Deyaar Development PJSC — Regulatory Filings 2021

Nov 14, 2021

Detailed analysis of accumulated losses

Date:	11 NOV 2021
Listed Company Name:	Deyaar Development PJSC
Define the period of the	Nine months ended 30 Sep 2021
financial statements
Accumulated losses:	AED 1,717,672,000
Accumulated losses to	29.73%
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.
	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.
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.

Amer Al Zu'bi

General Counsel and Board Secretary

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