VBL Group on Friday announced that it recorded €6.6 million in pre-tax profit during 2022, as it continued to work on its long-term development strategy.

The real estate company continued its year-on-year growth in 2022 and achieved a new record year, both in terms of operational revenues and profitability. In 2021, VBL Group registered €6.1 million in pre-tax profit, 8.6 per cent less than 2022’s figure.

Significant improvement was realised across its key performance indicators across all segments of its operations, and the results confirm its "strong foundations" and “successful implementation” of its declared strategy.

Hospitality rental revenues recovered “rapidly” after residual COVID-19 pandemic restrictions were lifted after the first four months of the year. As a result, total operational revenues exceeded €2.3 million, up by 118 per cent from the previous year, while total revenues reached €9.2 million.

One of VBL Group's properties

VBL Group registered €897,336 in administrative expenses in 2022, representing a 63 per cent increase from the €550,480 recorded in 2021.

Cost of sales also rose substantially, going up by 128.3 per cent to €1.2 million from 2021’s €511,643. This was largely due to rises in staff costs, management fees, and impairment on inventory.

The group’s consolidated EBITDA exceeded €7.1 million, reflecting its achieved development results, while total assets expanded sharply to €77.5 million.

VBL Group’s Board of Directors proposed a final dividend of €180,000 for 2022, corresponding to €0.0726 per share dividend. A total dividend of €160,000 was distributed to shareholders during 2021 for the financial year ending 31st December 2021.

Over the course of 2022, VBL Group reached a number of significant milestones in its long-term development strategy, including securing a long-term development financing facility from Bank of Valletta plc, as well as the acquisition of the Coliseum Shopping Arcade, another landmark development project in Valletta. The company plans to regenerate the property into a modern commercial and mixed-use facility, drawing upon the group’s development expertise and “successful track record” in developing similar assets in other parts of the city.

One of VBL Group's properties

Commenting on the performance, Executive Director and CEO Géza Szephalmi said that VBL Group continues to implement its “long-term development strategy of converting its significant portfolio of Valletta real estate assets into refurbished, revenue generating properties”.

VBL Group Executive Director and CEO Géza Szephalmi / VBL Group

“With finances secured for the current development cycle, long-term development plans are on track. In parallel with this, and with the continuing acquisition of unique historic assets in Valletta, the company is preparing for the next phase of growth within its core market,” he added.

“To implement its long-term strategy, in the first months of 2023, VBL Group has launched a strategic review of its financing and equity options, which are expected to lead to positive announcements in the next period,” Dr Szephalmi concluded.

VBL Group is a leading private real estate owner in Valletta, and has become established when it comes to renovation and regeneration projects, as well as professional property management. It is focused on identifying, acquiring, developing, and managing real estate in the city, and its strategy involve creating a diverse portfolio of operational and development assets, consisting of hospitality, office space, and retail assets.