Malta Properties Company plc announced pre-tax profits of €928,358 for the six months to June 30, 2016, a 40 per cent increase on the same period last year.

The interim financial results also show a marginal increase in revenues from the leasing of its properties from €1,608,500 in the first six months of 2015 to €1,662,925 over the same period this year.

In its review, MPC stated that, in the short to medium term, these revenue levels are expected to remain stable and increase gradually in line with inflation, as MPC has a number of long-term lease agreements with its tenants in place.

Revenue levels are expected to remain stable

MPC’s operating profit for the six-month period stood at €1,370,713 (2015: €1,587,645) due to a substantial increase in administrative expenses as a result of the independent operation of the group following its spin-off from GO and its listing on the Malta Stock Exchange towards the end of 2015.

Profit for the period also decreased from €1,702,723 to €551,115, mainly because of a tax credit following changes in taxation rules on capital gains on the transfer of immovable property in 2015.

The company said that a decision on dividend distribution for 2016 would be taken on the basis of full year results and, therefore, no dividend has been declared with these results.

MPC is currently redeveloping three of the sites in its portfolio, namely the Żejtun Exchange, the Marsa Spencer Hill Exchange and the Birkirkara Exchange. The transformation of these three sites into technical, commercial and retail centres should have a significant positive impact on MPC’s rental income from 2019 onwards.

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