AX Real Estate plc – Updated Financial Analysis Summary

Jonathan Falzon

April 24, 2025

24 April, 2025
3 min read
24 April, 2025
3 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 23 April 2025, AX Real Estate plc (AXRE) published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of AXRE for the financial year ending 31 October 2025:

  • Revenues are expected to remain practically unchanged at €19.4 million, yet the figure is higher than the previous estimate of €17.3 million reflecting higher variable rental income from an anticipated improved performance of the Group’s hotels. In aggregate, income from the lease of hotel properties is expected to amount to €16 million, representing 83% of total rental income.
  • EBITDA is forecasted to increase by 0.9% to €18.6 million from the previous year, but the projection is 12.5% higher than the previous estimate of €17.3 million that was provided last year.
  • Finance costs are expected to increase by 2.6% to €6.59 million. Nonetheless, the interest cover is anticipated to be 2.8 times, compared to 2.4 times in the previous forecasts for FY2024/25.
  • Total debt is expected to climb to the €160 million level compared to €152 million in 31 October 2024. As such, the gearing ratio is forecasted to climb to 53.2% from 52.7% as at the end of October 2024. Likewise, the debt-to-asset ratio is forecasted to increase to 0.48 times from 0.47 times as at the end of the last financial year.
  • AXRE explained that the Verdala Wellness Hotel is expected to be inaugurated during the second quarter of 2025 and the total expenditure for the Verdala Wellness Hotel is now expected to be around €20 million compared to the earlier projection of circa €11.5 million.
  • AXRE is currently planning the next phases of the Qawra project which will include the demolition and reconstruction of AX Sunny Coast Resort & Spa into AX ODYCY Residences comprising 151 rooms, together with the redevelopment of AX Sunny Coast Lido and Luzzu Complex. These phases are projected to cost between €70 million and €80 million.

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 23 April 2025, AX Real Estate plc (AXRE) published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of AXRE for the financial year ending 31 October 2025:

  • Revenues are expected to remain practically unchanged at €19.4 million, yet the figure is higher than the previous estimate of €17.3 million reflecting higher variable rental income from an anticipated improved performance of the Group’s hotels. In aggregate, income from the lease of hotel properties is expected to amount to €16 million, representing 83% of total rental income.
  • EBITDA is forecasted to increase by 0.9% to €18.6 million from the previous year, but the projection is 12.5% higher than the previous estimate of €17.3 million that was provided last year.
  • Finance costs are expected to increase by 2.6% to €6.59 million. Nonetheless, the interest cover is anticipated to be 2.8 times, compared to 2.4 times in the previous forecasts for FY2024/25.
  • Total debt is expected to climb to the €160 million level compared to €152 million in 31 October 2024. As such, the gearing ratio is forecasted to climb to 53.2% from 52.7% as at the end of October 2024. Likewise, the debt-to-asset ratio is forecasted to increase to 0.48 times from 0.47 times as at the end of the last financial year.
  • AXRE explained that the Verdala Wellness Hotel is expected to be inaugurated during the second quarter of 2025 and the total expenditure for the Verdala Wellness Hotel is now expected to be around €20 million compared to the earlier projection of circa €11.5 million.
  • AXRE is currently planning the next phases of the Qawra project which will include the demolition and reconstruction of AX Sunny Coast Resort & Spa into AX ODYCY Residences comprising 151 rooms, together with the redevelopment of AX Sunny Coast Lido and Luzzu Complex. These phases are projected to cost between €70 million and €80 million.