Commercial properties owner and developer Malta Properties Company plc (MPC) registered €1.7 million in profit before tax for the first six months of 2024 (H1 2024).

This reflected a 27.6 per cent increase when compared to the corresponding period in 2023.

These figures were announced in the company's interim report for the six months ended 30th June 2024, released on Thursday.

The increase in profitability was driven by a rise in rental income, which went up from €2.4 million in H1 2023 to €2.8 million in H1 2024.

During the reporting period, MPC oversaw a number of renovations to its properties, including The Exchange at Spencer Hill in Marsa, which was fully renovated into modern offices with a restored heritage façade. Refurbishment also took place at the Mediterranean Building in Ta' Xbiex and the company's Swatar property.

The rise in rental income was primarily attributed to income from The Exchange, which is fully leased out to a Government authority. Furthermore, the increased revenue came as a result of the Ta' Xbiex's property's full occupancy, "as well as increased linked to inflation."

Administrative expenses during H1 2024 amounted to €698,364, a notable rise from the €578,447 recorded in the same period last year.

Conversely, finance costs reduced from €674,400 in the previous period to €644,604, while financial income rose to €135,303. This was primarily due to interest earned on deposits with local financial institutions.

Meanwhile, the group’s cash and cash equivalents, including deposits, amounted to €8.8 million, down from €9.2 million by the end of December 2023.

The statement noted that the decrease in cash is mainly because of the renovations in the three properties.

Throughout the period dividends paid to the ultimate parent company increased by seven percent, from €790,222 in 2023 to €851,008 in 2024’s H1.

Commenting on the positive growth during H1 2024, MPC's Directors noted that most renovations and developments during the period have been carried out through the company's own funds, while allowing funds to pay for dividends and bond interest.

MPC's total assets at the end of the reporting period amounted to €98.4 million, a slight increase from the €99.1 million recorded at the end of 2023.

At the moment, the company has ongoing developments, including an extension of The Exchange property in Marsa. Upon completion, the extension will also be leased out in full to the same Government authority.

Looking ahead, the company expects peformance to continue strongly through the rest of the year. MPC will also benefit from favourable interest rate of its bond issued in 2022.

The Group is currently focused on securing tenants for properties which will become vacant in Q4 of 2024. Some of these properties require renovation works that are planned over the final quarter and the first half of 2025.