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Malita Investments plc – Full-Year Results

Jonathan Falzon

April 30, 2025

30 April, 2025
7 min read
30 April, 2025
7 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, Malita Investments plc published its Annual Report and Financial Statements for the year ended 31 December 2024. The comparable figures for 2023 were restated as a result of adjustments made to better reflect the application of the relevant accounting standards. The financial performance of 2024 includes the impact of the €30 million raised through a Rights Issue that was concluded in April 2024.

Revenue increased by 7.2% to a record of €10.2 million (2023: €9.53 million) reflecting the continued growth in lease and ground rent payments from investment property as well as the higher recognition of revenue from the Affordable Housing Project.

On the expenditure side, administrative expenses surged by 20.0% to €1.08 million, while an additional €0.35 million was included in operating expenses as a provision for liabilities and charges. Nonetheless, since income streams increased more than costs in absolute terms, operating profit climbed 5.5% higher to a record of €8.78 million compared to €8.32 million in 2023.

Meanwhile, the financial performance was negatively impacted by a net fair value loss on investment property amounting to €4.72 million compared to the fair value gains of €15.5 million recognised in 2023. Effectively, the decrease of €10.7 million (2023: gain of €3.3 million) in the present value of the Parliament Building and the Open-Air Theatre sites offset the €6.0 million gain (2023: €12.1 million gain) recognised for the Malta International Airport and Valletta Cruise Port sites.

Finance income from the Housing Concession Agreements almost doubled to €5.61 million (2023: €3.25 million) driven by the completion of several new housing units. Meanwhile, finance costs remained relatively unchanged from the previous year at €3.66 million.

Overall, Malita registered a pre-tax profit of €6.14 million compared to €23.5 million in 2023. After accounting for a tax credit of €0.27 million, the net profit for the year amounted to €6.40 million.

The Statement of Financial Position as at 31 December 2024 shows that total assets increased by 7.1% (or €23 million) to €346.4 million mainly reflecting a higher value attributed to the housing project assets (+€18.2 million to €78.6 million) and the addition of €10.7 million in financial investments. Meanwhile, total liabilities decreased by 5.0% (or €7.5 million) to €144.5 million. As at the end of 2024, Malita had borrowings of €84.4 million and lease liabilities of €3.5 million. Total equity increased by 17.7% (or €30 million) to €201.8 million which translates into a net asset value of €0.9696 (31 December 2023, prior to the Rights Issue: €1.1577) per share.

Dividend

The Directors are recommending the payment of an unchanged final net dividend of €0.0185 per share to all shareholders as at the close of trading on Friday 25 April 2025. The dividend will be paid on Monday 30 June 2025 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Thursday 25 May 2025. Coupled with the interim net dividend of €0.00858 per share, the total net dividend attributable to the financial year amounts to €0.02710 per share, unchanged from the previous year.

Update on the Affordable Housing Project

In their commentary, the Directors explained that the Affordable Housing Project continued to register significant progress throughout the year. In fact, over the course of the year, an additional 266 units were completed, bringing the total number of finished units to 392. In addition to residential units, the project also expanded its infrastructure with the introduction of 212 garages and car spaces across multiple locations.

Malita expects to complete the development and finishing works on 69 residential units in Cospicua by January 2026. In Qrendi, the company anticipates handing over 28 residential units to tenants by April 2026, subject to the timely completion of the remaining construction phase.

With regards to the Luqa site, the largest within the Housing Project, the first phase is expected to be completed by January 2026. The project has been structured into three distinct blocks, with each block being delivered to tenants in phases. In aggregate, the Luqa site will comprise 267 residential units and 287 garages/car spaces.

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, Malita Investments plc published its Annual Report and Financial Statements for the year ended 31 December 2024. The comparable figures for 2023 were restated as a result of adjustments made to better reflect the application of the relevant accounting standards. The financial performance of 2024 includes the impact of the €30 million raised through a Rights Issue that was concluded in April 2024.

Revenue increased by 7.2% to a record of €10.2 million (2023: €9.53 million) reflecting the continued growth in lease and ground rent payments from investment property as well as the higher recognition of revenue from the Affordable Housing Project.

On the expenditure side, administrative expenses surged by 20.0% to €1.08 million, while an additional €0.35 million was included in operating expenses as a provision for liabilities and charges. Nonetheless, since income streams increased more than costs in absolute terms, operating profit climbed 5.5% higher to a record of €8.78 million compared to €8.32 million in 2023.

Meanwhile, the financial performance was negatively impacted by a net fair value loss on investment property amounting to €4.72 million compared to the fair value gains of €15.5 million recognised in 2023. Effectively, the decrease of €10.7 million (2023: gain of €3.3 million) in the present value of the Parliament Building and the Open-Air Theatre sites offset the €6.0 million gain (2023: €12.1 million gain) recognised for the Malta International Airport and Valletta Cruise Port sites.

Finance income from the Housing Concession Agreements almost doubled to €5.61 million (2023: €3.25 million) driven by the completion of several new housing units. Meanwhile, finance costs remained relatively unchanged from the previous year at €3.66 million.

Overall, Malita registered a pre-tax profit of €6.14 million compared to €23.5 million in 2023. After accounting for a tax credit of €0.27 million, the net profit for the year amounted to €6.40 million.

The Statement of Financial Position as at 31 December 2024 shows that total assets increased by 7.1% (or €23 million) to €346.4 million mainly reflecting a higher value attributed to the housing project assets (+€18.2 million to €78.6 million) and the addition of €10.7 million in financial investments. Meanwhile, total liabilities decreased by 5.0% (or €7.5 million) to €144.5 million. As at the end of 2024, Malita had borrowings of €84.4 million and lease liabilities of €3.5 million. Total equity increased by 17.7% (or €30 million) to €201.8 million which translates into a net asset value of €0.9696 (31 December 2023, prior to the Rights Issue: €1.1577) per share.

Dividend

The Directors are recommending the payment of an unchanged final net dividend of €0.0185 per share to all shareholders as at the close of trading on Friday 25 April 2025. The dividend will be paid on Monday 30 June 2025 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Thursday 25 May 2025. Coupled with the interim net dividend of €0.00858 per share, the total net dividend attributable to the financial year amounts to €0.02710 per share, unchanged from the previous year.

Update on the Affordable Housing Project

In their commentary, the Directors explained that the Affordable Housing Project continued to register significant progress throughout the year. In fact, over the course of the year, an additional 266 units were completed, bringing the total number of finished units to 392. In addition to residential units, the project also expanded its infrastructure with the introduction of 212 garages and car spaces across multiple locations.

Malita expects to complete the development and finishing works on 69 residential units in Cospicua by January 2026. In Qrendi, the company anticipates handing over 28 residential units to tenants by April 2026, subject to the timely completion of the remaining construction phase.

With regards to the Luqa site, the largest within the Housing Project, the first phase is expected to be completed by January 2026. The project has been structured into three distinct blocks, with each block being delivered to tenants in phases. In aggregate, the Luqa site will comprise 267 residential units and 287 garages/car spaces.