Property investment firm MPICO plc has posted a sharp rise in profit after tax for the year ended 31 December 2025, driven by stronger rental income and gains in its property portfolio.
The Malawi Stock Exchange-listed firm recorded a 59% increase in profit after tax to K19.32 billion, up from K12.18 billion in 2024.
During the company’s Annual General Meeting in Lilongwe, Board Chairperson Edmund Hami said the performance reflected resilience in a challenging economic environment.
“Despite some unfavourable economic conditions, we have produced one of the best results,” said Hami.
He said revenue grew by 44%, while rental income rose by 16% to K9.31 billion, supported by periodic rent reviews. Fair value gains on investment properties also increased significantly, rising 63% to K19.63 billion.
However, operating costs also climbed by 20% to K8.07 billion, largely due to inflationary pressures.
A key concern for the company remains rising government rental arrears, which more than doubled to K7.24 billion from K3.4 billion the previous year.
Hami said the delayed payments continue to strain operations, particularly cash flow and project rollout timelines.
“The risk is mainly on cash flow on our part. Government will pay, we don’t doubt them, but delays affect how we implement our projects,” he said.
Despite this, he noted that engagement with authorities had improved, adding that payment plans being discussed could help normalise the situation.
Beyond the financial results, MPICO cited emerging opportunities in the property sector, particularly student accommodation and mixed-use developments.
“In addition to office space and retail developments, student accommodation is becoming attractive near universities,” said Hami, adding that most developments in this space are being driven by small and medium investors.
He also pointed to tourism, mining-related infrastructure, and affordable housing as additional growth areas, saying the company was positioning itself to tap into multiple sectors.
“The challenge is also an opportunity. When we face challenges, that’s when we unlock new ideas,” he said.
MPICO further said the implementation of the Sectional Titles Act of 2024 is expected to boost real estate investment by improving land use efficiency and encouraging urban development.
On the shareholders’ side, investor Charles Banda welcomed the return of dividends after a two-year pause, describing it as a key milestone.
“As shareholders, we are excited to receive dividends. This time we have actually received something, and this is the most important thing,” said Banda.
He also acknowledged partial payments of government arrears, saying they had helped strengthen the company’s financial position.
MPICO declared a dividend of 50 tambala per share.
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