Malta Properties Company plc - Updated Financial Analysis Summary

May 12, 2023

On 12 May 2023, Malta Properties Company plc published an updated Financial Analysis Summary. The following are the main highlights of the company’s expected financial performance and position in 2023:

Revenues are expected to surge by 18.9% to a record of €5.02 million driven by higher rental income from the MPC’s property portfolio. In this respect, MPC explained that the forecasts take into consideration the first full-year rental income from the Zejtun Exchange and the expected income from the Marsa Spencer Hill property during the second half of the year. These income streams are expected to outweigh the loss of income from the Birkirkara Exchange which was sold in 2022 and few months of vacant space expected at the Mediterranean Building in Ta’ Xbiex.
In view of the strong growth in revenues, EBITDA is anticipated to increase by 18% to €3.25 million (2022: €2.75 million). The interest cover is expected to decline minimally to 2.70 times compared to 2.78 times in the previous year.
After accounting for minimal depreciation and amortisation charges, net finance costs of €1.2 million and a tax charge of €1.5 million, MPC is projecting a net profit of €1.28 million, compared to €0.14 million in the previous financial year.
In terms of financial position, total assets and total liabilities are expected to decrease minimally to €99.2 million and €43.6 million respectively, with total equity forecasted to remain practically unchanged at the €55.6 million level.
In view of the projected drop in total debt to €31.1 million (31 December 2022: €35.9 million), the gearing ratio is anticipated to ease to 35.8% compared to 39.2% as at the end of 2022. Similarly, the debt-to-asset ratio is forecasted to decline to 0.31 times (31 December 2022: 0.35 times).
However, in view of lower levels cash and deposits forecasted to be held as at 31 December 2023 totalling €8.41 million (31 December 2022: €18 million), the net debt-to-EBITDA multiple is forecasted to increase to 7 times compared to 6.5 times as at the end of 2022.