. owns 50% in the company 201 Miðbær ehf. against 50% of Reginn hf. but 201 Miðbær ehf. owns the building rights on the sites no. 03 and 04 in the aforementioned zone. Shares of Reginn in 201 Miðbær ehf. are now in the process of being sold. Also Klasi ehf. leases office space owned by Reginn hf. at Suðurlandsbraut 4, while Tómas is Chairman of the Board of Klasi.
Experience: Head of quality and development section at Samkaup hf. and before as purchasing and operations manager. In the years 1987 - 1999 Benedikt was an independent merchant.
Other employment and positions: At the central management of Lífeyrissjóður verzlunarmanna (a pension fund), Endurvinnslan hf. (Alternate Director). Chaiman of the Merchant Association of Iceland.
Shares in Reginn hf.: None
Interests: Is a member of the board of Lífeyrissjóður Verslunarmanna that holding 12.88% shares in Reginn hf.
Other employment and positions: Gneis ehf. (Director).
Shares in Reginn hf.: Albert owns 10.000 shares in the company or 0,0006429%.
Interests: There are no interests with the largest customers of the company, its competitors or shareholders holding more than 10% of shares in the company.
Albert leases office space at Hlíðasmári 6 from Reginn’s hf. subsidiary.
Other employment and positions: Chairman of the School Committee of the Icelandic Commercial School since 2006, Ofanleiti 1 ehf. (Chairman of the Board) from 2011, TM from 2011 (Alternate Director), Pfaff hf. 2007-2012 (Director).
Shares in Reginn hf.: None
Interests: There are no interests with the largest customers of the company, its competitors or shareholders holding more than 10% of shares in the company.
Other employment and positions: None
Shares in Reginn hf.: None
Interests: There are no interests with the largest customers of the company, its competitors or shareholders holding more than 10% of shares in the company.
Alternate Director
Finnur Reyr Stefánsson
Director from April 2014
Education: BS in Economics 1992 from the University of Iceland and MBA in Financing from Virginia Tech 1994. Certified securities broker 2001.
Employment: Owner of Sigla ehf. from spring 2007 (one of two owners).
Experience: Managing Director of Glitnir's Operational Section 2006-2007. Director of Marketing Investments at Íslandsbanki - FBA (Glitnir Bank) 2000-2006. Specialist in Risk Management of the Fjárfestingarbanki atvinnulífsins 1998-1999. Fund Manager of Equity and Stock Funds at Landsbréf 1994-1997. Alternate Director of Reginn hf. from 2014.
Other employment and positions: Klasi ehf. and subsidiaries.
Shares in Reginn hf.: Through Sigla ehf., where Finnur holds half of the shares, owns 100,000,000 shares in the company or 6.43%.
Interests: There are no interests with the largest customers of the company, its competitors or shareholders holding more than 10% of shares in the company.
Alternate Director
Hjördís Dröfn Vilhjálmsdóttir
Í stjórn Regins frá apríl 2013 og formaður endurskoðunarnefndar frá desember 2013.
Menntun: M.Sc. í stjórnun og stefnumótun frá Háskóla Íslands og B.Sc. í hagfræði frá sama skóla.
Aðalstarf: Sjálfstætt starfandi
Starfsreynsla: Framkvæmdastjóri endurskipulagningar eigna hjá Landsbankanum 2010-2012 og framkvæmdastjóri Bíla- og tækjafjármögnunar hjá Landsbankanum 2011-2012. Ráðgjafi fjármálaráðherra frá 2009-2010. Hagfræðingur hjá Íslandsbanka og Seðlabankanum frá 1999.
Önnur trúnaðarstörf og stjórnarseta: Fjármálaráð.
Hlutafjáreign í Reginn hf.: Engin,
Director from April 2013 and Chairman of the Audit Committee from December 2013.
Education: M.Sc. in Management and Strategy Planning from the University of Iceland and B.Sc. in Economics from the same university.
Employment: Independent consultant.
Experience: Managing Director of Landsbanki Reorganization of Assets 2010-2012 and Managing Director of Automotive and Equipment Financing at Landsbankinn 2011-2012. Advisor to the Minister of Finance from 2009-2010. Economist at Íslandsbanki and the Central Bank since 1999.
Other employment and positions: Financial Council.
Shares in Reginn hf.: None
CEO
Other employment and positions: Helgi is Director of the Boards of all subsidiaries owned by Reginn hf. as the following companies; 220 Miðbær ehf., Reykir Properties ehf., FM-hús ehf., Hafnarslóð ehf. og Hörðuvellir ehf., as a Director of the Board of B38 ehf.
Shares in Reginn hf.: Helgi has 1.521.952 shares in the company through the company B38 ehf.