MIDI forecasts return to profit in 2025 as Manoel Island uncertainty persists
Company banks on sales of Q3 Fortress Gardens apartments to boost revenues
Property developer MIDI plc expects a return to profitability this year, driven by sales of new apartments at its flagship Tigné Point development, as uncertainty persists over the future of its Manoel Island project.
MIDI, which reported a loss of €3.8 million in 2024, expects revenue to surge to €36.14 million in 2025, largely reflecting apartment sales at its Q3 Fortress Gardens development at Tigné Point.
The sharp increase in revenue is attributable to final deeds of sale for dozens of apartments at Fortress Gardens development being signed this year, allowing MIDI to record those sales as revenue on its income statements.
Around 92% of the development, which comprises 58 apartments and five penthouses, is subject to a promise of sale agreement.
Completing the sale of those apartments will allow the company to record a €2.4 million profit for the year, marking a turnaround following three consecutive years of losses, financial analysts engaged by the firm for a 2025 Financial Analysis Summary believe.
That summary, released to the market on Tuesday, was completed before MIDI said it was willing to negotiate with the government to drop its plans to develop Manoel Island and return the land to the government.
MIDI obtained a 99-year lease on Manoel Island at the turn of the century, as part of a public concession that also saw it acquire a similar lease for Tigne Point.
Negotiations between MIDI and the government about terminating the Manoel Island concession are underway behind closed doors and were not factored into the financial analysis.
Analysts warned that those ongoing talks made it impossible to prepare a "reliable and meaningful" update to their forecasts at this stage.
The Manoel Island project had been central to MIDI’s long-term strategy and key to its planned refinancing of a €50 million secured bond. That bond is due for repayment in July 2026 and has now shifted to the company's current liabilities, adding pressure on firm to conclude negotiations with the government.
The financial analysis found that MIDI faces continued pressure on its cash reserves, which dropped from €21.6 million at the end of 2023 to €13.2 million by the end of 2024, primarily due to investments at Tigné Point.
MIDI shares, traded on the Malta Stock Exchange, closed trading at €0.25 on Tuesday. The company's share price in 2024 ranged from lows of €0.216 to highs of €0.31.