Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697805649111.pdf (Ireland)
NAMA QUARTERLY REPORT and ACCOUNTS (Section 55 NAMA Act 2009) 30 June 2021 1 2 3 Letter from the Chairman and Chief Executive Officer NAMA Group Accounts Supplementary information required under Section 54 and Section 55 (6) (k) of the Act (i) (ii) (iii) (iv) (v) (vi) Section 54 (2) Administration Fees and Expenses incurred by NAMA and each NAMA Group Entity Section 54 (3) (a) Debt Securities Issued for the Purposes of the Act Section 54 (3) (b) Debt Securities Issued and Redeemed in the period Section 54 (3) (c) Advances to NAMA from the Central Fund Section 54 (3) (d) Advances made by NAMA to Debtors in the quarter Section 54 (3) (e) Asset Portfolios held by NAMA and each NAMA Group Entity (vii) Section 54 (3) (f) Government Support Measures including guarantees, received by NAMA and each NAMA Group Entity 4 Supplementary information required under Section 55 of the Act (i) (ii) (iii) (iv) (v) Section 55 (5) Guidelines & Directions issued by the Minister of Finance Section 55 (6) (a) Number and Condition of Outstanding Loans Section 55 (6) (b) Categorisation of Non-Performing as to the Degree of Default Section 55 (6) (c) Number of loans being foreclosed or otherwise enforced Section 55 (6) (d) Number of cases where liquidators and receivers have been appointed (vi) Section 55 (6) (e) Legal proceedings commenced by NAMA and each NAMA Group Entity in the quarter (vii) (viii) (ix) (x) (xi) Section 55 (6) (f) Schedule of finance raised by NAMA and each NAMA Group Entity in the quarter Section 55 (6) (g) Sums recovered from property sales in the quarter Section 55 (6) (h) Other income from interest-bearing loans owned by NAMA and each NAMA Group Entity in the quarter Section 55 (6) (i) Abridged Balance Sheet of NAMA and each NAMA Group Entity Section 55 (6) (j) Schedule of Income and Expenditure of NAMA and each NAMA Group Entity Page 1-3 4-27 32 33 33 33 33 34-35 35 35 36 37 38 38 38 38 38 38 30-31 28-29 '... Gniomhaireacht Naisiinta um Bhainistiocht S6cmhainni >\ National Asset Management Agency 30 September 2021
 Mr. Paschal Donohoe T.D., Minister for Finance, Departmentof Finance, Upper Merrion Street, Dublin 2.
Section 55 Quarterly Report and Accounts - NAMA Act 2009 Dear Minister, Please find attached the Quarterly Report and Accounts for the second quarter of 2021 (‘Q2 2021 Section 55 Accounts’) which are submitted to you pursuant to Section 55 of the NAMA Act 2009 (‘the Act’).

In accordance with the Act, the Report deals with the National Asset Management Agency (NAMA)andtheentities within the NAMA Group.
To assist in your review of the Quarterly Report and Accounts, we also present for your information Financial Highlights and Key PerformanceIndicators for 2021 to date together with FY 2020 information as comparatives.
Total cash rated Cash proceeds from collateral and loan sales No I cash ts from borrowers Cash and cash equivalents and liquid assets balance at riod end Debtor loans measuredat fair value thro rofit or loss lus to the Transfer of Senior bond redem Subordinated Bonds redeemed (n Purchase of Private Investors shareho period after tax Tax including impact of deferred tax credits rofit before tax Profit for the Opera uer Gniomhaireacht Naisiunta um Bhainistiocht S6cmbhainni usa an Sticchiste, Cé an Phoire Vhoaidb, Baile Atha Cliath 1.1901 AYTS, Eire MMO“ MANAG wwwwaniaie National Asset Management Agency Treaury Doek, North Wall Quay, Dublin 1.1207 AVS, Ireland T #353 1 2348 4000 Key PerformanceIndicators Cashgeneration Cash generation is a critical measure of the progress being made by NAMA in meetingits stated objectives.
NAMA continues to generate significant cash throughdisposals of assets and loans andthereceipt of non-disposal income.

Key cash generation indicators include: e NAMA generated €0.3bnin cash in the quarter ended 30 June 2021, bringing total cash generation from inception to 30 June 2021 to €46.6bn.

e NAMA generated a further €0.2bn in cash in the period from 30 June 2021 to 24 September 2021, bringing cumulative cash generatedsince inception to €46.8bn.
e Cash, cash equivalent, collateral and liquid asset balances held at 30 June 2021 were €1.1bn.

Trading position NAMA recorded profit after tax of €99m for the quarter ended 30 June 2021 (Q2 2020: profit after tax of €40m).

NAMAStrategic Objectives 2021 Notwithstanding the various challenges brought about by the COVID-19 pandemic NAMA continues to make progress onthe delivery ofits Strategic Objectives.

1.
1.

Transfer of Surplus to the Exchequer NAMA completed a payment of €250m to the Exchequer today, 30 September 2021, representing the fourth transfer from NAMA’s projected lifetime surplus.

This brings total transfers thus far in 2021 to €750m, following on from NAMA’s €500m transfers in the first half of 2021.

Along with the €2bn payment in 2020 and the €400m paid in Corporation tax, the total cash contribution by NAMA to the Exchequeris €3.15bn.

2.
2.

Dublin Docklands SDZ Oneofthe objectives set by the NAMA Boardisto facilitate the delivery of grade A office accommodation in the Dublin Docklands SDZ.

NAMA has continued to make significant progress in this regard.

On completion, the projects in which NAMA hadan interest will deliver 4.2 million square feet of commercial space and 2,183 residential units across 15 sites.
Approximately 14% of NAMA’s interest in the Dublin Docklands remains under construction, while the remaining interest has reached completion of construction, the projects are fully complete and/or sold, or the sites have been sold with the benefit of planning permission.

While the timing and costof the delivery of some of these projects has been impacted by the Covid-19 pandemic, every effort continues to be made to mitigate the impact using measures within NAMA’s control.

3.
3.

Residential Delivery In total, NAMAhasfacilitated the delivery of 20,586 residential units to date since the start of 2014: some 12,951 units were delivered directly through NAMA fundingandit is estimated that 7,635 units have been delivered onsites which have been sold by NAMA debtors and receivers or where the associated loans have been sold or refinanced.

Another 5,925 units are either currently under construction or have secured planning permission.
In addition, sites with a delivery capacity of 4,299 units are either in the planning system,a planning application is in preparation, or are subject to pre-planning consultations.

NAMA is also funding pre-planning andfeasibility work on 2 other sites under the control of NAMA debtors and receivers which are estimated to have a delivery capacity of 11,721 units.
Necessary site closures and supply chain impacts resulting from the Covid-19 pandemic have slowed the delivery of housing units from NAMA’s secured portfolio.

NAMA is working with its debtors and receivers to improve supply as demand for new units remainshigh.

4.

Poolbeg West SDZ In April 2019, the Planning Scheme for the Poolbeg West SDZ was formally adopted by An Bord Pleandla and facilitates a mechanism for the fast-tracking of planning applications for development.
NAMA owneda 37.2 acre developmentsite located within the SDZ whichcan deliver up to 3,800 homes(including 10% Part V and 15% social and affordable homes) and approximately 1 million sq.

ft. of commercial space, as well as educational facilities, public open spaces, civic spaces and other community amenities.
In June 2021, a consortium consisting of Ronan Group RealEstate, Oaktree Capital Management, L.P. and Lioncor Developments Limited acquired an 80% shareholding in Pembroke Ventures DAC (“PV”) for €200 million.

NAMA will retain a minority 20% shareholding in PV.

A planning application for the first 600 residential units was lodged in July with construction of these units currently expected to commencein 2022.

5.
5.

Social housing Up to June 2021, NAMA hadidentified 7,094 residential units as potentially suitable for social housing from its secured portfolio and offered these to local authorities.

Many of these units were not required at the time, deemed unsuitable or subsequently became unavailable.

As at the end of June 2021, 2,629 social housing homes had been delivered or committed by NAMA, excluding those delivered under Part V arrangements on NAMA-funded residential developments.
Wetrust the Quarterly Report and Accounts meetthe requirements of Section 55 of the Act and any specific direction or guidelines issued by you as Minister for Finance.

If you have any queries in this regard, please do not hesitate to contact us.
Yourssincerely, ” ) SOOO)- B renda n Digitally signed by Brendan McDonagh Date: 2021.09.30 McDonagh 12:32:09 +01'00' Aidan Williams Chairman Brendan McDonagh Chief Executive Officer 3 Unaudited Consolidated Accounts of the National Asset Management Agency For the quarter ended 30 June 2021 4 National Asset Management Agency Group Quarter to 30 June 2021 Contents of Unaudited Consolidated Accounts Board and other information General information Consolidated Income Statement Consolidated Statement of Financial Position Consolidated Statement of Cash Flows Notes to the Accounts Income statement by NAMA group entity Statement of financial position by NAMA group entity 6 7-10 11 12 13 14-27 28-29 20-31 5 Board and other information Board Aidan Williams (Chairman) Brendan McDonagh, Chief Executive Officer NAMA1 Conor O'Kelly, Chief Executive Officer NTMA1 Oliver Ellingham (non-executive) Mari Hurley (non-executive) Eileen Maher (non-executive) Davina Saint (non-executive) Charlotte Sheridan (non-executive) Michael Wall (non-executive) Office Treasury Dock North Wall Quay Dublin 1 D01 A9T8 Principal Bankers Central Bank of Ireland North Wall Quay Dublin 1 D01 F7X3 Citibank North Wall Quay Dublin 1 D01 T8Y1 Allied Irish Banks, p.l.c.
Baggot Street Lower Dublin 2 D02 X342 1 The Chief Executive of the NTMA and NAMA are ex-officio Board members of NAMA.

6 General information The National Asset Management Agency (NAMA) was established by the Minister for Finance in November 2009.

NAMA is a separate statutory body, with its own Board and Chief Executive Officer, and operates in accordance with the National Asset Management Agency Act 2009 (the Act).
Under Section 10 of the Act, NAMA's purposes are to contribute to the achievement of the purposes of the Act by: (a) acquiring bank assets from the Participating Institutions; (b) dealing expeditiously with the acquired assets; (c) protecting and enhancing the value of assets acquired by it in the interests of the State.

Group structure In accordance with the Act and to achieve its objectives, the Agency has set up certain special purpose vehicles (SPVs).
These are designated as NAMA Group entities within the meaning of Section 4 of the Act.

