Amlak posts 9-month net loss of Dh239m
Mortgage provider, Amlak Finance, reported on Tuesday a revenue of Dh250 million and a net loss of Dh239 million in the first nine months ended September 30.
While revenue rose from Dh190 million, net loss widened from Dh41 million compared to the same 2019 period “due to the impact of Covid-19 on the finance and real estate market.”
Revenues from financing business stood at Dh125 million, which are slightly lower compared to Dh128 million in the same nine month period of 2019, the Islamic real estate financier said in a statement.
Operating costs decreased by 15 per cent to Dh75 million in September 2020, compared to Dh88 million during the same period last year.
The group recorded an impairment charge of Dh159 million on Islamic financing assets compared to Dh74 million for the same period in 2019.
Total assets continue to stand at Dh5 billion and total liabilities at Dh4 billion, similar to year-end 2019 financial results, Amlak said.
Amlak concluded a debt settlement auction during the quarter and recorded a net gain of Dh60 million in income statement and a gain of Dh17 million in statement of changes in equity.
Amlak said it sold 30 per cent of its stake in an associate in Saudi Arabia through an initial public offering valued at $115.9 million, and oversubscribed 26.9 times. The company recorded a subsequent gain of Dh7 million. It was the only one IPO Mena region witnessed, according to an EY report.
The deal comes after no listings were announced in the second quarter, which marked the first time in more than 10 years that the Mena region had a quarter closed without a listing. Prior to the pandemic, the year had initially begun promisingly with four deals – three of which took place in Saudi Arabia, raising $865 million in total.
Matthew Benson, Mena Strategy and Transactions leader, EY, said the adverse impact of the Covid-19 pandemic outbreak, as well as a number of macroeconomic and geopolitical factors continues to be felt across the region, resulting in relatively subdued IPO activity. “Despite this impact, the IPO of Amlak International for Real Estate Finance represents a positive signal for markets. In the remainder of the year we are likely to see increased IPO activity in the region, as lockdown restrictions continue to ease. We expect listings to pick up in the fourth quarter,” said Benson.
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