Eik fasteignafélag hf.: Interim results for the first six months of 2025

The Interim Consolidated Financial Statements of Eik fasteignafélag hf. for the period 1 January to 30 June 2025 were approved by the Company’s Board of Directors and CEO on 13 August 2025.

The main results are as follows:

• Income from operations amounted to ISK 5,998 million.
  • Thereof, rental income amounted to ISK 5,219 million an increase of 8.5% from the same period last year.
• Operating income before fair value changes, sales gain and depreciation and amortization amounted to 3,693 million.
• Total comprehensive profit amounted to ISK 3,379 m.kr..
• Net cash from operations amounted to ISK 1,943 m.kr.
• Book value of investment properties amounted to ISK 151,523 million. 
• Book value of assets for own use amounted to ISK 5,501 million
• Change in fair value of investment properties amounted to ISK 4,293 million.
• Cash and cash equivalents amounted to ISK 3,578 million.
• Interest-bearing debt amounted to ISK 88,0577 million
• Equity ratio was 32.4%.
• Earnings per share was ISK 1.00.
• Economic occupancy rate was 94.8%
• Weighted indexed interest was 3.49%.
• Weighted unindexed interest was 7.67%.
• Loan-to-value ratio (net interest-bearing debt / value of real estate, building permits, and land) was 56.1%

In case of any discrepancy in the English and the Icelandic versions of this announcement or the Financial Statements, the Icelandic version shall prevail.

Attached is the Interim Consolidated Financial Statements for the first six months of the year 2025.

Operations of the period

There was strong growth in the Company's revenue and EBITDA in the first six months of the year, and the operations were in line with the plan. The Company's operating revenue amounted to ISK 5,998 million in the first six months of 2025, an increase of 8.5% compared to the same period in 2024. Of this, rental income was ISK 5,219 million, with a real growth of 4.3% year-on-year. Operating expenses amounted to ISK 2,305 million, of which one-off expenses were ISK 90 million.

Operating profit before valuation changes, sales gain, depreciation and amortization amounted to ISK 3,693 million compared to ISK 3,519 million in the same period the previous year. Adjusted for one-off expenses, EBITDA for the first half of 2025 amounted to ISK 3,783 million, an increase of 7.5% year-on-year. Profit before income tax amounted to ISK 4,224 million, and the total profit of the Group in the first six months of 2025 amounted to ISK 3,379 million.

The NOI ratio (i.e., operating profit before valuation changes and depreciation as a percentage of rental income adjusted for one-off expenses) was 71.3% in the first six months of 2025 compared to 71.6% for the same period in 2024.

Financial Position

The Company's total assets amounted to ISK 162,348 million as of 30 June 2025. Of this, investment properties were valued at ISK 151,523 million, and assets for own use amounted to ISK 5,501 million. The Company's total equity amounted to ISK 52,647 million at the end of the period, with an equity ratio of 32.4%. At the Company's annual general meeting on 10 April 2025, it was approved to distribute dividends to shareholders for the financial year 2024 amounting to ISK 3,393.4 million, which was agreed to be paid in two instalments. The first payment of ISK 1,696.7 million was made to shareholders on 23 April 2025, and the second payment of the same amount will be made on 8 October 2025. The equity position and equity ratio as of 30 June 2025 take these commitments into account.

The Company's total liabilities amounted to ISK 109,701 million as of 30 June 2025. Of this, interest-bearing liabilities were ISK 88,057 million, and deferred tax liability was ISK 14,995 million. The Company's loan-to-value ratio, i.e., the net position of interest-bearing liabilities against the value of real estate and building permits, was 56.1% taking into account the approved unpaid dividend. The Company issued a new bond series, EIK 150536, at the beginning of February. The series carries 3.8% inflation-indexed interest and was sold for ISK 4,000 million at the beginning of February and ISK 2,000 million at the end of February in that series. The total size of the series after expansion was therefore ISK 6,000 million, with a maximum size of ISK 10,000 million. Part of the financing was used to pay down less favourable bank financing. The proportion of inflation-indexed loans was nearly 97.3% at the end of the first half of 2025.

