AX Real Estate plc – Interim Results
Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.
Financial Performance
On 26 June 2026, AX Real Estate plc published its interim financial results covering the six-month period ended 30 April 2026.
Revenue increased by 7.7% to €7.7 million from €7.1 million last year, primarily driven by the rent generated by the Verdala Wellness Hotel (which opened in August 2025) as well as higher variable rent from the other hotels reflecting improved operational performance. AX Real Estate explained that 80% of the rental income emanated from its properties within the hospitality segment, 12% from the care home, whilst the remaining portion was derived from the lease of offices (4%), residential units (1%), and warehouses (3%). The company also noted that, in line with the same period last year, the majority of properties available for rent were leased out.
Operating expenses (net of other income) amounted to €0.52 million (30 April 2025: €0.48 million), a marginal increase on the previous year. Nonetheless, operating profit increased by 7.6% to €7.2 million compared to €6.7 million in the corresponding period last year. The operating profit margin remained relatively unchanged at 93.2%.
Meanwhile, net finance costs remained practically unchanged at €3.2 million. After accounting for a tax charge of €0.74 million, AX Real Estate reported a net profit of €3.19 million compared to €2.86 million in the corresponding period last year.
The Statement of Financial Position as at 30 April 2026 compared to 31 October 2025 shows that total assets remained virtually unchanged at €349 million, largely composed of investment property of €345 million. Total liabilities increased by 1.7% to €201 million, with total debt amounting to €164 million. As a result, total equity stood at €148 million (31 October 2025: €152 million) which translates into a net asset value per share of €0.539 (31 October 2025: €0.553).
Current Developments & Outlook
The Directors explained that the Virtu Heights residences are in their final stages of completion and are expected to be operational in the coming weeks. Moreover, the Directors also stated that the hotel properties are performing strongly with operational results across the portfolio remaining in line with or exceeding expectations. Furthermore, the Group also explained that it is also progressing with the second phase of the Qawra project with works scheduled to commence in September 2026. The project includes the demolition and reconstruction of AX Sunny Coast Resort & Spa, as well as the redevelopment of AX Sunny Coast Lido and Luzzu Complex. The Group is currently in discussions with banking institutions to secure partial financing for this phase of the development.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.