Eik fasteignafélag hf.: Interim results for the first three months
of 2022
- Income from operations amounted to ISK 2,284 million
- Impairment of trade receivables amounted to ISK 18 million
- Operating profit before changes in value and depreciation
amounted to ISK 1,475 million
- Total profit amounted to ISK 2,216 million
- Net cash from operations was ISK 936 million
- The book value of investment properties amounted to ISK 109,448
million
- The book value of assets for own use amounted to ISK 4,157
million at the end of the period
- Change in vale of investment properties was ISK 2,938
million
- Cash and cash equivalents amounted to ISK 3,091 million
- Interest-bearing debt amounted to ISK 65,535 million at the end
of the period
- Equity ratio was 33.5%
- Profit per share was ISK 0.65
- Economic occupancy rate was 94.2% at the end of the period
- Weighted indexed interest was 3.03% at the end of the
period
- Weighted unindexed interest was 4.93% at the end of the
period
The Interim Financial Statements of Eik fasteignafélag hf. for
the period 1 January to 31 March 2022 were approved by the
Company’s Board of Directors and CEO on 5 May 2022.
Attached is an interim financial report which contains Interim
Financial Statements for the first three months of the year
together with further information on the Company’s operations than
are included in the announcement.
In case of any discrepancy in the English and the Icelandic
versions of this announcement or the Financial Statements, the
Icelandic version shall prevail.
Company operations
The Company performed well in the first three months of 2022 and
the results were in line with management’s forecasts. Operating
income for the first three months of the year 2022 amounted to ISK
2,284 million. Of this amount, rental income was ISK 1,990 million.
Operating profit before changes in value and depreciation amounted
to ISK 1,475 million. Profit before income tax amounted to ISK
2,772 million and total profit of the Group for the first three
months of 2022 amounted to ISK 2,216 million.
The Net Operating Income (NOI) ratio (i.e. operating profit
before changes in value and depreciation as a ratio of lease
income) was 73.5% for the first three months of 2022, compared to
67.8% for the same period in 2021.
The Company's investment properties are valued at fair value in
accordance with International Financial Reporting Standards (IFRS),
based in part on the discounted future cash flows of individual
assets. Changes in fair value are recognised in changes in value of
investment properties, which were around ISK 2.938 million in the
first three months of the year.
Balance Sheet
The Company's total assets amounted to ISK 118,657 million as at
31 March 2022. Of this, investment properties valued at ISK 109,448
million consist of real estate leased to tenants amounting to ISK
105,823 million, leased assets (property utilisation rights) of ISK
2,487 million, investment properties under development of ISK 699
million, building rights and lots of ISK 448 million and pre-paid
street construction fees in the amount of ISK 13 million. Assets
for own use amounted to ISK 4,157 million and assets under
development amounted to ISK 666 million. The Company's equity
amounted to ISK 39,699 million at the end of March 2022 and its
equity ratio was 33.5%. At the Company’s Annual General Meeting on
5 April 2022, it was approved to pay dividend to shareholders for
the year 2021 amounting to ISK 1,740 million which was paid on 28
April 2022. The balance of equity does not take these liabilities
into account.
The Company’s total liabilities amounted to ISK 78,957 million
as at 31 March 2022, of which interest-bearing debt was ISK 65,535
million and deferred tax liability ISK 9,236 million.
Economic occupancy rate
The Company's economic occupancy rate was the same as at the
beginning of the year and was 94.2% at the end of the first
quarter.
Outlook
Inflation has been somewhat higher than expected. In general,
inflation has a positive effect on the Company’s EBITDA since 98%
of rental income is linked to consumer price index or consumer
price index for financial indexation. Taking inflation into
account, the outlook for the year is unchanged.
Effects due to COVID-19
The effects of COVID-19 on the Company’s operations are fast
decreasing. The Company estimates that negative effect of the
pandemic was between ISK 35–40 million on EBITDA in the first three
months of the year. The Company expects that the pandemic will
continue to influence the operations for the first half of the
year, but that the effect will be minor to none in the second half
of the year based on unchanged state of the pandemic. However,
outstanding receivables where postponement of payment was granted
due to the pandemic are still to be settled, but it is unclear when
settlement will be finalised.
Company Portfolio
The Company received a part of the property at Sóltún 24 in
February but the property shares land and garage with the Company’s
property at Sóltún 26.
As stated in the Company’s Financial Statements for the year
2021, the Company’s tenant at Höfðasel 2 and 4 in Akranes, has
exercised its purchase option on the properties and they will be
delivered on 30 September 2022. The sales price is tied to consumer
price index for financial indexation and sales profit will be
booked in the third quarter, amounting to the difference between
booked value and sales price. With reference to the consumer price
index for financial indexation in April 2022, the difference is ISK
268 million.
The Group owns more than 110 properties which total almost
314,000 sqm. of rental space in just over 600 units. Total number
of tenants is over 400. The Company's principal properties in the
capital region are Borgartún 21 and 21a; Borgartún 26;
Suðurlandsbraut 8 and 10; Mýrargata 2-16; Pósthússtræti 2 (Hótel
1919); Smáratorg 3 (Turninn); Smáratorg 1; Álfheimar 74 (Nýi
Glæsibær); Grjótháls 1-3 and Austurstræti 5, 6, 7 and 17. The
Company’s principal property outside the capital region is
Glerártorg. The Company’s largest tenants are Húsasmiðjan,
Icelandair Hotels, Ríkiseignir, Landsbankinn, Sýn, Össur, Míla,
Deloitte, Síminn and VÍS.
The largest part of the Company’s real estate portfolio is
office space, or 42%, followed by commercial premises (24%),
warehouses (13%), hotel (9%), health related operations (7%) and
bars and restaurants (3%). Around 92% of the Company's real estate
is in the capital region, of which 38% is in financial and business
districts of Reykjavík (mainly in postal codes 105 and 108), 17% in
the Reykjavik city centre and 19% in Smárinn-Mjódd. 8% of the
portfolio is located outside the capital region, whereof almost 7%
is in Akureyri.
Electronic presentation
An electronic presentation will be held on Friday 6 May 2022 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_cp0pkbNYTuCm2XL5bJh4yA
Following registration, participants will receive an e-mail with
further information.
2022 Financial Calendar
Following are planned dates for publishing of interim and annual
results:
Quarterly results Q2
2022
25th August 2022 Quarterly results Q3
2022
27th October 2022 2022 Annual Results
16th
February 2023
Financial information will be published after closing of
markets.
For further information contact:
Garðar Hannes Friðjónsson, CEO, gardar@eik.is, tel. 590-2200
Lýður H. Gunnarsson, CFO, lydur@eik.is, tel. 820-8980
- Q1 2022 Condensed consolidated interim financial statement
Eik Fasteignafelag Hf (LSE:0R70)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Eik Fasteignafelag Hf (LSE:0R70)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024