D Shopping Malls, the property and investment segment within Dizz Group, recorded €222,218 in profit before tax during 2023, an 11.5 per cent increase from 2022’s figure (2022: €199,325).

The results were announced on Monday in the company’s consolidated accounts for the financial year ended 31st December 2023.

D Shopping Malls Group, comprised D Shopping Malls Limited and D Shopping Malls Finance plc, is primarily engaged in investing in, acquiring, holding, and managing property. It has a 15-year lease agreement with Sliema Wanderers Football Club to operate D Malls, a commercial centre in Tigné Point, Sliema, another 15-year agreement with Center Parc Holding Limited to operate part of the Center Parc commercial centre in Qormi, and also leases out apartments in Sliema.

During 2023, D Shopping Malls Group registered €1.9 million in revenue, up from the €1.7 million recorded in 2022. This was largely made up of rental income from leased properties (€1.8 million), while the remaining figure (€81,000) was rental income from owned properties.

However, other income dropped from €812,996 in 2022 to €480,186 in 2023, primarily because of property sales and lease modifications in 2022.

Administrative expenses for 2023 decreased by 32 per cent to €264,781 (2022: €389,268), while depreciation and amortisation charges remained relatively stable at €889,428 (2022: €864,505).

Finance costs for the year were also relatively consistent with those of 2022, amounting to €1 million.

The group’s total assets as at the end of 2023 amounted to €24.3 million, contracting slightly from the €24.6 million registered at the end of the previous year.

The Board of Directors did not recommend the payment of a dividend, and stated that they do not expect any significant changes to future operations for the time being.

Back in 2018, D Shopping Malls Finance raised €7,5 million 5.35 per cent unsecured bonds, repayable at par on 28th October 2028. The bond proceeds were advanced by way of a loan to D Shopping Malls Limited and have subsequently been allocated to different projects.

Additionally, the finance company will also be setting up a sinking fund to be administered by the Board of Directors in order to fully cover the value of the issued bonds until the redemption date. While the first mandatory payment into the sinking fund is due by 31st December 2024, €611,000 of the proceeds received during 2023 were allocated to the fund. This comes after the company successfully sold one of its properties.