Main Street Complex lowers property book value amid challenges

The MSE Equity Price Index fell by 0.17% to a two-month low of 3,863.473 points as the declines in BOV, AX Real Estate, GO, HSBC, and RS2 outweighed the gain in Hili Properties. Meanwhile, two equities closed unchanged as today’s trading activity totalled just under €100,000. Download today’s Equity Market Summary.

Following the close of trading, Main Street Complex plc published its 2024 annual report. Revenue fell by 11.4% to €0.71 million reflecting the non-renewal of three tenancy agreements which expired in March 2024. The occupancy as at the end of 2024 dropped to 90.4% compared to 98.5% as at the end of 2023. As a result, the operating profit declined by 23.5% to €0.37 million and the net profit plunged by 28.2% to €0.25 million. The Board of Directors considered that it was prudent to revise the property value on the balance sheet from €11.4 million to €10.0 million. Meanwhile, the company remained without any borrowings and the net asset value as at the end of 2024 stood at €0.491 per share. The Directors of Main Street are recommending the payment of a final net dividend of €0.008 per share (2023: €0.011). Coupled with the interim net dividend of €0.0054 (2023: €0.0072) per share paid in September 2024, the total net dividend for the financial year 2024 amounts to €0.0134 per share, which is 26% lower than the previous year. The final net dividend will be payable to shareholders as at the close of trading on 11 June 2025 subject to shareholders’ approval at the upcoming Annual General Meeting on the same date.

Bank of Valletta plc shed 2.0% to a one-month low of €1.98 across seven deals totalling 19,550 shares. Today, BOV started trading without the entitlement to a final net dividend of €0.0854 per share to be paid on 12 June 2025. Tomorrow, BOV is expected to publish its financial results for the first quarter of 2025.

Also in the banking sector, HSBC Bank Malta plc eased by 0.7% to the €1.44 on a single deal of 10,000 shares.

The ordinary shares of RS2 plc decreased by 0.8% to the €0.486 level on two trades amounting to 2,200 shares. Last Wednesday, RS2 published its 2024 results which showed a 5.4% decline in revenue to €37.5 million as the lower revenue from licencing and processing outweighed the higher income from merchant solutions. Nonetheless, operating profit climbed nearly 50% to €2.54 million, largely impacted by the recognition of exchange gains compared to losses recognised in the previous financial year.

AX Real Estate plc fell by 4.1% to the €0.42 level on muted activity. Today, AX Real Estate started trading without the entitlement to a final net dividend of €0.00716 per share to be paid on 14 May 2025.

GO plc moved 1.5% lower to the €2.64 level on one deal of 1,000 shares. The Directors of GO are recommending the payment of a final net dividend of €0.08 per share, payable on 24 June 2025 to all shareholders as at the close of trading on 16 May 2025 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled for 19 June 2025.

On the other hand, Hili Properties plc surged by 33.7% to the €0.258 level on one deal of 14,000 shares. Today, Hili Properties traded for the first time following the conclusion of the conditional voluntary takeover bid at €0.24 per share by its largest shareholder Hili Ventures Limited. Hili Properties is also expected to publish its 2024 results later today.

Meanwhile, Malta International Airport plc closed unchanged at the €6.05 level across six deals amounting to 4,388 shares.

Trident Estates plc closed unchanged at the €1.10 level across three deals totalling 3,600 shares, albeit most of the trades took place at the €1.00 (-9.1%) level.

The RF MGS Index decreased by 0.22% to 917.572 points as sovereign bond yields in the euro area rose. Today, the German finance Minister asked the European Commission to exempt Germany from European Union borrowing limits in order to increase defence spending in the coming years. In this respect, Germany became the first European country to apply for the exemption. Meanwhile, EU Economic Commissioner Valdis Dombrovskis stated that negotiations to avoid tariffs between the EU and the US are still at early stages and there is “a lot of work ahead to come to more concrete parameters and elements and areas of cooperation which would allow the avoidance of the implementation of tariffs.”

 

This report contains only public information and is not to be construed as investment advice or an offer to buy or sell securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.