Malta Properties Company plc - Full-Year Results

On 21 March 2024, Malta Properties Company plc (‘MPC’) published its Annual Report and Financial Statements for the financial year ended 31 December 2023.

Performance Overview

Revenue increased by 18.9% to a record of €5.02 million (2022: €4.22 million) driven by the full rent of the Group’s largest asset the Żejtun Complex and Data Centre (tenanted to GO plc) and the new rental income from ‘The Exchange’ in Marsa which welcomed the Building and Construction Authority as its first tenant during 2023. Furthermore, MPC also reached an agreement with the Older Pensions Standards Authority which became the second tenant of the Marsa Property with a lease that commenced in the first quarter of 2024.

Administrative expenses grew by 8.2% to €1.59 million (2022: €1.47 million), driven by higher professional fees, employee benefit expenses and directors’ fees. Excluding depreciation charges, EBITDA climbed by 24.6% to €3.44 million compared to €2.76 million in the 2022 financial year. Similarly, operating profit (‘EBIT’) improved by 25.6% to a record of €3.44 million which translates into an EBIT margin of 68.6% (2022: 64.9%).

Meanwhile, net finance costs were 8.8% higher at €1.08 million (2022: €0.99 million). The financial performance was also positively impacted by a fair value gain on investment property of €0.97 compared to the marginal fair value loss of €0.09 million in the previous year.

Overall, MPC reported a pre-tax profit of €3.33 million more than doubling from the previous comparable period. After accounting for a tax charge of €1.27 million (2022: €1.51 million), the net profit figure for the year amounted to €2.06 million (2022: €0.13 million) which translates into a return on average equity of 3.68% (2022: 0.25%)

The Statement of Financial Position as at 31 December 2023 shows that total assets decreased by 3.0% (-€3.05 million) to €99.1 million mainly consisting of Property, Plant and Equipment (€87.3 million) as well as Cash and Equivalents (€9.24 million). Meanwhile, total liabilities decreased by 8.2% (-€3.8 million) to €42.7 million and shareholders’ funds grew by 1.3% (+0.75 million) to €56.4 million which, in turn, translates into a net asset value per share of €0.5566 (31 December 2022: €0.5492).


The Board of Directors is recommending the payment of a final net dividend of €0.014 per share, which is 7.7% higher than the dividend of €0.013 per share for FY2022. Shareholders as at the close of trading on 18 April 2024 will be entitled to receive this dividend on 23 May 2024 subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 22 May 2024.


In his commentary, the Chairman highlighted that challenges persist within the office sector, necessitating a proactive, yet prudent approach. The CEO acknowledged the notable increase in supply of commercial properties, evolving tenant needs following the COVID-19 pandemic as well as the numerous leases which are expiring in the next 18 months.  In response to these challenges, MPC is implementing targeted strategies to address lease expirations and enhance the overall tenant experience. The Company’s lease management approach aims to secure favourable renewals, attract new tenants and optimise the utilisation of our office spaces.

In this respect, the Company noted that revenue in 2024 is projected to increase as new tenants occupy ‘The Exchange’ in Marsa as well as the property in Ta’ Xbiex, which will be partially offset by the decrease in revenue from HSBC Global Services UK which will be exiting the Swatar property in Q4 of 2024. The Swatar property will be undergoing some changes to accommodate new tenants that are being secured.

Looking ahead, the Board remains optimistic about the future trajectory of the company.