Malita Investments plc - Full-Year Results

On 12 March 2020, Malita Investments plc published the Annual Report and Financial Statements for the year ended 31 December 2019.

Performance Overview

During 2019, Malita Investments plc generated record revenues of €8.33 million, representing an increase of 4% over the previous corresponding figure. The increase in revenue was driven by the turnover received from the service concession arrangement Malita entered into with the Housing Authority whereby it made available sixteen residential blocks (totalling 717 units), a number of car spaces and lock-up garages and from which it is entitled to receive the cash flows from rent on the properties. Furthermore, the company also received additional ground rent of €0.16 million from the Valletta Cruise Port (“VCP”) which, in turn, reflects the increased business at the VCP that resulted in a higher percentage of rent payable to Malita than the pre-set minimum annual ground rent. During this same period, the company began receiving lease income for the Parliament building as the completion certificate was issued in January 2019. Additional rent was being received in this regard due to a number of improvements made to the Parliament Building. The company is also receiving lease income in respect to the Open Air Theatre.

On the expenditure side, administrative expenses fell by 20.5% to €0.41 million, largely reflecting a reduction in professional fees and the elimination of ground rents. Similarly, net finance costs declined by 11.7% to €1.26 million following a reduction in bank charges and fees and the addition of finance income being derived from the accounting treatment of the agreement made with the Housing Authority with respect to the Affordable Housing project.

The financial performance of Malita was heavily impacted by the much higher incidence of positive fair value movements of investment properties as these amounted to €34.6 million in 2019 compared to €7.7 million in the previous year. In fact, the MIA and VCP properties experienced fair value gains of 29.4% to €104.1 million (2018: €80.4 million) whilst the Parliament Building and the Open Air Theatre’s fair value rose by 10.2% to €119.3 million (2018: €103.5 million).

Overall, Malita registered a pre-tax profit of €41.3 million (2018: €13.7 million). After accounting for a tax charge of €4.2 million, the net profit for the year amounted to €37.1 million, representing a rise of 218.2% when compared to the corresponding figure for 2018.

The Statement of Financial Position shows that total assets increased by 23.2% to €234.4 million, largely reflecting the increase in the fair value of the company’s investment properties as well as an increase in the value of capitalised costs amounting to €9.82 million which are related to the Affordable Housing Project (31 December 2018: €5.57 million). Similarly, total liabilities grew by 21.9% to €75.4 million largely reflecting increased borrowings, the impact of IFRS16 which recognised leased liabilities in relation to leases which had previously been classified as ‘operating leases’ and the introduction of a provision on restorations. Furthermore, the company’s net debt increased by 3.3% to €45.4 million compared to €44 million as at the end of 2018. Meanwhile, total equity increased by 23.8% to €159 million (31 December 2018: €128.4 million). This translates into a net asset value per share of €1.0734 (31 December 2018: €0.867 per share).


The Directors are recommending the payment of a final net dividend of €0.01853 per share to all shareholders as at the close of trading on Thursday 2 April 2020. The final dividend will be paid on Tuesday 12 May 2020 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Wednesday 6 May 2019.

Coupled with the interim net dividend of €0.00858 per share, the total net dividend for the 2019 financial year amounts to €0.02711 per share. This is 19.2% higher than the total net dividend per share of €0.02275 paid for in the 2018 financial year.


Malita Investments plc – Annual Report & Financial Statements for the year ended 31 December 2019.