AX Real Estate plc - Interim Results

On 23 June 2025, AX Real Estate plc published its interim financial results covering the six-month period ended 30 April 2025.

Revenue increased by 4.6% to €7.1 million primarily driven by higher variable rent from the hospitality properties, reflecting improved operational performance from the hotels. AX Real Estate explained that 77% 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 (2%), and warehouses (3%). The company also noted that in-line with  the same period last year, all properties available for rent were leased out. Notably, several leases are approaching expiry and negotiations for renewal are currently ongoing.

Operating expenses (net of other income) amounted to €0.48 million, virtually unchanged from the previous year. As a result, operating profit increased by 5.2% to €6.7 million compared to €6.3 million in the corresponding period last year. Consequently, the operating profit margin remained relatively unchanged at 93.3%.

Meanwhile, net finance costs remained practically unchanged at €3.2 million. After accounting for a tax charge of €0.60 million, AX Real Estate reported a net profit of €2.86 million compared to €2.60 million in the corresponding period last year.

The Statement of Financial Position as at 30 April 2025 compared to 31 October 2024 shows that total assets remained virtually unchanged at €326 million, largely composed of investment property of €318 million. Total liabilities increased by 0.8% to €188 million, with total debt amounting to €153 million. As a result, total equity stood at €138 million (31 October 2024: €137 million) which translates into a net asset value per share of €0.5021 (31 October 2024: €0.500).

Current Developments & Outlook

The Directors explained the Verdala Wellness Hotel is set to open its doors in the next few weeks. Moreover, the Directors also stated that hotel properties are performing exceptionally well, which positions AX Real Estate favourably to achieve the projected variable rent. Furthermore, the Group has entered into a promise of sale agreement to acquire a parcel of land in Naxxar, located adjacent to the Hilltop Complex.