Malta Properties Company plc - Interim Results

On 8 August 2024, Malta Properties Company plc published its interim results covering the six-month period ended 30 June 2024.

Revenues surged by 19.4% to €2.86 million driven by additional rental income from the Mediterranean Building in Ta’ Xbiex as the property reached full occupancy in the first quarter of the year, new leases at the Exchange Property in Spencer Hill as well as rental rate increases linked to inflation

On the expenditure side, total operating costs also rose by 20.4% to €0.70 million compared to €0.58 million in the previous year. As a result, operating profit increased by 19.1% to a record of €2.17 million compared to €1.82 million in H1 2023.

Elsewhere, net finance costs decreased by 9.6% to €0.51 million (H1 2023: €0.56 million). After accounting for a tax charge of €0.5 million, MPC reported a net profit for the period of €1.15 million representing an increase of more than 70% from the €0.67 million recorded in the corresponding period of the previous year. The profit for the first six months of 2024 translates into an annualised return on average equity of 4.15% (H1 2023: 2.42%).

The Statement of Financial Position as at 30 June 2024, when compared to the corresponding figures as at 31 December 2023, shows that total assets, principally composed of investment property totalling €87.9 million and cash (including fixed deposits) of €8.8 million, decreased by 0.7% (or €0.68 million) to €98.4 million largely reflecting the drops in trade receivables as well as cash and cash equivalents which was partially offset by an increase in investment property. Meanwhile, total liabilities dropped by 1.0% (or €0.4 million) to €42.3 million driven by a reduction in total borrowings. Total equity eased by 0.5% (or €0.26 million) to €56.1 million as the profit for the period under review was offset by the payment of the final dividend (with respect to the previous financial year), translating into a net asset value per share of €0.554.

Outlook

In their commentary, the Directors explained that MPC is currently working on an extension of the Exchange Property in Spencer Hill, Marsa which has already been leased out.

Furthermore, the Directors anticipate a strong performance for the rest of the year given the varied portfolio of properties, most of which are fully occupied, strong tenant base and no significant debt payable in the near term coupled with the favourable fixed interest rate of its bond issued in 2022.

The Board also noted that the Group is currently working on securing tenants for properties which will become vacant in the latter part of this year, namely, the GO Head Offices in Marsa and the HSBC call centre in Swatar. The Board noted that some of these properties require renovation works which are planned for the last quarter of this year and the first half of the coming year.