The relationship between the NAMA Group entities is summarised in Chart 1.

On 18 December 2014, National Asset Leisure Holdings Limited (in Voluntary Liquidation) (NALHL) was placed into liquidation by its members.
As the liquidator has assumed the rights of the shareholder and now controls NALHL and its subsidiaries, NALHL (in Voluntary Liquidation) and its subsidiaries, RLHC and RLHC II, are not consolidated into the results of the NAMA Group.

The SPVs established are as follows: National Asset Management Agency Investment D.A.C.

(NAMAI) NAMAI was incorporated on 27 January 2010.

NAMAI is the company through which private investors had invested in the Group.
NAMA invested €49m in NAMAI, receiving 49m A ordinary shares.

The remaining €51m was invested in NAMAI by private investors, each receiving an equal share of 51m B ordinary shares.

Under the terms of a shareholders’ agreement between NAMA and the private investors, NAMA could exercise a veto over decisions taken by NAMAI.
As a result of this veto, the private investors’ ability to control the financial and operating policies of the entity was restricted and NAMA had effective control of this control, NAMA consolidated NAMAI and its subsidiaries and the 51% external investment in NAMAI was reported as a non-controlling interest in the financial statements.

the company.

By virtue of On 26 May 2020, NAMA exercised an option to purchase the private investors’ 51% shareholding in NAMAI.
From this date, NAMA held a 100% shareholding in NAMAI.

National Asset Management D.A.C.

(NAM) NAM was incorporated on 27 January 2010.

NAM is responsible for issuing the government guaranteed debt instruments and the subordinated debt, which were used as consideration in acquiring loan assets.

The government guaranteed debt securities issued by NAM were listed on the Irish Stock Exchange prior to their full redemption.

In March 2020, the remaining subordinated debt was fully redeemed.
The government guaranteed debt instruments and the subordinated debt instruments, issued in respect of the original loan portfolio, were transferred to National Asset Management Group Services D.A.C.

(NAMGS) and by NAMGS to National Asset Loan Management D.A.C.

(NALM).

The latter used these debt instruments as consideration for the loan assets acquired from the Participating Institutions.

NAM has eleven subsidiaries as at 30 June 2021.


These are referred to as the NAM Group: NAMGS NAMGS acts as the holding company for its ten subsidiaries as at 30 June 2021: NALM, National Asset Management Services D.A.C.

(NAMS), National Asset JVA D.A.C.

(NAJVA), National Asset Property Management D.A.C.

(NAPM), National Asset North Quays D.A.C.

(NANQ), National Asset Residential Property Services D.A.C.
(NARPS), National Asset Sarasota Limited Liability Company (NASLLC), NALHL (in Voluntary Liquidation), RLHC and RLHC II.

Pembroke Ventures D.A.C (PV), Pembroke Beach D.A.C.

(PB) and Pembroke West Homes D.A.C.

(PWH) ceased to be NAM Group entities on 4 June 2021.

NAMGS was incorporated on 27 January 2010.

NAMGS acquired certain debt instruments issued by NAM under a profit participating loan (PPL) agreement, and in turn, made these debt instruments available to NALM on similar terms.
NAMGS is wholly owned by NAM.

7 PV On 19 July 2019, PV was acquired to hold NAMA's interest in Pembroke Beach D.A.C (PB) and Pembroke West Homes In July 2019, NAMA invited interested parties, through D.A.C.

(PWH) which became subsidiaries of PV on 26 July 2019. an open market process, to subscribe for a majority 80% shareholding in PV.
This process completed in December 2020, with a consortium consisting of Ronan Group Real Estate, funds managed by Oaktree Capital Management, L.P. (“Oaktree”) and Oaktree affiliate Lioncor Developments Limited, subscribing for the majority 80% shareholding in PV.

This transaction completed on 4 June 2021 and PV ceased to be a NAM Group entity as at that date.

PB On 5 April 2019, PB was established to hold land in Poolbeg West SDZ.
PB was a 100% wholly owned subsidiary of NAMGS until 26 July 2019, when it became a 100% wholly owned subsidiary of PV.

On 4 June 2021, PB ceased to be a NAM Group entity.

PWH On 5 April 2019, PWH was established to hold land in Poolbeg West SDZ.

PWH was a 100% wholly owned subsidiary of NAMGS until 26 July 2019, when it became a 100% wholly owned subsidiary of PV.

On 4 June 2021, PWH ceased to be a NAM Group entity.

NALM NALM was incorporated on 27 January 2010.


The purpose of NALM is to acquire, hold, and manage the loan assets acquired from the Participating Institutions.

NALM has one subsidiary, NANQ.

NANQ On 8 April 2015, NANQ was established.


NANQ is a 100% wholly owned subsidiary of NALM and was established to hold the freehold lands acquired by NAMA at 72-80 North Wall Quay, Dublin 1 in February 2015 and to receive proceeds from a secure income stream from such lands in the form of a licence fee, a fixed percentage of rent or a percentage of sales proceeds of any completed development to be built on the lands.

NANQ previously had one subsidiary, North Wall Plaza Management Company (NWPMC).
NWPMC ceased to be a NAMA Group Entity with effect from 24 May 2018 following the transfer of NANQ's controlling share to a third party.

NAMS NAMS was incorporated on 27 January 2010.

Previously a non-trading entity, NAMS acquired a 20% shareholding in a general partnership associated with the NAJVA investment during 2013.

NAJVA On 4 July 2013, NAJVA was established.

NAJVA is a wholly owned subsidiary of NAMGS.


NAMA entered an arrangement with a consortium whereby a 20% interest in a limited partnership was acquired, and NAJVA was established to facilitate this transaction.

Since its incorporation, NAJVA has invested in other arrangements with third parties where it has taken a minority non-controlling interest in an investee to facilitate the delivery of commercial and residential real estate property.

NAPM NAPM was incorporated on 27 January 2010.


The purpose of NAPM is to take direct ownership of property assets if and when required.

NAPM has five subsidiaries; NARPS, NASLLC, NALHL (in Voluntary Liquidation), RLHC and RLHC II.

NARPS On 18 July 2012, NAMA established a subsidiary, National Asset Residential Property Services.
NARPS is a wholly owned subsidiary of NAPM, and was established to acquire residential properties and to lease and ultimately sell these properties to approved housing bodies for social housing purposes.

2,629 residential properties were delivered to the social housing sector by NAMA debtors from inception to 30 June 2021.
This includes the direct sale of 1,143 properties by NAMA debtors and receivers to various approved housing bodies, the direct leasing of 89 properties by NAMA debtors and receivers and the acquisition by NARPS of 1,372 properties for lease to approved housing bodies and/or local authorities.

In addition, contracts have been exchanged on a further 25 properties (for both direct sale and through NARPS) at the reporting date.

8 NASLLC On 1 August 2013, NAMA established a US subsidiary, NASLLC.
NASLLC is a wholly owned subsidiary of NAPM, and was established to acquire property assets located in the US following insolvency processes.

Since its acquisition, NASLLC has acquired two assets located in the US and has subsequently sold these assets.

NALHL (in Voluntary Liquidation) On 10 January 2014, NAMA established a subsidiary, NALHL.
NALHL (in Voluntary Liquidation) is a wholly owned subsidiary of NAPM and was established to acquire 100% of the share capital of two Portuguese entities, RLHC and RLHC II.

The establishment of these entities was required to facilitate the legal restructure of a number of entities with Portuguese property assets.

Following the completion of the legal restructure, NALHL (in Voluntary Liquidation) was placed into voluntary liquidation on 18 December 2014.
The control of NALHL (in Voluntary Liquidation) is with the liquidator who will realise the assets of NALHL (in Voluntary Liquidation).

RLHC Resort Lazer SGPS, S.A. (RLHC), RLHC Resort Lazer II SGPS, S.A. (RLHC II) On 5 February 2014, NAMA established two subsidiaries, RLHC Resort Lazer SGPS, S.A. (RLHC) and RLHC Resort Lazer II SGPS, S.A. (RLHC II).
RLHC and RLHC II are wholly owned subsidiaries of NALHL (in Voluntary Liquidation) and acquired 90% and 10% respectively of the share capital of a number of Portuguese entities, following the legal restructure of the debt owed by these entities.

With the exception of RLHC and RLHC II, the address of the registered office of each company is Treasury Dock, North Wall Quay, Dublin 1.
Each Company is incorporated and domiciled in the Republic of Ireland, except for NASLLC which is incorporated and domiciled in the US, and RLHC and RLHC II which are incorporated and domiciled in Portugal.

The address of the registered office of RLHC and RLHC II is Rua Garrett, no.

64, 1200-204 Lisbon, Portugal.

9 Chart 1 NAMA Group entities as at 30 June 2021 PV, PB and PWH ceased to be NAMA Group entities on 4 June 2021.
Quarterly financial information In accordance with Section 55 of the Act, NAMA is required every three months to report to the Minister on its activities and the activities of each NAMA Group entity, referred to in the Act as the 'quarterly report’ or 'the accounts'.

Section 55 of the Act sets out certain financial and other information to be provided in each quarterly report.

The financial statements present the consolidated results of the NAMA Group for the quarter ended 30 June 2021.
For the purposes of these accounts, the ‘NAMA Group’ comprises the results of all entities presented in Chart 1, excluding those in liquidation and includes the results of PV, PB and PWH for the period up to 4 June 2021.

The financial information for all entities is presented showing items of income and expenditure for the quarter from 1 April 2021 to 30 June 2021 and for the year to date.

The statement of financial position is presented as at 30 June 2021 and 31 March 2021.
The cash flow statement for the NAMA Group is presented for all cash movements for the quarter from 1 April 2021 to 30 June 2021 and the year to date.

