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Earnings Report

Amlak Finance

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Amlak Finance PJSC reported a strong Q1 2026 performance, supported by higher income from Islamic financing and investing assets, gains from asset disposals, fair value gains on investment properties, and improved profitability from discontinued operations.

The group also highlighted its significantly stronger liquidity position and ongoing strategic review of future business direction.

2. Financial Performance Snapshot

  • Total operating income: AED 65.4M

  • Profit before tax (continuing operations): AED 34.8M (+33% YoY)

  • Net profit from continuing operations: AED 28.2M (+12% YoY)

  • Profit from discontinued operations: AED 23.5M

  • Total net profit: AED 51.7M (+87% YoY)

  • Total comprehensive income: AED 51.7M

  • Basic EPS: AED 0.0344 (vs AED 0.0179 YoY)

3. Operational Highlights & Key Metrics

  • Income from Islamic financing & investing assets: AED 29.7M

  • Fair value gain on investment properties: AED 4.4M

  • Gain on sale of investment properties: AED 6.5M

  • Gain on sale of office units / equipment: AED 5.8M

  • Revenue from development properties: AED 12.9M

  • Share of profit from joint venture: AED 1.3M

  • Balance sheet & liquidity:

    • Total assets: AED 3.46B

    • Total equity: AED 3.17B

    • Islamic financing & investing assets: AED 3.0B

    • Cash & balances with banks: AED 65.1M

    • Cash & cash equivalents: AED 2.86B

  • Real estate & investments:

    • Investment properties: AED 38.4M

    • Development properties: AED 38.9M

    • Investment in joint venture: AED 98.2M

    • Assets held for sale: AED 58.3M

4. Key Performance Drivers

  • Significant increase in Wakala deposit income during the quarter

  • Strong gains from property and office unit disposals

  • Improved liquidity position with large increase in short-term Wakala placements

  • Positive contribution from fair value gains and development property recoveries

  • Higher profitability from discontinued operations and FVTPL assets

  • Continued monetization of legacy and non-core assets

5. Outlook & Forward Guidance

  • Management stated that recent geopolitical developments have increased valuation uncertainty in some areas, particularly real estate valuations and Level 3 financial assets

  • Despite this, management confirmed there was no material impact on Q1 2026 results

  • The company expects several pending asset disposal transactions to be completed within the coming months

  • Strong liquidity, reduced financing obligations, and continued asset optimization remain key focus areas going forward

  • Management continues reviewing strategic options and future business direction

6. 🧾 Investor Takeaway

Amlak Finance delivered a significantly stronger Q1 2026 performance with net profit nearly doubling year-on-year, supported by higher Islamic financing income, gains from property disposals, fair value gains, and strong liquidity growth as the company continues executing its strategic restructuring and asset monetization initiatives.