‘Prudent to preserve cash’ – Malita Investment defends dividend halt
Company blames rising costs of Luqa housing project for change in plans
A company majority-owned by the government has defended its sudden suspension of dividend payments to investors.
Ahead of issuing fresh shares to the public last year, Malita Investments told investors it aims to continue distributing dividends with an estimated return of 7% on the amount invested at the time.
Just over a year later, Malita announced it would not be paying an interim dividend due to the substantial cash requirements needed for a social housing project in Luqa.
The company has, over recent years, invested heavily in social housing projects across 10 localities in Malta.
Malita Investments noted that cash flow requirements for its development projects have increased beyond original projections due to certain project delays and increases in project costs.
In comments to Times of Malta, a Malita Investments spokesperson defended the decision, saying, at this stage, the company’s board decided it would be prudent to preserve cash resources pending the end-of-year financial results.
This approach ensures the company can meet its immediate operational commitments whilst protecting shareholder value- Spokesperson for Malita Investments
The company will assess dividend distribution once these results are available and taking into account Malita Investment’s cash flow requirements at that time, the spokesperson said.
“This approach ensures the company can meet its immediate operational commitments whilst protecting shareholder value.”
The spokesperson said the decision to suspend dividend payments reflects the company’s current strategic position regarding its affordable housing project and the significant cash requirements of the Luqa project, which represents the company’s largest ongoing development.
Malita Investment’s main activities include the financing, acquisition, development, management and operation of properties.
It owns the sites of Malta International Airport and Valletta Cruise Port (VCP) and holds a temporary emphyteusis over the parliament building and Pjazza Teatru Rjal.
The company registered a profit of €5.28 million for the period from January to June 2025.