Eik fasteignafélag hf.: Financial Statements 2024

The main results from the Company's Financial Statements for the year 2024 are:

• Income from operations amounted to ISK 11,495 million
  • Thereof, rental income amounted to ISK 9,896 million
• Operating profit before changes in value and depreciation amounted to 7,341 million
• Total comprehensive profit amounted to ISK 6,477 million.
• Net cash from operations amounted to ISK 4,875 million.
• The book value of investment properties amounted to ISK 145,471 million. 
• The book value of assets for own use amounted to ISK 5,852 million
• Change in value of investment properties amounted to ISK 7,327 million.
• Cash and cash equivalents amounted to ISK 3,594 million.
• Interest-bearing debt amounted to ISK 85,098 million
• Equity ratio was 33.7%.
• Earnings per share was ISK 1.9.
• Economic occupancy rate was 93.6%
• Weighted indexed interest was 3.59%.
• Weighted unindexed interest was 7.67%.
• The loan-to-value ratio (net interest bearing debt / value of real estate, building permits and plots) was 54.9% at the end of the period.
• The Board of Directors proposes a dividend payment of ISK 3,393.4 million

Garðar Hannes Friðjónsson, CEO:

"Challenges within the company's asset portfolio, particularly regarding the expiration of major lease agreements in recent periods, have provided an opportunity to develop the company’s real estate portfolio in line with the needs of new clients while also expanding the potential for further rental income growth. The company’s goal of increasing rental income has been achieved so far and is reflected in the 2025 financial plan, which projects an approximately 5% real growth in rental income and around 4.5% real growth in adjusted EBITDA, largely based on existing lease agreements and an almost unchanged property portfolio.

Continued expansion is anticipated this year, which is expected to contribute annual rental revenues of ISK 540–570 million, assuming a 95% occupancy rate and the leasing of 6,400 square meters of development space. These rental revenues are expected to have a direct impact on operating profit.

That being said, the company’s development is far from complete. In addition to the 6,400 square meters currently being leased, the company has an additional 13,000 square meters under development, along with significant opportunities stemming from its existing building permits.”

The financial statements of Eik fasteignafélag were approved by the Company’s Board of Directors and CEO on 13 February 2025.

Attached is an interim financial report which contains Condensed Consolidated Financial Statements for the year 2024 together with further information on the Company’s operations than are included in the announcement.

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

Operation of the year

Although potential acquisition made their mark on the Company's operations during the year, the Company's operations were in line with the Company's updated plans. The Company's operating revenue amounted to ISK 11,224 million in 2024. Of this, rental income was ISK 9,896 million. Operating expenses amounted to  ISK 4,154 million, of this one-off items amounted to ISK 13,0 million. Operating profit before changes in fair value and depreciation amounted to ISK 7.341 million. Profit before income tax amounted to ISK 8.124 million and the Company's total comprehensive income for 2024 amounted to ISK 6.477 million.

The Net Operating Income (NOI) ratio (i.e. operating profit before changes in value and depreciation adjusted for one-off revenue and cost) was 72.4% for the year 2024, compared to 73.9% for the year 2023.

Balance sheet

Total assets of the Company amounted to ISK 156,250 million as at 31 December 2024, whereof investment properties amounted to ISK 145,471 million, assets for own use ISK 5,852 million. The Company’s equity at year end 2024 amounted to ISK 52,661 million and equity ratio was 33.7%. The Company’s Annual General Meeting on 11 April 2024 approved an ISK 2,254 million payment of dividend to shareholders for the operating year 2023 and it was paid on 30 April 2024.

The Company’s total liabilities amounted to ISK 103.589 million as at 31 December 2024, of which interest-bearing debt was ISK 85.098 million and deferred tax liability ISK 14.151 million. The loan-to-value ratio (net interest bearing debt / value of real estate, building permits and plots) was 54.9%.

Company Portfolio

The Company invested heavily in existing real estate during the year. The main investments of the year were continued construction at Smáratorg 3, renovations and refurbishment of new stores at Eyravegur 42 and refurbishment of office space for new tenants in Kvosin. The Company also bought Réttarheiði 45 in Hveragerði, where an extension to a kindergarten is being built.

Further information on the Company's portfolio can be found in the attached annual report.

Proposal for payment of dividend

The Board of Directors proposes a dividend payment of ISK 3,393.4 million to shareholders for the operating year 2024, taking into account the Company’s dividend policy and share buybacks, which amounted to approximately ISK 299 million during the year 2024. It will be proposed to the shareholders' meeting that the dividend be paid in two equal instalments. Further information on the proposal that will be presented to shareholders at the Company's annual general meeting, which is planned for April 10th, will be included in the notice of the annual general meeting

Outlook

According to the financial budget for 2025, the Company estimates that its operating revenues will be in the range of 12,055 – 12,545 million ISK at a fixed price level based on the consumer price index in January 2025. Of this, rental income is estimated to be in the range of ISK 10,375 – 10,800 millions and based on the median forecast, the Company expects approximately 5% real interest on rental income. The Company also estimates that its EBITDA for the year will be in the range of 7,620 – 7,940 million ISK.

The Company's goal is that by the end of 2025, the Company's occupancy rate will have reached 95% and agreements have been signed for 6,400 square meters of development square meters in addition to the 4,600 square meters. development square meter that has already been signed.  If these plans come to fruition, the company expects rental income to increase by ISK 540 – 570 million on an annual basis and on the above forecast.

Further discussion of the Company's financial plan for 2024, as well as its rental income can be found in the attached Annual Report.

Briefing session

An open briefing sessionfor market participants will be held on Friday 14 February 2025 at 8:30 AM. Garðar Hannes Friðjónsson CEO and Lýður H. Gunnarsson CFO will present the results and respond to questions following the presentation.

Registration for the electronic presentation is here:

https://vimeo.com/event/4909897/2be07c160c

Following registration, participants will receive an e-mail with further information.

Market participants can send questions before or during the meeting to the e-mail address fjarfestatengsl@eik.is. Management encourages marketers to submit questions prior to the meeting so that answers can be prepared, if needed. Questions will be answered after the presentation.

Financial Calender

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

Annual General Meeting 2025                              10. April 2025
Quarterly results Q1 2025                                       2. May 2025
Quarterly results Q2 2025                                      15. August 2025
Quarterly results Q3 2024                                      31. October 2025
Management result and budget                           5. February 2026
2025 Annual Result                                                  12. March 2026

Further information will be provided by:

Garðar Hannes Friðjónsson CEO, gardar@eik.is, tel. 590-2200
Lýður H. Gunnarsson CFO, lydur@eik.is, tel. 820-8980

Attachment

• 24.12.31 Eik fasteignafélag - Condensed Consolidated Financial Statement 2024