The Interim Consolidated Financial Statements of Eik fasteignafélag hf. for the period 1 January to 30 September 2026 were approved by the Company's Board of Directors and CEO on 3 November 2026.
Attached is the interim report, comprising the Interim Consolidated Financial Statements for the first nine months of 2026 together with more detailed information on the Company's operations than is provided in this release.
The main results are as follows:
- Income from operations amounted to ISK 11,132 million.
- Of which rental income amounted to ISK 9,718 million.
- Operating profit before fair value change, sales gain and depreciation (EBITDA) amounted to ISK 7,284 million.
- Total comprehensive profit amounted to ISK 3,307 million.
- Net cash from operations amounted to ISK 4,238 million.
- Book value of investment properties amounted to ISK 184,140 million.
- Change in fair value of investment properties amounted to ISK 6,121 million.
- Sales gain on investment properties amounted to ISK 125 million.
- Cash and cash equivalents amounted to ISK 5,246 million.
- Interest-bearing debt amounted to ISK 114,558 million.
- Loan-to-value ratio (net interest-bearing debt / value of real estate, building permits and plots) was 59.3%.
- Earnings per share amounted to ISK 0.97.
- Economic occupancy rate was 95.1%.
- Total occupancy rate was 93.5%.
- Weighted indexed interest was 3.81%.
- Weighted unindexed interest was 9.17%.
In case of any discrepancy in the English and the Icelandic versions of this announcement or the Financial Statements, the Icelandic version shall prevail.
Hreiðar Már Hermannsson, CEO:
"In the quarter, we continued along the path we described in the letter to shareholders in March: large properties, strong tenants and predictable operating costs. Dalvegur 6-8 was added to the portfolio, and we continued to sell smaller units where our ownership share was negligible.
The conversion of Eyravegur in Selfoss has been completed. The building is fully let, including for sports activities. Eik obtained building permits by subdividing the site and amending the local zoning plan, and the residential plot at Eyravegur was subsequently sold in the first half of this year. This is the approach we set out: creating value through zoning changes and leasing, without Eik acting as the developer. At the same time, we remain a participant in the development of business and youth activities in South Iceland.
Net cash from operations over the last twelve months amounted to 11.1% of the Company's market capitalisation at the end of the quarter. The second instalment of this year's dividend was paid in October, as we announced in March. The Company's operations continue to deliver value to its shareholders, as reflected in strong dividend payments resulting from robust underlying operations.
Since the beginning of the year, we have come to the bond market on the dates announced in this year's issuance plan and sold bonds for ISK 18.7 billion across all series, of which ISK 6.7 billion in the long series. In March, we said that annual issuance in the long series would amount to 5-7% of total debt, and we will finish the year just under 7%. Towards the end of the year, we will publish an issuance plan for 2027 that will provide greater visibility, as we have announced. Eik was the first listed company in a long time to publish such a plan, and we intend to remain at the forefront in the execution of bond auctions and disclosure on the Company's financing.
Leasing remains strong. The economic occupancy rate was 95.1% at the end of the quarter, within the range we guided for year-end. From this quarter onwards, we no longer exclude development properties from the ratio. On that basis, the ratio is 93.5%, and this is how we will report it going forward. We believe that reporting the occupancy rate without excluding specific properties gives a clearer picture of the Company's operations and the challenges we face, and pushes the Company's management and staff to achieve better results in leasing.
In the fourth quarter, we continued the simplification of the organisation that began last year and have undertaken a restructuring and streamlining of the Company's office. We estimate that these measures will reduce operating expenses by ISK 110 million on an annualised basis from 2027 onwards. One-off costs of just over ISK 45 million will be expensed in the fourth quarter in connection with employee departures.
In March, we presented a new strategy in which we committed to simplifying the Company's portfolio, making its financing more predictable and its operations more cost-efficient and effective. We have made significant progress in implementing the new strategy and will continue resolutely along the same path."