The income statement and statement of financial position for each NAMA Group Entity are provided on pages 28 to 32.
10 Consolidated Income Statement For the quarter from 1 April 2021 to 30 June 2021 Net gains on debtor loans measured at FVTPL Net losses on investment properties Fee income Interest and similar expense Other income Profit on disposal and refinancing of loans Profit on disposal of property assets Profit on derecognition of subsidiaries Total operating income Administration expenses Foreign exchange (losses)/gains Operating profit Tax charge Profit for the period The accompanying notes 1 to 24 form an integral part of these accounts.
For the quarter from 1 Apr 2021 to 30 Jun 2021 For the period from 1 Jan 2021 to 30 Jun 2021 €’000 83,229 - - (150) 7,642 158 3,587 26,217 120,683 (13,132) (7) 107,544 (8,577) 98,967 €’000 113,549 (2) 63 (294) 11,470 466 3,583 26,217 155,052 (25,411) 53 129,694 (10,332) 119,362 Note Consolidated Statement of Financial Position As at 30 June 2021 Assets Cash and cash equivalents Cash placed as collateral with the NTMA Exchequer Notes Derivative financial instruments - A Debtor loans measured at FVTPL Other assets Investments in equity instruments Inventories - trading properties Investment properties Total assets Liabilities Derivative financial instruments - L Other liabilities Tax payable Deferred tax Total liabilities Equity Retained earnings Total equity and reserves Total equity, reserves and liabilities Not updated The accompanying notes 1 to 24 form an integral part of these accounts.
Note 30 Jun 2021 €’000 31 Mar 2021 €’000 14 14 14 15 16 17 20 18 19 15 22 23 21 24 103,545 3,000 1,000,000 - Consolidated Statement of Cash Flows For the quarter from 1 April 2021 to 30 June 2021 Cash flow from operating activities Debtor Loans Receipts from loans Fee income Funds advanced to borrowers Net cash provided by debtor loans Derivatives Cash inflow on foreign currency derivatives Cash outflow on foreign currency derivatives Net cash used by derivatives Other operating cashflows Payments to suppliers of services Interest paid on cash, cash equivalents and exchequer notes Funds received on disposal of properties Rental income received Transfer of surplus to the Exchequer Net cash used in other operating activities For the quarter from 1 Apr 2021 to 30 Jun 2021 €’000 For the period from 1 Jan 2021 to 30 Jun 2021 €’000 81,270 190,452 - 63 (18,865) (46,396) 62,405 144,120 8,732 26,588 (8,817) (26,590) (85) (2) (32,964) (280) (45,707) (297) 205,950 206,452 2,942 6,159 (300,000) (500,000) (124,352) (333,394) Net cash used in operating activities (62,032) (189,277) Cash flow from investing activities Disposal of investments in equity instruments Distributions received from equity instruments Funds paid to acquire exchequer notes Funds received on maturity of exchequer notes Net cash provided by / (used in) investing activities Cash flow from financing activities Payment of lease liabilities Net cash used in financing activities Cash and cash equivalents at the beginning of the period Net cash used in operating activities Net cash provided by / (used in) investing activities Net cash used in financing activities Effects of exchange-rate changes on cash and cash equivalents Cash and cash equivalents at 30 Jun 2021 Financial assets and cash collateral Amounts pledged as
 collateral with NTMA Exchequer Notes Total held at 30 Jun 2021 - 228 731 731 (1,100,000) (1,985,000) 1,175,000 1,860,000 75,731 (124,041) (475) (942) (475) (942) 90,321 417,669 (62,032) (189,277) 75,731 (124,041) (475) (942) - 136 103,545 103,545 3,000 3,000 1,000,000 1,000,000 1,106,545 1,106,545 13 1 General Information For the purposes of these accounts, the ‘NAMA Group’ comprises the parent entity NAMA (the Agency) and all entities shown in Chart 1 on page 10.
PV, PB and PWH ceased to be NAMA Group entities on 4 June 2021.

With the exception of RLHC and RLHC II, the address of the registered office of each company is Treasury Dock, North Wall Quay, Dublin 1.

Each Company is incorporated and domiciled in the Republic of Ireland, except for NASLLC which is incorporated and domiciled in the US, and RLHC and RLHC II which are incorporated and domiciled in Portugal.

The address of the registered office of RLHC and RLHC II is Rua Garrett, no.
64, 1200-204 Lisbon, Portugal.

2 Summary of significant accounting policies 2.1 Basis of preparation The Group’s consolidated accounts for the period to 30 June 2021 re presented in accordance with its accounting policies for the purposes of complying with the requirements of Section 55 of the Act.

impact on the accounts in the period the assumptions change.

Management believes that The preparation of these accounts requires the use of certain critical accounting estimates.
It also requires management to exercise judgment in the process of applying the Group’s accounting policies.

Changes in assumptions may have a the underlying significant assumptions are appropriate and that the Group’s accounts therefore present the financial position and results fairly.
The Group's principal critical estimates and judgments include determining the fair value of financial instruments, the fair value of investment properties, the carrying value of trading properties and the assessment of control and significant influence in equity investments.
2.2 Basis of measurement The consolidated accounts were prepared under the historical cost convention, except for derivative financial instruments, equity instruments, investment properties and debtor loans which were measured at fair value.

The consolidated accounts are presented in euro (or €), which is the Group’s presentational currency.

The figures shown in the consolidated accounts are stated in (€) thousands.
The consolidated statement of cash flows shows the changes in cash and cash equivalents arising during the period from operating activities, investing activities and financing activities.

The cash flows from operating activities are determined using the direct method, whereby major classes of gross cash receipts and gross payments are disclosed.

Cash flows from investing and financing activities are reported on a gross basis.
The Group’s assignment of the cash flows to operating, investing and financing categories depends on the Group’s business model.

In accordance with IAS 1, assets and liabilities are presented in order of liquidity.

2.3 Basis of consolidation The consolidated financial statements of the Group comprise the financial statements of the parent entity, NAMA and its subsidiaries, with the exception of NALHL (in voluntary liquidation), RLHC and RLHC II.
The financial statements of the subsidiaries used to prepare the consolidated financial statements were prepared as of the same reporting date as that of the parent.

The results for PV, PB and PWH are consolidated up to the date that they ceased to be NAMA Group entities.

The Group consolidates all entities which it controls.
Control is considered to be achieved when the Group • has power over the entity; • is exposed to, or has rights to, variable returns from its involvement with the entity; and • has the ability to use its power to affect its return.

Investments in subsidiaries are accounted for at cost less impairment.

Accounting policies of the subsidiaries and the Agency are consistent with the Group’s accounting policies.
14 Inter-group transactions and balances and gains on transactions between Group companies are eliminated.

Inter-group losses are also eliminated unless the transaction provides evidence of impairment of the asset transferred.

2.4 Foreign currency translation (a) Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency’).
The consolidated financial statements are presented in euro, which is the Group’s presentation currency.

(b) Transactions and balances Transactions denominated, or that require settlement, in a foreign currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.

Monetary items denominated in foreign currency are translated using the closing rate as at the reporting date.
Non- monetary items that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined.

Non-monetary items measured at historical cost denominated in a foreign currency are translated using the exchange rate as at the date of initial recognition.
All foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the consolidated income statement.

All foreign exchange gains and losses recognised in the income statement are presented as a separate line item in the consolidated income statement.
2.5 Financial assets Recognition and initial measurement The Group recognises financial assets in the Group’s statement of financial position when the Group becomes a party to the contractual provisions of the instrument.

Financial assets are measured initially at fair value.

Transaction costs directly attributable to the acquisition of financial assets at fair value through profit & loss (FVTPL) are recognised immediately in profit or loss.
Other than financial assets and financial liabilities at FVTPL, transaction costs that are directly attributable to liabilities are added to or deducted from the fair value of the the acquisition or issue of financial assets and financial financial assets, as appropriate, on initial recognition.
Classification and Subsequent Measurement Subsequent to initial recognition, a financial asset is classified and subsequently measured at: (a) Amortised cost (b) Fair value through other comprehensive income (FVOCI) (c) Fair value through profit & loss (FVTPL).
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL: • The asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A financial asset is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: • The asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
At initial recognition, the Group may irrevocably designate an equity instrument as FVOCI unless it is held for trading.

The election to designate an investment in equity instrument at FVOCI is made on an instrument-by instrument basis.

The Group has not designated any equity instrument as FVOCI.
15 Any financial asset that does not qualify for amortised cost measurement or measurement at FVOCI must be measured subsequent to initial recognition at FVTPL except if it is an investment in an equity instrument designated at FVOCI.
The Group may irrevocably elect on initial recognition to designate a financial asset at FVTPL if the designation eliminates or significantly reduces an accounting mismatch that would otherwise arise if the financial asset had been measured at amortised cost or FVOCI or recognising the gains and losses on them on different bases.
Contractual cash flows are solely payments of principal and interest assessment For the purpose of the solely payments of principal and interest “SPPI” assessment, principal is the fair value of the financial asset at initial recognition.

However, that principal amount may change over the life of the financial asset.
Interest consists of consideration for the time value of money, for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as profit margin.

Business Model Assessment The Group determines the business models at a level that reflects how groups of financial assets are managed to achieve a particular business objective.
The Group's business models determine whether cash flows will result from collecting contractual cash flows, selling financial assets or both.
The Group considers the following information when making the business model assessment: • how the performance of the business model and the financial assets held within that business model are evaluated and reported to the entity’s key management personnel; and • the risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular, the way in which those risks are managed.
At initial recognition of a financial asset, the Group determines whether newly recognised financial assets are part of an existing business model or whether they reflect the commencement of a new business model.

The Group reassesses its business models each reporting period to determine whether the business models have changed since the preceding period.
(a) Amortised Cost The Group has classified and measured cash and cash equivalents, cash placed as collateral, Exchequer Notes and other assets at amortised cost less any expected credit loss allowance.

(b) Fair value through profit & loss (FVTPL) Due to their cash flow characteristics and the business model for managing the asset, the Group has classified and measured debtor loans at FVTPL.
These assets are measured at fair value, with any gains/losses arising on re- measurement recognised in the income statement.

Fair value is determined in the manner described in note 2.25.

Other financial instruments that are classified and measured at FVTPL include derivative and equity investments.

Derivatives Interest income and expense arising on derivatives (other than on currency derivatives) are included in gains and losses on derivative financial instruments in the consolidated income statement.
Fair value gains and losses on derivatives are included in gains and losses on derivative financial instruments in the income statement or as part of foreign exchange gains and losses where they relate to currency derivatives.

Interest on currency derivatives is recognised as part of fair value gains and losses on currency derivatives.

Equity Instruments An equity instrument is any contract that results in a residual interest in the assets of an entity after deducting all of its liabilities.
An equity instrument has no contractual obligation to deliver cash or another financial asset.

Equity instruments are measured at FVTPL.

The fair value of equity instruments is measured based on the net asset value of the entity at the reporting date.

Changes in fair value are recognised in the income statement as part of other income/(expenses).

Equity instruments are separately disclosed in the statement of financial position.
2.6 Financial liabilities The Group recognises financial liabilities in the Group’s statement of financial position when the Group becomes a party to the contractual provisions of the instrument.

