- Rental income down by 19%
- Operating cost down by 15%
- Total assets stand at AED 4.6 billion
- Sold 30% stake of an associate in KSA through IPO
- Settled Tranche A financiers
Dubai, UAE: – Amlak Finance PJSC, a leading specialized Islamic real estate financier in the Middle East, today announced its financial results for the third quarter ended September 30, 2020.
Revenues of the first 9 months of 2020 excluding unrealized fair value gain / (loss) related to investment properties stand at AED 250 million, compared to AED 190 million in the same period of 2019. The company reported a net loss of AED 239 million in September 2020 compared to AED 41 million net loss in September 2019 due to the impact of COVID-19 on the finance and real estate market.
Revenues from financing business activities stand at AED 125 million in the first 9 months of 2020, which are slightly lower compared to AED 128 in the same period of 2019.
Operating costs decreased by 15% to AED 75 million in September 2020, compared to AED 88 million during the same period last year.
In the first 9 months of 2020, The Group recorded an impairment charge of AED 159 million on Islamic Financing Assets compared to AED 74 million for the same period in 2019; this increase in impairment can largely be attributed to the impact of COVID-19.
The Company sold 30% of its stake in an associate in KSA through an Initial Public Offering (IPO) and recorded a subsequent gain of AED 7 million.
The Company fully settled high cost tranche A financiers during the quarter. Amlak successfully concluded a debt settlement auction during the quarter and recorded a net gain of AED 60 million in income statement and a gain of AED 17 million in statement of changes in equity.
Total assets continue to stand at AED 5 billion and total liabilities at AED 4 billion, similar to year-end 2019 financial results.
In the month of June 2020, Amlak succeeded in obtaining the signatures of all the financiers on the agreement that governs the new terms of its debt restructuring and since has initiated its compliance. The new terms of the agreement allow more flexibility to adapt to current market conditions and allow the company to further develop its business to achieve growth in its balance sheet.
About Amlak Finance PJSC:
Established in 2000, Amlak Finance is a leading specialized real estate financier in the Middle East. Amlak provides innovative, Shari’a-compliant property financing products and solutions designed to meet the ever-changing market demands. Amlak offers a range of customized financial solutions and products to investors and end-users for both ready and off-plan properties.
Amlak launched its first international office in Cairo in 2007. It also has business associations in Saudi Arabia.
For more information, please visit www.amlakfinance.com
© Press Release 2020