Eik fasteignafélag hf.: Interim Financial Statement for the First Nine Months of 2025
The condensed interim financial statements of Eik fasteignafélag hf. for the period from 1 January to 30 September 2025 were approved by the Board of Directors and CEO on 29 October 2025.
The main results from the Condensed Interim Financial Statements are as follows:
- Income from operations amounted to ISK 9,296 million
- Thereof, rental income amounted to ISK 7,980 million and has increased 8.9% between years.
- Operating profit before changes in fair value, sales gain and depreciation and amortization amounted to 5,833 million.
- Total comprehensive profit amounted to ISK 3,804 million.
- Net cash from operations amounted to ISK 3,749 million.
- The book value of investment properties amounted to ISK 152,811 million.
- The book value of assets for own use amounted to ISK 5,450 million.
- Change in value of investment properties amounted to ISK 4,412 million.
- Cash and cash equivalents amounted to ISK 3,708 million.
- Interest-bearing debt amounted to ISK 88,360 million.
- Earnings per share was ISK 1.12.
- Economic occupancy rate was 95.6%.
- Weighted indexed interest was 3.49%.
- Weighted unindexed interest was 7.67%.
- The loan-to-value ratio (net interest-bearing debt / value of real estate, building permits and plots) was 55.7% at the end of the period.
In case of any discrepancy in the English and the Icelandic versions of this announcement or the Financial Statements, the Icelandic version shall prevail.
Attached is the Interim Consolidated Financial Statements for the first nine months of the year 2025.
Operation of the period
There was strong growth in the Company 's revenue and EBITDA in the first nine months of the year, and operations were in line with the updated outlook. The Company 's operating revenue amounted to ISK 9,296 million in the first nine months of 2025, an increase of 9.2% compared to the same period in 2024. Of this, rental income was ISK 7,980 million, with a real growth of 5.1% year-on-year based on a comparable asset portfolio. Operating expenses amounted to ISK 3,463 million, of which one-off costs were ISK 135 million.
Operating profit before valuation changes, sales gain, and depreciation and amortization amounted to ISK 5,833 million compared to ISK 5,537 million in the same period last year. Adjusted for one-off costs, EBITDA for the first nine months was ISK 5,968 million, an increase of 7.8% year-on-year. Profit before income tax amounted to ISK 4,755 million, and the Group’s total profit for the first nine months of 2025 was ISK 3,804 million.
The Net Operating Income (NOI) ratio (i.e., operating profit before valuation changes and depreciation as a percentage of rental income) was 72.6% in the first nine months of 2025 compared to 73.4% for the same period in 2024.
Balance sheet
The Company’s total assets amounted to ISK 163,349 million on 30 September 2025. Of this, investment properties were valued at ISK 152,811 million, and assets for own use amounted to ISK 5,450 million. The Company’s equity amounted to ISK 53,071 million at the end of the period, and the equity ratio was 32.5%. At the Company’s annual general meeting on 10 April 2025, it was approved to pay dividends to shareholders for the financial year 2024 amounting to ISK 3,393.4 million, to be paid in two instalments. The first instalment of ISK 1,696.7 million was paid to shareholders on 23 April 2025, and the second instalment of the same amount was paid on 8 October 2025. The equity position and equity ratio as of 30 September 2025 does take into account the obligations related to the second dividend payment.
The Company’s total liabilities amounted to ISK 110,278 million on 30 September 2025. Of this, interest-bearing liabilities were ISK 88,360 million, and deferred tax liabilities were ISK 15,102 million. The Company’s loan-to-value ratio, i.e., the net position of interest-bearing liabilities against the value of real estate and building permits, was 55.7%, taking into account the approved unpaid dividend. The proportion of inflation-indexed loans was approximately 97.4% at the end of the third quarter of 2025. The Company issued a new bond series, EIK 150536, in early February 2025. The series carries 3.8% inflation-indexed interest and was sold for ISK 4,000 million in early February and ISK 2,000 million at the end of February. On 20 October 2025, the series was further expanded with the sale of bonds worth ISK 2,500 million nominal at a yield of 4.12%. The total size of the series after this expansion is ISK 8,500 million. The October expansion will be used to repay EIK 25 1, which matures in December 2025. The Company also extended inflation-indexed bank loans amounting to ISK 1,360 million on unchanged terms for three years.
