Malita Investments plc - Interim Results

On 28 August 2024, Malita Investments plc published its condensed interim financial statements covering the six-month period ended 30 June 2024.

Revenues grew by 5.1% to €4.92 million compared to €4.68 million in the corresponding period last year as Malita recognised a higher level of income from the Affordable Housing Project (reflecting the accounting treatment of revenues and costs) of €0.42, which is double from the €0.21 million in H1 2023. Meanwhile, income from leases and ground rents remained unchanged at €4.50 million.

On the expenditure side, administrative costs increased by 11.0% to €0.60 million compared to €0.54 million in H1 2023. These include higher levels of provisions for housing maintenance costs. Consequently, operating profit grew by 4.4% to €4.32 million (H1 2023: €4.14 million).

Meanwhile, the financial performance of Malita was dented by a fair value decrease of investment property of €8.69 million in contrast to a positive movement of €7.30 million recorded in the first half of 2023. In this respect, the fair value of the MIA and VCP properties was reduced by €6.82 million whilst the fair value of the Parliament Building and Open-Air Theatre was adjusted lower by €1.87 million.

Finance income surged by 56% to €2.10 million largely reflecting the accounting treatment of part of the income from the affordable housing project. Meanwhile, finance costs increased by 16% to €0.99 million.

After accounting for  and a tax expense of €0.36 million, the net loss for the period under review amounted to €3.62 million compared to a profit of €10.4 million in the first half of 2023.

The condensed Statement of Financial Position as at 30 June 2024, compared to the corresponding figures as at 31 December 2023, shows that total assets expanded by 6.7% (or €19.7 million) to €312.6 million, principally composed of investment property of €212.4 million and the recognition of the assets related to the Affordable Housing Project totalling €78.0 million. Meanwhile, total liabilities decreased by 1.8% (or €2.3 million) to €123.6 million, which include borrowings amounting to €86.8 million and lease liabilities of €3.5 million. Total equity surged by 13.2% (or €22.0 million) to €189.0 million reflecting the net proceeds of €29.9 million from the Rights Issue that was concluded in April 2024. The net asset value per share stood at €0.908.

Dividend

The Directors declared a net interim dividend of €0.0086 per share, virtually unchanged from the previous year but reflects a higher payment in absolute terms in view of the additional shares subscribed through the Rights Issue. The dividend is payable on Wednesday 2 October 2024 to all shareholders as at the close of trading on Monday 9 September 2024.

Updates related to the Affordable Housing Project

In their commentary, the Directors explained that during the first half of 2024, Malita completed 240 units pertaining to the Affordable Housing Project, thus the total number of completed units reached 366, which are also complemented with 270 garages or car spaces.

Looking ahead, Malita expects another 95 units to be completed during the second half of 2024 and a further 24 units are forecasted to be completed by July 2025. Meanwhile, the Luqa site  comprising 267 units is projected to be fully completed by October 2026.

The Directors explained that discussions with financial institutions relating to the remaining funds required to complete the project are at an advanced stage, with correspondence indicating that the remaining funds have been conceptually approved.