Islamic real estate financier posts net profit of $53.6m

Islamic real estate financier posts net profit of $53.6m
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Updated 11 August 2021

Islamic real estate financier posts net profit of $53.6m

Islamic real estate financier posts net profit of $53.6m
  • Amlak Finance, out of Dubai, reports net profit for the first half of 2021 compared to a net loss of 78 million dirhams the year before
  • Real estate financier’s business activities slightly dipped during the first half of this year and stood at 85 million dirhams

DUBAI: Amlak Finance, a specialized Islamic real estate financier in the Middle East, on Wednesday reported a net profit of 197 million dirhams ($53.6 million) for the first half of 2021 compared to a net loss of 78 million dirhams in 2020.

Amlak’s H1 2021 revenues decreased by 19 percent to 117 million dirhams as compared to 145 million dirhams in H1 2020 excluding fair value losses on investment properties and a gain on debt settlement.

The real estate financier’s business activities slightly dipped during the first half of 2021 and stood at 85 million dirhams in 2021. During that same period, rental income decreased by 48 percent to 13 million dirhams as compared to 25 million dirhams during the first half of 2020.

The company’s debt settlement arrangements, an initiative that began in 2020, remained successful this year and enabled four financiers to fully settle their exposure during the first half of 2021.

Amlak’s focus on efficient operations in 2021 reduced operating costs by 16 percent to 43 million dirhams and the company also continued to efficiently manage its obligations, including a recurring repayment of 114 million dirhams to financiers during the first half of 2021.

The company recorded an amortization cost of 85 million dirhams in H1 of 2021 as compared to 43 million dirhams during the same period in 2020. As a result of debt settlements and repayments to financiers, the profit distributed to financiers decreased and stood at 46 million dirhams in the first half of 2021 as compared to 52 million dirhams for H1 of 2020.

Amlak Finance was first established in 2000 as a private shareholding company in Dubai in accordance with UAE Federal Law. In 2004, it was converted to a public joint-stock company.