AX Real Estate plc - Updated Financial Analysis Summary

On 23 April 2025, AX Real Estate plc (AXRE) published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and financial position of AXRE for the financial year ending 31 October 2025:

• Revenues are expected to remain practically unchanged at €19.4 million, yet the figure is higher than the previous estimate of €17.3 million reflecting higher variable rental income from an anticipated improved performance of the Group’s hotels. In aggregate, income from the lease of hotel properties is expected to amount to €16 million, representing 83% of total rental income.
• EBITDA is forecasted to increase by 0.9% to €18.6 million from the previous year, but the projection is 12.5% higher than the previous estimate of €17.3 million that was provided last year.
• Finance costs are expected to increase by 2.6% to €6.59 million. Nonetheless, the interest cover is anticipated to be 2.8 times, compared to 2.4 times in the previous forecasts for FY2024/25.
• Total debt is expected to climb to the €160 million level compared to €152 million in 31 October 2024. As such, the gearing ratio is forecasted to climb to 53.2% from 52.7% as at the end of October 2024. Likewise, the debt-to-asset ratio is forecasted to increase to 0.48 times from 0.47 times as at the end of the last financial year.
• AXRE explained that the Verdala Wellness Hotel is expected to be inaugurated during the second quarter of 2025 and the total expenditure for the Verdala Wellness Hotel is now expected to be around €20 million compared to the earlier projection of circa €11.5 million.
• AXRE is currently planning the next phases of the Qawra project which will include the demolition and reconstruction of AX Sunny Coast Resort & Spa into AX ODYCY Residences comprising 151 rooms, together with the redevelopment of AX Sunny Coast Lido and Luzzu Complex. These phases are projected to cost between €70 million and €80 million.