Financial liabilities are measured initially at fair value.
The Group classifies and subsequently measures its financial liabilities at amortised cost with the exception of derivatives classed as FVTPL, with any difference between the proceeds net of transaction costs and the redemption value recognised in the income statement using the effective interest method.

Where financial recognised directly in the income statement.
liabilities are classified as FVTPL, gains and losses arising from subsequent changes in fair value are 16 2.7 De-recognition of financial assets and financial liabilities Financial assets are derecognised when the contractual rights to receive the cash flows from these assets have ceased to exist or the assets have been transferred and substantially all the risks and rewards of ownership of the assets have also been transferred.
Financial liabilities are derecognised when they have been redeemed or otherwise extinguished.

2.8 Fair value gains/(losses) on debtor loans at fair value through profit and loss (FVTPL) Fair value gains/ (losses) on debtor loans at FVTPL includes all gains and losses from changes in the fair value of debtor loans at FVTPL.

The Group has elected to present the full fair value movement in this line, including the impact of net cash collections in the period.
2.9 Interest income and interest expense Interest income and interest expense for all interest-bearing financial instruments other than debtor loans at FVTPL are recognised as interest income and interest expense in the income statement using the effective interest (EIR) method.
The EIR is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to the gross carrying amount of a financial asset or the amortised cost of the financial liability.

When calculating the effective interest rate for financial instruments other than impaired assets, the Group estimates future cash flows considering all contractual terms of the financial instrument, but not expected credit losses.
For purchased or originated impaired financial assets, a credit-adjusted effective interest rate is calculated using estimated future cash flows including expected credit losses.

In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the financial asset except for impaired financial assets or to the amortised cost of the financial liability.
For financial assets that have become impaired subsequent to initial recognition, interest income is calculated by applying the effective interest rate to the amortised cost of the financial asset.

If the asset is no longer impaired, then the calculation of interest income reverts to the gross basis.

For financial assets that were impaired on initial recognition, interest income is calculated by applying the credit- adjusted effective interest rate to the amortised cost of the asset.
The calculation of interest income does not revert to a gross basis, even if the credit risk of the asset improves.

2.10 Fee income Fee income is income associated with debtor connections that is not considered as a reduction in the debt obligations of the debtor.

Fee income is recognised in the income statement.


2.11 Profit/(loss) on the disposal and refinancing of loans Profits and losses on the disposal and refinancing of loans are calculated as the difference between the carrying value of the loans and the contractual sales price at the date of sale, less related loan sale costs.

The contractual sales price includes any deferred consideration where NAMA has the contractual right to receive any deferred cash flow.
Profits and losses on the disposal and refinancing of loans are recognised in the income statement when the transaction occurs.

In a small number of instances, when an individual loan account is sold, the profit/loss on disposal is only recognised when the entire connection/loan pack related to that account is sold.

2.12 Impairment of financial assets The Group assesses, on a regular basis, the impairment of financial assets measured at amortised cost and at FVOCI on an expected credit loss (ECL) basis.
The measurement of ECL is based on a three-stage approach: Stage 1 : where financial instruments have not had a significant increase in credit risk since initial recognition, a provision for 12-month ECL is recognised, being the ECL that result from default events that are possible within 12 months of the reporting date; Stage 2 : where financial instruments have had a significant increase in credit risk since initial recognition but does not have objective evidence of impairment, a lifetime ECL is recognised, being the ECL that result from all possible default events possible over the lifetime of the financial asset; 17 Stage 3 : where financial assets show objective evidence of impairment, a lifetime ECL is recognised.
There are a variety of approaches that could be used to assess whether the credit risk on a financial instrument has increased significantly since initial recognition.

In some cases, detailed quantitative information about the probability of default of a financial instrument or formal credit rating will be available which is used to compare changes in credit risk.
The Group monitors financial assets that are subject to impairment requirements to assess whether there has been a significant increase in credit risk since initial recognition on a regular basis.

The measurement of the loss allowance is based on the present value of the applicable financial assets expected cash flows using the financial asset’s effective interest rate.
The general approach for recognising and measuring a loss allowance is the same for financial instruments measured at amortised cost and those instruments that are measured at FVOCI.

However, unlike amortised cost, the loss allowance on instruments at FVOCI are recognised in other comprehensive income and do not reduce the carrying amount of the financial asset in the statement of financial position.
2.13 Impairment of non-financial assets The carrying amount of the Group’s non-financial assets is reviewed at each reporting date to determine whether there is any indication of is estimated.

The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell.

If any such indication exists then the asset’s recoverable amount impairment.
In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessment of the time value of money and the risks specific to the asset.

An impairment loss is recognised in the income statement if the carrying amount exceeds its recoverable amount.

2.14 Cash and cash equivalents Cash comprises cash on hand and demand deposits.
Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Cash equivalents include Short-Term Exchequer Notes held through the NTMA where time to maturity on the date of acquisition is three months or less.
2.15 Derivative financial instruments Derivatives, such as cross-currency swaps and foreign exchange swaps are used for hedging purposes as part of the Group’s risk management strategy.

The Group does not enter into derivatives for proprietary trading purposes.

The Group’s policy is to hedge its foreign currency exposure through the use of currency derivatives.

All derivatives are accounted for at fair value through profit or loss.
Derivatives at fair value through profit or loss are initially recognised at fair value on the date on which a derivative contract is entered into or acquired and are subsequently re-measured at fair value.

The fair value of derivatives is determined using a mark to market valuation technique based on independent valuations obtained using observable market inputs such as yield curves, par interest and foreign exchange rates.
The assumptions involved in these valuation techniques include the likelihood and expected timing of future cash flows of the instrument.

These cash flows are generally governed by the terms of the instrument, although management judgment is required when the ability of the counterparty to service the instrument in accordance with the contractual terms is in doubt.

Derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative.
18 2.16 Inventories - trading properties Trading properties include property assets which are held for resale in accordance with IAS 2 Inventories.

They are recognised initially on the statement of financial position at the point at which the purchase contract has been signed with the vendor.

Subsequent to initial recognition, trading properties are stated at the lower of cost and net realisable value.
Costs are determined on the basis of specific identification of individual costs relating to each asset.

Net realisable value (‘NRV’) represents the estimated selling price for properties less all estimated costs of completion and costs necessary to make the sale.

Revisions to the carrying value of trading properties are recognised in the income statement.

Profits and losses on the disposal of trading properties are recognised in the income statement when the transaction occurs.
2.17 Investment Properties Investment properties are initially measured at cost at the point at which the contract has been signed and subsequently at fair value with any change recognised in the income statement.

Any gain or loss on disposal of investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognised in the income statement when the transaction occurs.

Rental income from investment properties is recognised in the income statement.
2.18 Taxation Income tax comprises current and deferred tax.

Income tax is recognised in the income statement except to the extent that it relates to items recognised in other comprehensive income, in which case it is recognised in other comprehensive income.

(a) Current income tax Current income tax is the expected tax payable on the taxable income for the financial year using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years.
Current income tax payable on profits, based on the applicable tax law in the relevant jurisdiction, is recognised as an expense in the period in which the profits arise.

The tax effects of current income tax losses available for carry forward are recognised as an asset when it is probable that future taxable profits will be available against which these losses are utilised.
An entity shall offset current tax assets and current tax liabilities if, and only if, the entity: has a legally enforceable right to set off the recognised amounts: and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
(b) Deferred income tax Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements.
Deferred income tax is determined using tax rates (and tax laws) that have been enacted or substantially enacted by the date of the statement of financial position and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised when it is probable that future taxable profit will be available against which these temporary differences can be utilised.
Deferred income tax related to FVOCI reserves is recognised in equity and subsequently in the consolidated income statement together with the associated gain or loss.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

The Group assesses, on an annual basis only, the deferred tax relating to unutilised tax losses.
19 2.19 Provisions, contingent assets and liabilities Provisions Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated.

Contingent liabilities Contingent liabilities are not recognised by the Group but are disclosed unless the probability of their occurrence is remote.
Contingent assets Contingent assets are not recognised by the Group but are disclosed where an inflow of economic benefits is probable.

the realisation of income becomes virtually certain then the related asset is recognised.

If Contingent assets and liabilities are assessed continually to ensure that they are appropriately reflected in the financial statements.
2.20 Debt and equity instruments Debt and equity instruments are classified as either liabilities or as equity in accordance with the substance of the contractual terms of the instruments.

Instruments which do not carry a contractual obligation to deliver cash or another financial asset to another entity are classified as equity and are presented in equity.

The coupon payments on these instruments are recognised directly in equity.
The subordinated bonds issued by the Group contain a discretionary coupon and have no obligation to deliver cash and are therefore classified as equity instruments.

2.21 Share capital Dividends on ordinary shares Dividends on ordinary shares are recognised in equity in the year in which they are approved by the Group’s shareholders.
2.22 Cash placed as collateral with the NTMA The Group is required to post cash collateral with the NTMA under a collateral posting agreement (CPA) agreed between the NTMA and NAMA.

The NTMA is the counterparty to all NAMA derivatives.

The NTMA require cash to be placed with it as collateral to reduce the exposure it has to the Group with regard to its derivative positions.

The amount of collateral required depends on an assessment of the credit risk by the NTMA.
Cash placed as collateral is recognised in the statement of financial position.

Any interest payable or receivable arising on the amount placed as collateral is recorded in interest expense or interest income respectively.

2.23 Exchequer Notes Exchequer Notes are liquid, interest bearing notes held through the NTMA where time to maturity on date of acquisition is greater than three months.

Exchequer Notes are recognised in the statement of financial position.
Any interest payable or receivable on Exchequer Notes is recorded in interest expense or interest income respectively.

20 2.24 Leases As lessee At inception of a contract, the Group assesses whether a contract is, or contains, a lease.

A contract is, or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
If this arises, the Group recognises a right of use asset and a lease liability at the lease commencement date.

The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred, less any lease incentives received.
The right of use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right of use asset or the end of the lease.

The right of use asset is assessed for impairment if there are indicators of impairment and if any is reduced.

The right of use asset is adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Group's incremental borrowing rate.

Lease interest expense is recognised on the lease liability.

The lease liability is remeasured when there is a change in future lease payments.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right of use asset.
As lessor Properties acquired by NARPS for the purposes of social housing are investment properties and are accounted for in line with IAS 40.

