Amlak Finance, a leading Islamic real estate financier in the Middle East, has posted revenues of AED250 million ($68 million) for the first nine months of the year excluding unrealised fair value gain / (loss) related to investment properties.

This compares with AED190 million revenue in the same period of 2019.

The company reported a net loss of AED239 million in September 2020 compared to AED41 million net loss in September2019 due to the impact of Covid-19 on the finance and real estate market.

Revenues from financing business activities stand at AED125 million in the first 9 months of 2020, which are slightly lower compared to AED128 in the same period of2019.

Operating costs decreased by 15% to AED75 million in September2020, compared to AED88 million during the same period last year.

In the first 9 months of 2020, The Group recorded an impairment charge of AED159millionon Islamic Financing Assets compared to AED74 million for the same period in 2019; this increase in impairment can largely be attributed to the impact of COVID-19.

The Company sold 30% of its stake in an associate in KSA through an Initial Public Offering(IPO) and recorded a subsequent gain of AED7 million.

The company fully settled high cost tranche A financiers during the quarter. Amlak successfully concluded a debt settlement auction during the quarter and recorded a net gain of AED60 million in income statement and a gain of AED17 million in statement of changes in equity.

Total assets continue to stand at AED5billion and total liabilities at AED4 billion, similar to year-end 2019 financial results.

In the month of June 2020, Amlak succeeded in obtaining the signatures of all the financiers on the agreement that governs the new terms of its debt restructuring and since has initiated its compliance. The new terms of the agreement allow more flexibility to adapt to current market conditions and allow the company to further develop its business to achieve growth in its balance sheet. – TradeArabia News Service