Malta Properties Company plc - Full-Year Results
On 14 March 2023, Malta Properties Company plc published its Annual Report and Financial Statements for the financial year ended 31 December 2022.
Revenue increased by 15.8% to a record of €4.22 million (2021: €3.64 million) reflecting the new rental income from the Mediterranean Building Office Complex in Ta’ Xbiex as well as initial contributions from the Zejtun Complex and Data Centre which was handed over to GO plc towards the end of the year. These increases outweighed the loss of income from the Marsa Spencer Hill Old Exchange after GO vacated this building in February 2021 and the Birkirkara Old Exchange which was sold to third parties.
Despite the higher level of business, administrative expenses eased by 4.8% to €1.47 million (2021: €1.55 million). Excluding depreciation charges, EBITDA climbed by 31.6% to €2.75 million compared to €2.09 million in the 2021 financial year. Similarly, operating profit (‘EBIT’) improved by 31.7% to €2.74 million which translates into an EBIT margin of 64.9% (2021: 57.1%).
Meanwhile, net finance costs surged by 44.4% to almost €1 million (2021: €0.69 million) reflecting the higher level of total debt following the €25 million secured bond issued during the year to part-finance the additional development and renovation of the Zejtun and Marsa Spencer Hill properties. The financial performance was also negatively impacted the marginal fair loss of €0.01 million compared to the fair value gains on investment property of €2.22 million in 2021.
Overall, MPC reported a pre-tax profit of €1.65 million, representing a drop of 54% when compared to the previous comparable period. After accounting for a tax charge of €1.51 million (2021: €0.97 million), the net profit figure for the year amounted to €0.14 million (2021: €2.65 million).
The Statement of Financial Position shows that total assets increased by 10% to €102.1 million while total liabilities increased by 28.8% to €46.5 million. As a result, shareholders’ funds eased by 1.9% to €55.6 million which, in turn, translates into a net asset value per share of €0.5492 (31 December 2021: €0.5598).
The Board of Directors is recommending the payment of a final net dividend of €0.013 per share, which is 8.3% higher than the dividend corresponding to FY2021. Shareholders as at close of trading on 13 April 2023 will be entitled to receive this dividend on 23 May 2023 subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 17 May 2022.
In their commentaries, the Chairman and also the CEO explained that MPC continues to look out for new acquisition opportunities while also working to transform existing properties into more attractive and energy efficient buildings. In this respect, the major renovation of the Marsa Spencer Hill property is expected to be completed in 2023.