Reitir fasteignafélag (REITIR) Q4 2024 earnings summary

Executive summary

• Achieved record asset growth in 2024, with investment properties increasing by 19.5% to ISK 226.4bn and total assets reaching ISK 231.4bn.

• Operating profit rose 8.1% year-over-year to ISK 10.97bn, with rental income up 8.8% to ISK 16.44bn.

• Net profit more than doubled to ISK 15.3bn, driven by valuation gains and strong revenue growth.

• Major investments in new properties and development projects, including 14 acquisitions and significant upgrades.

• New strategy introduced, focusing on accelerated growth, development, and sustainability, aiming for ISK 300bn in assets within five years.

Financial highlights

• Rental income increased by ISK 1.34bn (8.8%) year-over-year; operating profit up ISK 824m (8.1%).

• Net profit for the year was ISK 15.3bn, more than doubling from 2023.

• Asset revaluation gains totaled ISK 17.8bn, driven by price increases and higher market rents.

• Total assets at year-end were ISK 231.4bn; equity increased to ISK 72.4bn.

• Return on equity rose to 23.6% from 12.8% year-over-year.

Outlook and guidance

• 2025 rental income expected to grow 8–9% to ISK 17.7–18.0bn; operating profit forecasted to rise 7–10% to ISK 11.75–12.05bn.

• Planned ISK 26bn investment in development projects over three years, with ISK 7bn in 2025.

• Projected rental income increase of ISK 2.3bn from new developments.

• Market rent adjustments expected as one-third of contracts renew in 2025–2026.

• Cost ratios and utilization rates anticipated to remain stable; no new asset acquisitions included in guidance.