Firms not offering flexibility find it difficult to recruit and retain employees, says Trident Estates CEO

Charles Xuereb, CEO of Trident Estates, the company behind Trident Park, has stated that tenant companies which fail to offer the flexibility of remote work options end up struggling to recruit and retain employees.

His comments came as part of the company’s Annual Report for the financial year ended 31st January 2024 (FY23-24). 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 his review of the performance, Mr Xuereb remarked that Malta’s office market is currently experiencing challenges as the growing supply of office space outweighs demand. This is the result of a period when a significant stock of new office buildings came on the market at a time when working from home gained momentum.

“We are privileged that at the time of writing, our signed lease agreements account for 83 per cent occupancy,” Mr Xuereb said. He added that this could be down to a number of factors, particularly the distinctive features of the Trident Park development.

“In the current market conditions, prospective tenants are looking for the flexibility of remote work options and, in a world where it is an employee’s market, those who do not offer this possibility often find themselves having difficulty to recruit and retain their employees,” he continued.

Mr Xuereb affirmed that the office environment will significantly influence the corporate culture and the lifestyle tenants aim to promote, “ultimately impacting employee engagement and satisfaction.”

During the reporting year, the company experienced a 79 per cent increase in turnover, totalling €4.2 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, resulted in higher rental income.

Direct costs for FY23-24 amounted to €758,000, while operating and administrative expenses increase significantly from €879,000 to €1.3 million.

As a result, the company’s pre-tax profit for the year totalled €1.3 million. While this is a sharp drop from the €7.5 million of 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.

Mr Xuereb remarked that the performance over the past year met Trident Estates’ expectations, yet he acknowledged that the path ahead requires the company to “adapt and evolve.”

“Therefore, we are embarking on a comprehensive strategic review to ensure our continued growth and success in the dynamic market landscape. We look forward to shaping a future that not only meets but exceeds our collective expectations” he affirmed.

Looking ahead, Mr Xuereb said that Trident Estates’ going for the coming year is to continue to work on attaining full occupancy at Trident Park by “attracting additional high-quality tenants.”