Kaldalón hf.: Condensed Interim Financial Statements for the First Six Months of 2026

The condensed consolidated interim financial statements of Kaldalón hf. for the first six months of 2026 were approved by the Company's Board of Directors on 20 August 2026.

Target for portfolio size achieved and transition into operating phase

• The Company's target for the size of its real estate portfolio in the growth phase has been achieved with the delivery of the properties of FÍ fasteignafélag
• The Company's rapid growth period is drawing to a close and the focus is shifting to the operation and development of the portfolio
• Return on equity is 14.0% on an annualised basis
• The Company delivers ISK 2,370 million in profit before taxes
• Rental income grows by 19% year-on-year and operating profit before fair value changes by 18%
• The operating profit margin is 77% for the period. In part, one-off costs fall within the period.
• Cash flow from operations increases by 67% year-on-year
• The Company updates its earnings guidance for the year due to the sale of properties in the second quarter

Key milestones during the period

• The properties of FÍ fasteignafélag, approximately 23,500 square metres, were delivered on 1 June. The purchase price of ISK 12,280 million was paid with the delivery of share capital and a new bond series
• The Group's real estate portfolio was approximately 169,000 square metres at the end of the period, compared with approximately 144,000 square metres at year-end 2025
• ISK 13.4 billion was invested during the period
• Four properties that did not suit the long-term development of the portfolio were sold for ISK 1.5 billion, three of which were purchased within the period
• The revenue-weighted occupancy rate of assets not classified as development properties was 97.5%, and the revenue-weighted average lease term was 8.2 years
• Bonds were issued for a total of ISK 14,560 million, of which a green series for ISK 3,000 million
• The weighted average interest rate on indexed debt decreases from 4.5% to 4.3%
• 83% of the Company's long-term debt is within the general collateral arrangement, compared with 80% at year-end 2025
• A dividend of ISK 998 million was paid in April and own shares were purchased for ISK 172 million
• Share capital was reduced by ISK 242,918,180 in nominal value following the annual general meeting on 26 March

Key figures from the results are:

All amounts are in millions of ISK unless otherwise stated. Amounts are not adjusted for ISK 38 million in one-off costs recognised under operating expenses for the period.

Jón Þór Gunnarsson, CEO

„Kaldalón achieved during the period the growth target that the Company set for itself three years ago. With the delivery of the properties of FÍ fasteignafélag on 1 June, the Company's portfolio amounts to approximately 169,000 square metres and the value of investment properties stands at nearly ISK 100 billion. The milestone is in line with the plan presented to investors and is reached at the time the Company had set for itself.
Operating income for the period was ISK 3,132 million, growing by 19% year-on-year. Operating profit before fair value changes rises by 18% and the operating profit margin is 77%. The revenue growth stems from a larger portfolio, new and renewed lease agreements and price-level changes. Cash flow from operations increases by 67% year-on-year and amounts to ISK 1,163 million. Income from the acquisition of the FÍ properties is reflected only to a limited extent in the period, as delivery took place on 1 June.
With this milestone, the ambitious growth target set some three years ago is coming to a close. The Company's focus is now shifting increasingly towards the operation, leasing and development of the portfolio. The coming quarters will be devoted, among other things, to receiving the FÍ properties, processing them and leasing them out, as part of the portfolio is unleased. Therein also lie clear opportunities for revenue growth without new investment.
At the same time, the Company has increased returns to shareholders. During the period, the Company paid ISK 998 million in dividends, purchased own shares for ISK 172 million and reduced share capital by 24.3 million shares. In line with the announced strategy, gradually increasing returns to shareholders can be expected alongside the Company's relatively slower growth.
Four properties were sold in the second quarter, three of which were purchased within the period. These assets did not suit the long-term development of the portfolio. The sale affects the year's revenue and the Company's earnings guidance is updated accordingly. This is part of the work ahead — developing the portfolio and optimising it.
On the financing side, the Company continued along the same path. Kaldalón issued bonds for a total of ISK 14,560 million during the period, of which a green series for ISK 3,000 million, and the weighted average interest rate on indexed debt decreased from 4.5% to 4.3%. The Company is a regular issuer in the bond market, and significant opportunities remain there for optimisation on the debt side of the balance sheet.
Demand for commercial properties is assessed as stable and the Company's revenue stream is predictable, as nearly all of the Company's lease agreements are indexed and their revenue-weighted average term is 8.2 years. High interest rates and price-level increases continue to leave their mark on the operating environment, and the Company monitors developments in external conditions closely. Kaldalón is well positioned to meet the needs of its customers and will continue to seize the opportunities it deems profitable over the long term.“

