Deyaar Development PJSC - Regulatory Filings 2020

Detailed analysis of accumulated losses

Date:	11 February 2020
Listed Company Name:	Deyaar Development PJSC
Define the period of the financial	Year ended 31 December 2019
statements
Accumulated losses:	AED 1,530,137,000
Accumulated losses to capital ratio:	26.48%
The main reasons leading to these	The main reasons for the accumulated losses are the provisions for
accumulated losses and their	impairment of assets due to the real estate market situation in
history:	Dubai recorded in 2010.
	In addition, in 2018, the Company applied the International
	Financial Reporting Standard 9 (IFRS 9) which resulted in
	provisions for certain assets amounting to AED 661 million, which
	were recorded in the opening balance of accumulated losses as at
	1/1/2018.
Measures to be taken to address	In previous years the company worked on completing all existing
accumulated losses:	projects and launch new projects that have seen high selling rates
	in addition to strengthening the company's portfolio of assets,
	where the company now has three projects in the hospitality sector
	which will contribute to increasing the revenues in the coming
	years, the company will continues to launch quality projects, and
	also keen to diversify its sources of income through property and
	facilities management services.
	The Board recommended in the meeting held on 11 February 2020
	to reduce the capital by using the legal reserve and cancellation of
	number of shares to write off the accumulated losses.

AmerAl Zu'bi

General Counsel and Board Secretary

CONTROL

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A Deyaar Development PJSC PO Box 30833, Dubai, UAE T: +971 4 395 7700 F: +971 4 395 7680