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Malta Properties Company plc – Interim Results

cyber

August 7, 2025

7 August, 2025
5 min read
7 August, 2025
5 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 6 August 2025, Malta Properties Company plc published its interim results covering the six-month period ended 30 June 2025.

Revenues declined by 19.4% to €2.26 million (H1 2024: €2.80 million), primarily due to the expiry of several of the Group’s property leases towards the end of 2024. Following the lease expiries, the properties, most notably the former HSBC call centre (Swatar) and the former GO headquarters (Fra Diego, Marsa) were temporarily unoccupied for renovation works.

On the expenditure side, total operating costs were relatively unchanged at €0.69 million. As a result, operating profit fell by 25.9% to €1.60 million compared to €2.17 million in H1 2024.

Elsewhere, net finance costs increased by 15.6% to €0.59 million (H1 2024: €0.51 million), mainly driven by a reduction in finance income due to lower deposit balances, as some of these funds were utilised to support ongoing renovation works. After accounting for a tax charge of €0.51 million, MPC reported a net profit for the period of €0.50 million representing a 55.6% decrease from the €1.15 million recorded in the corresponding period of the previous year. The profit for the first six months of 2025 translates into an annualised return on average equity of 1.78% (H1 2024: 4.15%).

The Statement of Financial Position as at 30 June 2025, when compared to the corresponding figures as at 31 December 2024, shows that total assets decreased by 1.4% (or €1.43 million) to €98.0 million, primarily consisting of investment property valued at €91.9 million and cash (including fixed deposits) amounting to €4.7 million. Meanwhile, total liabilities dropped by 1.2% (or €0.51 million) to €41.4 million. Total equity eased by 1.6% (or €0.92 million) to €56.6 million, translating into a net asset value per share of €0.5587 (31 December 2024: €0.5677).

Outlook

In their commentary, the Directors noted that a new tenant has recently occupied the Swatar property, with the full impact on performance expected to be reflected in the second half of the year. Additionally, a new tenant is set to occupy half of the former GO headquarters in Marsa during Q3 2025. Meanwhile, the ongoing extension and renovation works at the Spencer Hill property are expected to be completed by year-end, after which the property will be fully occupied, as it has already been contracted to a government agency.

The Board indicated that revenue is expected to increase in the coming months driven by a rising occupancy in MPC’s property portfolio. Furthermore, it was noted that apart from half of the former GO headquarters in Marsa and two smaller development properties, in Naxxar (earmarked for a future development project) and one in Rabat (earmarked for sale), the entire property portfolio is either occupied or under a lease agreement.

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 6 August 2025, Malta Properties Company plc published its interim results covering the six-month period ended 30 June 2025.

Revenues declined by 19.4% to €2.26 million (H1 2024: €2.80 million), primarily due to the expiry of several of the Group’s property leases towards the end of 2024. Following the lease expiries, the properties, most notably the former HSBC call centre (Swatar) and the former GO headquarters (Fra Diego, Marsa) were temporarily unoccupied for renovation works.

On the expenditure side, total operating costs were relatively unchanged at €0.69 million. As a result, operating profit fell by 25.9% to €1.60 million compared to €2.17 million in H1 2024.

Elsewhere, net finance costs increased by 15.6% to €0.59 million (H1 2024: €0.51 million), mainly driven by a reduction in finance income due to lower deposit balances, as some of these funds were utilised to support ongoing renovation works. After accounting for a tax charge of €0.51 million, MPC reported a net profit for the period of €0.50 million representing a 55.6% decrease from the €1.15 million recorded in the corresponding period of the previous year. The profit for the first six months of 2025 translates into an annualised return on average equity of 1.78% (H1 2024: 4.15%).

The Statement of Financial Position as at 30 June 2025, when compared to the corresponding figures as at 31 December 2024, shows that total assets decreased by 1.4% (or €1.43 million) to €98.0 million, primarily consisting of investment property valued at €91.9 million and cash (including fixed deposits) amounting to €4.7 million. Meanwhile, total liabilities dropped by 1.2% (or €0.51 million) to €41.4 million. Total equity eased by 1.6% (or €0.92 million) to €56.6 million, translating into a net asset value per share of €0.5587 (31 December 2024: €0.5677).

Outlook

In their commentary, the Directors noted that a new tenant has recently occupied the Swatar property, with the full impact on performance expected to be reflected in the second half of the year. Additionally, a new tenant is set to occupy half of the former GO headquarters in Marsa during Q3 2025. Meanwhile, the ongoing extension and renovation works at the Spencer Hill property are expected to be completed by year-end, after which the property will be fully occupied, as it has already been contracted to a government agency.

The Board indicated that revenue is expected to increase in the coming months driven by a rising occupancy in MPC’s property portfolio. Furthermore, it was noted that apart from half of the former GO headquarters in Marsa and two smaller development properties, in Naxxar (earmarked for a future development project) and one in Rabat (earmarked for sale), the entire property portfolio is either occupied or under a lease agreement.