Eik fasteignafélag hf.: Interim Financial Statements for the First Three Months of 2026
The Interim Financial Statements of Eik fasteignafélag hf. for the period from 1 January to 31 March 2026 were approved by the Board of Directors and the CEO on 7 May 2026.
Enclosed is the interim report, which includes the Interim Financial Statements for the first three months of the year along with detailed information about the Company’s operations as presented in the announcement.
The key results of the Interim Financial Statements are
- Income from operations amounted to ISK 3,509 million
- Thereof, rental income amounted to ISK 3,094 million
- Operating profit before changes in fair value and depreciation amounted to 2,206 million
- Total comprehensive profit amounted to ISK 977 million.
- Net cash from operations amounted to ISK 1,474 million.
- The book value of investment properties amounted to ISK 175,182 million.
- Change in fair value of investment properties amounted to ISK 2,669 million.
- Gain on sale of investment properties amounted to ISK 26 million
- Cash and cash equivalents amounted to ISK 3,472 million.
- Interest-bearing debt amounted to ISK 106,226 million
- Net leverage ratio (net interest-bearing debt / value of properties, land plots, and building permits) amounted to 58.6%
- Earnings per share was ISK 0,29.
- Economic occupancy rate was 94.8%
- Weighted indexed interest was 3.72%.
- Weighted unindexed interest was 9.52%.
Hreiðar Már Hermannsson, CEO:
“The year is off to a strong start. We are seeing solid growth in rental income, making meaningful progress on the Company’s financing, and continuing to sharpen our portfolio.
Festing is contributing positively to the quarter’s revenue growth. We have established a firm operational grip on Festing, and its integration into our infrastructure was executed seamlessly.
On the financing front, the year has progressed well. The issuance program announced at the start of the year was well received by investors. Three bond series have been issued year-to-date, all serving the same strategic purpose — to smooth Eik’s debt repayment profile. One of these, EIK 120266, which will serve as the cornerstone of our issuance program going forward, is among the longest-dated bond series listed on the exchange. The strong reception of that issuance is a clear vote of confidence from the market. Furthermore, we are offering bond investors a range of instruments tailored to different investment needs. Issuance will continue in line with the Company’s funding plan.
The development project at Eyravegur in Selfoss has been divested, marking the successful conclusion of a highly value-accretive development on a property formerly occupied by Húsasmiðjan. The residential project was developed by Eik, involving a rezoning process and the securing of approved building rights for residential use on the site. Suðurlandsbraut 20 was also divested — the Company held a 50% ownership stake in the property, and with a clear preference for either full ownership or an exit, the decision was made to sell. Portfolio optimization remains an ongoing priority; we have formed a view on each and every asset in the portfolio and remain actively engaged on the acquisition side, guided by a clearly defined investment strategy and return targets.”
Business operations
Eik’s operations performed well in the first three months of 2026, with EBITDA at the upper end of the profit forecast. The Company’s operating revenues amounted to ISK 3,509 million, of which rental income was ISK 3,094 million, representing an increase of 19.5% compared to the same period in 2025. Operating expenses amounted to ISK 1,303 million.
Operating profit before changes in fair value, sales gains, and depreciation increased by 21.4% compared to the same period last year, amounting to ISK 2,206 million. Profit before income tax was ISK 1,221 million, and the consolidated total profit for the period was ISK 977 million.
The NOI ratio (i.e. operating profit before changes in value and depreciation) was 70.7% for the first three months of 2026, compared to 69.6% in the same period the previous year.
The Company’s financial position
The Company’s total assets amounted to ISK 186,143 million as of 31 March 2026. Of this, investment properties were valued at ISK 175,182 million, and properties for own use amounted to ISK 5,390 million. The Company’s equity amounted to ISK 55,738 million at the end of the period. The Company’s net leverage ratio (net interest-bearing debt / value of properties, building permits, and land plots) was 58.6%.
At the Company’s annual general meeting on 16 April 2026, it was approved to distribute dividends to shareholders for the 2025 financial year amounting to ISK 3,732.74 million, to be paid in two instalments. The payment date for the first instalment will be 28 April 2026, and for the second instalment, 14 October 2026.
The Company’s total liabilities amounted to ISK 130,405 million as of 31 March 2026. Of this, interest-bearing debt was ISK 106,226 million, and the income tax liability was ISK 15,792 million
So far this year, the Company has issued three new bond series in four offerings. In total, bonds with a nominal value of ISK 3,700 million were issued in the EIK 120266 series, ISK 3,980 million in EIK 150531, and ISK 3,060 million in EIK 29 1. At the same time, the company repurchased bonds with a nominal value of ISK 1,880 million in the EIK 050726 series, which matures in July 2026. Settlements for the offerings in EIK 150531 and EIK 29 1, as well as ISK 880 million of repurchases in EIK 050726, took place in April 2026, along with a payment of over ISK 2,700 million towards bank financing in the same month. Furthermore, the refinancing of Festing’s loan, amounting to just under ISK 5,300 million, has been approved, extending the maturity to February 2028 from the previous maturity date of February 2027. The position of interest-bearing debt at the end of the period therefore does not reflect this change in financing.
The Company’s asset portfolio
The Company sold the property at Suðurlandsbraut 20 in March 2026, with delivery scheduled for the third quarter. The size of the property is approximately 1,288 m². The Company also sold a residential plot at Fossvegur 3 in Selfoss. The sales gain from properties sold during the period amounted to ISK 26 million.
Construction of 2,600 m² of industrial premises at Jötnahella 5 is progressing well, with delivery expected in the first half of 2027.
Further information about the company’s property portfolio can be found in the enclosed annual report.
Unchanged Outlook
Taking into account changes in the consumer price index, the outlook remains unchanged.
- Operating revenues are estimated to be in the range of ISK 14,450 – 15,050 million.
- EBITDA is estimated to be in the range of ISK 9,180 – 9,550 million.
The outlook is based on the consumer price index as of April 2026.
Presentation Meeting
An open presentation meeting for market participants will be held on Friday, 8 May 2026, at 8:30 a.m. at the company’s office on the 18th floor of Smáratorg 3. Light breakfast will be served from 8:00 a.m.
Hreiðar Már Hermannsson, CEO, and Lýður H. Gunnarsson, CFO and CIO, will present the financial results and answer questions following the presentation.
The meeting will also be streamed online, and registration for the virtual meeting can be completed here:
https://vimeo.com/event/5909538/65f60f8b32
After registration, participants will receive an email with further details.
Market participants may send questions in advance to the email address fjarfestatengsl@eik.is. Questions will be answered after the presentation.
Revised Financial Calendar
The publication of interim and annual financial statements is scheduled on the following dates:
- Interim financial statements for Q2: 18 August 2026
- Interim financial statements for Q3: 5 November 2026
- Annual financial statements 2026: 11 February 2027
- Annual General Meeting: 8 March 2027
Financial information will be released after market close. Please note the changed date for the annual financial statements.
For further information, please contact:
Hreiðar Már Hermannsson, CEO, hreidar@eik.is
Lýður H. Gunnarsson, CFO, lydur@eik.is, tel. +354 820 8980
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