KA Holdings Limited, a Malta-based property development company, recorded €5.8 million in profit before tax during year ended 31st December 2023.
The results were published in the company’s financial statements for the year on Thursday, alongside those of its subsidiary and finance company KA Finance plc.
The €5.8 million pre-tax profit registered at group level represents a substantial increase of 333.2 per cent from the figure recorded in the previous year (€1.3 million). The primary reason behind this significant rise is a growth in fair value gains on investment properties, with this going up from €763,263 in 2022, to €4.7 million in 2023.
The company owns properties in Mrieħel, Swieqi, and Gżira, with the fair value of the properties in Mrieħel, office buildings known as Centris I and II, currently being leased out, is €13.8 million and €17.8 million, respectively. These represent increases from the €13 million and €14 million that they were respectively valued at in 2022. Centris I and Centris II both had full occupancy during the financial year, with tenants operating in various industries, primarily in banking (46 per cent) and financial services (23 per cent).
Rental income for the year amounted to €1.9 million, 52.1 per cent higher than it was in 2022 (€1.2 million).
KA Holdings stated that all contracts entered into by the company are for periods between two and 15 years, and 88 per cent of the contracts are for periods with a remaining term of over six years.
Other income also increased in 2023, with this totalling €198,251, up from 2022’s €171,992.
However, KA Holdings also experienced a rise in administrative expenses, going up by 16.2 per cent in 2023 to €426,178. Finance costs remained relatively unchanged at €442,873.
As at the end of 2023, KA Holdings had €36.9 million in total assets, a growth of 16.4 per cent when compared to the previous year’s €30.8 million.
The Board of Directors did not propose the payment of a dividend, with all profits being transferred to retained earnings.
Aside from the Mrieħel properties, KA Holdings also said that the Swieqi property is complete and is fully occupied with long-term lets, while the Gżira properties were also been 100 per cent occupied throughout 2023. Last year, KA Holdings made the decision to sell the Gżira properties in order to raise further finance for a planned new investment. One of the properties, at Sir William Reid Street, is held for sale at €530,000, while another one at Charles Cameron Street is held for sale at €585,000. While €330,000 has been received for the former, no payments have been received for the latter.
