Mediterranean Investments Holding plc - Updated Financial Analysis Summary

On 5 June 2023, Mediterranean Investments Holding plc (MIH) published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of MIH in 2023 and 2024:

• Revenues are expected to surge by 31.2% to €32.8 million in 2023 reflecting an improvement in the average monthly rent per unit at Palm City as well higher occupancy levels of 64.6% compared to 51.6% in 2022. Occupancy levels are projected to improve further to 77.7% in 2024. In this context, MIH is projecting a further 23.1% improvement in income to €40.4 million in 2024.
• EBITDA is projected to climb to €22.3 million compared to €17.8 million in 2022 and expected to reach a record of €29.7 million in 2024.
• MIH is expecting year-on-year reductions to net finance costs, which are projected to amount to €3.53 million in 2023 and €3.25 million in 2024. As a result, the interest cover is projected to improve to 6.3 times in 2023 and 9.1 times in 2024, compared to 3.8 times in 2022.
• In terms of financial position, total assets are expected to increase by €15.5 million to €321.4 million in 2024, compared to €306 million in 2022. Meanwhile, total liabilities are expected to drop by €14.3 million to €92.2 million in 2024 compared to €106.5 million in 2022.
• By the end of 2024, MIH’s total debt is projected to decline to €49.4 million compared to €65.7 million as at 31 December 2022. As a result, gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to decline to 17.7% (31 December 2022: 24.8%). Similarly, in view of the expected rebound in EBITDA as well as the lower levels of indebtedness, the net debt-to-EBITDA multiple is anticipated to drop materially to just 0.99 times by the end of 2024, compared to a projected figure of 2.05 times as at 31 December 2023, and 3.30 times as at the end of 2022.