Company ‘s Portfolio

The Company signed a purchase agreement for the acquisition of all shares in Festing hf. at the end of last May. The acquisition is subject to conditions, including approval from the Competition Authority. Festing's real estate in Iceland amounts to approximately 43 thousand square metres across 12 properties and houses the operations of Samskip hf. in Iceland. A 20-year lease agreement for the properties will be made from the delivery of Festing's shares. The transaction is expected to be completed in the fourth quarter of 2025.

Rauðarárstígur 27 was sold at the end of last February, and the property was handed over at the same time. The property had mostly been vacant since the tenant vacated it in the summer of 2024. The sales gain amounted to approximately ISK 42 million.

Economic Occupancy Rate

The Company's leasing activities performed well in the first half of the year, increasing by 1.2 percentage points since the beginning of the year, reaching 94.8% at the end of the quarter.

The Company signed lease agreements with new and existing tenants for nearly 27,300 square metres. Notable agreements include the lease of the entire 2nd floor of Skeifan 8, the lease of the property at Smiðshöfði 9, the expansion of the tenant in Holtasmári 1, lease agreements for approximately 3,100 square metres in Smáratorg 3, and about 1,000 square metres in Kvosin. Additionally, the Company received nearly 14,500 square metres back from leases during the period.

 Updated outlook

The Company has updated its outlook for 2025 and expects annual operating revenue to be between ISK 12,270 million and ISK 12,650 million at constant prices, based on the consumer price index for inflation protection in September 2025. Of this, rental income is estimated to range from ISK 10,590 million to ISK 10,910 million. The Company also expects EBITDA for 2025 to be between ISK 7,735 million and ISK 7,975 million.

As previously mentioned, the Company signed a purchase agreement for all shares in Festing hf. at the end of last May. The completion of the transaction is underway, subject to approval from the Competition Authority, and revenue from Festing's assets is not expected in 2025.

The updated outlook considers, among other things, an agreement made by the Company in the second quarter with a tenant to terminate a lease agreement, which has an impact of approximately ISK 80 million in reducing revenue for 2025. Despite that, the company is within the original outlook range.

The Company now expects the occupancy rate to be between 94% and 95% by the end of 2025. Leasing of development square metres has progressed slower than expected in the first half of the year. Of the nearly 11 thousand development square metres the Company planned to make leasable by the end of 2025, lease agreements have been signed for about 4,800 square metres. It is likely that leasing of the remaining 6,100 square metres will extend into 2026.

When the Company has achieved its goal of a 95% economic occupancy rate and taking into account the leasing of the aforementioned 6,100 square meters of development space, the company expects annual rental income based on the current portfolio, updated outlook and excluding the impact of the purchase of all shares of Festing hf. to increase by 565 – 590 million ISK.

Presentation meeting

An open presentation meeting for market participants will be held on Thursday, 14 August 2025 at 8:30 AM at the Company's offices on the 18th floor of Smáratorg 3. Light breakfast will be offered from 8:00 AM. Hreiðar Már Hermannsson, CEO, and Lýður H. Gunnarsson, CFO, will present the financial results and answer questions following the presentation.

The meeting will also be streamed online, and registration for the virtual meeting can be done here:

After registration, participants will receive an email with further information.

Market participants can send questions for the meeting to the email address . Questions will be answered after the presentation.

Following the meeting, the company will offer attendees a short educational seminar on income tax liabilities of real estate companies and their relation to future tax payments. The company encourages interested parties to attend on the 18th floor of Smáratorg 3.

Financial calendar

Following are planned dates for publishing of interim and annual results:

Quarterly results Q3 2025                              29. October 2025

Management result and budget 2026            5. February 2026

2025 Annual Result                                        12. March 2026

The publication of financial information will take place after market close.

For further informations:

Hreiðar Már Hermannsson, CEO, , s. 856-5907

Lýður H. Gunnarsson, CFO, , s. 820-8980

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