Malita Investments plc, a company that faced resignations and other problems in 2025, declared an operating loss for the year in question, but registered a profit overall.

Malita Investments’ operations comprise of the financing, acquisition, development, management and operation of immovable property, with a particular focus on assets of national and strategic importance.

The company’s business model is primarily centered on long-term concession and emphyteutical arrangements.

Malita was in the spotlight throughout 2025 over a number of issues. Among them, former PL MEP Marlene Mizzi had claimed that she was removed from as chairperson of the company a year earlier after confronting Housing Minister Roderick Galdes over what she said was his “interference in the workings of a plc.”

Malita Investments’ Board had insisted that it has always acted independently and without external influence from any government or ministry, and Minister Galdes had said the board confirmed clearly that it always took its decisions independently.

The company also saw a number of high-level resignations in 2025. Johan Farrugia had resigned as Executive Chairperson, Victor Carachi and Tania Brown resigned as Directors, Amanda Desira resigned as Chief Operations Officer. They were then replaced.

Added to this, in 2025 it had announced the suspension of works on its affordable housing project.

“As previously communicated to the market, the company experienced liquidity constraints during the period, which led the Board to undertake a strategic review of its position in relation to the Affordable Housing Project and to prioritise the preservation of cash resources,” the company said in its financial filings for 2025.

“In this context, and in exercise of its contractual rights under the relevant construction agreements, the company implemented a temporary suspension of works at the remaining development sites as part of this strategic reassessment. Following the completion of this review, the Board determined that securing additional bank financing represented the most appropriate course of action to enable the completion of the project.”

The Company said that it has since progressed its financing arrangements and obtained a sanction letter for funding to support the continuation of the Affordable Housing Project.

Notwithstanding the above, the company said it remains dependent on the support obtained from lending institutions, particularly local financial institutions, the European Investment Bank (EIB) and The Council of Europe Development Bank (CEB), in order to resume works.

The company said that while directors are confident in the underlying business model and the long-term income-generating capacity of the company’s assets, “the current phase of investment has introduced heightened exposure to liquidity and execution risks, which continue to be actively managed by the Board.”

The company specified that the capital expenditure requirements of the Affordable Housing Project are expected to be financed through a €28 million facility from Bank of Valletta plc and a €22 million with the European Investment Bank (EIB) entered into on 15 March 2024.

“Drawdown under these two facilities is conditional upon the prior written consent of the institutional lenders of the company so that the related security for the new facility can be put in place.”

The company said that it received formal written consent from EIB dated 27 April 2026, while approval in principle was also received from CEB on the same date, with the remaining CEB administrative procedures currently in progress.

“Once the requisite formal CEB consent is obtained and the security documentation is executed, drawdowns under these facilities are expected in 2026.” The Directors are not aware of any reason why CEB formal consent would be withheld, the company said.

As at 31st December 2025, Malita Investments had €349 million in total assets, just over €341 million of which were non-current assets. It had €199.7 million in total equity and €149.3 million in total liabilities.

The company recorded an operating loss of €2.7 million in 2025, compared to an operating profit of €10.2 million in 2024.

“This movement is mainly attributable to a substantial decline in revenue from service concession arrangements, which fell from €16.9 million in 2024 to €3.5 million in 2025, and continued operating cost levels, including administrative expenses and provisions, which were not offset by corresponding revenue during the year,” the company said.

The financial performance for the year includes a fair value gain on investment property of €5,187,407.

During the year, total expenses for the company rose to €2,349,710 (2024: €1,082,545). This primarily reflected higher professional and legal fees, an increase in employee benefit expenses in line with headcount, and higher housing-related costs incurred in the ordinary course of operations, the company said.

It made a profit of €1.9 million for 2025.

“The company’s performance during the year must be considered in the context of its ongoing capital investment programme, primarily relating to the Affordable Housing Project. While the Company continues to generate rental income streams from its concession arrangements, the execution of this development programme requires significant external financing.”