Félagsbústaðir HF reports 48.5% EBITDA increase in first half of 2026

Félagsbústaðir HF, a construction company, has released its annual financial statements for the first six months of 2026, showing a robust performance and solid financial health. The statements, approved by the board of directors on September 1, 2026, reveal a 48.5% increase in EBITDA compared to the same period last year.

The company maintained a strong financial position, neither taking on new debt nor experiencing a decline in its equity. At 52.1%, the equity ratio remains healthy, and the firm continued to secure funding for its new projects, maintaining its investment in ongoing properties.

Key financial highlights for the first six months of 2026 include: - Revenue: Increased by 7.2% from the same period last year. - EBITDA: Reaching 1.897 million ISK, representing 48.5% of total revenue. - Net Profit: Grew to 1.109 million ISK, up from 964,000 ISK in the previous year.

Despite robust revenue, the company faced challenges, notably a 2.295 million ISK loss due to a downturn in the real estate market and increased debt servicing costs.

Financial Details: - Revenue: 3.914 million ISK. - EBITDA: 1.897 million ISK, 48.5% of revenue. - Net Profit: 1.109 million ISK. - Real Estate Loss: 2.295 million ISK, largely due to a decline in the real estate market. - Net Real Estate Value: 172,716 million ISK. - Equity: 90,569 million ISK. - Debt-to-Equity Ratio: 52.1%.

For the first six months, the company's revenue increased by 7.2% compared to the same period in the previous year. The growth was attributed to an increase in lease values due to market value adjustments, offset by a 1.5% decrease in lease values after the market value adjustment on June 1, 2025. The capital maintenance costs were 55 million ISK, a 3.5% increase over the previous year. The EBITDA margin (EBITDA%) was 48.5%, an increase from 45.8% in the same period last year.

Real Estate Portfolio: - The company's total real estate value at the end of the period was 173,946 million ISK, a 1.1% decrease from the beginning of the year. - Rental income decreased by 0.8% or 1,414 million ISK. - Net rental income was 935 million ISK, while the decrease in food service and real estate adjustment was 2,349 million ISK. - Total debt and liabilities decreased by 1,638 million ISK. - Owner's equity was 52.1% at the end of the period, compared to 53.5% at the end of 2025.

Real Estate Development: The company expanded its property portfolio by adding 14 new properties, totaling 1,414 million ISK. Seven properties were sold during the period. Construction is ongoing for a property at Nauthólsveg 83D, expected to be completed by the end of 2026.

Financial Management: Félagsbústaðir HF has secured funding through capital lease agreements, sales of income-producing properties, and an increase in part-time staff. No new debt was taken on, and a loan of 32 million ISK was repaid, resulting in a net loss of 32 million ISK.

Collaborations: The company entered into an agreement with the Housing and Labor Association, Jöfnunarsjóð Sveitarfélaga, and Reykjavíkurborg for the purchase and construction projects, which cost 532 million ISK. These projects are funded through lease agreements that contribute 30% to 34% of the value of newly acquired or newly built properties, secured as debt obligations in the company's financials.