The commercial real estate holding firm Malta Properties Company plc (MPC) has remained firmly focused on long-term growth, despite a dip in revenue and profit during the first half of 2025, leveraging a period of vacancy to upgrade key properties and secure new tenancy agreements that are expected to boost future income.
The group reported a rental income of €2.26 million for the six months ending 30 June 2025, down 19 per cent from €2.80 million in the same period last year. The decline was primarily due to lease expirations at several major properties towards the end of 2024.
These vacancies temporarily impacted occupancy rates but were anticipated as part of the group’s broader strategy to renovate and reposition its property portfolio.
Operating profit for the period also declined, amounting to €1.59 million, compared to €2.17 million in the first half of 2024. Profit before tax dropped to €1.02 million, from €1.66 million in the previous period. Profit after tax stood at €500,944, reflecting increased deferred tax and the lower income level.
Yet, the company’s outlook remains optimistic, as renovation works have been underway at several key properties, including the Swatar property (previously occupied by HSBC), the Marsa Central Building on Fra Diego Street and the ex-GO exchange at Spencer Hill in Marsa.
These investments – totalling around €1.8 million – contributed to an uplift in the value of MPC’s property portfolio, which now stands at €91.9 million, up from €90.1 million at the end of 2024.
In parallel, MPC has been actively engaged in re-leasing the renovated spaces. The entire Swatar building has now been leased to a new tenant, while half of the ex-GO headquarters in Marsa has also been secured under a new lease, with occupancy set for Q3 2025. Furthermore, the rooftop extension and remaining vacant space at Spencer Hill in Marsa are under contract with a Government agency, with full occupancy expected by year-end.
As a result of these ongoing upgrades and leasing successes, MPC anticipates a rebound in rental income during the second half of the year.
According to the company, all properties in its portfolio are either leased or under signed agreements – with the exception of part of the ex-GO headquarters and two smaller development sites in Rabat and Naxxar.
Although cash and cash equivalents dropped to €4.66 million from €7.99 million at the end of 2024, the reduction was largely driven by capital investments in the property upgrades, positioning the company for stronger returns moving forward.
