- The operating profit for the year amounted to ISK 8,345 million.
- Rental income for the year was ISK 7,562 million, compared to ISK 7.393 million in 2019.
- Operating profit before changes in value and depreciation amounted to ISK 5,038 million.
- The total profit for the year was ISK 693 million.
- Changes in the value of investment properties amounted to ISK 594 million.
- Net cash from operating activities amounted to ISK 1,858 million during the year.
- The book value of the investment properties was ISK 98,404 million.
- Assets for own use amounted to ISK 3,789 million.
- Interest-bearing debt stood at ISK 62,001 million at the end of the year.
- The total assets amounted to ISK 106,050 million.
- The equity ratio was 31.3%.
- Earnings per share were ISK 0.25.
- The economic occupancy rate was 92.0% at the end of the year.
- The weighted indexed interest rates were 3.15% at year end.
- The non-indexed weighted interest rates were 2.91% at year end.
- The board of directors proposes a dividend payment of 650 million ISK, 0.19 ISK per share.
The financial statements of Eik fasteignafélags were approved by the board of directors of the company on March 2, 2021.
Garðar Hannes Friðjónsson, CEO:
“The year 2020 has been a demanding year. The pandemic has affected the operations and activities of the company. Since the onset of the pandemic, the Company has strived to help its tenants most affected by the pandemic, first and foremost by being flexible in payment. A marketing campaign was undertaken in collaboration with the tenants of the company in the restaurant business and Hótel 1919, in addition to this Deloitte was engaged to assist the tenants and advise the company.
The operating profit before changes in value and depreciation amounted to ISK 5,038 million and the total profit of the company was ISK 693 million. EBITDA for the year is in line with updated management forecasts published in June 2020.
The company obtained new loans and issued bonds worth just over ISK21 billion during the year. The company’s interest conditions have never been better, but at the end of the year the weighted indexed interest rates were 3.15% and the weighted unindexed interest rates were 2. , 91%. Average indexed interest rates decreased 0.5% during the year, while non-indexed variable interest rates decreased 1.5%. The company’s position with respect to the major financial covenants in loan agreements remains strong at the end of the year. “
The company has published its annual report, which contains detailed information about the company and its activities during the year 2020, as well as financial statements. The report accompanies this announcement and is also available on the company’s website, www.eik.is. The auditor’s assurance on the issuer’s calculations of the terms of the EIK 15 1 bond class also accompanies this announcement. According to the auditor’s assurance, all the conditions for the EIK 15 1 bond class were met as of December 31, 2020.
In the event of any discrepancy between the English and Icelandic versions of this announcement or the financial statements, the Icelandic version shall prevail.
The financial statements include the consolidated financial statements of Eik fasteignafélag hf. and its subsidiaries and has been prepared in accordance with International Financial Reporting Standards (IFRS). The Company’s auditor, KPMG ehf., Has audited the financial statements and has issued an unqualified opinion.
Proposal on the payment of the dividend
The Company’s policy is to pay shareholders approximately 35% of net cash from operating activities each year, either through the payment of dividends or through the purchase of treasury shares. In accordance with the dividend policy, the Board of Directors of the Company proposes to the Annual General Meeting, to be held on March 25, 2021, a dividend payment of ISK 650 million to shareholders for the financial year 2020.
Effect of COVID-19 on Company Operations
The economic effects of COVID-19 on the company’s income statement are mainly manifested by the depreciation of receivables, the operating loss of the Hotel 1919 and the decrease in the economic occupancy rate. The Company estimates that the pandemic had a reducing effect of more than ISK 655 million on EBITDA for the full year 2020. The impairment of receivables amounted to ISK 375 million above initial forecasts, the results of ‘Hótel 1919 were ISK 230 million lower than originally forecast and the reduction in rents was around ISK 50 million.
The Company has published a detailed financial budget for the year 2021 which is accessible in the attached annual report of the Company and on its website, www.eik.is.
According to the financial budget published for the year 2021, the EBITDA for the year will be around ISK 5,050 to 5,350 million based on equal inflation of 2.5%, but from 4,975 to 5,275 million ISK at fixed prices.
The Company estimates that the effect of COVID-19 on 2021 EBITDA will be approximately ISK 450-550 million.
Reimbursement of the EIK 15 1
The Company announced a repayment of the EIK 15 1 bond class on February 23, 2021. The repayment was fully secured by a non-indexed loan from a financial institution.
Merger of subsidiaries
EF1 hf, subsidiary of Eik Fasteignafélag. merged with the company. In addition, LF2 ehf., Subsidiary of Landfestar ehf., Merged with another subsidiary of Landfestar ehf., LF1 ehf. The mergers had formal legal effect as of January 1, 2020.
There are 110 buildings belonging to the Group with a total of 312,000 m². just over 600 units and a total number of tenants exceeds 400. The main properties of the company are Borgartún 21 and 26; Suðurlandsbraut 8 and 10; Mýrargata 2-16; Pósthússtræti 2; Álfheimar 74 (Nýi Glæsibær); Grjótháls 1-3 and Austurstræti 5, 6, 7 and 17 in Reykjavík, Smáratorg 1 and 3 in Kópavogur and Glerártorg in Akureyri.
The largest part of the company’s real estate portfolio consists of office space, which represents 46% of the portfolio value. The second most important class is commercial premises, accounting for around 24% of the portfolio. The third largest class is made up of warehouses, or 13% of the portfolio. Hotels represent 9% of the portfolio, health-related activities 5% and bars and restaurants 3%.
The Company has acquired Skeifan 9, which is adjacent to Skeifan 7, another property owned by the Company and both properties are on the same parcel according to a recent detailed land use plan for the City of Reykjavík. With this acquisition, the Company has the opportunity to start a detailed layout plan for the premises and to develop it subsequently. The Company expects options for the use of this parcel in the near future. The company classifies Skeifan 9 as a development property. The company sold its property to Járnháls 2.
An electronic presentation will take place on Wednesday March 3, 2021 at 8:30 a.m. Garðar Hannes Friðjónsson CEO and Lýður H. Gunnarsson CFO will present the results and answer questions after the presentation.
Registration for the meeting is done here: https://origo.zoom.us/webinar/register/WN_0Ac3rRosTRqzQTuC3eOE_Q
After registration, participants will receive an email with additional information.
2021 financial calendar
The dates planned for the interim and annual results are as follows:
Ordinary General Meeting of March 25, 2021
Q1 2021 quarterly results April 29, 2021
Q2 2021 quarterly results August 25, 2021
Quarterly results Q3 2021 October 28, 2021
Management accounts Budget 2021 and 2022 February 11, 2022
Annual results 2021 March 3, 2022
Financial information announcements will be published after market close.
You will find attached the annual report 2020 which contains the financial statements for the year 2020. ESG report is accessible on its website.