Dubai-based Amlak Finance, a leading Islamic real estate financier, has posted revenues of Dh215 million ($58.5 million) for the first half (H1) of the year, marking an increase of 6 per cent compared to Dh203 million during H1 2018.
Revenues from financing business activities improved by 2 per cent to Dh87 million during H1 2019 compared to Dh85 million during the same period last year.
The company reported net profit of Dh4 million in H1 2019 compared to Dh11 million net profit during H1 2018.
Operating costs decreased by 3 per cent to Dh59 million in H1 2019, compared to Dh61 million during the same period last year.
During H1 2019, Amlak recorded an impairment charge of Dh59 million on Islamic Financing Assets compared to Dh25 million in H1 2018; this increase in impairment is mainly due to a financial default of a developer.
The company also recorded an amortization cost of Dh50 million in H1 2019 down by 15 per cent compared to Dh59 million in the same period last year. The amount of amortization represents the unwinding of fair value gains on initial recognition of investment deposits, and varies according to the level of repayment made to the financers in any reporting period.
Total assets continue to stand at Dh6 billion and total liabilities at Dh5 billion, similar to the 2018 year-end financial position.
In H1 2019, Amlak were on schedule for key real estate projects including the labour camp project with four out of eight buildings completed and the remaining four on schedule.
The company reached an advanced stage of renegotiating the funding terms with its financiers; negotiations are expected to be concluded before end of 2019.
Arif Abdulla Alharmi Albastaki, managing director & CEO of Amlak said: “Despite market headwinds, Amlak performed positively in the first half of 2019, confirming our strategy to help grow the business and add value to our shareholders.
“We made significant progress with our financiers renegotiating the funding terms and we expect to conclude these renegotiations and sign a new agreement before the end of this year. This will not only give us more flexibility to adapt to the real estate market conditions in the region but would also provide Amlak with the opportunity to further facilitate and strengthen our business.” – TradeArabia News Service
Amlak Finance H1 revenues up 6pc at $58.5m
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