On 27 February 2023, AX Real Estate plc published its Annual Report and Financial Statements for the year ended 31 October 2022. In this respect, it is important to highlight that the performance recorded is not comparable to the corresponding period in 2021 following the reorganisation of AX Group plc and the IPO of AX Real Estate plc in early 2022.
Revenue amounted to €8.91 million, of which €8.16 million was derived from the income from the lease of the company’s various property assets, mostly to AX Group plc. Meanwhile, AX Real Estate also generated €0.75 million in income from the sale of the remaining apartments at Targe Gap complex located in Mosta.
Operating expenses (net of other income) amounted to €1.36 million. The financial performance was boosted by the fair value movements of investment property of €2.79 million. As a result, AX Real Estate reported an operating profit of €10.3 million. After accounting for net finance costs of €3.27 million and a tax charge of €3.46 million, AX Real Estate reported a net profit of €3.60 million.
The Statement of Financial Position as at 31 October 2022 shows that total assets amounted to €286.9 million mostly represented by the value of investment property (€260.3 million), cash (€12.1 million), and trade and other receivables (€14.1 million). On the other hand, total liabilities amounted to €144.8 million mostly represented by borrowings (€116.4 million), deferred tax liabilities (€22.6 million), and trade and other payables (€5.21 million). Total equity stood at €142.0 million which, in turn, translates into a net asset value per share of €0.518.
AX Real Estate paid a net interim dividend of €0.0125 per share on 15 July 2022. The company paid another net interim dividend of €0.0125 per share on 30 January 2023, in line with the semi-annual dividend policy as stated in the IPO Prospectus.
The Directors provided an update on the two major projects that the company is currently pursuing – namely the refurbishment and extension of the Seashells Resort at Suncrest, as well as the development of the Verdala Hotel and the refurbishment of the adjacent Verdala Hotel Annex. In this respect, AX Real Estate noted that works at Suncrest are progressing at a steady pace and the hotel will reopen in May 2023 as planned. A sanction letter for a loan facility of €30.5 million was obtained in January 2023 to further support its costs related to the extension of the Suncrest Hotel and the adjacent Lido. Meanwhile, the Directors noted that by the end of October 2022, the foundations of the Verdala Hotel in Rabat were at an advanced stage.
In their commentary, the Directors also stated that the new office development at Falcon House in Sliema as well as the remaining offices at AX Business Centre in Mosta were all leased to third parties by the end of October 2022.
Annual General Meeting
In a separate company announcement, AX Real Estate plc stated that the forthcoming Annual General Meeting will be held on 26 April 2023 at Hilltop Gardens.