Dubai: Islamic real estate financier Amlak Finance reported a net profit of Dh6 million for Q1 2021, compared to Dh139 million net loss in Q1 2020.
Company’s Q1 2021 revenues decreased by 13 per cent to Dh62 million as compared to Dh71 million in Q1 2020 excluding fair value losses on investment properties and gain on debt settlement.
Revenues from financing business activities were broadly in line with 2020 at Dh43 million in 2021 compared to Dh44 million in Q1 2020, while rental income decreased by 49 per cent during Q1 2021 to Dh7 million compared to Dh13 million in Q1 2020.
The company executed debt settlement arrangements during the quarter, which enabled successful exit for two financiers.
Amlak’s focus on efficient operations in 2021 delivered a 16 per cent reduction in operating costs to Dh24 million in Q1 2021. The company also continued to efficiently manage its obligations, including repayment of Dh71 million to financiers during Q1 2021.
Amlak recorded an amortisation cost of Dh32 million in Q1 2021 as compared to Dh22 million in Q1 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 Dh23 million for Q1 2021 as compared to Dh25 million for Q1 2020.
