Eik fasteignafélag (EIK) Q1 2025 earnings summary

Executive summary

• Operating income rose 9.4% year-over-year to ISK 2,964 million in Q1 2025, driven by growth in commercial property and hotel operations.

• EBITDA increased 6.9% to ISK 1,817 million, while net profit declined to ISK 1,366 million from ISK 2,051 million due to lower fair value changes.

• Hreiðar Már Hermannsson was appointed CEO in April 2025.

• The company completed the sale of Rauðarárstígur 27 for ISK 820 million, realizing a profit of ISK 42 million.

• The tender process for Glerártorg concluded without a satisfactory outcome, but ongoing opportunities remain.

Financial highlights

• Total assets reached ISK 160,890 million at March 31, 2025, with investment properties valued at ISK 147,606 million.

• Equity ratio stood at 33.6% at the end of Q1 2025.

• Cash flow from operations was ISK 1,038 million, a 2.7% increase year-over-year.

• Basic and diluted EPS for the quarter was ISK 0.40, down from ISK 0.60 in Q1 2024.

• EBITDA per share before tax was ISK 0.54, up from ISK 0.50 in Q1 2024.

Outlook and guidance

• Ongoing negotiations for the acquisition of Festing, with a decision expected in Q2 2025 and potential to expand the portfolio by 43,000 sqm, mainly in Reykjavík.

• Dividend of ISK 3,393.4 million for FY 2024 approved, to be paid in two equal installments in 2025.

• The company plans to continue developing Glerártorg as a key retail and service hub in North Iceland.