Amlak Announces Third Quarter 2020 Results
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.
Amlak Finance PJSC is a leading specialized real estate financier in the Middle East. Since its establishment in November 2000 as the region’s pioneer financial services provider, it has provided its customers with innovative, Sharia-compliant property financing products and solutions designed to meet the rapidly evolving market demands.
It was first established as a private shareholding company in Dubai, United Arab Emirates, in accordance with UAE Federal Law. In 2004, it was converted to a Public Joint Stock Company.