Core Viewpoint - Kaldalón hf. reported substantial revenue growth in the first half of 2025, driven by prior-year investments, with a notable increase in rental income and a strong operating profit margin [2][7]. Financial Performance - Operating revenues for H1 2025 reached ISK 2,638 million, up from ISK 2,132 million in H1 2024, reflecting a year-on-year growth of approximately 23.7% [4]. - Operating profit before fair value adjustments was ISK 2,056 million, compared to ISK 1,672 million in the previous year, indicating a growth of 22.9% [4]. - The profit before tax decreased to ISK 1,753 million from ISK 2,454 million, a decline of 28.5% [4]. - The return on equity was 11.3%, down from 17.3% in the previous year [4]. Investment and Growth - The company invested ISK 3.5 billion during the period, with most investments made late in the half-year, expected to contribute to revenues in the second half [6][8]. - Kaldalón signed purchase agreements for properties in Reykjavík, expected to increase annual revenues by ISK 203 million upon completion [9][12]. Outlook - The company updated its financial outlook for 2025, projecting operating revenues between ISK 5,500 million and ISK 5,670 million, and operating profit in the range of ISK 4,270 million to ISK 4,430 million [5]. - The forecast assumes completion of announced transactions related to income-generating properties in Q3 2025 [5]. Market Position and Strategy - The company reported a stable demand for rental space and resilience in the economy despite high interest rates, with a weighted average lease maturity of nearly 10 years [11]. - Market-based funding increased to 35% of total debt from 21%, aligning with the long-term strategy of increasing indexed debt and market-based financing [6][10].