AX Real Estate plc - Updated Financial Analysis Summary

On 17 April 2026, AX Real Estate plc (AXRE) published an updated Financial Analysis Summary. AX Real Estate explained that in August 2025, AXRE inaugurated the five-star Verdala Wellness Hotel in Rabat, following an investment of around €20 million. In FY2026, AXRE is expected to receive the first full-year contribution from the Verdala Wellness Hotel. Furthermore, the Virtu Heights guestrooms are targeted for completion in Q2 2026. The following are the main highlights of the expected financial performance and financial position of AXRE for the financial year ending 31 October 2026:

• Revenues are expected to reach a new record of €21.7 million, albeit the forecasted figure is only marginally above the previous year’s revenue. In aggregate, income from the lease of hotel properties is expected to amount to €18.6 million, representing 85% of total rental income.

• EBITDA is also forecasted to stay virtually unchanged at €20.7 million, translating into an EBITDA margin of 95.4%.

• Finance costs are expected to increase by 4.0% to €6.77 million. Nonetheless, the interest cover is anticipated to remain relatively unchanged at 3.1 times, compared to 3.2 times last year.

• Total debt is expected to climb to €169.1 million compared to €161.9 million as at 31 October 2025. As such, the gearing ratio is projected to rise to 52.2% from 51.6% as at the end of October 2025. Likewise, the debt-to-asset ratio is forecasted to increase to 0.47 times from 0.46 times as at the end of the last financial year.
• After accounting for the forecasted cash balances of €1.1 million as at 31 October 2026, the net debt is forecasted to amount to €168.1 million, which translates into a net debt-to-EBITDA multiple of 8.1 times, compared to 7.7 times as at the end of October 2025.
• Total equity is anticipated to increase by 2.1% to €155.0 million as at 31 October 2026. This translates into a net asset value per share of €0.565, compared to €0.553 as at the end of the last financial year.
• In March 2026, AXRE concluded the acquisition of a site adjacent to Hilltop Gardens Retirement Village and Simblija Care Home. In the same month, AXRE entered into a preliminary agreement for the purchase of another site adjacent to Hilltop Gardens and Simblija Care Home, with the transaction expected to be completed in due course.
• As from September 2026, AXRE is proceeding with the second phase of the Qawra Project, which will comprise the demolition and reconstruction of AX Sunny Coast Resort & Spa into AX ODYCY Residences featuring 161 rooms, together with the redevelopment of AX Sunny Coast Lido and Luzzu Complex to create a 300-metre waterfront stretch. The total investment for the full completion of the project is expected to be around €87 million, with construction anticipated to take 30 to 36 months. The AX Sunny Coast Resort, AX Sunny Coast Lido, and the Luzzu Complex are expected to temporarily halt operations in late August 2026 to enable the commencement of works.