The commercial real estate holding firm Malta Properties Company plc (MPC), listed on the Malta Stock Exchange, has reported a 10 per cent increase in profit before tax for 2024, on the back of a 13.5 per cent increase in total income.

The higher revenues were achieved through additional rental income from The Exchange in Marsa and the Mediterranean Building in Ta’ Xbiex, which was fully occupied by year end.

The company said that while part of The Exchange has been tenanted since 2024, works are ongoing in other parts of the property and lease agreements are in place such that the entire building will be occupied once works are complete over the course of 2025.

In its latest financial statement, MPC noted that alongside increases in revenues and operating profits, the Group's effort in enhancing its property portfolio, primarily through property renovations, led to an increase in its property portfolio value of 3.1 per cent over 2024.

This included renovation works at The Exchange at Spencer Hill, Mediterranean Building in Ta' Xbiex and the recently vacated property in Swatar that was previously let to HSBC Global Services. MPC acquired this building in 2020 for a consideration of €7.825 million. HSBC Global Services exited the building during the last quarter of the year, resulting in a decrease in revenue from this property. MPC noted that while part of the building has already been leased, tenants have also been secured for the remaining areas and these are expected to be occupied by mid 2025.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) for 2024 reached €3.95 million, compared to €3.44 million in 2023, an increase of 14.7 per cent over that of the previous year.

Administrative expenses increased by 10.9 per cent and amounted to €1.76 million (2023: €1.59 million), which was led by operational costs of tenanted buildings including higher labour dedicated to servicing tenants a well as repairs and maintenance costs.

For 2024, the Group registered a profit before tax of €3.67 million (2023: €3.33 million), an increase of €0.34 million resulting from its increased revenue. The completion of a number of projects resulted in a fair value gain on investment property for the year of €0.82 million. Consolidated profit for the year stood at €2.54 million, compared to €2.06 million in 2023, an increase of circa €0.48 million or 23.2 per cent over 2023. Earnings per share increased to €0.025 (2023: €0.020).

2025 outlook

MPC acknowledged that projected revenue for the first half of 2025 “is bound to decrease” as during the past few months a number of the Group's property leases expired, impacting occupancy during the time necessary to undertake renovations. It anticipates an increase in revenues in 2026 once new tenants occupy these properties.

Nasser Al Awadhi, Chairman of the Board at Malta Properties Company plc, said: "Looking ahead, the Board is optimistic about the future trajectory of our Group. Over the last quarter of 2024, leases expired at several of our properties, and we are taking advantage of this opportunity to renovate some of these ahead of new tenants moving in.

“For many properties, we have been successful at finding new tenants that we expect to move n over the course of 2025. We are confident that the staggered commencement of new leases throughout the year will set the stage for higher revenues in 2026. This outlook reflects our strategic focus on long-term growth and value creation for all stakeholders.”

Dividends

The Board of Directors further resolved to recommend that the Annual General Meeting approves the payment of a final dividend of €0.014 net of taxation per share. The payment of this net dividend amounts to the sum of €1,418,347. The final dividend will be paid on 30th May 2025 to all shareholders on the register of members at the Central Securities Depository at close of business of 28th April 2025.

Image: Malta Properties Company offices and data centre in Żejtun