Kaldalón hf. – Valuation as of 1 Jan 2026

Valuation Summary

• The value per share as of 1 January 2026 is ISK 33.0.
• The valuation is based on a ten-year forecast using the residual income method, with a 10% nominal required return on equity and a 3% terminal growth (zero real growth).
• The increase in value from the previous valuation is primarily driven by 2025 performance, a lower cost ratio, and expansion of the property portfolio in the updated forecast.

Key Assumptions

• The forecast is based on properties owned at year-end 2025 and excludes the 2026 acquisition of FÍ Fasteignafélag properties.
• Rental income increases by 13% in 2026 in line with management’s projections and thereafter in line with inflation (CPI).
• Operating expenses amount to 21.5% of operating revenues over the forecast period.
• Changes in the fair value of investment properties amount to 3–4% per year, in line with CPI.
• The average cost of debt is 7.5%, primarily consisting of ISK-denominated financing at an average indexed rate of 4.25%.
• Income tax is 20%. It is recognized as a deferred tax liability, however not cash tax payments are expected due to tax losses carried forward and tax depreciation.
• No additional investments in investment properties are assumed during the forecast period.
• Dividend payments amount to 35% of prior-year total comprehensive income in 2026, increasing to 80% thereafter.
• The equity ratio averages 33% over the forecast period.
• Other general assumptions are presented under “Valuation”.