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Amlak Finance reports 20% drop in 2016 net profit

Despite the fall in net profit, Amlak's total revenues reached $211.8m in 2016, an increase of 46% compared to 2015

Amlak saw a 20% year-on-year dip in net profit during 2016. [Representational image]
Amlak saw a 20% year-on-year dip in net profit during 2016. [Representational image]

Real estate investment firm, Amlak Finance, has reported a net profit of $29.13m (AED107m) for 2016, a decrease of 20% compared to the $36.7m (AED135m) achieved in 2015.

The company’s total revenues, however, reached $211.8m (AED778m) in 2016, up by 46% compared to the $144.8m (AED532m) figure recorded in 2015.

Revenue from its financing business activities decreased by 31% to $56m (AED207m) in 2016, in comparison to $80.8m (AED297m) in 2015.

Amlak’s revenue from sales of real estate assets saw a significant increase of 480%, reaching $116.8m (AED429m), compared to $20.15m (AED74m) during the previous year. The company attributed this increase to higher sales and transfers of real estate land plots to customers.

Amlak's rental income increased by 23% in 2016, reaching $15.5m (AED57m), compared to $12.5m (AED46m) reported in 2015.

Other income was reported at $23.4m (AED86m) for the year 2016, a 25% decrease compared to the $31m (AED114m) figure recorded in 2015. The decrease was mainly due to a drop in fair value gains on investment properties, according to Amlak.

Ali Ibrahim Mohammed, chairman of Amlak Finance, said: “Despite a challenging global economic environment, I am pleased that Amlak has reported good results. These results reflect our overall positive operational performance and, with a more positive outlook for the UAE economy in 2017.”

In 2017, Amlak plans to push ahead with its infrastructure development project in Nad Al Hamar. The company also mentioned the possibility of completing development of its plots in Mirdif, and said that it would initiate the development of certain plots in Al Ttay.

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Construction Week - Issue 753
Nov 09, 2019