Malta Properties Company plc - Updated Financial Analysis Summary

On 22 May 2024, 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 2024:

  • Revenues are expected to increase by 10.9% to a record of €5.56 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 current tenants at The Exchange (previously known as Marsa Spencer Hill). The income will also be boosted by new tenants at the Ta’ Xbiex property as it became fully occupied at the end of the first quarter of 2024.
  • EBITDA is anticipated to increase by 5.3% to €3.62 million, but the EBITDA margin is expected to ease to 65.1% (2023: 68.6%) reflecting higher levels of administrative expenses.
  • Finance costs are forecasted to drop by 3.5% to €1.04 million, as the company expects to continue reducing its bank borrowings. As a result, the interest cover is expected to improve to 3.5 times compared to 3.2 times in the previous year.
  • In view of the projected drop in total debt to €25.9 million (31 December 2023: €31.1 million), the gearing ratio is anticipated to ease to 31.3% compared to 35.5% as at the end of 2023. Similarly, the debt-to-asset ratio is forecasted to decline to 0.27 times (31 December 2023: 0.31 times).