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Dubai / Emirates Business
Amlak Finance PJSC, a leading specialized real estate financier in the Middle East, announced its financial results for the first half ended June 30, 2017.
Amlak reported net profit of AED 15.5 million for the first half ended June 30 2017. The company reported profit of AED 8.1 million for Q2 2017 compared to loss of AED 35.5 million in Q2 2016 mainly due substantial savings in Operating Cost and Reversal of Impairments.
Revenue from financing business activities also decreased by 9% to AED 96 million in H1 2017, compared to AED 105 million for the same period last year. This was due to a decrease in the financing portfolio. The drop in revenue from sales of real estate is underpinned by a softening in general market conditions.
Rental Income increased by 11% during H1 2017 to AED 30 million, compared to AED 27 million in H1 2016. Rental Income recorded in Q2 2017 stood at AED 15 million compared to AED 14 million in the same period last year, representing an increase of 7%. This was mainly due to increased Rental Income generation and recoveries from larger pool of foreclosed units.
Other Income including share of results from Investment in Associates increased by 64% in H1 2017 to AED 36 million compared to AED 22 million in H1 2016. This was mainly due to fair value gains recorded on Investment Properties.
Operating Costs decreased by 18% to AED 56 million for H1 2017 compared to AED 68 million reported in H1 2016. In Q2 2017, Operating Costs stood at AED 27 million compared to AED 38 million in Q2 2016, representing a 29% decrease. This was a result of Amlak’s ongoing cost management strategy. These figures exclude Operating Costs of joint venture relating to real estate development.