Rental income arising from operating leases on investement properties is accounted for on a straight line basis over the lease term.
2.25 Determination of fair value The Group measures fair values in accordance with IFRS 13 which defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date in the principal market, or in its absence, the most advantageous market to which the Group has access at that date, regardless of whether that price is directly observable or estimated using another valuation technique.
Financial instruments are initially recognised at fair value and, with the exception of financial assets at fair value through profit or loss, the initial carrying amount is adjusted for direct and incremental transaction costs.

In the normal course of business, the fair value on initial recognition is the transaction price (fair value of consideration given or received).

Subsequent to initial recognition, fair values are determined using valuation techniques.
These valuation techniques seek to maximise the use of publically available relevant observable inputs and minimise the use of unobservable inputs.

The valuation techniques used incorporate the factors that management believe market participants would take into account in pricing a transaction.
Valuation techniques may include the use of recent orderly transactions between market participants, reference to other similar instruments, option pricing models, discounted cash flow analysis and other valuation techniques commonly used by market participants.

Valuation techniques In the case of debtor loans measured at FVTPL, the fair value of these instruments is determined with input from management and using internally generated valuation models based on selected comparable market data points.
The majority of the significant inputs into these models are not readily observable in the market and the inputs are therefore derived from market prices for similar assets or estimated based on certain assumptions.

The determination of key inputs used such as the expected future cash flows on the financial asset, stratification of portfolio and the appropriate discount rates applicable require management judgement and estimation.
The expected future cash flows represent NAMA’s best estimate of expected future cash flows include the disposal of property collateral and other non-disposal related cash flows (such as rental income).

The valuation methodology for debtor loans at FVTPL is to estimate the expected cash flows to be generated by the financial asset and then discount these values back to a present value.
The assumptions involved in these valuation techniques include: – determining suitable stratifications for the portfolio for assets with similar risk characteristics; – the likelihood and expected timing of future cash flows; and – selecting an appropriate discount rate for the financial asset or group of financial assets, based on management’s assessment of the characteristics of the instrument and relevant market information.
21 In the case of investment properties, the fair value of these properties is determined by an external, independent property valuer on a regular basis.

Outputs from valuers can be subject to management judgement.

The valuer utilises the investment method of valuation using the discounted cash flow technique which can include assumptions for the likelihood of purchase options being exercised, exit yields and expected rent cash flows.
In the case of over-the-counter derivatives, fair value is calculated using valuation techniques.

Fair value may be estimated using quoted market prices for similar instruments, adjusted for differences between the quoted instrument and the instrument being valued.
Where the fair value is calculated using discounted cash flow analysis, the methodology is to use, to the extent possible, market data that is either directly observable or is implied from instrument prices, such as interest rate yield curves, equities and commodities prices, credit spreads, option volatilities and currency rates.

The valuation methodology is to calculate the expected cash flows under the terms of each specific contract and then discount these values back to a present value.
The assumptions involved in these valuation techniques include: – the likelihood and expected timing of future cash flows of the instrument.

These cash flows are generally governed by the terms of the instrument, although management judgement may be required when the ability of the counterparty to service the instrument in accordance with the contractual terms is in doubt.
In addition, future cash flows may also be sensitive to the occurrence of future events, including changes in market rates; and – selecting an appropriate discount rate for the instrument, based on the interest rate yield curves including the determination of an appropriate spread for the instrument over the risk-free rate.

The spread is adjusted to take into account the specific credit risk profile of the exposure.
Adjustments to the calculation of the present value of future cash flows are based on factors that management believe market participants would take into account in pricing the financial instrument.

Certain other financial instruments (both assets and liabilities) may be valued on the basis of valuation techniques that feature one or more significant inputs that are not observable in the market.
When applying a valuation technique with unobservable data, estimates are made to reflect uncertainties in fair values resulting from a lack of market data.

For these instruments, the fair value measurement is less reliable.

Valuations based on non-observable data are inherently uncertain because there is little or no current market data available from which to determine the price at which an orderly transaction between market participants would occur under current market conditions.
The calculation of fair value for any financial instrument may require adjustment of the valuation technique output to reflect the cost of credit risk, if market participants would include one, where these are not embedded in underlying valuation techniques.

22 3.

Net gains on debtor loans measured at FVTPL Fair value movements on debtor loans (note 16) 4.

Net losses on investment properties Fair value movement on investment properties 5.
Fee income Fee Income from debtor loans For the quarter from 1 Apr 2021 to 30 Jun 2021 For the period from 1 Jan 2021 to 30 Jun 2021 €’000 83,229 €’000 113,549 For the quarter from 1 Apr 2021 to 30 Jun 2021 For the period from 1 Jan 2021 to 30 Jun 2021 €’000 - €’000 (2) For the quarter from 1 Apr 2021 to 30 Jun 2021 €’000 For the period from 1 Jan 2021 to 30 Jun 2021 €’000 - 63 Fee income from debtor loans can include arrangement transaction fees from loan sales.
fees, restructuring fees, exit fees, performance fees and 6.

Interest and similar expense Negative interest expense on cash, cash equivalents Lease interest expense Total interest and similar expense 7.
Other income Distributions from equity investments measured at FVTPL Fair value movements on equity instruments measured at FVTPL Lease rental income Revaluation of trading properties Other income Total other income For the quarter from 1 Apr 2021 to 30 Jun 2021 €’000 (141) (9) (150) For the period from 1 Jan 2021 to 30 Jun 2021 €’000 (274) (20) (294) For the quarter from 1 Apr 2021 to 30 Jun 2021 €’000 631 51 3,380 For the period from 1 Jan 2021 to 30 Jun 2021 €’000 631 406 6,733 - - 3,700 11,470 3,580 7,642 Lease rental purposes.
income is earned from the lease of residential properties to approved housing bodies for social housing 8.

Profit on disposal and refinancing of loans Net profit on disposal and refinancing of loans 9.

Profit on disposal of property assets Net profit on disposal of property assets 10.

Profit on derecognition of subsidiaries Net profit on derecognition of subsidiaries PV, PB and PWH ceased to be NAMA Group entities on 4 June 2021.
For the quarter from 1 Apr 2021 to 30 Jun 2021 €’000 158 For the period from 1 Jan 2021 to 30 Jun 2021 €’000 466 For the quarter from 1 Apr 2021 to 30 Jun 2021 €’000 For the period from 1 Jan 2021 to 30 Jun 2021 €’000 3,587 3,583 For the quarter from 1 Apr 2021 to 30 Jun 2021 For the period from 1 Jan 2021 to 30 Jun 2021 €’000 26,217 €’000 26,217 23 11.
Administration expenses Costs reimbursable to the NTMA Primary servicer fees Finance, communication and technology costs Legal fees Portfolio management fees Rent and occupancy costs Master servicer fees Internal audit fees External audit remuneration Board and Committee fees and expenses Total administration expenses For the quarter from 1 Apr 2021 to 30 Jun 2021 For the period from 1 Jan 2021 to 30 Jun 2021 €’000 6,488 1,605 3,476 (749) 632 1,094 218 144 164 60 13,132 €’000 13,218 3,256 4,557 (171) 1,153 2,186 436 291 366 119 25,411 Under Section 42 (4) of the Act, the Agency shall reimburse the NTMA for the costs incurred by the NTMA as a consequence of its assignment of staff to the NAMA Group Entities.
See 11.1 below for further breakdown of such costs.

NAMA Board and Advisory Committee fees are paid to Board members and external members of Committees.

Brendan McDonagh (CEO, NAMA) and Conor O'Kelly (CEO, NTMA) receive no payment as members of the NAMA Board.

11.1 Costs reimbursable to the NTMA Staff costs Overheads and shared service costs Total 12.
Foreign exchange (losses)/gains For the quarter from 1 Apr 2021 to 30 Jun 2021 For the period from 1 Jan 2021 to 30 Jun 2021 €’000 4,947 1,541 6,488 €’000 10,416 2,802 13,218 Foreign exchange (losses)/gains on debtor loans at FVTPL (note 16) Unrealised foreign exchange gains/(losses) on derivative financial instruments Realised foreign exchange losses on derivative financial instruments Foreign exchange gains on cash Other foreign exchange gains/(losses) Total foreign exchange (losses)/gains For the quarter from 1 Apr 2021 to 30 Jun 2021 €’000 (18) For the period from 1 Jan 2021 to 30 Jun 2021 €’000 150 95 (230) (2) 136 (1) 53 (85) - 1 (7) Foreign exchange translation gains and losses on debtor loans arise on the revaluation of foreign currency denominated debtor loans.
Foreign currency translation amounts are recognised in accordance with accounting policy 2.4.

Gains and losses on foreign exchange derivatives arise from market movements that affect the value of the derivatives at the reporting date.

Following the transfer of assets from the Participating Institutions, the Group entered into currency derivative contracts to reduce its exposure to exchange rate fluctuations arising on foreign currency denominated debtor loans.
The gain or loss on derivative products comprises both realised and unrealised gains and losses.

Realised and unrealised gains and losses are recognised in accordance with accounting policy 2.15.

Currency derivatives are explained in more detail in Note 15.

13.
13.

Tax charge Current tax charge Corporation tax Deferred tax credit On fair value gains on equity instruments and other adjustments (note 21) On IFRS 9 transitional adjustments (note 21) Total taxation charge For the quarter from 1 Apr 2021 to 30 Jun 2021 For the period from 1 Jan 2021 to 30 Jun 2021 €’000 (9,281) €’000 (12,065) (356) (386) 1,060 2,119 1,733 704 (8,577) (10,332) 24 14.
Cash, cash equivalents, collateral and Exchequer Notes Balances with the Central Bank of Ireland Balances with other banks Total cash and cash equivalents 30 Jun 2021 €’000 89,806 13,739 103,545 31 Mar 2021 €’000 80,234 10,087 90,321 Exchequer Notes e investments 1,000,000 1,075,000 Cash placed as collateral with the NTMA Total cash, cash equivalents, collateral and Exchequer Notes 3,000 1,106,545 3,000 1,168,321 Balances with other banks comprise balances held with Citibank and AIB.
NAMA is required to post cash collateral with the NTMA under a collateral posting agreement (CPA) (as amended) entered into in 2012.

The NTMA is the counterparty to all NAMA derivatives.

The NTMA require cash to be placed with it as collateral to reduce the exposure it has to NAMA with regard to its derivative positions.

At 30 June 2021, NAMA’s derivative liability exposure was €2k (Q1 2021: €239k) as set out in Note 15.
Exchequer Notes are interest bearing notes held through the NTMA with maturities ranging from four to twelve months on the date of acquisition.

