AX Real Estate plc - Full-Year Results

On 21 February 2024, AX Real Estate plc published its Annual Report and Financial Statements for the year ended 31 October 2023.

Performance Overview

Revenue surged by 31.9% to €11.8 million (FY2021/22: €8.91 million) driven by the additional rental income from the Group’s largest property, AX ODYCY Hotel, which opened in late May 2023.  Furthermore, the performance of the hotels in Sliema and Valletta improved the Group’s variable rent.

Meanwhile, operating expenses decreased by 15.0% to €1.16 million (FY2021/22: €1.36 million) due to lower amounts attributed to cost for property sold when compared to the prior year.

Excluding the fair value movements of investment property, the Group’s operating profit increased by 40.4% to €10.6 million (FY2021/22: €7.55 million), which translates into an improved operating profit margin of 90.2% (FY2021/22: 84.7%).

The financial performance was impacted by a downward movement on the fair value of investment property of €1.82 million compared to a €2.79 million fair value gain in the previous year. On the other hand, AX Real Estate benefited from a waiver of €1.0 million which it owed to its parent company AX Group plc.

Net finance costs increased by 58.9% to €5.20 million (FY2021/22: €3.27 million) reflecting the increase in borrowings and the impact of higher rates on variable loans.

The pre-tax profit amounted to €4.58 million (FY2021/22: €7.06 million). After accounting for a tax charge of €4.17 million, AX Real Estate reported a net profit of €0.41 million compared to €3.60 million in the previous financial year.

The Statement of Financial Position as at 31 October 2023, when compared to the corresponding figures as at 31 October 2022, shows that total assets increased by 7.4% (or €21.3 million) to €308.1 million, driven by additions in investment property to €293.2 million). Total liabilities increased by 19.1% (or €27.7 million) to €172.6 million driven by an increase of €24.1 million in total debt to €140.6 million. Total equity fell by 4.5% (or €6.4 million) to €135.6 million which translates into a net asset value per share of €0.494 (31 October 2022: €0.518).


AX Real Estate paid a net interim dividend of €0.0125 per share in July 2023 and a net interim dividend of €0.01258 per share in January 2024, resulting in a total net dividend of €0.02508 for the financial year 2022/23.

Update on Projects

The Directors noted that during the summer, AX ODYCY hotel operated at a reduced capacity as work on certain areas of the hotel and lido were still in progress. Despite these challenges, the hotel managed to exceed the budgeted room revenue during September and October. Meanwhile, the construction of the Verdala Hotel is progressing steadily and it is expected to open by the end of 2024.