Reitir fasteignafélag (REITIR) Q2 2024 earnings summary

Executive summary

• Revenue and operating profit growth exceeded inflation, with a significant increase in total profit for the group in H1 2024 compared to H1 2023.

• Strong Q2 operating results aligned with annual plans and forecasts.

• New long-term targets set in spring; progress achieved on eight performance metrics.

• Active expansion of the asset portfolio, with investments totaling nearly ISK 6 billion in H1 and further acquisitions post-period.

• Insurance coverage deemed sufficient after a fire incident in Kringlan; assessment ongoing.

Financial highlights

• Rental income for H1 2024 was ISK 7,941 million, up 8.0% year-over-year.

• Operating profit before fair value changes increased 6.8% to ISK 5,242 million.

• Fair value changes in investment properties rose 22.1% to ISK 12,268 million.

• Net profit grew 37% year-over-year to ISK 9,253 million.

• Total assets at June 30, 2024, were ISK 212,441 million; equity was ISK 66,381 million.

Outlook and guidance

• Operating profit before fair value changes expected in the range ISK 10,900–11,100 million for 2024, likely at the upper end.

• Revenue guidance for 2024 is ISK 16,200–16,400 million, driven by new property acquisitions.

• No significant cost impact from the Kringlan fire is anticipated in the outlook; insurance expected to cover losses.

• Portfolio expansion and ongoing investments are expected to continue.