Shoreline Mall plc, the company behind The Shoreline Mall development in Kalkara, reported a total revenue of €2.98 million, slightly more than 50 per cent lower than the projected €6.21 million projected in the company’s Financial Analysis Summary for 2024.
The revenue is “exclusively derived from rental income generated by the retail segment,” the company said in its latest Financial Analysis Summary. The underperformance for the financial year ended 30th June 2025 resulted in a negative variance of €3.22 million when compared to the projections made in December 2024.
Retail revenue fell €631,000 short of forecasts, primarily due to delays in the Shoreline Residence Project, as well as lower occupancy rates in the mall, which reduced expected occupancy and, in turn, footfall and rental activity at the mall. Further pressure on retail performance stemmed from delays in the planned expansion of surrounding food and beverage outlets, which had been expected to drive additional visitor traffic.
Forecasts had also assumed €2.6 million in sales from luxury residential villas; however, these did not materialise as the villas were not completed by June 2025 and remained unsold. As a result, cost of sales was lower than projected, with the elimination of an anticipated €1.6 million cost linked to the expected villa sale. This favourable variance was partially offset by €275,000 in unplanned subsidies relating to tenants’ common area maintenance charges.
In addition, a projected €1.7 million revaluation gain on investment property was not recognised, as the directors opted to defer the fair value assessment until a longer rental performance track record is established. Overall, total comprehensive income recorded an adverse variance of €2.9 million, shifting from a forecast profit of €1.9 million to an actual loss of €1.0 million for the year.
Interestingly, during FY2025, Shoreline Mall plc’s total assets declined by 10.3 per cent to €76.4 million, down from €85.1 million in the previous financial year. The reduction was mainly driven by a decrease in current assets, following the settlement of €7.9 million in VAT receivables during the year. These funds were used to offset amounts payable to a related group company.
Shoreline Mall plc also acknowledged the upcoming maturity of the secured bonds on 1st August 2026, and said it was “actively pursuing multiple funding strategies to meet this obligation."
“Discussions with relevant stakeholders are ongoing, and management confirms that adequate funding will be secured well in advance of the maturity date to ensure timely repayment,” the company stated.
Looking ahead, Shoreline Mall plc expects a stronger financial performance in FY2026 and FY2027, driven by increased occupancy, higher retail rental income, and the sale of completed residential units. Total revenue is forecast to grow from €7.8 million in FY2026 to €12 million in FY2027, with gross profit and EBITDA rising accordingly.
The company anticipates turning profitable, with pre-tax profits of €482,000 and €2.37 million in FY2026 and FY2027 respectively. Stable finance costs and positive property revaluations support a more solid financial position as the development transitions from construction to full operation.
Dispute escalates as Shoreline Contracting seeks €24 million in damages
In a separate company announcement last November, the company stated that its dispute between sister company Shoreline Contracting Limited (SCL) and Koray Global Malta Limited (KGML), has now escalated into formal arbitration proceedings, seeking damages exceeding €24 million.
Central to the case is KGML’s responsibility to perform certain works on time, as stipulated in the contract, with guarantees provided by affiliated parties, including the ultimate beneficial owner of the Koray Group, Mr Orhun Kartal. SCL asserts that these obligations were not fulfilled, leading to delays and losses which form the basis of the claim.
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