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English news

24-Mar-2019

Amlak reports a loss for 2018 due to revaluation loss on properties and impairments

Amlak reported net loss of AED272mn at the end of 2018 compared to AED51mn net profit in 2017. Amlak Finance, recorded a 16% increase in revenue from sale of properties under development compared to 2017; an increase related to the infrastructure development completion and sales of plots in Nad Al Hamar project. Revenues from financing business activities decreased by 9% to AED 173mn in 2018 compared to AED 191mn in 2017. Rental Income increased by 5% during 2018 to AED 64mn, compared to AED 61mn in 2017.  The Company’s total revenues including unrealised fair value loss related to investment properties decreased to AED307mn in 2018, down by 29% compared to AED432mn in 2017. During 2018, the Group recorded an impairment charge of AED206mn compared to an impairment reversal of AED0.4mn for 2017. This is mainly related to advances paid towards the acquisition of units in two under-development real estate projects. Both projects are delayed by a number of years and the date of completion is uncertain.