Íbúðalánasjóður - Company Announcement

Monthly report December 2013

The HFF is not sitting on rentable properties

In spite of regular monthly reports, which contain detailed statistics about
the HFF's property portfolio, it has been repeatedly stated that the fund is
sitting on multiple rentable properties and does not show efforts to put them
up for rent. This false interpretation may be caused by misunderstanding,
perhaps along with wishful thinking that there is more rentable housing
available than is the case. 

The Fund is of course responsible for making sure that the statistical
information provided is put forward in a way that is clear and easily
understood. Thus from this point forward the monthly report will feature a new
modified layout of the property overview table. A specific “for sale” column
will be introduced. The overall information will be unchanged but this modified
version gives a more distinct overview, e.g. showing that at the end of
December, 243 properties were empty, half of which were in the Southern
Peninsula. 

It should be reiterated that an empty property does not equal rentable
property, for there are strict legal requirements on the condition of rental
housing. The Fund spends a maximum of ISK 1.5 million on renovations per
property to meet these requirements and make them available for rent. Therefore
empty and rentable properties are most often only a fraction of the overall
property portfolio.

Attachments:

monthy report december 2013.pdf