Plaza Centres plc - Full-Year Results

On 23 April 2025, Plaza Centres plc published its Annual Report and Financial Statements for the year ended 31 December 2024.

Revenue increased by 5.1% to €3.25 million (2023: €3.09 million). The company explained that the office space at the Plaza Business Centre was fully rented out throughout the year. Furthermore, two new tenants were added to the shopping centre. Plaza stated that as at the end of 2024, the occupancy rate within the Shopping Centre stood at 88% whilst the overall occupancy rate of the Commercial Centre stood at 95%.

On the expenditure side, total operating costs increased by 7.3% to €1.60 million (2023: €1.49 million). Operating profit (EBIT) rose by 3.0% to €1.65 million, which translates into an EBIT Margin of 50.8% (2023: 51.8%). Excluding depreciation and amortisation charges, EBITDA grew by 3.8% to €2.20 million, but the EBITDA Margin eased to 67.7% (2023: 68.6%).

After accounting for net finance costs of €0.03 million, tax charges of €0.49 million and a minimal loss attributable to non-controlling interest, the net profit for the year attributable to shareholders amounted to €1.14 million which translates into a return on average equity of 4.1%, unchanged from the previous year.

The Statement of Financial Position as at 31 December 2024 shows that total assets increased by 1.2% (or €0.4 million) to €37.4 million. Meanwhile, total liabilities dropped by 1.3% (or €0.1 million) to €9.6 million. Overall, shareholders’ funds rose by 2.1% (or €0.58 million) to €27.8 million which translates into a net asset value of €1.090 per share (31 December 2023: €1.068).

Dividend

The Directors are recommending the payment of a final net dividend of €0.0137 per share, to all shareholders as at close of trading on 15 May 2025 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Wednesday 18 June 2025.

Coupled with the net interim dividend of €0.0098 per share paid out in August 2024, the total net dividend for the year amounts to €0.0235 per share, unchanged from the previous year, and translates into a payout ratio of 53%.

Business Developments

At the end of 2024, the shareholders of Esports Avenue Limited took the decision to place the company into voluntary liquidation. Plaza Centres plc owns 51% of Esports Avenue Limited, a company incorporated to manage the business side of Esports Plaza.

Outlook

In their commentary, the Directors noted that Plaza is facing headwinds due to competition in the retail and office sectors in Malta, particularly as the influx of foreign businesses relocating to Malta has slowed. Nonethless, demand for The Plaza Commercial Centre remains resilient due to its the prime location. Moreover, the Board of Directors are confident that the investments being made in upgrading the property will attract new tenants and enable it to remain competitive.

The Board will continue to explore the feasibility and attractiveness of growth opportunities which make economic sense to the business.