No expected credit loss has been recognised on cash and cash equivalents, collateral or Exchequer Notes.

15.
15.

Derivative financial instruments Derivative assets at fair value through profit or loss Foreign currency derivatives - A Total derivative assets Derivative liabilities at fair value through profit or loss Foreign currency derivatives - L Total derivative liabilities 16.
Debtor loans measured at FVTPL At the beginning of the period Movements in period: Receipts on debtor loans Advanced to borrowers FX (losses)/gains on debtor loans (note 12) Profit on disposal and refinancing of loans Other movements Fair value gains on debtor loans at FVTPL (note 3) Total debtor loans measured at FVTPL 17.

Other assets Tax receivable Right of Use Assets Other assets Total other assets 18.
Inventories - trading properties Inventories - trading properties Tax prepaid Deferred Consideration - EUR 30 Jun 2021 €’000 31 Mar 2021 €’000 - - (2) (2) 142 142 (239) (239) For the quarter from 1 Apr 2021 to 30 Jun 2021 For the period from 1 Jan 2021 to 30 June 2021 €’000 797,577 (76,328) 68,890 (18) 159 (59,602) 83,229 813,907 €’000 850,081 (185,415) 96,421 150 466 (61,345) 113,549 813,907 30 Jun 2021 €’000 4,612 2,292 3,392 10,296 31 Mar 2021 €’000 - 2,980 3,595 6,575 30 Jun 2021 €’000 100 31 Mar 2021 €’000 162,298 The Group acquires trading properties either in settlement of debt or where the asset is deemed to be of strategic importance to the Group objectives.
Trading properties are recognised in accordance with accounting policy 2.16.

25 19.

Investment properties 30 Jun 2021 €’000 31 Mar 2021 €’000 Investment properties 291,499 291,499 In September 2019, the Minister for Finance issued a direction to NAMA to retain ownership of NARPS.

NARPS is to remain in State ownership and the value attributable may form part of any potential transfer of assets as part of the surplus transfer.

Investment properties are valued at fair value.

20.
20.

Investments in equity instruments 30 Jun 2021 €’000 31 Mar 2021 €’000 Investments in equity instruments measured at fair value 16,772 15,357 The Group may invest in equity instruments to maximise value and to facilitate the effective delivery of commercial or residential developments.

The movement in the value of investments in equity instruments is a combination of fair value movements, acquisitions and disposals.

21.
21.

Deferred tax Balance at 1 Jan 2021 Amortisation of transition adjustment Movement in the period Balance at 30 Jun 2021 Deferred tax on equity instruments & govt.
bonds Deferred tax on IFRS 9 transition adjustment Assets €’000 1,338 (Liabilities) €’000 (1,674) - - - (386) (2,060) 1,338 (Liabilities) €’000 (8,476) 2,119 - (6,357) Total €’000 (8,812) 2,119 (386) (7,079) Movement recognised in the income statement (note 13) Movement recognised on IFRS 9 transitional adjustment: Amortisation through income statement (note 13) Net movement in deferred tax For the quarter from 1 Apr 2021 to 30 Jun 2021 €’000 (356) For the period from 1 Jan 2021 to 30 June 2021 €’000 (386) 1,060 704 2,119 1,733 Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred taxes relate to the same fiscal authority.
A deferred tax liability has been recognised on the fair value adjustment to retained earnings following the Group's adoption of IFRS 9.

This liability will be recognised as a charge to the income statement over a five year period following initial adoption.

22.
22.

Other liabilities Interest payable on cash and cash equivalents Accrued expenses VAT payable Other liabilities Lease Liabilities Total other liabilities Interest payable 30 Jun 2021 €’000 115 20,184 1,170 5,349 1,690 28,508 31 Mar 2021 €’000 264 19,629 373 5,488 2,156 27,910 Interest is payable on cash and cash equivalents as a result of negative Euribor interest rates.

23.
23.

