Malta Properties Company plc - Interim Results

On 6 August 2025, Malta Properties Company plc published its interim results covering the six-month period ended 30 June 2025.

Revenues declined by 19.4% to €2.26 million (H1 2024: €2.80 million), primarily due to the expiry of several of the Group’s property leases towards the end of 2024. Following the lease expiries, the properties, most notably the former HSBC call centre (Swatar) and the former GO headquarters (Fra Diego, Marsa) were temporarily unoccupied for renovation works.

On the expenditure side, total operating costs were relatively unchanged at €0.69 million. As a result, operating profit fell by 25.9% to €1.60 million compared to €2.17 million in H1 2024.

Elsewhere, net finance costs increased by 15.6% to €0.59 million (H1 2024: €0.51 million), mainly driven by a reduction in finance income due to lower deposit balances, as some of these funds were utilised to support ongoing renovation works. After accounting for a tax charge of €0.51 million, MPC reported a net profit for the period of €0.50 million representing a 55.6% decrease from the €1.15 million recorded in the corresponding period of the previous year. The profit for the first six months of 2025 translates into an annualised return on average equity of 1.78% (H1 2024: 4.15%).

The Statement of Financial Position as at 30 June 2025, when compared to the corresponding figures as at 31 December 2024, shows that total assets decreased by 1.4% (or €1.43 million) to €98.0 million, primarily consisting of investment property valued at €91.9 million and cash (including fixed deposits) amounting to €4.7 million. Meanwhile, total liabilities dropped by 1.2% (or €0.51 million) to €41.4 million. Total equity eased by 1.6% (or €0.92 million) to €56.6 million, translating into a net asset value per share of €0.5587 (31 December 2024: €0.5677).

Outlook

In their commentary, the Directors noted that a new tenant has recently occupied the Swatar property, with the full impact on performance expected to be reflected in the second half of the year. Additionally, a new tenant is set to occupy half of the former GO headquarters in Marsa during Q3 2025. Meanwhile, the ongoing extension and renovation works at the Spencer Hill property are expected to be completed by year-end, after which the property will be fully occupied, as it has already been contracted to a government agency.

The Board indicated that revenue is expected to increase in the coming months driven by a rising occupancy in MPC’s property portfolio. Furthermore, it was noted that apart from half of the former GO headquarters in Marsa and two smaller development properties, in Naxxar (earmarked for a future development project) and one in Rabat (earmarked for sale), the entire property portfolio is either occupied or under a lease agreement.