(MENAFN- Khaleej Times)
Amlak Finance, a leading Islamic real estate financier, reported on Wednesday a net profit of Dh197 million for H1 2021, compared to net loss of Dh78 million in 2020.
The company said in a statement that it“focused on prudently managing its UAE operations and balance sheet, while realising strategic growth opportunities in key regional markets.
Amlak's H1 2021 revenues decreased by 19 per cent to Dh117 million as compared to DH145 million in H1 2020 excluding fair value losses on investment properties and gain on debt settlement. Revenues from financing business activities decreased slightly and stood at Dh85 million in 2021 (H1 2020: Dh87 million), while rental income decreased by 48 per cent during H1 2021 to Dh13 million (H1 2020: Dh25 million).
The company's debt settlement arrangements, an initiative which began in 2020, remained successful this year, and enabled four financiers to fully settle their exposure during the period H1 2021.
Amlak's focus on efficient operations in 2021 delivered a 16 per cent reduction in operating costs to Dh 43 million in H1 2021 (H1 2020: Dh 51 million).
The company also continued to efficiently manage its obligations, including recurring repayment of Dh114 million to financiers during H1 2021.
The company said it recorded an amortisation cost of Dh85 million in H1 2021 as compared to Dh43 million in H1 2020. The amount of amortisation represents the unwinding of fair value gains on initial recognition of investment deposits, and varies according to the level of repayment made to the financiers in any reporting period.
As a result of debt settlements and repayments to financiers, the profit distributed to financiers decreased and stood at Dh46 million for H1 2021 as compared to Dh52 million for H1 2020, said the company.
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