AX Real Estate plc - Interim Results

On 26 June 2024, AX Real Estate plc published its interim financial results covering the six-month period ended 30 April 2024.

Performance Overview

Revenues surged by 77% to €6.8 million mainly due to the rental income from the lease of enlarged AX ODYCY hotel and lido in Qawra which commenced in May 2023. AX Real Estate explained that 75% of the rental income emanated from its properties within the hospitality segment, 13% from the care home, whilst the remaining portion was derived from the lease of offices (6%), residential units (3%), and warehouses (3%). The company also noted that similar to what was reported for in the same period last year, all properties available for rent were leased out.

Operating expenses (net of other income) dropped by 8% to €0.49 million. As a result, operating profit nearly doubled to €6.3 million compared to €3.3 million in the corresponding period last year. Consequently, the operating profit margin improved to 92.8% from 86.1% in the same period last year.

Meanwhile, net finance costs increased by 70% to €3.2 million as the company increased its bank borrowings to finance ongoing projects. After accounting for a tax charge of €0.56 million, AX Real Estate reported a net profit of €2.6 million compared to €1.3 million in the corresponding period last year.

The Statement of Financial Position as at 30 April 2024 compared to 31 October 2023 shows that total assets remained virtually unchanged at €309 million, largely composed of investment property of €302 million. Total liabilities increased by 1.5% to €175 million, with total debt amounting to €142 million, largely unchanged when compared 31 October 2023. As a result, total equity stood at €134.2 million (31 October 2023: €135.6 million) which translates into a net asset value per share of €0.4891 (31 October 2023: €0.4942).


In line with the explanatory note to shareholders provided ahead of the Annual General Meeting held on 23 April 2024, the Board of Directors did not declare an interim dividend but will consider an interim dividend in September and recommend a final dividend at the upcoming AGM expected to be held in April 2025.

Current Developments & Outlook

The Directors explained that works on the Verdala project are progressing steadily. The construction of the hotel was completed earlier this month and finishing works are ongoing. The Board’s target is to have the hotel operational by March 2025.

Looking ahead, AX Real Estate noted that all its rental properties enjoy full occupancy with contracted periods extending beyond the end of the year. The Directors also stated that hotel properties are performing exceptionally well, which positions AX Real Estate favourably to achieve the projected variable rent. In particular, the Board noted that the AX ODYCY hotel and lido has shown outstanding results, with both revenue and profitability significantly exceeding budgeted figures.