The Board of Directors at Trident Estates plc, currently nearing completion of major real estate project Trident Park, has noted "some hesitancy" among potential tenants in light of Malta's greylisting by the Financial Action Task Force (FATF) in June of this year.
Making the comments as part of Trident Estate's interim financial results for the first half of 2021, the Board also added that the projects’ management team has noted a “growing propensity to delay on significant investment decisions and commitments.”
Furthermore, they cited “downward pressure” on rates being requested at the site, which it believes was “primarily driven” by an increased availability of office space entering the market and a general slowdown in new inward investment flows.
Considering these problems, the Board stated it is “critical” that Malta does “whatever is required to restore its international financial reputation and credibility,” but insists that in the meantime it remains committed to working "tirelessly" to see the project reach completion.
The company has also faced COVID-related problems, as the availability of labour and supplies have “hindered progress” on the site.
Despite this, the project, is expected to be completed by the end of the year assuming conditions do not change, as the final elements are progressing at an “accelerated pace.”
Regarding the attraction of Trident Park, which is located in Malta's Central Business District at the historic former Farsons brewery, the company insisted that the appeal of the offices remains, and that tenants are drawn to the “carefully designed green credentials of the environmentally friendly Office Park campus.”
There is “little doubt”, it posited, that “safe offices with lesser density per capita will be sought” going forward, and Trident hopes the project will also appeal to companies sensitive to climate change issues.
Financials
From a financial perspective, for the six months ended 31st July 2021, the company recorded a slightly decreased revenue of €544,000, compared to €562,000 for the same period a year prior.
This was due to an early termination of a lease in January, and Trident says discussions with alternative potential tenants are under way.
As a result of this decline in revenue, gross profit at the company decreased to €506,000, down from €525,000 a year earlier.
Costs increased during the period, and the company registered an increase in its administrative costs, which totalled €389,000 for the period, up from €317,000 in the first half of 2020.
This brought losses during the period to €28,000.
While day-to-day operational costs have remained stable, this increase in expense is said to emanate from marketing costs being incurred for the Trident Park project, along with costs which were previously unrecognised in the company’s financial statements.
In terms of assets, at the end of the period under consideration, the company held a total of €75,541,000 in assets, compared to €22,483,000 in non-current and current liabilities.
