Change in the fair value of investment properties.

Current Report No. 4/2022

Legal basis: article 17, paragraph 1 of MAR – confidential information.

The board of directors of Muza SA in Warsaw (the issuer) announces that, on March 4, 2022, the board adopted a resolution on the modification of the fair value of an investment property based on an opinion on the fair value of this investment property, which is plot No. 24/26 containing a hotel building in Spała. The real estate expert determined the value of the property at PLN 14,112,000 as of December 31, 2021. The Issuer holds a 69.74% share in this property, thus its balance sheet value increased following the revaluation of 779,693 PLN to 9,841,709 PLN. The increase in value will be included in the gross result of 2021.

The fair value of the building was determined according to the income-based approach using the profit method. In addition, the replacement value of the asset (the land in the comparative approach, the building in the cost-based approach) was determined.

The increase in value was caused by better financial results of the subsidiary PDK SA, which is the hotel operator, the general improvement of the economic situation in the tourist market caused by the easing of restrictions related to the pandemic of coronavirus. Compared to 2020, the hotel was opened in 2021, welcoming guests and therefore generating revenue.

This information has been deemed to comply with the requirements of article 17, paragraph 1 of the MAR due to the significant changes, in the opinion of the Management Board of the Company, which have occurred in the consolidated and individual financial results.

Warning

MUZA S.A. published this content on March 04, 2022 and is solely responsible for the information contained therein. Distributed by publicunedited and unmodified, on Mar 04, 2022 11:55:02 AM UTC.