Eik fasteignafélag hf.: Interim results for the first six months of
2022
- Income from operations amounted to ISK 4,691 million.
- Operating profit before changes in value, sales profit and
depreciation amounted to ISK 3,075 million.
- Total profit amounted to ISK 5,754 million.
- Net cash from operations was ISK 1,927 million.
- The book value of investment properties amounted to ISK 115,611
million.
- The book value of assets for own use amounted to ISK 4,156
million at the end of the period.
- Change in value of investment properties was ISK 7,981
million.
- Cash and cash equivalents amounted to ISK 1,143 million.
- Interest-bearing debt amounted to ISK 67,147 million at the end
of the period.
- Equity ratio was 33.8%.
- Profit per share was ISK 1.68.
- Economic occupancy rate was 94.5% at the end of the period
- Weighted indexed interest was 3.03% at the end of the
period.
- Weighted unindexed interest was 5.74% at the end of the
period.
The Interim Financial Statements of Eik fasteignafélag hf. for
the period 1 January to 30 June 2022 were approved by the Company’s
Board of Directors and CEO on 25 August 2022.
Attached is an interim financial report which contains Interim
Financial Statements for the first six 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 six months of the year
2022 and the results were in line with management’s forecasts.
Operating income for the first six months of the year 2022 amounted
to ISK 4,691 million. Of this amount, rental income was ISK 4,070
million. Operating profit before changes in value, sales profit and
depreciation amounted to ISK 3,075 million and increased by a
little less than 14% between years. Profit before income tax
amounted to ISK 7,196 million and total profit of the Group for the
first six months of the year 2022 amounted to ISK 5,754
million.
The Net Operating Income (NOI) ratio (i.e. operating profit
before changes in value and depreciation as a ratio of lease
income) was 73.9% for the first six months of the year 2022,
compared to 71.4% 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 7,981 million in the
first six months of the year.
Balance Sheet
The Company's total assets amounted to ISK 122,946 million as at
30 June 2022. Of this, investment properties valued at ISK 115,611
million consist of real estate leased to tenants amounting to ISK
111,970 million, lease assets ISK 2,493 million, investment
properties under development ISK 709 million, building rights and
lots ISK 448 million and pre-paid street construction fees in the
amount of ISK 13 million. Assets for own use amounted to ISK 4,156
million and assets under development amounted to ISK 668 million.
The Company's equity amounted to ISK 41,497 million at the end of
June 2022 and its equity ratio was 33.8%. At the Company’s Annual
General Meeting on 5 April 2022 a dividend payment to shareholders
was approved for to the operating year 2021 amounting to ISK 1,740
million which was paid on 28 April 2022.
The Company’s total liabilities amounted to ISK 81,449 million
as at 30 June 2022, of which interest-bearing debt was ISK 67,147
million and deferred tax liability ISK 10,122 million
Economic occupancy rate
The Company's economic occupancy rate was 94.5% at the end of
the period but was 94.2% at the beginning of the year.
Outlook
Inflation has been high in the first six months of the year and
continuing high inflation is projected throughout the year. Based
on consumer price index for financial indexation in September the
Company expects that EBITDA for the year will be between ISK
6,320–6,580 million at a fixed price throughout the year.
Effects due to COVID-19
The effects of COVID-19 on the Company’s operations have
decreased rapidly and were limited at the end of the second
quarter. The Company expects that the effects will be even smaller
in the second half of this year than the first based on unchanged
situation of the pandemic and believes that the effects were
negative by ISK 40–45 million on EBITDA in the first half of the
year. Furthermore, effects of COVID-19 on value of the Company’s
investment properties have mostly dissipated.
Company Portfolio
The Company received a part of the property at Sóltún 24 in
February, but the property shares a plot and parking garage with
the Company’s property at Sóltún 26. The Company also received a
503 sqm. industrial space in Skeifan 5 in June and currently owns
half of the property. Furthermore, the Company acquired and
received in June a 145 sqm. restaurant space at Pósthússtræti 2 and
owns all of the property following this transaction. The Company
signed an agreement on the sale of a 500 sqm. industrial property
at Hjalteyrargata 4 in Akureyri and the property will be delivered
on 1 October 2022. Booked gain on sales will be around ISK 74
million in the third quarter. The Company’s offer to acquire a
1,300 sqm. warehouse space at Smiðshöfði 9 has been accepted and
work is currently under way on fulfilling conditions in the
offer.
As reported in the Company’s financial statements for the year
2021, the Company’s tenant at Höfðasel 2 and 4 in Akranes has
announced the utilization of a purchase option on the properties
and they will be delivered on 30 September 2022. Sales price is
linked to consumer price index for financial indexation and gain on
sale will be booked in the third quarter amounting to the
difference of booked value and the sales price. Based on consumer
price index for financial indexation in September 2022 the
difference amounts to around ISK 285 million.
The Company is working on purchase agreements relating to the
Company’s planned purchase of the real estate companies
Lambhagavegur 23 ehf. and Laufskálar fasteignafélag ehf. and will
publish information on Nasdaq when it has been concluded.
The Group owns just over 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,
Flugleiðahótel, Ríkiseignir, Landsbankinn, Sýn, Össur, Míla,
Deloitte, Síminn and VÍS.
The largest part of the Company’s real estate portfolio is
office space, or 43%, followed by commercial premises (25%),
warehouses (14%), hotel (7%), health related operations (7%) and
bars and restaurants (3%). Around 93% of the Company's real estate
are in the capital region, of which 38% is in financial and
business districts of Reykjavík (mainly within postal codes 105 and
108), 17% in the Reykjavik city centre and 19% in Smárinn-Mjódd. 7%
of the portfolio is located outside the capital region, whereof
around 6% is in Akureyri.
Open meeting
An open meeting will be held on Friday 26 August 2022 at 8:30 am
in the meeting room Hlíðaberg in Hotel Kea, Akureyri. A light
breakfast will be offered as of 8:00 am. Garðar Hannes Friðjónsson
CEO and Lýður H. Gunnarsson CFO will present the results and
respond to questions following the presentation. The meeting will
also be in electronic form.
Registration to the meeting is here:
https://us02web.zoom.us/webinar/register/WN_4apW4ANGSs2TTqKSP8CkCw
Following registration, participants will receive an e-mail with
further information.
Changed 2022 Financial Calendar
Following are planned dates for publishing of interim and annual
results:
Quarterly results Q3
2022
27 October 2022 Management accounts 2022 and 2023
budget
6 February 2023 2022 Annual
Results
28 February 2023
Financial information will be published after closing of
markets. Attention is drawn to changes in planned publication of
2022 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
- Q2 2022 Condensed consolidated interim financial statement
Eik Fasteignafelag Hf (LSE:0R70)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Eik Fasteignafelag Hf (LSE:0R70)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024
