On 22 September 2021, Trident Estates plc published its interim financial results covering the six-month period ended 31 July 2021.
During the period under review, Trident registered a 3.2% drop in revenues to €0.54 million reflecting the lost income following the termination of a lease in January 2021 on which discussions with potential tenants are already under way.
On the expenditure side, total operating costs increased to €0.43 million primarily due to higher marketing costs in relation to the Trident Park project. Furthermore, some costs related to the same project are now being recognised in the Income Statement rather than being capitalised. Meanwhile, finance costs remained unchanged at €0.09 million.
Overall, the company reported a marginal pre-tax profit of €0.03 million. After accounting for tax charges of €0.05 million, Trident posted a net loss of €0.03 million.
The condensed Statement of Financial Position as at 31 July 2021 (compared to the figures as at 31 January 2021) shows that total assets increased by almost 10% to €75.5 million reflecting the further progress in the development of Trident Park. On the other hand, total liabilities increased from €15.8 million to €22.5 million reflecting the borrowings taken on for Trident Park. Total equity remained virtually unchanged at €53.1 million which, in turn, translates into a net asset value per share of €1.2633.
Trident Park project
In their commentary, the Directors of Trident explained that despite the disruptions brought about by the pandemic, the works on Trident Park have continued to progress at a steady pace, with the project’s completion now expected by the end of 2021. The civil works have been virtually completed (save for certain remaining external works), while the mechanical, electrical and plumbing works are also nearing completion. Similarly, the finishes of the project are also progressing at an accelerated pace.
Trident explained that the attractions of Trident Park as a premium office location with a difference are being appreciated by potential tenants as the project approaches completion. The carefully designed green credentials of the environmentally friendly Office Park campus (and ancillary facilities) provide space, air, natural light, ventilation, and gardens together with the variable and flexible space that will be the hallmark of the offices.
Although initial tenant sign up has been satisfactory, the business environment has become noticeably more challenging since the FATF’s decision to grey list Malta. In this contest, Trident noted some hesitancy among potential tenants amid a growing propensity for delays related to significant investments and commitments. Moreover, downward pressure is being experienced in relation to lease rates, primarily driven by the increased availability of new space coming on the market and a slowdown in new inward investment flows.
Despite the challenging environment, Trident concluded by reiterating its commitment towards the Trident Park project as the company is working tirelessly to secure its full completion to the highest standards and quality which are expected to prevail over the short to medium term.