Reitir fasteignafélag hf. – Valuation as of 1 Jan 2026

Valuation Summary

• The value per share as of 1 January 2026 is ISK 138.7.
• 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 prior valuation reflects 2025 performance.

Key Assumptions

• Rental income increases by 8.5% in 2026 in line with management’s projections and thereafter in line with inflation (CPI).
• Operating expenses amount to 33% 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 6,8%, primarily consisting of ISK-denominated financing at an average indexed rate of 3.6%.
• 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 33% of prior-year total comprehensive income in 2026, increasing to 75% thereafter.
• The equity ratio averages 31,5% over the forecast period.
• Other general assumptions are presented under “Valuation”.