Updated operating outlook

The Company is updating its operating outlook for 2026. In the second quarter, four properties that did not suit the long-term development of the portfolio were sold, which affects the year's revenue and operating profit. Further information can be found in the investor presentation published alongside the results.
The Company expects rental income for the year to be in the range of ISK 6,670–6,800 million and operating profit before fair value changes to be in the range of ISK 5,140–5,300 million. The operating outlook will be updated as circumstances warrant.

Acquisition of the properties of FÍ fasteignafélag

Kaldalón signed a purchase offer for the properties of FÍ fasteignafélag slhf. in December 2025, and the conditions of the transaction were fulfilled in the second quarter. The properties, approximately 23,500 square metres in size and largely located in Reykjavík, were delivered on 1 June 2026. The purchase price was ISK 12,280 million and was paid with the delivery of share capital and a new bond series, KALD 220437, to the sellers. In connection with the transaction, the Company's share capital was increased by 221,040,000 shares.

Financing and share capital

The Group's interest-bearing debt amounted to ISK 57,753 million at the end of the period and the loan-to-value ratio was 58%. The adjusted loan-to-value ratio, which takes into account assets sold during the period and receivables arising from their sale, is just over 56%. Cash and cash equivalents amounted to ISK 539 million at the end of the period and, in addition, the Company has access to undrawn credit lines of up to ISK 2,900 million.
The Company issued the green bond series KALD 100240 in February and sold it for ISK 3,000 million, the series KALD 120531 in May and June for a total of ISK 5,000 million, and the series KALD 220437 for ISK 6,560 million in connection with the acquisition of the FÍ properties. In total, the Company has issued market bonds and bills for ISK 33,360 million. The weighted average interest rate on indexed debt was 4.3% at the end of the period, compared with 4.5% at year-end 2025, and 83% of the Company's long-term debt is within the general collateral arrangement.
The Company's share capital was reduced by ISK 242,918,180 in nominal value following the annual general meeting on 26 March 2026 and increased by ISK 2,210,400,000, or 221,040,000 shares, in connection with the acquisition of the FÍ properties. At the end of the period, the Company's share capital was ISK 12,825,665,260, divided into 1,282,566,526 shares. Own shares amounted to 3,272,194, or 0.26% of issued share capital.

Condensed Interim Financial Statements 2026

The report of the Company's Board of Directors and CEO can be found in the Company's condensed interim financial statements. The condensed consolidated interim financial statements are prepared in accordance with the international accounting standard on interim financial reporting, IAS 34, as adopted by the European Union, and have been reviewed by the Company's auditor.

Presentation of the interim results

Alongside the results, a presentation meeting will be held on Thursday 20 August at 16:00 at Hilton Reykjavík Nordica, Suðurlandsbraut 2. The doors open at 15:45. At the meeting, management will review the operations during the period, the interim results and the outlook. At the start of the meeting, the presentation material will also be made available on Kaldalón's website.
The interim financial statements can be accessed at kaldalon.is/fjarfestar.

Further information

Jón Þór Gunnarsson, CEO, jon.gunnarsson@kaldalon.is
www.kaldalon.is