Malta Properties Company (MPC) registered a profit before tax of €2.5 million in 2025, as ongoing renovation works across its property portfolio temporarily weighed on rental income during what the company described as a transition year.

The Group, which focuses on long-term, income-generating real estate leased primarily to corporate tenants on medium to long-term contracts, reported total income of €5.01 million for the year, down 11.9 per cent from €5.69 million in 2024. Earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at €3.28 million, compared to €3.95 million a year earlier.

According to the company, the decline in income was largely the result of higher vacancy levels as several properties underwent renovation and repositioning ahead of new lease agreements. Despite this, MPC maintained a strong EBITDA margin and kept administrative expenses broadly stable at €1.75 million.

In his comments accompanying the results, Chairman Christian Sammut described 2025 as a year focused on leasing activity and major property upgrades following the expiry of several tenancy agreements in 2024.

“2025 has been a transition year and our efforts have been focused on commercial activities, construction and renovation at several of our properties,” he said, adding that the company enters 2026 “having established a strong base”.

Mr Sammut noted that the Group secured new tenants for nearly half of its portfolio across 2024 and 2025, meaning that most properties are now either occupied or contractually committed to tenants once works are completed.

Operationally, MPC continued to upgrade key assets within its portfolio. Renovations were carried out at the Marsa Central Building, formerly the headquarters of GO plc, which has been refurbished to accommodate the Planning Authority and the Ministry for Inclusion and the Voluntary Sector.

The company also completed a comprehensive renovation at its Swatar property, which is now fully leased to the Ministry of Health, while construction works progressed at The Exchange at Spencer Hill. During 2025, the second phase of works at the site was completed and additional office space was handed over to the Building and Construction Authority.

At the same time, MPC entered into a promise of sale agreement for its property at Telgħet is-Saqqajja in Rabat for €2 million, with the agreement valid until December 2026.

Despite the temporary dip in income, the company continued to strengthen its balance sheet. The value of MPC’s property portfolio increased by 3.4 per cent to €93.9 million, while total non-current assets stood at €92.85 million at year end.

Looking ahead, MPC expects revenue to increase in 2026 as renovation works conclude and newly leased spaces become fully operational. The company said these projections are based on existing lease agreements and planned project completion timelines.

The Board has recommended the payment of a net dividend of €0.015 per share, subject to shareholder approval at the upcoming annual general meeting.