Manazel is the developer of the Al Reef Community in Abu Dhabi. It has an extensive property portfolio, but had to take impairment charges in the first-half of 2020. Image Credit: Gulf News Archive

Abu Dhabi: Abu Dhabi developer Manazel slipped into a half-year loss of Dh98.8 million compared with profits of Dh136.9 million in the first six months of last year, as the property sector felt the full effects of the pandemic. Manazel’s portfolio includes the Al Reef Community and Al Reef 2, along with other commercial and retail outlets.

Overall revenue was down to Dh193.1 million against Dh506.2 million last year. Property sales during the first six months came to Dh138 million, down from Dh377.9 million, while profit from its sales division fell to Dh24.8 million from Dh108.7 million.

The group recorded a loss of Dh41.3 million for its investment properties division against a Dh52 million profit last year. Total assets were at Dh5.7 billion, with no dividends declared or paid out during the six-month period.

“Due to the impact of COVID-19, management has reassessed the fair value of the major investment properties,” the group said in a statement. “The major areas covered were reassessing the financial performance, including estimates of future cash flows and including the impact of temporarily suspending charge of rent and discounts provided to affected retail tenants.

“As a result, the group has recognised a fair value loss of on its investment properties amounting to Dh46.9 million.”

The company also noted that its stable liquidity position along with its existing cash balances meant it was able to ride out the current challenge. “Along with undrawn credit borrowings and revolving credit facilities will be sufficient to satisfy working capital needs and other urgent liquidity requirements associated with existing operations,” the statement added