- Income from operations amounted to ISK 2,702 million.
- Operating profit before changes in value and depreciation amounted to ISK 1,760 million.
- Total profit amounted to ISK 1,122 million.
- Net cash from operations amounted to ISK 1,259 million.
- The book value of investment properties amounted to ISK 124,020 million.
- The book value of assets for own use amounted to ISK 4,134 million at the end of the period.
- Change in value of investment properties amounted to ISK 2,008 million.
- Cash and cash equivalents amounted to ISK 3,060 million.
- Interest-bearing debt amounted to ISK 72,401 million at the end of the period.
- Equity ratio was 32.2%.
- Profit per share was ISK 0.33.
- Economic occupancy rate was 95.2% at the end of the period
- Weighted indexed interest was 3.03%.
- Weighted unindexed interest was 7.64%.
The Interim Consolidated Financial Statements of Eik fasteignafélag hf. for the period 1 January to 31 March 2023 were approved by the Company's Board of Directors and CEO on 27 April 2023.
Attached is an interim financial report which contains Interim Consolidated Financial Statements for the first three months of the year 2023 together with further information on the Company's operations than are included in the announcement.
Group's operations
The Group performed well in the first three months of the year 2023 and the results exceeded management's forecasts. Operating income for the first three months of the year 2023 amounted to ISK 2,702 million. Thereof, rental income amounted to ISK 2,702 million. Operating profit before changes in fair value change and depreciation amounted to ISK 1,760 million, increasing by just over 19% between years. Profit before income tax amounted to ISK 1,403 million and total profit of the Group for the first three months of the year 2023 amounted to ISK 1,122 million.
The NOI Ratio (i.e. operating profit before changes in value and depreciation as a ratio of lease income) was 73.6% for the first three months of the year 2023, compared to 73.5% for the same period in 2022.
The Group's investment properties are valued at fair value in accordance with International Financial Reporting Standards (IFRS), which is based on, among other, discounted future cash flows of individual assets. Changes in fair value are recognised and classified within changes in value of investment properties in the consolidated statement of comprehensive income, which amounted to ISK 2,008 million in the first three months of the year 2023.
Financial Position
The Group's total assets amounted to ISK 133,178 million at the end of the period, whereof investment properties amounted to ISK 124,020 million which consist of real estate leased to tenants amounting to ISK 119,448 million, lease assets ISK 2,750 million, investment properties under development ISK 1,157 million, building rights and land ISK 652 million and pre-paid street construction tax ISK 13 million. Assets for own use amounted to ISK 4,134 million and assets under development ISK 673 million.
The Group's equity amounted to ISK 42,866 million at the end of the period and its equity ratio was 32.2%. At the Group's Annual General Meeting on 30 March 2023 a dividend payment to shareholders due to the year 2022 amounting to ISK 2,000 million was approved, which was subsequently paid on 12 April 2023.
The Group's total liabilities amounted to ISK 90,312 million at the end of the year, of which interest-bearing debt amounted to ISK 72,401 million and deferred tax liability ISK 10,964 million
Economic occupancy rate
The Group's economic occupancy rate was 95.2% at the end of the period, compared to 95.7% at the beginning of the year.
Group's asset portfolio
In the first three months for the year 2023, the Group acquired part of the property located at Síðumúli 20-22 or 620 sq.m. After the acquisition the Group owns the whole property. In addition to that, the Group acquired the holding company BB29 ehf. which owns the property located at Ármúli 2. The property is a 3,544 sq. m. office premises which has a long term lease agreement with the Icelandic Transport Authority.
The Group own 110 properties which combined are 316 thousand of sq.m and consist of over 600 rental units with over 400 lessees. The main properties located in the capital area are Borgartun 21 og 21a, Borgartun 26, Suðurlandsbraut 8 and 10, Myrargata 2-16, Posthusstraeti 2 (Hotel 1919), Smaratorg 3 (Turninn), Smaratorg 1, Alfheimar 74 (New Glaesibaer), Grjothals 1-3 og Austurstaeti 5, 6, 7 og 17. Main properties located outside the capital area are Glerartorg, Akureyri. The biggest lessees are Husasmiðjan, Flugleidahotel, Landsbankinn, Syn, Ossur, Bonus, Deloitte, Rumfatalagerinn, Samkaup og Ríkiseignir.
The biggest part of the properties of the Group are office premises or 42%. Retail premises accounts for 24%, warehouse for 14%, hotel for 9, health related premises for 7% and resturants and bars for 3%. Around 93% of the properties are located on the capital area, of that is 29% located in the finance district of Reykjavik (mainly in zip codes 105 and 108). In the center of Reykjavik are 17% of the properties located and 18% in Smaranum and Mjodd. 7% of properties are located outside the capital area, thereof 6% in Akureyri.
Outlook
The Company has updated its outlook for 2023 as a result of the change in the asset portfolio and rental rate. Based on consumer price index for financial indexation in April 2023 the Company expects that the EBITDA for the year will be between ISK 7,030-7,230 million at a fixed price throughout the year.
It is estimated that the purchase of Armuli 2 and Sidumuli 20-22 will have around ISK 75 million positive effect on EBITDA. With a correction for price index increase from the date of the last published outlook, the estimated increase in the outlook for the year is around ISK 110 million.
Virtual presentation
An virtual presentation will be held on Friday 28 April 2023 at 8:30 am. Garðar Hannes Friðjónsson CEO and Lýður H. Gunnarsson CFO will present the results and respond to questions following the presentation.
Registration to the meeting is here:
https://us02web.zoom.us/webinar/register/WN_jsicyqIiRKqdq7btehOrUA
Following registration, participants will receive an e-mail with further information.
Changed Financial Calendar
Following are planned dates for publishing of interim and annual results:
Quarterly results, second quarter 2023 17 August 2023
Quarterly results, third quarter 2023 26 October 2023
2023 Annual Results 15 February 2024
Financial information will be published after closing of markets. Attention is drawn to changes in planned publication of 2023 annual results.
For further information contact:
Garðar Hannes Friðjónsson, CEO, gardar@eik.is, tel. 590-2200
Lýður H. Gunnarsson, CFO, lydur@eik.is, tel. 820-8980