The Company 's Real Estate Portfolio
The Company signed a purchase agreement for all shares in Festing hf. at the end of May. Festing’s properties in Iceland amount to approximately 43,000 square metres across 12 properties and house the operations of Samskip hf. in Iceland, with a 20-year lease agreement on the properties effective from the delivery of Festing’s shares. The acquisition was subject to approval by the Competition Authority, with the deadline for annulment set for 2 October 2025. The Company did not receive any notification from the Authority before this date regarding a continued investigation. On 8 October 2025, the Company received a decision from the Competition Authority stating that the Authority found no grounds to take further action regarding the acquisition. The Company is now working on finalizing the transaction.
The Company sold Rauðarárstígur 27 at the end of February and handed over the property at the same time. The sales gain of the property amounted to approximately ISK 42 million.
The Company 's Occupancy Rate
The Company 's leasing performed well in the first nine months of the year, increasing by 2.0 percentage points from the beginning of the year and was 95.6% at the end of the quarter.
The Company signed lease agreements with new and existing tenants for nearly 30,500 square meters. Notable agreements include the lease of the entire 2nd floor of Skeifan 8, a lease agreement for the property at Smiðshöfði 9, expansion of a tenant at Holtasmári 1, lease agreements for about 3,100 square meters in Smáratorg 3, about 1,000 square meters in Kvosin, and over 500 square meters at Glerártorg. The Company also regained over 16,800 square meters from leases during the period.
Updated Outlook
The Company has updated its outlook for 2025 and expects operating revenues for the year to be between ISK 12,360 and 12,610 million at constant prices, based on the consumer price index in November 2025. Of this, rental income is estimated to be between ISK 10,650 and 10,870 million. The Company also expects EBITDA for 2025 to be between ISK 7,760 and 7,920 million.
The Company’s outlook does not include income or expenses from Festing hf.’s properties in 2025. A separate announcement will be made regarding the completion of the transaction and its impact on the Company as appropriate.
The updated outlook partly reflects an agreement the Company made in the second quarter with one tenant to terminate a lease agreement, which has an approximate ISK 80 million negative impact on 2025. Despite this, the Company remains within its original forecast range.
The Company now expects the occupancy rate to be between 94-95% by the end of 2025. Leasing of development square meters has progressed more slowly than expected in the first nine months of the year. Of the nearly 11,000 development square meters the Company planned to make leasable by the end of 2025, lease agreements have been signed for approximately 4,800 square meters. Leasing of the remaining 6,100 square meters will be delayed into 2026, but negotiations are ongoing for several of those spaces.
Once the Company has achieved its target of a 95% occupancy rate and taking into account leasing of the aforementioned 6,100 development square meters, it expects that annual rental income based on the current asset portfolio, updated outlook, and excluding effects from the acquisition of all shares in Festing hf., will increase by ISK 470 - 510 million.
New Organisational Structure
On 26 August, the Company announced a new organisational structure following organisational changes that took effect the same day. The aim of the changes is to prioritise customer service while simplifying and clarifying communication channels within the Company’s operations. The new division, Customers, combines leasing, property management, and business development into one unit. Information technology was moved under the Finance division, and the Legal department was placed under the CEO’s office. Following the changes, the executive management team was reduced from seven to four members.
Briefing session
An open briefing session for market participants will be held on Thursday, 30 October 2025 at 8:30 AM at the Company’s office on the 18th floor of Smáratorg 3. A light breakfast will be served from 8:00 AM. Hreiðar Már Hermannsson, CEO, and Lýður H. Gunnarsson, CFO, will present the results and answer questions after the presentation.
The meeting will also be streamed online, and registration for the virtual meeting can be done here:
https://vimeo.com/event/5470381/280f835425
After registration, participants will receive an email with further information.
Market participants can send questions before the meeting to fjarfestatengsl@eik.is. Questions will be answered after the presentation.
Financial Calender
Following are planned dates for publishing of interim and annual results:
Management 2025 result and 2026 budget 5 February 2026
2025 Annual Result 12 March 2026
The publication of financial information will take place after market closure.
Further information will be provided by:
Hreiðar Már Hermannsson CEO, hreidar@eik.is, tel. 856-5907
Lýður H. Gunnarsson CFO, lydur@eik.is, tel. 820-8980
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