Tax payable Professional services withholding tax and other taxes payable Current tax liability Total tax payable 30 Jun 2021 €’000 31 Mar 2021 €’000 590 757 - 1,107 590 1,864 26 24.
Retained earnings At the beginning of the period Profit for the period Transfer of surplus to the Exchequer At the end of the period For the quarter from 1 Apr 2021 to 30 Jun 2021 €’000 2,403,973 98,967 (300,000) 2,202,940 For the period from 1 Jan 2021 to 30 June 2021 €’000 2,583,578 119,362 (500,000) 2,202,940 Sub Debt Prem Share purchase tra On 30 June 2021, NAMA completed the payment of €300m to the Exchequer representing the third transfer of NAMA’s projected lifetime surplus and bringing NAMA's total transfers to the Exchequer to date to €2.5bn.
27 Net gains on debtor loans measured at FVTPL 116,619 11 282 - - - - - - - - - (3,364) - Net losses on investment properties - - - - - (2) - - - - - - - - - - NAMA Group Section 55 (6) (j): Income Statement by NAMA group entity For the period from 1 January 2021 to 30 June 2021 National Asset Loan Management National Asset North Quays National Asset JVA National Asset Property Management National Asset Sarasota LLC National Asset Residential Property Services National Asset Management Services Pembroke Ventures Pembroke Beach Pembroke West Homes National Asset Management Group Services National Asset Management National Asset Management Agency Investment NAMA Consolidation Adjustments NAMA Group Consolidated Total €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 - - - - - - - - - - 371 550 - 6,733 - - 4 - - - - - - - - - - 24,846 803,636 - 800,000 125 - - (31,110) 13,218 (1,618,222) - - - - 3,583 - - - - - - - 2,919 - - - - 63 - - (25,214) (36) (439) - - - (2) (6) - - - - - - - - - - - - - - - - - (5,065) (634) (11) (125) - - - - - - - - 129 - 3,558 215 (52) (9) 550 (4) (2) (29) 6,725 (75) - - (5,061) 2,284 828,471 799,875 (3,239) 13,347 (1,594,924) - - (62) (4) - - - (13,337) - - - (64) - - - - - - - - 3,506 206 546 (95) 6,650 - - (5,123) 2,280 828,471 799,875 (3,239) - - - - - - - - - - - - 3,506 206 546 (95) 6,650 - - (5,123) 2,280 828,471 799,875 (3,239) - (16) - - - - - - - - - (31) 3,506 190 546 (95) 6,650 - - (5,123) 2,280 828,471 799,875 (3,270) - 10 - 10 - 10 6,139 5,180 466 - 103,252 (25,061) 55 78,246 (25) 78,221 (10,285) 67,936 113,549 (2) - 11,470 466 3,583 63 (294) 26,217 155,052 (25,411) 53 129,694 - 129,694 (10,332) 119,362 - (2,919) - 31,110 26,217 13,222 62 (1,581,640) 25 (1,581,615) - (1,581,615) Interest income Other income Profit on disposal and refinancing of loans Profit/(loss) on disposal of property assets Fee income Interest and similar expense Profit on derecognition of subsidiaries Total operating income/(expenses) Administration expenses
 Foreign exchange gains/(losses) Operating profit/(loss) Impairment charge Profit/(loss) after impairment Tax charge Profit/(loss) for the period 28 NAMA Group Section 55 (6) (j): Income Statement by NAMA group entity For the quarter from 1 April 2021 to 30 June 2021 National Asset Loan Management National Asset North Quays National Asset JVA National Asset Property Management National Asset Sarasota LLC National Asset Residential Property Services National Asset Management Services Pembroke Ventures Pembroke Beach Pembroke West Homes National Asset Management Group Services National Asset Management National Asset Management Agency Investment NAMA Consolidation Adjustments NAMA Group Consolidated Total €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 Net gains on debtor loans measured at FVTPL 86,846 5 (258) - - - - - - - - - (3,364) - - 83,229 Net losses on investment properties - - - - - - - - - - - - - - - - 2,623 5,059 158 - - Interest Income Other income Profit on disposal and refinancing of loans Profit on disposal of property assets Fee Income Interest and similar expense Profit on derecognition of subsidiaries Total operating income/(expense) Administration expenses Foreign exchange (losses)/gains Operating profit/(loss) Impairment charge Profit after impairment Tax (charge)/credit Profit/(loss) for the quarter I N T - - - - - - - - - - 17 550 - 3,380 - - 2 - - - - - - - - - - 12,491 803,636 - 800,000 63 - - 6,488 (15,177) (1,611,490) - - - - - 3,588 - - (1) - - - - 2,919 - - - - - - - - - - - - - (12,690) (3) (233) - (1) (3) - - - - - - - - - (2,124) (266) (11) (63) - - - - - 81,996 (12,967) (7) 69,022 (16) 69,006 (8,577) 60,429 3,590 (39) (474) (5) - - 3,551 (479) 550 (4) - 546 (2) (23) 27 3,377 (4) - - - - (2,122) (30) 2,653 816,116 799,937 (3,301) (2) - - - - - - - - - - - 2 3,373 - - (2,152) 2,651 816,116 799,937 (3,301) - - - - - - - - - - - - 3,551 - 3,551 (479) 15 (464) 546 2 3,373 - - (2,152) 2,651 816,116
 799,937 - - - - - - - - - 546 2 3,373 - - (2,152) 2,651 816,116 799,937 (3,301) (15) (3,316) - - - - - 67 - - 6,555 (6,548) - 7 - 7 - 7,642 158 3,587 (2,919) - - 15,177 26,217 (1,588,192) 6,490 (27) - (150) 26,217 120,683 (13,132) (7) 107,544 16 - 16 - - 7 - 107,544 (8,577) 98,967 29 Section 55 (6) (i): Statement of Financial Position by NAMA group entity as at 30 June 2021 NAMA Group National Asset Loan Management National Asset North Quays National Asset JVA National Asset Property Management National Asset Sarasota LLC National Asset Residential Property Services National Asset Management Services National Asset Management Group Services National Asset Management National Asset Management Agency Investment NAMA Consolidation Adjustments NAMA Group Consolidated Total €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 - - - - 21,402 88,237 7,060 232 774 - 3,000 500,000 - - - 788,364 378,048 6 6,327 - 100 - - - - - - - 84 - 1,690 - - - - - - - - - - - - - 1,771 - - - - - - - 291,499 - - - - 1,763,976 7,066 32,163 - 10,445 - 7 294,960 881 - 187 - 5,209 - - - - - 500,000 - - - - - - 4,140 - 1,163,982 1,140,056 96,807 - - - - - - - - - - - - - 1,169,191 156 - - - - - - - 992,919 - 105,696 - - - - - - 1,640,056 1,098,771 101,134 - 13,055 - - 13,055 - - - - 32,919 6,575 2,038 283,837 - 1 - 15 - - - 6,576 2,038 283,852 (9) 32,910 - - - - 1,140,711 1,076,692 - - - 31 - - - - 1,140,711 - - - 68,269 - - - 1,076,692 68,269 31 - - - - - (3,763,299) (105,696) - - (84) (3,869,079) 103,545 3,000 1,000,000 - 813,907.00 10,296 16,772 100 291,499 - 2,239,119 - (3,771,561) (47) (84) (3,771,692) 2 28,508 590 7,079 36,179 - - - - - 6,332 - - - - (5,989) (5,989) (747) (747) (5,695) (5,695) (8,370) (2,038) 11,108 11,108 - - - 10,000 - - - 90,000 - - 563,364 563,364 1,103 101,103 28,480 28,480 - - 1,030,502 1,030,502 (16,332) (90,000) 8,945 (97,387) - - 2,202,940 2,202,940 Assets Cash and cash equivalents Cash placed as collateral with the NTMA Exchequer Notes
 Derivative financial instruments - A Debtor loans measured at FVTPL Other assets Investments in equity instruments Inventories - trading properties Investment properties Deferred tax Total assets Liabilities Derivative financial instruments - L Other liabilities Tax payable Deferred tax Total liabilities Equity Share capital Share premium Retained earnings Total equity and reserves P P C 2 1,175,973 590 7,172 1,183,737 - - 580,239 580,239 Total equity & liabilities 1,763,976 7,066 32,163 881 - 294,960 - 1,169,191 1,640,056 101,134 1,098,771 (3,869,079) 2,239,119 30 Section 55 (6) (i): Statement of Financial Position by NAMA group entity as at 31 March 2021 NAMA Group National Asset Loan Management National Asset North Quays National Asset JVA National Asset Property Management National Asset Sarasota LLC National Asset Residential Property Services National Asset Management Services Pembroke Ventures Pembroke Beach Pembroke West Homes National Asset Management National Asset Management Group Services National Asset Management Agency Investment NAMA Consolidation Adjustments NAMA Group Consolidated Total €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 88,349 3,000 1,075,000 142 776,088 558,168 4,846 - - - 2,505,593 466 - - - 6 - - 2,317 - - 141 - - - 21,483 - 10,511 - - 78 2,789 32,213 124 - - - - 108 - 100 - - 332 - - - - - - - - - 726 - - - - - - - - - - - - - - - - - - - - - - - - - - - 46 - - - - - 142,088 17,793 - - - - - - - - - - - - 1,356 - 291,499 - 293,581 - - 142,134 17,793 - 12,335 (6) - 12,329 - 32,496 - - 32,496 - 6,572 1 - 6,573 - 2,040 - - 2,040 285,831 15 - 285,846 - - - - - - - - - 12 163,259 20,452 - - - - - - 12 163,259 20,452 187 - - - - - 209 - - - - - - - - 119 - - - - 1,160,145 1,147,560 104,248 1,293,079 - - 105,696 - - - - - - - - - - - - - 1,160,354 1,147,560 104,435 1,398,894 - - - - - (4,258,135) (105,696) - - (78) (4,363,909) 90,321 3,000 1,075,000 142 797,577 6,575 15,357 162,298 291,499 -
 2,441,769 - 1,147,990 1,384,133 - - - 1,147,990 1,384,133 - - - 16 - - 16 - 68,399 - - 68,399 - (4,266,454) - (78) (4,266,532) 239 27,910 1,864 7,783 37,796 Assets Cash and cash equivalents Cash placed as collateral with the NTMA Exchequer Notes Derivative financial instruments - A Debtor loans measured at FVTPL Other assets Investments in equity instruments Inventories - trading properties Investment properties Deferred tax Total assets Liabilities Derivative financial instruments - L Other liabilities Tax payable Deferred tax Total liabilities Equity Share capital Share premium Retained earnings Total equity and reserves P P C 239 1,170,845 1,838 7,861 1,180,783 - - 1,324,810 1,324,810 Total equity & liabilities 2,505,593 2,789 32,213 332 - 293,581 - - 142,134 17,793 1,160,354 1,147,560 104,435 1,398,894 (4,363,909) 2,441,769 - - (9,540) (9,540) - - 6,332 - - - - (283) (283) (6,241) (6,241) (8,372) (2,040) 7,735 7,735 - - - - - - - - (12) (12) - - - - - - 10,000 - 90,000 - - (21,125) (21,125) (2,659) (2,659) 12,364 12,364 (236,573) (236,573) 4,419 104,419 1,330,495 1,330,495 (16,332) (90,000) 8,955 (97,377) - - 2,403,973 2,403,973 31 Supplementary information required under Section 54 of the Act In accordance with the requirements of Section 54 (2) and (3) and Section 55 (6) (k) of the NAMA Act 2009 the following additional information is provided, in respect of NAMA and each of its Group entities for the quarter.
3 (i) SECTION 54 (2) - ADMINISTRATION FEES AND EXPENSES INCURRED BY NAMA AND EACH NAMA GROUP ENTITY Gains / (losses) on derivative financial instruments NALM NANQ NAJVA NAPM NAMSL NAMGS PV PB PWH NAM NASLLC NARPS NAMA Administration Expenses by NAMA group entity For the quarter from 1 April 2021 to 30 June 2021 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 Costs reimbursable to the NTMA Primary Servicer fees Master servicer fees Portfolio management fees Finance, communication and technology costs Legal fees Rent and occupancy costs Internal audit fees Board and Committee fees and expenses External audit remuneration 6,488 1,605 218 552 3,456 (754) 1,094 144 - 164 12,967 - - - - - - - - - 37 5 4 - - - 2 - - - - - - - - - - - - - - 4 39 5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 30 - - - - - - - - - - - - - 30 - - - - - - - - - - - - - - - - - - - - 20 - 3 - - - - - - - - - 23 - - - - - - - 4 - - - - - - - - - 60 - - 4 60 Administration Expenses by NAMA group entity For the period from 1 January 2021 to 30 June 2021 NALM NANQ NAJVA NAPM NAMSL NAMGS PV PB PWH NAML NASLLC NARPS NAMA NAMA Group Consolidated Total €’000 6,488 1,605 218 632 3,476 (749) 1,094 144 60 164 13,132 NAMA Group Consolidated Total €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 Costs reimbursable to the NTMA Primary Servicer fees Master servicer fees Portfolio management fees Finance, communication and technology costs Legal fees Rent and occupancy costs Internal audit fees Board and Committee fees and expenses External audit remuneration 13,218 3,256 436 955 4,536 (183) 2,186 291 - 366 25,061 - - - - - - - - - 50 9 4 - - - 2 - - - - - - - - - - - - - - 4 52 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 62 - - - - - - - - - - - - - 62 - - - - - - - - - - - - - - - - - - - - - - - - - 73 - - - 21 - 2 - 8 - - - - - - - - - - 119 - - - - - - - 29 75 119 13,218 3,256 436 1,153 4,557 (171) 2,186 291 119 366 25,411 32 3 (ii) SECTION 54 (3) (A) - DEBT
 SECURITIES ISSUED FOR THE PURPOSES OF THE ACT There was no debt in issue during the period.
All bonds issued were fully redeemed by the start of the quarter.

3 (iii) SECTION 54 (3) (B) - DEBT SECURITIES ISSUED AND REDEEMED IN THE PERIOD Government guaranteed senior debt securities There were no Senior bonds issued or redeemed in the period.

All Senior bonds were redeemed by the start of the quarter.

Subordinated debt securities held There were no Subordinated bonds issued or redeemed in the period.

All Subordinated bonds were redeemed by the start of the quarter.
3 (iv) SECTION 54 (3) (C) - ADVANCES TO NAMA FROM THE CENTRAL FUND There were no advances to NAMA from the Central Fund in the quarter.

3 (v) SECTION 54 (3) (D) - ADVANCES MADE BY NAMA TO DEBTORS IN THE QUARTER Participating Institutions and Primary Servicer BCM Global (formerly Link Asset Services) AIB Total For the quarter from 1 Apr 2021 to 30 Jun 2021 €’000 226 18,452 18,678 In addition to the above, cash advances of €187k were made by NAMA group entities by way of shareholder loans in Q2 2021.
3 (vi) SECTION 54 (3) (E) - ASSET PORTFOLIOS HELD BY NAMA AND EACH NAMA GROUP ENTITY The assets held by NAMA and each NAMA Group entity are set out below.

The assets include intergroup assets and liabilities and intergroup profit participating loans between NAMA Group entities.
National Asset Management Agency Investment in NAMAI Cash and cash equivalents Interest receivable on loan to NAM Receivable from NALM Total National Asset Management Agency Investment Debtor loans measured at fair value through profit or loss Receivable from NAM Receivable from NAM - accrued interest Cash and cash equivalents Other assets Total Shareholder loans National Asset Management PPL receivable from NAMGS PPL interest receivable Exchequer Notes Total National Asset Management Group Services Cash and cash equivalents Loan receivable from NALM Loan interest receivable from NALM PPL receivable from NAJVA PPL interest receivable from NAJVA Total 30 Jun 2021 €’000 105,696 156 979,893 13,026 1,098,771 30 Jun 2021 €’000 4,140 96,779 20 187 8 101,134 30 Jun 2021 €’000 994,969 145,087 500,000 1,640,056 30 Jun 2021 €’000 5,209 1,002,008 139,039 5,915 17,020 1,169,191 33 3 (vi) SECTION 54 (3) (E) - ASSET PORTFOLIOS HELD BY NAMA AND EACH NAMA GROUP ENTITY - CONTINUED National Asset Loan Management Investments in equity instruments Cash and cash equivalents Cash placed as collateral with the NTMA Exchequer Notes Debtor loans measured at FVTPL Other assets Inter-group receivable Total National Asset North Quays Cash and cash equivalents Debtor loans measured at fair value through profit or loss Inventories - trading properties Other assets Total National Asset JV A Investments in equity instruments Cash and cash equivalents Debtor loans measured at fair value through profit or loss Deferred Tax Total Shareholder loans 30 Jun 2021 €’000 6,327 88,237 3,000 500,000 790,344 6,579 369,489 1,763,976 30 Jun 2021 €’000 7,060 0 0 6 7,066 30 Jun 2021 €’000 10,445 232 21,402 84 32,163 National Asset Sarasota LLC National Asset Sarasota LLC had no assets as at the reporting date following the disposal of the trading property during Q4 2020.
30 Jun 2021 €’000 National Asset Property Management Cash and cash equivalents Inter-group receivable Inventories - trading properties Total National Asset Residential Property Services Cash and cash equivalents Other assets Investment properties Total National Asset Leisure Holdings Limited (in Voluntary Liquidation) Investment in subsidiaries1 30 Jun 2021 €’000 774 7 100 881 30 Jun 2021 €’000 1,690 1,771 291,499 294,960 30 Jun 2021 €’000 1,763 3 (vii) SECTION 54 (3) (F) - GOVERNMENT SUPPORT MEASURES INCLUDING GUARANTEES, RECEIVED BY NAMA AND EACH NAMA GROUP ENTITY Entity National Asset Management D.A.C.
Description On 26 March 2010, the Minister for Finance guaranteed Senior Notes issued by NAMA as provided for under Section 48 of the NAMA Act.

