Malta Properties Company plc reported in its updated financial statement that the Group’s operating profit was €2.7 million for 2022, 31.8 per cent higher than 2021 (€2.1 million). EBITDA, after adjusting operating profit for approximately €0.01 million of depreciation, amounted to €2.8 million, representing a similar improvement when compared to 2021’s figure of €2.1 million.

The net profit for the year stood at €0.1 million, a 95 per cent drop from 2021’s €2.6 million figure. The main reason for this drop in net profit was attributed to the fact that 2022 did not include the fair value gains to the same extent as those registered in earlier years, and the tax charge of €1.5 million was also elevated due to the recognition of deferred tax on the property acquired during the year and the change in fair value recognised for the year.

The company earned €4.2 million in rental income in 2022, an increase of just over 16 per cent over 2021. This change was mainly driven by new rental income from the Mediterranean Building in Ta’ Xbiex and the handover to GO plc of the Żejtun complex and data centre. This improvement was further compounded by the fact that administrative expenses declined from €1.4 million in 2021 to €1.3 million in 2022.

One notes, however, that this figure is eight per cent lower than what was forecasted for the year.

Year-on-year Interest costs increased to slightly above €1 million, reflecting the bond interest incurred as from the second half of the year following the repayment of bank borrowings amounting to around €21 million, and the additional loan drawn on acquiring the Ta’ Xbiex property. In 2021 this figure stood at €0.7 million.

On the asset and liability side the company’s total assets increased to €102 million in 2022, an almost 11 per cent increase over the previous year. Liabilities also increased, however, up to €46.5 million, compared to the €36 million of the previous year.

Gearing ratio increased to 24.3 per cent from the previous year’s 20.5 per cent and the company’s liquidity improved significantly as the current ratio went up to 5.4x from 2.8x of the previous year.

For 2023 the company expects rental income to amount to just under €5 million, representing an increase of 19.3 per cent over the rental income of 2022. Both direct costs and administrative expenses are expected to increase to €0.2 million and €1.6 million, respectively when compared to 2022’s €0.1 million and €1.3 million. This reflects additional professional services, physical AGM-related expenses, increased travel costs, increased maintenance costs and commissions payable in respect of the leasing of vacant areas.

In 2023, the Group is expecting a positive change in the fair value of its investment property of €0.8 million, a consequence of inflationary increases in rents. After also accounting for a tax expense of €1.5 million the company is expected to close 2023 with a profit after tax of €1.3 million a significant improvement over 2022’s figure of €0.1 million.