Dubai – Deyaar
Development has incurred accumulated losses of AED 1.733 billion, representing 30% of the capital, as of the first quarter (Q1) of 2021.
The accumulated losses are driven by the provisions for impairment of assets due to the real estate market situation in Dubai during 2010 and the provisions for certain assets amounting to AED 661 million due to the International Financial Reporting Standard 9 (IFRS 9), which was applied in 2018, according to a bourse filing on Sunday.
In addition, the company has logged losses in 2020 due to impairment and fair value loss adjustments in its hospitality assets amid the coronavirus (COVID-19) pandemic.
To tackle the accumulated losses, the company has worked on completing all existing projects, launched new projects that have recorded high selling rates, and strengthened the company's portfolio of assets.
It is noteworthy to mention that in the first quarter (Q1) of 2021, the company's net profits jumped to AED 15.1 million, compared to AED 2.6 million in the year-ago period.
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