On 1 November 2023, Malta Properties Company plc issued an Interim Directors’ Statement updating the market on its performance during the nine-month period ended 30 September 2023.
Revenues surged by 20.5% to €3.66 million (Jan-Sep 2022: €3.04 million) driven by the rental income of the Żejtun property as well as the commencement of rental income from the Spencer Hill property in Marsa, which recently welcomed the Building and Construction Authority as its first tenant. MPC explained that the increase in revenue also reflects higher contributions from inflation adjustments. All these factors offset the loss of rental income from the Birkirkara property which was sold in 2022.
In view of the higher level of income, operating profit increased by 24.8% to €2.75 million compared to €2.21 million during the corresponding period in 2022. The EBIT margin also improved to 75.2% (Jan-Sep 2022: 72.6%).
Overall, the profit for the period amounted to €1.16 million, which is lower than the reported figure of the same period in 2022 of €1.28 million as this had been positively impacted by the fair value uplift from the sale of the Birkirkara property. Excluding fair value movements, this year’s profit is 39% higher than the comparable figure of €0.84 million.
MPC explained that it expects the current positive trend to continue for the rest of the financial year. Nonetheless, the company is opting to take a prudent approach as it recognises risks related to the substantial new supply in the office market as well as changes in tenant behaviour following the COVID-19 pandemic. Furthermore, several of MPC’s lease agreements with tenants will expire over the coming eighteen months.