Joe Gasan reports ‘general downturn’ in retailers’ appetite to invest in new locations

Main Street Complex plc’s Chairman, Joseph A. Gasan, said that the 2024 financial year has proven to be a challenging one.

“A slowdown in trading activity at the complex continues to negatively impact results,” he said.

He continued: “This is most likely a direct result of the emergence of a number of new malls throughout the island as well as a growing online market.”

The company’s Annual Financial Report and Financial Statements for the year ended 31st December 2024, highlighted how despite the concerted efforts by management, several retail spaces at the complex remain unoccupied.

Nonetheless, the company noted ongoing discussions with both prospective and existing tenants, with many expressing strong interest in renewing their concession agreements.

Mr Gasan also noted how the company experienced “a general downturn in the appetite of retailers to further invest in new premises.”

The company’s main activity is to manage and lease retail and entertainment spaces within Main Street Complex, a four-storey facility in central Paola, Malta.

Main Street Complex plc reported a decrease in revenue and pre-tax profits in 2024 compared to the 2023 financial year.

Revenues fell by 11.4 per cent, dropping from €809,580 in 2023 to €717,178 in 2024. Meanwhile, the company’s pre-tax profit declined from €477,940 in 2023 to €365,376 in 2024, an approximate 23.6 per cent decrease.

Main Street Complex plc reported an increase of unrecovered expenses by approximately 12.6 per cent, from €105,958 in 2023 to €119,285 in 2024, largely attributed to a lower occupancy rate.

The value of the property was revised to €10 million from €11.4 million, following the valuation of an independent architectural firm.

The Directors of the company recommended the payment of a net final dividend of €149,571.

Mr Gasan noted that the company remains profitable due to prudent financial management and a debt-free balance sheet.

“The Board has embarked on an exercise to explore alternative strategies aimed at maximising the return on the company’s investment,” he said.

Mr Gasan stated that there are initiatives currently in progress and expressed optimism about making headway in the coming months.