Eik fasteignafélag (EIK) Q2 2024 earnings summary

Executive summary

• Operations in 1H 2024 were slightly below expectations due to underperformance at Hotel 1919 and higher impairment of trade receivables.

• Reginn (now Heimar) withdrew its merger notification, giving the company more strategic flexibility.

• The company is exploring portfolio opportunities, capital structure developments, and revenue growth.

Financial highlights

• Consolidated operating income for 1H 2024 was ISK 5,527 million, up from ISK 5,497 million year-over-year.

• Operating profit before valuation changes and depreciation was ISK 3,519 million, down from ISK 3,827 million year-over-year.

• Positive valuation change of investment properties amounted to ISK 4,084 million.

• Net profit for the period was ISK 2,798 million.

• Net cash flow from operations was ISK 1,762 million, down from ISK 2,147 million year-over-year.

Outlook and guidance

• Updated 2024 EBITDA guidance is ISK 7,280–7,580 million, adjusted for inflation expectations in September 2024.

• Outlook reflects lower anticipated performance from the Radisson Hotel Group.