Amlak International says coronavirus impact limited, long-term outlook positive

Amlak International for Real Estate Finance Co. said that the impact of the coronavirus on the company has been limited up to date, indicating that the company quickly adapted with the new situation imposed by the pandemic.

The effect of the coronavirus outbreak on the company’s short-term returns was minimal as its portfolio mostly consists of long-term financing, Amlak said in a statement to Argaam.

Furthermore, the company indicated that it worked on raising credit provisions to face the potential default by some clients as they may face cash flow challenges.

The second quarter was a challenging period for all sectors within the Kingdom, as the economy was hit by the precautionary measures taken to contain the coronavirus, Amlak CEO Abdullah Al Sudairy said.

The current situation represents a challenge, but is still acceptable as the factors are positive for the sector, in the long run, the CEO added.

Amlak International’s net profit grew to SAR 53.3 million in H1 2020, compared to SAR 23.3 million during the same period last year.

The company’s stock was listed and started trading on Tadawul on July 13 after floating 27.18 million shares in an IPO representing 30% of capital at SAR 16 per share.