Eik fasteignafélag hf.

Interim results for the first six months of 2023 - Seite 2

The NOI Ratio (i.e. operating profit before changes in value and depreciation as a ratio of lease income) was 78.4% for the first six months of the year 2023, compared to 73.9% for the same period in 2022.

The Group's investment assets are valued at fair value in accordance with International Financial Reporting Standards (IFRS), which is based on, among other, discounted future cash flows of individual assets. Changes in fair value are recognised and classified within changes in value of investment assets in the consolidated statement of comprehensive income, which amounted to ISK 9,788 million in the first six months of the year 2023. The main assumptions driving the change are inflation, increase in rental rates, increase in value of building permits and lower return on equity. On the other hand, the main driver lowering the estimate is the fact that future growth has now been removed.

Financial Position

The Group's total assets amounted to ISK 141,979 million at the end of the period, whereof investment assets amounted to ISK 132,572 million which consist of real estate leased to tenants amounting to ISK 124,448 million, lease assets ISK 2,766 million, investment assets under development ISK 1,636 million, building rights and land ISK 3,669 million and pre-paid street construction tax ISK 13 million. Assets for own use amounted to ISK 6,025 million and assets under development ISK 675 million. The Group's equity amounted to ISK 50,513 million at the end of the period and its equity ratio was 35.6%. At the Group’s Annual General Meeting on 30 March 2023 a dividend payment to shareholders due to the year 2022 amounting to ISK 2,000 million was approved, which was subsequently paid on 12 April 2023.

The Group’s total liabilities amounted to ISK 91,465 million at the end of the period, of which interest-bearing debt amounted to ISK 74,004 million and deferred tax liability ISK 12,872 million. The Group´s loan to value is 54,4% at the end of the period.

Economic occupancy rate

The Company's economic occupancy rate was 93.8% at the end of the period but was 95.7% at the beginning of the year. In the second quarter, Landsbankinn moved into their new headquarters and at the same time returned the offices that they had been renting on a long-term lease from the Company. This resulted in a 1.7% decrease of the economic occupancy rate.