Deyaar Development PJSC — Regulatory Filings 2020

Aug 13, 2020

Detailed analysis of accumulated losses

Date:	12 AUG 2020
Listed Company Name:	Deyaar Development PJSC
Define the period of the	Second quarter ended 30 June 2020
financial statements
Accumulated losses:	AED 1,523,032,000
Accumulated losses to	26.36%
capital ratio:
The main reasons leading to	The main reasons for the accumulated losses are the
these accumulated losses	provisions for impairment of assets due to the real
and their history:	estate market situation in 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	In previous years the company worked on completing
address accumulated losses:	all existing 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.
	In the annual general assembly meeting held on 8
	April 2020, the shareholders approved The Board of
	Directors recommendation to reduce the capital by
	using the legal reserve and cancellation of number of
	shares to write off the accumulated losses. The
	capital reduction is currently under process and will be reflected in the market upon completing the
	related authorities' approvals and formalities.

General Counsel and Board Secretary

Deyaar Development PJSC PO Box 30833, Dubai, UAE T: +971 4 395 7700 F: +971 4 399 0724