Reitir fasteignafélag (REITIR) Q3 2024 earnings summary

Executive summary

• Strong revenue and operating profit growth in the first nine months of 2024, outpacing inflation and in line with guidance.

• Operating profit rose 8.5% year-over-year, with asset portfolio expanding by 12%.

• Accelerated investment activity, with ISK 9 billion invested during the period and an additional ISK 6–6.2 billion post-period.

• Company targets ISK 300 billion in assets and over 60% EPS growth.

• Insurance claims and compensation payments related to the Kringlan fire are progressing.

Financial highlights

• Rental income for Jan–Sep 2024 was ISK 12,123 million, up 8.3% year-over-year.

• Operating profit before revaluation was ISK 8,042 million, up from ISK 7,411 million last year.

• Net profit for the period was ISK 10,373 million, up 115% year-over-year.

• Asset value reached ISK 217,988 million, the highest growth since 2016.

• Equity ratio stood at 31% at the end of September 2024.

Outlook and guidance

• Full-year 2024 operating profit expected at the upper end of ISK 10,900–11,100 million guidance.

• 2024 revenue forecast at ISK 16,400 million, with new assets contributing in Q4.

• 2025 revenue projected to grow 8.5% to ISK 17.8 billion, with inflation expected at 4%.

• Utilization rates may dip early in 2025 but are expected to stabilize.

• Ongoing assessment and recovery from the Kringlan fire expected to conclude by year-end.