DUBAI: Amlak Finance announced its financial results reporting a net profit of AED 6 million for Q1 2021, compared to AED 139 million net loss in 2020. Amlak’s Q1 2021 revenues decreased by 13% to AED 62 million as compared to AED 71 million in Q1 2020 excluding fair value losses on investment properties and gain on debt settlement.
Q1 2021 revenues from financing business activities were broadly in line with 2020 at AED 43 million in 2021 (Q1 2020: AED 44 million), while rental income decreased by 49% during Q1 2021 to AED 7 million (Q1 2020: AED 13 million).
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% reduction in operating costs to AED 24 million in Q1 2021 (Q1 2020: AED 28 million).The company also continued to efficiently manage its obligations, including repayment of AED 71 million to financiers during Q1 2021.
The company also recorded an amortisation cost of AED 32 million in Q1 2021 as compared to AED 22 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 AED 23 million for Q1 2021 as compared to AED 25 million for Q1 2020.
The company focused on prudently managing its UAE operations and balance sheet, while realising strategic growth opportunities in key regional markets.