On 1 March 2017, Malita Investments plc published its preliminary statement of financial results for the year ended 31 December 2016.
During 2016, Malita Investments generated €6.98 million in revenue from the leases over the sites of Malta International Airport (MIA) and Valletta Cruise Port (VCP) coupled with the income arising from the contractual agreements in connection with the Parliament Building and Open-Air Theatre (collectively referred to as the “City Gate Project”). In the announcement, the Directors confirmed that the Company is still currently waiting for the issuance of the completion certificate in connection with the Parliament Building. Furthermore, Malita is considering and evaluating a number of potential projects including ones with a mix of public/private participation.
Meanwhile, administrative expenses increased by 15.5% to €0.45 million (FY2015: €0.39 million). The financial statements also accounted for a much lower uplift in the fair value of investment property of €3.02 million when compared to the previous year’s figure of €11.6 million. The investment properties of Malita are the sites of MIA and VCP. The improvement in the fair value reflects the higher present value attributable to the cash flows receivable by the Company in relation to these sites following the continued decline in the yield on Malta Government Stocks which is used as the benchmark.
As a result, the Company registered an operating profit of €9.54 million which is just over half that generated in 2015. After accounting for net finance costs of €1.28 million (FY2015: €1.30 million), Malita’s pre-tax profit amounted to €8.26 million compared to the 2015 pre-tax profit figure of €16.9 million. During the year under review, the Company incurred a tax charge of €1.84 million compared to €0.28 million in 2015, leading to a net profit for 2016 of €6.42 million (FY2015: €16.6 million).
Malita’s total assets increased by a marginal 1.3% to €156.4 million whilst total liabilities dropped by 2.5% to €45.1 million. As a result, total equity increased by 2.8% to €111.3 million reflecting in a net asset value per share of €0.7516 (31 December 2015: €0.7309).
The Directors recommended the payment of a final gross dividend of €0.0228 per share (net: €0.01482) to all shareholders as at the close of trading on Friday 24 March 2017. The final dividend will be paid on Friday 5 May 2017 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Thursday 27 April.
Combined with the interim gross dividend of €0.0128 per share (net: €0.00832), the Company’s total gross dividend for 2016 amounts to €0.0356 (net: €0.0231) per share, representing a 2.2% drop from the dividend distributed in respect of the financial year ended 31 December 2015. The 2016 dividend represents a gross dividend yield of 7.1% (net: 4.6%) on the IPO price of €0.50 (in line with the dividend policy laid out in the July 2012 Prospectus) and a gross dividend yield of 4.6% (net: 3.0%) on today’s closing share price of €0.77.