Reitir fasteignafélag (REITIR) Q2 2025 earnings summary

Executive summary

• Revenue grew 10.5% year-over-year in H1 to 8,774 m.kr., with Q2 revenue at 4,469 m.kr., up 3.8% sequentially.

• Operating profit before revaluation increased 8.2% year-over-year to 5,674 m.kr. in H1, and 2.6% quarter-over-quarter in Q2.

• Net profit for H1 was 2,771 m.kr., down 70.1% year-over-year due to lower revaluation/fair value gains.

• Over ISK 5 billion invested in new properties and improvements in H1, with further investments after period end.

• Shareholder count increased from 843 to 882 during the period.

Financial highlights

• Rental income for H1 was 8,774 m.kr., up 10.5% year-over-year, and Q2 rental income was 4,469 m.kr., up 3.8% from Q1.

• Operating profit before revaluation for H1 was 5,674 m.kr., up 8.2% year-over-year.

• Net profit for H1 was 2,771 m.kr., down from 9,253 m.kr. last year, mainly due to a 70.6% drop in revaluation/fair value gains.

• Total assets at June 30, 2025, were ISK 238,735 million; equity was ISK 71,708 million.

• Fair value increase of investment properties was ISK 3,604 million, compared to ISK 12,268 million in H1 2024.

Outlook and guidance

• Management raised 2025 revenue guidance to 17,900–18,200 m.kr., an increase of 200 m.kr. from previous estimates.

• Operating profit for 2025 is expected in the range of 11,850–12,150 m.kr.

• Real revenue growth is projected to average 6% annually over the next three years, reaching 21.5 ma.kr. by 2027.

• Performance in H1 2025 met published outlook, with positive impact from lower inflation on finance costs.

• Continued focus on expanding the property portfolio, with additional investments after the reporting period.