Deyaar Development PJSC — Regulatory Filings 2021

Aug 14, 2021

Detailed analysis of accumulated losses

Deyaar Development PJSC First half ended 30 June 2021 AED 1,725,871,000
29.87%
The main reasons for the accumulated losses are the
provisions for impairment of assets due to the real
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. Furthermore, in the year ended 31 December 2020, the Company has incurred losses of AED 216.9 mainly due to impairment and fair value loss adjustments in its hospitality assets as a result of Covid-19 pandemic, which has either directly or indirectly impacted all businesses but hospitality and tourism are one of those most affected.
In previous years the company worked on completing
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

Hani Fansa Chief Financial Officer

$\left($

$\hat{\theta}$

÷,

ansa i

● 61 A NG PA $\frac{1}{2}$ ULLIZIO