Eik fasteignafélag (EIK) Q2 2025 earnings summary

Executive summary

• Rental income and operating revenue grew by 8.5% year-over-year to ISK 5,998 million in 1H 2025, with strong leasing activity and new contracts signed for significant floor space.

• EBITDA reached ISK 3,693 million, with adjusted EBITDA up 7.5% to ISK 3,783 million.

• Net profit for the period was ISK 3,379 million, supported by a positive ISK 4,293 million valuation change in investment properties.

• Cash flow from operations increased 10.3% year-over-year to ISK 1,943 million.

• Acquisition agreement signed for all shares in Festingar hf., with transaction completion pending regulatory approval.

Financial highlights

• Total assets rose 3.9% to ISK 162,348 million compared to year-end 2024, with investment properties valued at ISK 151,523 million.

• Operating profit before valuation changes, sales gain, depreciation, and amortization was ISK 3,693 million, up from ISK 3,519 million year-over-year.

• Basic EPS for the first half was ISK 1.00, up from ISK 0.82 year-over-year.

• Equity stood at ISK 52,647 million, with an equity ratio of 32.4%.

• Net loan-to-value ratio increased to 56.1% from 54.9%.

Outlook and guidance

• Updated 2025 revenue guidance set at ISK 12,270–12,650 million, with EBITDA expected between ISK 7,735–7,975 million.

• Rental income for 2025 projected at ISK 10,590–10,910 million.

• Occupancy rate is forecasted at 94–95% by year-end, with slower-than-expected leasing of development space.

• No revenue from Festingar properties anticipated in 2025.

• Revenue for 2025 reduced by ISK 80 million due to a major lease termination.