Operations of the period
Eik's income from operations amounted to ISK 11,132 million during the period, an increase of 19.8% year-on-year, of which rental income was ISK 9,718 million. Operating expenses increased by 11.1% year-on-year to ISK 3,848 million. EBITDA for the period amounted to ISK 7,284 million, an increase of 24.9% compared with the same period last year. Adjusted for one-off items in 2025, the increase was 22.7%.
While the Company's income from operations has grown strongly, expenses have grown at a slower pace. This is reflected in an increase in the Net Operating Income (NOI) ratio, which was 72.9% in the first nine months of 2026, compared with 71.0% in the same period last year.
Change in fair value of investment properties amounted to ISK 6,121 million, and net finance costs amounted to ISK 8,908 million.
Total comprehensive profit for the period amounted to ISK 3,307 million.
Financial Position
Total assets of the Company amounted to ISK 196,369 million at the end of September 2026, of which investment properties were valued at ISK 184,140 million and assets for own use amounted to ISK 5,350 million. The Company's equity amounted to ISK 54,350 million at the end of the period. The Company's loan-to-value ratio (net interest-bearing debt / value of real estate, building permits and plots) was 59.3%. At the Company's Annual General Meeting on 16 April 2026, it was approved to pay a dividend to shareholders for the 2025 financial year in the amount of ISK 3,732.7 million, to be paid in two equal instalments. The payment date for the first instalment was 28 April 2026 and for the second instalment 14 October 2026. The Company's equity at the end of the third quarter reflects the liability for the second dividend instalment.
Total liabilities of the Company amounted to ISK 142,019 million as at 30 September 2026, of which interest-bearing debt accounted for ISK 114,558 million and the income tax liability for ISK 16,379 million.
So far this year, the Company has issued three new bond series. Bonds with a total nominal value of ISK 6,700 million have been issued in the series EIK 120266, ISK 7,000 million in EIK 150531, and ISK 5,000 million in EIK 29 1. The bond series EIK 050726 reached final maturity in July 2026 and has been repaid in full. The next final maturity of the Company's bond series, amounting to approximately ISK 3,600 million, is in March 2027, which is also the only final maturity next year.
The Company's Portfolio
The Company continues to simplify its portfolio. So far this year, it has acquired two properties for approximately ISK 4.0 billion: Hádegismóar 8, let to Brimborg under a 20-year triple-net lease, and Dalvegur 6-8 in Kópavogur, let to Kraftvélar under a comparable lease structure for two years with extension options. The estimated annualised EBITDA contribution of the properties is approximately ISK 310 million.
During the period, the Company also sold properties for ISK 1,350 million, with a sales gain of approximately ISK 125 million, or approximately 10% above book value. These included Suðurlandsbraut 20, Fossvegur 3, Járnháls 4 and Síðumúli 25, as well as two smaller property interests. Three of the six properties sold were non-income-generating plots. The net impact of the acquisitions and sales is estimated to increase annualised EBITDA by approximately ISK 260 million.
Updated Outlook
The Company has updated its outlook for 2026 to reflect changes in its portfolio, costs related to streamlining measures, and other factors affecting performance. The Company expects EBITDA for 2026 to be in the range of ISK 9,450-9,640 million.
The outlook is based on the consumer price index for October 2026 (CPI for indexation in December).
Presentation meeting
An open presentation meeting for market participants will be held on Wednesday, 4 November 2026, at 8:30 AM at the Company's offices on the 18th floor of Smáratorg 3. A light breakfast will be offered from 8:00 AM. Hreiðar Már Hermannsson, CEO, and Lýður H. Gunnarsson, CFO, will present the results and answer questions following the presentation.
The meeting will also be streamed online, and registration for the virtual meeting can be done here:
https://vimeo.com/event/6312045/a9bdfbf57f
After registering, participants will receive an email with further information.
Market participants can send questions for the meeting to the email address fjarfestatengsl@eik.is. Questions will be answered following the presentation.
For further information:
Hreiðar Már Hermannsson, CEO, hreidar@eik.is
Lýður H. Gunnarsson, CFO, lydur@eik.is, tel. 820-8980
