Kaldalón (KALD) H1 2025 earnings summary

Executive summary

• Rental income increased by 24% year-over-year, driven by a larger property portfolio and new lease agreements.

• Operating profit margin remained high at 78% for the period.

• Owns and manages 137,000 m² of rental and development properties, up from 127,000 m² at end of 2024.

• New income-generating properties at Suðurhrauni 4-6 and Lambhagavegur 12 were added late in the period, with construction completed at Lambhagavegur 12 and new projects started at several locations.

• Investments totaling ISK 3.5 billion were made, including acquisitions and development projects.

Financial highlights

• Operating revenues reached ISK 2,638 million in H1 2025, up 24% from H1 2024.

• Operating profit before revaluation was ISK 2,056 million, a 23% increase year-over-year.

• Net profit before tax was ISK 1,753 million, down 27% due to lower revaluation gains and higher financial expenses.

• Total assets grew to ISK 80.9 billion, an increase of ISK 5.4 billion year-over-year.

• Investment properties valued at ISK 78.8 billion, up from ISK 73.4 billion at year-end.

Outlook and guidance

• Updated 2025 guidance: rental income expected at ISK 5,500–5,670 million, operating profit at ISK 4,270–4,430 million, reflecting 21–24% growth.

• Management expects stable rental market conditions and high occupancy, considering recent additions to the property portfolio.

• Company aims to reach ISK 100 billion in investment properties or ISK 8 billion in annual rental income before shifting to regular dividend payments.

• Growth strategy focuses on expanding income-generating assets, including warehouses, industry, retail, services, hotels, and infrastructure.

• Growth driven by new property acquisitions and delayed handover of leased assets.