Kaldalón (KALD) H1 2024 earnings summary

Executive summary

• Kaldalón hf. is an Icelandic real estate company focused on property ownership, leasing, development, and management, with 111,000 m² of leasable properties at period end.

• Revenue for H1 2024 was 2,132 m.kr., up from 1,438 m.kr. year-over-year; net profit reached 1,913 m.kr. versus 1,674 m.kr. in H1 2023.

• The company maintains a high occupancy rate of 96.7% for delivered assets, with a weighted average lease term of 10.1 years.

• Major property acquisitions and sales included purchases at Álfhella 8 and Klettagarðar 11, and the sale of Vesturbugt eignarhaldsfélag ehf.

Financial highlights

• Operating profit before fair value changes was 1,672 m.kr., up from 1,154 m.kr. year-over-year.

• Fair value changes in investment properties amounted to 2,777 m.kr. (H1 2023: 2,013 m.kr.).

• Net finance costs increased to 1,766 m.kr. from 971 m.kr. year-over-year.

• Total assets at period end were 66,858 m.kr., up from 60,666 m.kr. at year-end 2023.

• Equity stood at 25,237 m.kr. as of June 30, 2024, compared to 23,207 m.kr. at December 31, 2023.

Outlook and guidance

• Management expects stable leasing conditions and high occupancy, with growth in income-generating assets guided by market conditions and investment opportunities.

• The company aims to reach 100 billion ISK in investment property value or 8 billion ISK in annual rental income before transitioning out of its growth phase.