Kaldalón (KALD) Q1 2025 TU earnings summary

Operational highlights

• Operating revenue rose 31% year-on-year to ISK 1,275 million, driven by prior investments.

• Net operating income margin was 76% for Q1, with profit before tax at ISK 29 million.

• Rental income exceeded last year's Q1 by over 30%, with 13% of turnover-based rental income recognized in Q1.

• Weighted occupancy rate of delivered properties was 96%.

• Performance aligned with expectations and prior guidance.

Investment and property portfolio

• Acquired 9,150 sqm of income-generating properties at Suðurhraun for ISK 2,750 million.

• Annual rental income from new acquisitions is ISK 240 million, expected to boost annual operating profit by ISK 200 million.

• Investment properties valued at ISK 73,720 million at Q1 end, up ISK 276 million from year-end.

• Expansion projects at Skógarhlíð and Fiskislóð 29 progressing, with new developments handed over or scheduled for delivery.

• Pre-emptive right secured for neighboring property at Breiðhella 2.

Financial position and capital management

• Interest-bearing debt reduced by ISK 473 million to ISK 41,644 million; LTV ratio down to 56%.

• Equity increased to ISK 25,961 million; equity ratio stable at 34%.

• Cash and cash equivalents at ISK 960 million, with ISK 2,000 million in undrawn credit lines.

• Refinancing on track: 8% of interest-bearing debt refinanced YTD, including green and inflation-linked bonds.

• WACC increased to 6.64%, slightly impacting property valuations, but offset by inflation and asset reclassification.