Kaldalón hf.: Management Accounts 2025

Kaldalón hf. published its Management Accounts on Thursday, 12 February 2026. 

Key highlights of the 2025 Management Accounts:

• Target of a ISK 100 billion property portfolio within reach based on existing agreements
• Operating profit and rental income increased by 24% year-on-year
• Profit before tax amounted to ISK 3,525 million
• Cash generated from operations amounted to ISK 2,711 million
• The Board of Directors proposes a dividend payment of ISK 1,000 million

	2025	2024
Operating revenues	5,598	4,508
Revenue Weighted occupancy rate of delivered properties	97,6%	97,1%
Operating profit before fair value adjustments	4,387	3,548
Operation net profit margin	78,4%	78,7%
Gains on fair value adjustements	3,168	3,991
Profit before tax	3,525	4,311
Return on equity	12,5%	13,3%
Cash balance at end of period	1,090	1,727
		2024
Investment properties / real estate	84,959	73,444
Total Assets	86,387	75,823
Interest bearing debt	48,092	42,117
Equity	28,104	25,786
LTV ratio	56,6%	57,3%
Equity ratio	32,5%	34,2%

^{All amounts are in million ISK unless otherwise stated. Management Accounts have been reviewed by the Company’s Board of Directors. They contain the key information on the Group’s operations, financial position and cash flows. The Management Accounts have not been audited by the Company’s auditors. The audited Annual Financial Statements will be published after market close on 4 March, and the Management Accounts may therefore be subject to change until that time. Management Accounts are published in Icelandic.}

Jón Þór Gunnarsson, CEO

“Kaldalón performed well in 2025 and made strong progress.

The Company’s ambitious targets are now within reach. Three years ago, the Company presented a value-accretive growth plan through 2026. The plan envisioned investment properties of ISK 100 billion, or annualised revenues of ISK 8 billion. By then, the Company would be a major real estate company in the Capital Region, with solid diversification and strong customers. This scale would also support operational efficiency for customers and shareholders alike.

The strategy clearly called for significant and rapid growth. The Company has fully delivered on the requirements and expectations created by this strategic direction. The integration of properties into the portfolio has progressed well. The Company has worked closely with customers on the development of their operations within Kaldalón’s properties and on the development of new properties. In parallel, the Company’s financing has developed positively. Despite being in a transformation and growth phase, the Company has consistently delivered positive results, with operating profit exceeding net finance costs.

With the transactions currently being finalised, the Company remains on track to achieve its stated targets. This is a positive milestone. The path to these targets has been shaped by increased competition and high interest rates affecting the business environment. Kaldalón has consistently adhered to a return-driven investment approach and invested in the asset classes prioritised by the Company. This year, as Kaldalón reaches its targets, growth will shift to a relatively slower pace. The Company will nonetheless take advantage of attractive opportunities in the market, whether relating to the development of commercial properties or general investments in income-generating real estate.

Rental income and operating profit before fair value changes increased by 24% year-on-year, or approximately 20% above inflation. Results are in line with the Company’s upgraded earnings guidance issued in August. The strong and predictable cash flow from inflation-indexed rental income now corresponds to a weighted average lease term of approximately nine years. Contracted lease revenues also exceed the Group’s total interest-bearing debt.

Inflation-indexed average interest rates declined by 8% year-on-year, from 4.9% to 4.5%, despite a 6% year-on-year increase in average spreads on long-term government bonds in the bond market. This performance has been achieved alongside a deliberate shift from bank financing to market-issued bonds. Approximately 36% of the Company’s interest-bearing debt was financed by banks at year-end, which means there remain significant opportunities for further optimisation of Kaldalón’s financing. The Company is a regular issuer in the bond market and, as interest rates decline, the Company’s performance will improve accordingly.

During the year, Kaldalón invested approximately ISK 8 billion in acquisitions and development of properties. Over the past two years, the Company has been involved in the construction of approximately 27,000 square metres of real estate. Kaldalón’s property portfolio is relatively young and is among the youngest compared to the peers the Company benchmarks against. At the end of 2025, Kaldalón signed an offer to purchase all properties owned by FÍ fasteignafélag, and the transaction is expected to complete in the second quarter of 2026.

Demand for commercial properties is considered stable. In recent periods, Kaldalón has undertaken construction projects to support demand, and these new buildings are now fully leased. The Company therefore expects further construction of commercial properties in 2026 to meet continued demand.

One of Kaldalón’s long-term objectives is to become the first choice for businesses seeking premises within the asset classes prioritised by the Company. We are experiencing strong tailwinds on this journey, as companies increasingly turn to Kaldalón first to address their property needs.

Kaldalón delivered strong performance and results in 2025. Revenue growth was in line with plans and the cost ratio remained unchanged. In the spring months, the Company will own a property portfolio of approximately 170,000 square metres in the Capital Region, with high occupancy and strong, inflation-indexed long-term income streams. At the same time, the Company has invested in new assets and is preparing further developments to meet demand from the business community for Kaldalón’s services.”

Outlook for 2026

The Company’s operating outlook for 2026 is positive. Kaldalón expects operating revenues to be in the range of ISK 6,200–6,350 million and operating profit for the year to amount to ISK 4,860–5,030 million. The guidance assumes 4.3% year-on-year inflation and a comparable utilisation (occupancy) ratio.

The forecast does not include the acquisition of the properties owned by FÍ fasteignafélag, announced on 15 December. In addition, the forecast does not include revenues from new investments in 2026; such planned investments would therefore be additional to the above guidance.

The operating outlook will be updated as appropriate.

Proposed Dividend

The Board of Directors proposes a dividend payment of ISK 1,000 million to shareholders for the financial year. The proposed dividend is in line with the criteria previously presented to investors. Further details of the proposal to be submitted to shareholders at the Company’s Annual General Meeting, scheduled for 26 March 2026, will be included in the AGM notice.

Investor Presentation

In connection with the publication of the Management Accounts, the Company will host an investor presentation on Friday, 13 February at 08:30 at Köllunarklettsvegur 1, Entrance A. Doors open at 08:15.

Management will review the Company’s operations during the period, the annual results and future outlook. The Management Accounts and investor presentation will be available at kaldalon.is/investors at the start of the meeting.

The Company’s audited Annual Financial Statements will be published after market close on 4 March 2026. The Annual and Sustainability Report will be issued ahead of the Annual General Meeting to be held on 26 March 2026.

Further Information

Jón Þór Gunnarsson
Chief Executive Officer
jon.gunnarsson@kaldalon.is
www.kaldalon.is

Attachment

• Kaldalón hf - Stjórnendauppgjör 2025