On 30 August 2023, Malta Properties Company plc published its interim results covering the six-month period ended 30 June 2023.
Revenues surged by 23.1% to €2.40 million principally reflecting the increased rent received on the Żejtun property which was handed over to GO plc in the second half of 2022. Nonetheless, the increase was partially offset by the loss of income from the Birkirkara Old Exchange which was sold last year.
On the expenditure side, total operating costs increased by 5.2% to €0.58 million compared to €0.55 million in the previous year. As a result, operating profit surged by 30% to €1.82 million compared to €1.40 million in H1 2022.
Meanwhile, the financial performance of MPC was impacted by the absence of fair value gains on investment properties, in contrast to the gain of €1.07 million in the first half of 2022. Elsewhere, net finance costs surged by 67.3% to €0.56 million (H1 2022: €0.34) reflecting an additional bond drawdown and a full half year of interest on the loan drawdown in March 2022 upon the purchase of the Ta’ Xbiex Property.
After accounting for a tax charge of €0.58 million, MPC reported a net profit for the period of €0.67 million compared to €0.86 million in the previous year.
The Statement of Financial Position as at 30 June 2023, when compared to the corresponding figures as at 31 December 2022, shows that total assets decreased by 4.5% (or €4.64 million) to €97.5 million, principally composed of investment property totalling €84.2 million and cash (including fixed deposits) of €11.3 million. Meanwhile, total liabilities dropped by 8.6% (or €4.0 million) to €42.5 million driven by a reduction in total borrowings. Total equity eased by 1.2% (or €0.64 million) to just under €55 million which translates into a net asset value per share of €0.543.
In their commentary, the Directors explained that MPC is currently undertaking a full renovation of the Marsa Spencer Hill property which is expected to be completed by the second half of 2023, and the first tenant has just moved in. In this financial year, MPC expects revenues and operating profits to show strong growth compared to the previous year, as it continues to pursue a prudent growth strategy.