Union Properties PJSC — Management Reports 2023

May 10, 2023

Detailed analysis of accumulated losses

Date	9th May 2023
Name of the Listed Company	Union Properties PJSC
Define the period of the financial	March 31, 2023
statements
Value of the Accumulated losses	(2,888) million AED
(Million Dirhams)
Accumulated losses to capital ratio	67.34%
The main reasons leading to these	The losses are mainly a product of significant provisioning of the
accumulated losses and their	following:
history	Fair value loss of AED 2,076 million related to investment
	properties recorded in the fiscal year 2017
	Fair value loss of AED 1,109 million related to investment
	properties recorded in the fiscal year 2021
	Loss on disposal of an associate of AED 250 million recorded
	in the fiscal year 2020
	Losses and impairments from financial instruments at 0
	FVTPL amounting to AED 337 million
	Disposal of assets to related parties amounting to AED 62 $\bullet$
	million 2020 and AED 45.5 million in 2021
	Provisions amounting to AED 90.5 million against advances
	to contractors in 2021
Measures to be taken to address	Present a recovery plan to disclose to the Securities and the ٠
accumulated losses:	Commodities Authority and The Market a plan for handling the
	accumulated losses.
	Developed a business plan that includes focusing on closing
	out existing projects and re-focusing the company on its core
	business activities in order to win new projects.
	Develop the continued efforts to acquire more projects, in
	UAE, In addition to the ongoing.
	Improve overall operational productivity and efficiency.
	Restructuring of its outstanding debt to reduce the finance cost

I

	Recovering its outstanding receivables (notably through court
	and arbitration)
	Continued reduction of its operating costs
	Development of its extensive landbank
	Development of assets with recurring cash flow
	Strong focus on the Group operating subsidiaries
	Focus on cash-generating activities
Authorized Signatory