Hili Properties plc – Full-Year Results

Jonathan Falzon

April 30, 2025

Market News
30 April, 2025
4 min read
Market News
30 April, 2025
4 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 28 April 2025, Hili Properties plc published its Annual Report and Financial Statements for the year ended 31 December 2024.

Total revenue, inclusive of other operating income, increased by 4.7% to a record of €17.0 million (2023: €16.3 million) despite the disposal of a retail complex in Latvia in February 2024. The Group reported that its largest asset, namely the MIRO office building in Romania reached full occupancy during 2024 following the successful completion of four new fitouts. The Company noted that as at the end of 2024, 99% of its available-for-lease properties were fully occupied and the weighted average lease term for the property portfolio stood at 7.8 years.

On the expenditure side, operating costs decreased by 4.4% to €4.01 million. Consequently, the operating profit (EBIT) surged by 8.4% to €13.2 million from €12.1 million in the previous year. The EBIT margin climbed to 76.8% (2023: 74.2%).

However, the financial performance was negatively impacted by a net fair value decrease on property assets of €0.42 million (2023: gain of €2.46 million).

Meanwhile, net finance costs decreased by 5.7% to €6.54 million from €6.93 million in the previous year.

The profit before tax dropped by 19.3% to €6.13 million. After accounting for a tax charge of €1.36 million, and a profit attributable to non-controlling interests of €0.40 million, the net profit attributable to shareholders amounted to €4.37 million, which translates into a return on average equity of 3.68% (2023: 4.79%).

The Statement of Financial Position as of 31 December 2024 shows that total assets decreased by 1.0% (or €2.6 million) to €252.9 million. The Group classified €194.2 million of its assets as investment property, with a further €42.9 million as assets held for sale, namely three Latvian property holding companies. Meanwhile, total liabilities increased by 3.4% (or €4.3 million) to €132.8 million. Shareholders’ funds increased by 2.2% (or €2.6 million) to €120.2 million, which translates into a net asset value of €0.2998 (2023: €0.2933) per share.

Dividend

The Board of Directors announced that in view of the upcoming redemption of the €37 million 4.5% unsecured bonds maturing on 16 October 2025, no dividends will be distributed for the reporting period.

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 28 April 2025, Hili Properties plc published its Annual Report and Financial Statements for the year ended 31 December 2024.

Total revenue, inclusive of other operating income, increased by 4.7% to a record of €17.0 million (2023: €16.3 million) despite the disposal of a retail complex in Latvia in February 2024. The Group reported that its largest asset, namely the MIRO office building in Romania reached full occupancy during 2024 following the successful completion of four new fitouts. The Company noted that as at the end of 2024, 99% of its available-for-lease properties were fully occupied and the weighted average lease term for the property portfolio stood at 7.8 years.

On the expenditure side, operating costs decreased by 4.4% to €4.01 million. Consequently, the operating profit (EBIT) surged by 8.4% to €13.2 million from €12.1 million in the previous year. The EBIT margin climbed to 76.8% (2023: 74.2%).

However, the financial performance was negatively impacted by a net fair value decrease on property assets of €0.42 million (2023: gain of €2.46 million).

Meanwhile, net finance costs decreased by 5.7% to €6.54 million from €6.93 million in the previous year.

The profit before tax dropped by 19.3% to €6.13 million. After accounting for a tax charge of €1.36 million, and a profit attributable to non-controlling interests of €0.40 million, the net profit attributable to shareholders amounted to €4.37 million, which translates into a return on average equity of 3.68% (2023: 4.79%).

The Statement of Financial Position as of 31 December 2024 shows that total assets decreased by 1.0% (or €2.6 million) to €252.9 million. The Group classified €194.2 million of its assets as investment property, with a further €42.9 million as assets held for sale, namely three Latvian property holding companies. Meanwhile, total liabilities increased by 3.4% (or €4.3 million) to €132.8 million. Shareholders’ funds increased by 2.2% (or €2.6 million) to €120.2 million, which translates into a net asset value of €0.2998 (2023: €0.2933) per share.

Dividend

The Board of Directors announced that in view of the upcoming redemption of the €37 million 4.5% unsecured bonds maturing on 16 October 2025, no dividends will be distributed for the reporting period.