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Malta Properties Company plc – Full-Year Results

Matthew Fabri

March 21, 2025

21 March, 2025
6 min read
21 March, 2025
6 min read

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 21 March 2025, Malta Properties Company plc (‘MPC’) published its Annual Report and Financial Statements for the financial year ended 31 December 2024.

Revenue increased by 13.2% to a record of €5.69 million (2023: €5.02 million) driven by additional rental income for ‘The Exchange’ in Marsa as well as the ’Mediterranean Building’ in Ta’ Xbiex, which outweighed the decrease in revenue from the Swatar property, which was vacated by HSBC Global Services at the end of October 2024.

Administrative expenses grew by 10.8% to €1.76 million (2023: €1.59 million), on the back of higher operational costs for tenanted buildings, including increased labour, repairs and maintenance costs. Excluding depreciation charges, EBITDA climbed by 14.7% to €3.95 million compared to €3.44 million in the previous financial year. Similarly, operating profit (‘EBIT’) improved by 14.1% to a record of €3.92 million which translates into an EBIT margin of 68.9% (2023: 68.6%).

Meanwhile, net finance costs remained relatively unchanged at €1.07 million. The financial performance was also positively impacted by a fair value gain on investment property of €0.82 million compared to the gain of €0.97 million in the previous year.

Overall, MPC reported a record pre-tax profit of €3.68 million. After accounting for a tax charge of €1.13 million, the net profit figure for the year amounted to €2.54 million (2023: €2.06 million) which translates into a return on average equity of 4.46% (2023: 3.68%)

The Statement of Financial Position as at 31 December 2024 shows that total assets remained relatively unchanged at €99.4 million mainly consisting of Investment Property (€90.1 million) as well as Cash and Equivalents (€7.99 million). Meanwhile, total liabilities decreased by 1.8% to €41.9 million and shareholders’ funds grew by 2.0% to €57.5 million which translates into a net asset value per share of €0.5677 (31 December 2023: €0.5566).

Dividend

The Board of Directors recommended a final net dividend of €0.014 per share unchanged from the previous year. Shareholders as at the close of trading on Thursday 24 April 2025 will be entitled to receive this dividend on Friday 30 May 2025.

Outlook

In his commentary, the Chairman highlighted that the company’s commercial efforts have been successful and as a result during the second half of 2024, there were no vacancies in the property portfolio, barring ones undergoing renovations. The Chairman stated that he is positive about the company’s future trajectory. In this respect, he explained that the properties whose leases expired during the last quarter of 2024 are being renovated ahead of new tenants moving in. Moreover, he is confident that the commencement of new leases during 2025 will set the stage for higher revenues in 2026.

Meanwhile, the CEO noted that despite challenges within the office sector, MPC has achieved encouraging commercial performance on the back of the company’s focus on customer service. The CEO stated that new leases are scheduled to commence progressively during the current financial year, positioning MPC for revenue growth in 2026. Particularly, the CEO referenced that ‘The Exchange’ at Spencer Hill, Marsa will be fully leased out to a government authority once renovations work (including the building of a substantial rooftop extension) are completed in 2025. Moreover, he referenced that the entire Swatar property (ex-HSBC Global Services call centre), will be leased out to the ministry of health during the year once renovation works are finished. Furthermore, he noted that MPC secured a lease agreement for part of the Marsa office building which was vacated by GO at the end of 2024.

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.

On 21 March 2025, Malta Properties Company plc (‘MPC’) published its Annual Report and Financial Statements for the financial year ended 31 December 2024.

Revenue increased by 13.2% to a record of €5.69 million (2023: €5.02 million) driven by additional rental income for ‘The Exchange’ in Marsa as well as the ’Mediterranean Building’ in Ta’ Xbiex, which outweighed the decrease in revenue from the Swatar property, which was vacated by HSBC Global Services at the end of October 2024.

Administrative expenses grew by 10.8% to €1.76 million (2023: €1.59 million), on the back of higher operational costs for tenanted buildings, including increased labour, repairs and maintenance costs. Excluding depreciation charges, EBITDA climbed by 14.7% to €3.95 million compared to €3.44 million in the previous financial year. Similarly, operating profit (‘EBIT’) improved by 14.1% to a record of €3.92 million which translates into an EBIT margin of 68.9% (2023: 68.6%).

Meanwhile, net finance costs remained relatively unchanged at €1.07 million. The financial performance was also positively impacted by a fair value gain on investment property of €0.82 million compared to the gain of €0.97 million in the previous year.

Overall, MPC reported a record pre-tax profit of €3.68 million. After accounting for a tax charge of €1.13 million, the net profit figure for the year amounted to €2.54 million (2023: €2.06 million) which translates into a return on average equity of 4.46% (2023: 3.68%)

The Statement of Financial Position as at 31 December 2024 shows that total assets remained relatively unchanged at €99.4 million mainly consisting of Investment Property (€90.1 million) as well as Cash and Equivalents (€7.99 million). Meanwhile, total liabilities decreased by 1.8% to €41.9 million and shareholders’ funds grew by 2.0% to €57.5 million which translates into a net asset value per share of €0.5677 (31 December 2023: €0.5566).

Dividend

The Board of Directors recommended a final net dividend of €0.014 per share unchanged from the previous year. Shareholders as at the close of trading on Thursday 24 April 2025 will be entitled to receive this dividend on Friday 30 May 2025.

Outlook

In his commentary, the Chairman highlighted that the company’s commercial efforts have been successful and as a result during the second half of 2024, there were no vacancies in the property portfolio, barring ones undergoing renovations. The Chairman stated that he is positive about the company’s future trajectory. In this respect, he explained that the properties whose leases expired during the last quarter of 2024 are being renovated ahead of new tenants moving in. Moreover, he is confident that the commencement of new leases during 2025 will set the stage for higher revenues in 2026.

Meanwhile, the CEO noted that despite challenges within the office sector, MPC has achieved encouraging commercial performance on the back of the company’s focus on customer service. The CEO stated that new leases are scheduled to commence progressively during the current financial year, positioning MPC for revenue growth in 2026. Particularly, the CEO referenced that ‘The Exchange’ at Spencer Hill, Marsa will be fully leased out to a government authority once renovations work (including the building of a substantial rooftop extension) are completed in 2025. Moreover, he referenced that the entire Swatar property (ex-HSBC Global Services call centre), will be leased out to the ministry of health during the year once renovation works are finished. Furthermore, he noted that MPC secured a lease agreement for part of the Marsa office building which was vacated by GO at the end of 2024.