Trident Estates plc registered €1.3 million in pre-tax profit during the financial year ended 31st January 2024 (FY23-24) after an increase in rental income.

The figure was announced in the company’s Annual Report for the reporting period, released on Thursday (today).

Trident Estates is a property investment company that owns, directly or indirectly through subsidiary companies, manages, acquires, develops and re-develops property for rental and investment purposes.

In the report, it was announced that revenue for the financial year totalled €4.2 million, an increase in turnover of 79 per cent from the previous year (FY22-23: €2.4 million).

This was driven by a continued interest in Trident Park, prompting an increase in occupancy levels. This momentum, coupled with changes in tenancies across other properties, has also prompted higher rental income.

Direct costs for FY23-24 amounted to €758,000 (FY22-23: €262,000), while operating and administrative expenses increased significantly from €879,000 in FY22-23 to €1.3 million in FY23-24.

Chairman Louis A. Farrugia said: “Operating profits for the year reached €2 million, doubling from €1 million last year.”

Trident Estates Chairman Louis A. Farrugia

While the €1.3 million pre-tax profit represents a sharp drop from the €7.5 million recorded in the previous year, it is important to note that FY22-23’s higher profits were driven by significant unrealised fair value gains on the property portfolio.

As anticipated, the sharp increase in the European Central Bank (ECB) reference interest rate has impacted borrowing costs.

Total assets as at the end of the reporting period totalled €104 million, expanding marginally from the €102.9 million of the previous financial year. The Board of Directors did not propose to recommend the declaration of a final dividend at the forthcoming Annual General Meeting. Retained profits carried forward at the reporting date amounted to €5.9 million.

In June 2023, Trident Estates completed and inaugurated Trident Park, a significant milestone for the company. The development is located in the heart of the Central Business District on the site of the former Farsons Brewery, being turned into a green office campus and business destination.

Throughout the financial year, the management team focused on the operational side of the development as new tenants populated the campus. Incoming tenants were provided with strong technical support concerning their fit-out requirements, and the campus continued to attract interest from prospective new tenants, with a number of on-site viewings and presentations held.

The office market in Malta is currently experiencing challenges due to an oversupply of office space and the growing work-from-home trend.

Trident Estates CEO Charles Xuereb / LinkedIn

Trident Estates CEO Charles Xuereb stated: “The signed lease agreements account for 83 per cent occupancy, achieved due to the distinctive features of the Trident Park development, including green credentials, open spaces, natural light, parking, and other quality amenities.”

“The goal for the coming year is to attain near full occupancy at Trident Park by attracting additional high-quality tenants,” he added.

Looking ahead, the company is evaluating options for Trident House in Marsa post 2026.  The premises, located on the outskirts of Qormi, is currently leased out to related entity, with the tenant expected to vacate it in 2026. The potential of the site has been recognised by other third parties and a number of enquiries and expressions of interest have been received.

Trident Estates stated that the performance for the past year met its expectations, and it is now embarking on a comprehensive strategic review with the aim of ensuring continued growth and success in the dynamic market landscape.