Back to Market News

AX Real Estate plc – Updated Financial Analysis Summary

Jonathan Falzon

April 20, 2026

20 April, 2026
5 min read
20 April, 2026
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.

On 17 April 2026, AX Real Estate plc (AXRE) published an updated Financial Analysis Summary. AX Real Estate explained that in August 2025, AXRE inaugurated the five-star Verdala Wellness Hotel in Rabat, following an investment of around €20 million. In FY2026, AXRE is expected to receive the first full-year contribution from the Verdala Wellness Hotel. Furthermore, the Virtu Heights guestrooms are targeted for completion in Q2 2026. The following are the main highlights of the expected financial performance and financial position of AXRE for the financial year ending 31 October 2026:

  • Revenues are expected to reach a new record of €21.7 million, albeit the forecasted figure is only marginally above the previous year’s revenue. In aggregate, income from the lease of hotel properties is expected to amount to €18.6 million, representing 85% of total rental income.
  • EBITDA is also forecasted to stay virtually unchanged at €20.7 million, translating into an EBITDA margin of 95.4%.
  • Finance costs are expected to increase by 4.0% to €6.77 million. Nonetheless, the interest cover is anticipated to remain relatively unchanged at 3.1 times, compared to 3.2 times last year.
  • Total debt is expected to climb to €169.1 million compared to €161.9 million as at 31 October 2025. As such, the gearing ratio is projected to rise to 52.2% from 51.6% as at the end of October 2025. Likewise, the debt-to-asset ratio is forecasted to increase to 0.47 times from 0.46 times as at the end of the last financial year.
  • After accounting for the forecasted cash balances of €1.1 million as at 31 October 2026, the net debt is forecasted to amount to €168.1 million, which translates into a net debt-to-EBITDA multiple of 8.1 times, compared to 7.7 times as at the end of October 2025.
  • Total equity is anticipated to increase by 2.1% to €155.0 million as at 31 October 2026. This translates into a net asset value per share of €0.565, compared to €0.553 as at the end of the last financial year.
  • In March 2026, AXRE concluded the acquisition of a site adjacent to Hilltop Gardens Retirement Village and Simblija Care Home. In the same month, AXRE entered into a preliminary agreement for the purchase of another site adjacent to Hilltop Gardens and Simblija Care Home, with the transaction expected to be completed in due course.
  • As from September 2026, AXRE is proceeding with the second phase of the Qawra Project, which will comprise the demolition and reconstruction of AX Sunny Coast Resort & Spa into AX ODYCY Residences featuring 161 rooms, together with the redevelopment of AX Sunny Coast Lido and Luzzu Complex to create a 300-metre waterfront stretch. The total investment for the full completion of the project is expected to be around €87 million, with construction anticipated to take 30 to 36 months. The AX Sunny Coast Resort, AX Sunny Coast Lido, and the Luzzu Complex are expected to temporarily halt operations in late August 2026 to enable the commencement of works.

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 17 April 2026, AX Real Estate plc (AXRE) published an updated Financial Analysis Summary. AX Real Estate explained that in August 2025, AXRE inaugurated the five-star Verdala Wellness Hotel in Rabat, following an investment of around €20 million. In FY2026, AXRE is expected to receive the first full-year contribution from the Verdala Wellness Hotel. Furthermore, the Virtu Heights guestrooms are targeted for completion in Q2 2026. The following are the main highlights of the expected financial performance and financial position of AXRE for the financial year ending 31 October 2026:

  • Revenues are expected to reach a new record of €21.7 million, albeit the forecasted figure is only marginally above the previous year’s revenue. In aggregate, income from the lease of hotel properties is expected to amount to €18.6 million, representing 85% of total rental income.
  • EBITDA is also forecasted to stay virtually unchanged at €20.7 million, translating into an EBITDA margin of 95.4%.
  • Finance costs are expected to increase by 4.0% to €6.77 million. Nonetheless, the interest cover is anticipated to remain relatively unchanged at 3.1 times, compared to 3.2 times last year.
  • Total debt is expected to climb to €169.1 million compared to €161.9 million as at 31 October 2025. As such, the gearing ratio is projected to rise to 52.2% from 51.6% as at the end of October 2025. Likewise, the debt-to-asset ratio is forecasted to increase to 0.47 times from 0.46 times as at the end of the last financial year.
  • After accounting for the forecasted cash balances of €1.1 million as at 31 October 2026, the net debt is forecasted to amount to €168.1 million, which translates into a net debt-to-EBITDA multiple of 8.1 times, compared to 7.7 times as at the end of October 2025.
  • Total equity is anticipated to increase by 2.1% to €155.0 million as at 31 October 2026. This translates into a net asset value per share of €0.565, compared to €0.553 as at the end of the last financial year.
  • In March 2026, AXRE concluded the acquisition of a site adjacent to Hilltop Gardens Retirement Village and Simblija Care Home. In the same month, AXRE entered into a preliminary agreement for the purchase of another site adjacent to Hilltop Gardens and Simblija Care Home, with the transaction expected to be completed in due course.
  • As from September 2026, AXRE is proceeding with the second phase of the Qawra Project, which will comprise the demolition and reconstruction of AX Sunny Coast Resort & Spa into AX ODYCY Residences featuring 161 rooms, together with the redevelopment of AX Sunny Coast Lido and Luzzu Complex to create a 300-metre waterfront stretch. The total investment for the full completion of the project is expected to be around €87 million, with construction anticipated to take 30 to 36 months. The AX Sunny Coast Resort, AX Sunny Coast Lido, and the Luzzu Complex are expected to temporarily halt operations in late August 2026 to enable the commencement of works.