The maximum aggregate principal amount of Senior Notes to be issued at any one time is €51,300,000,000.

Amount in issue at 30 Jun 2021 €’000 Nil 1 This amount represents the investment of NALHL in RLHC I and RLHC II.

The amount is as per 31 December 2019 final audited results.
34 Supplementary information required under Section 55 of the NAMA Act 2009 In accordance with Section 55 of the Act, the following additional information is provided in respect of NAMA and each of its Group entities: 4 (i) SECTION 55 (5) - GUIDELINES & DIRECTIONS ISSUED BY THE MINISTER FOR FINANCE Compliance with Guidelines Issued by the Minister under Section 13 (NAMA Act 2009) as at 30 June 2021 No guidelines issued Compliance with Directions Issued by the Minister under Section 14 (NAMA Act 2009) as at 30 June 2021 (1) 14th May 2010 - Direction (Ref 513/43/10) - Pricing of government guaranteed debt issued by NAMA.
No such debt was issued by NAMA as at the reporting date.

22nd October 2010 - Expeditious Transfer of Eligible Assets.

All transfers completed since 22 October 2011 have complied with this Direction.

11th May 2011 - Direction (Ref 513/43/10) - Amendment to Senior Notes Terms & Conditions All senior notes have been amended in accordance with this Direction.

7th March 2012 - NAMA Advisory Group.

A NAMA Advisory Group has been set up in accordance with this Direction.
29th March 2012 - Irish Bank Resolution Corporation - Short Term Financing.

NAMA adopted all reasonable measures to facilitate the short-term financing of IBRC.

31st July 2015 - Direction (513/43/10) - Effect of a potential negative interest rates on the NAMA Senior Note Programme.

Pursuant to a direction issued by the Minister on 31 July 2015, on 28 January 2016 NAM D.A.C.
and Citibank executed documentation to floor the coupon rate on the senior notes in issue at zero if the 6 month Euribor rate is negative.

This resulted in €4.7bn of cashflow hedge relationships being derecognised on this date.

28th September 2019 - Direction to NAMA pursuant to Section 14 (2) of the NAMA Act 2009 regarding NARPS.

NAMA to retain ownership of NARPS and for NARPS to continue its trading activity, subject to compliance with applicable company laws.
(2) (3) (4) (5) (6) (7) Compliance with Directions Issued by the Minister under Section 13 (IBRC Act 2013) as at 30 June 2021 (1) 7th February 2013 - Irish Bank Resolution Corporation - Deed of Assignment and Transfer NAMA complied with this direction.

7th February 2013 - Irish Bank Resolution Corporation - Bid for Assets of IBRC NAMA adopted all reasonable measures to bid for the assets of IBRC.
7th February 2013 - Irish Bank Resolution Corporation - Short-term facility to the Special Liquidators NAMA adopted all reasonable measures to provide short-term facility to the Special Liquidators of IBRC.

20th February 2013 - Irish Bank Resolution Corporation - Deed of Assignment and Transfer NAMA complied with this direction.
(2) (3) (4) 35 4 (ii) SECTION 55 (6) (A) - NUMBER AND CONDITION OF OUTSTANDING LOANS Legacy loan facility loan performance metric Classification Performing Non-Performing Total Number 205 3,251 3,660 Loan Nominal €m 379 18,394 20,444 NAMA Value (post Fair Value adjustments) €m 166 648 814 A measure of loan performance is the Loan Payment Status.

The Loan Payment Status is a measurement of loan performance based on cash receipts with regard to the contractual obligations of the legacy loan facility.
With effect from January 1 2018, all loans have moved from being measured at amortised cost to fair value models.

The degree of default measurement is based on the default of the original PAR debt acquired by NAMA from the participating institutions.
NAMA Value Performing % (NAMA Debt) Q4 2016 to Q2 2021 % o f N A M A V a l u e 35% 30% 25% 20% 15% 10% 5% 0% Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 * 2018 - 2021 analysis prepared based on fair value as opposed to amortised cost following adoption of IFRS 9.
The quarter on quarter reduction between Q3 2020 and Q4 2020 in the balance of repayment and refinance during Q4 2020 of facilities that were previously classified as performing : loans classified as performing reflects the No.
of Performing & Non-Performing Loans as at 30 June 2021 Performing & Non-Performing Loans by Loan Nominal as at 30 June 2021 Performing 6% Non-Performing 94% Performing 2% Non-Performing 98% Performing & Non-Performing Loans by NAMA Value (post Fair Value adjustments) as at 30 June 2021 Performing 20% Non-Performing 80% 36 4 (iii) SECTION 55 (6) (B) - CATEGORISATION OF NON-PERFORMING AS TO THE DEGREE OF DEFAULT Categorisation of non performing loans in accordance with the Loan Payment Status as at 30 June 2021 Loan Payment Status 9 1 2 3 4 7 & 8 Degree of Default Current Non Cash 30-59 Days Delinquent 60-89 Days Delinquent 90+ Days Delinquent 120+ Days Delinquent Enforced Total Number 178 4 1 1 2,163 904 3,251 NAMA Value (post Fair Value Adjustments) €m 218 0 - - 430 - 648 Loan Nominal €m 708 2 1 1 11,639 6,044 18,394 An analysis of the non-performing profile of the loan book indicates significant volume in the ‘120+ Days Delinquent’ classifications.
NAMA is addressing this issue in part by insisting, as part of any ongoing consensual support provided by NAMA to the debtor, that all income produced by the underlying secured assets is paid to NAMA.

The extent to which debtors do not comply with this, and other key milestones set by NAMA, will determine whether these delinquent loans will be enforced.

In some cases, the delinquent loans may be re-financed on new terms set by NAMA.
The sole driver of NAMA’s decisions in this regard is the maximisation of the return to the taxpayer.

The degree of default measurement is based on the default of the original PAR debt acquired by NAMA from the participating institutions.

NAMA value is provided for information purposes and is not measured for degree of default under the same terms as the PAR debt.
Degree of Default of Non-Performing Loans by Loan Nominal Degree of Default of Non-Performing Loans by NAMA Value (post Fair Value Adjustments) 0% 0% 4% 0% 33% Current Non Cash 30-59 Days Delinquent 60-89 Days Delinquent 90+ Days Delinquent 120+ Days Delinquent 63% Enforced 0% 66% 34% 0% 0% 0% Current Non Cash 30-59 Days Delinquent 60-89 Days Delinquent 90+ Days Delinquent 120+ Days Delinquent Enforced No.
of Non-Performing Loans by Degree of Default 0% 0% 0% 5% 28% Current Non Cash 30-59 Days Delinquent 60-89 Days Delinquent 90+ Days Delinquent 67% 120+ Days Delinquent Enforced CodeID CultureValue Current Cash 0 Description Performing 9 1 2 3 4 7 & 8 Current Non Cash 30-59 Days Delinquent 60-89 Days Delinquent 90+ Days Delinquent 120+ Days Delinquent Enforced Non Performing Non Performing Non Performing Non Performing Non Performing Non Performing Comment Accounts not in arrears due to cash receipts or where the arrears are outstanding less than 30 days.
It includes matured loans that are still producing cash in accordance with their contractual terms Accounts not in arrears because arrears are capitalized or account has a zero interest rate applying Accounts in arrears where the amounts due are between 30 and 59 days outstanding Accounts in arrears where the amounts due are between 60 and 89 days outstanding Accounts in arrears where the amounts due are between 90 and 119 days outstanding Accounts in arrears where the amounts due are 120 days or more outstanding Accounts subject to enforcement 37 4 (iv) SECTION 55 (6) (C) - NUMBER OF LOANS BEING FORECLOSED OR OTHERWISE ENFORCED Number of loans foreclosed in the quarter to 30 June 2021 Classification Number Enforced 0 Loan Nominal €m 0 NAMA Value €m 0 Note: Section 55 6 (B) contains a category of default called 'Enforced' where 1,073 loans have been classified.
This includes enforcements that were instigated by the Participating Institutions prior to transfer of the loans to NAMA.

This section deals with the number of loans being enforced by NAMA only.
4 (v) SECTION 55 (6) (D) - NUMBER OF CASES WHERE LIQUIDATORS AND RECEIVERS HAVE BEEN APPOINTED Number of cases where receivers and liquidators have been appointed in the quarter to 30 June 2021 There were no receivers or liquidators appointed in the quarter to 30 June 2021 4 (vi) SECTION 55 (6) (E) - LEGAL PROCEEDINGS COMMENCED BY NAMA AND EACH NAMA GROUP ENTITY IN THE QUARTER List of all legal proceedings (except any proceeding in relation to which a rule of law prohibits publication) There were no legal proceedings commenced by NAMA or a NAMA group entity in the quarter to 30 June 2021.
4 (vii) SECTION 55 (6) (F) - SCHEDULE OF FINANCE RAISED BY NAMA AND EACH NAMA GROUP ENTITY IN THE QUARTER Schedule of finances raised by NAMA and each NAMA group entity in the quarter to 30 June 2021 There was no finances raised by NAMA or a NAMA group entity in the quarter to 30 June 2021 4 (viii) SECTION 55 (6) (G) - SUMS RECOVERED FROM PROPERTY SALES IN THE QUARTER Amount of money recovered by sale of property in the quarter to 30 June 2021 Description Sale of property €m 205.9 4 (ix) SECTION 55 (6) (H) - OTHER INCOME FROM INTEREST-BEARING LOANS OWNED BY NAMA AND EACH NAMA GROUP ENTITY IN THE QUARTER Other income from interest bearing loans in the quarter to 30 June 2021 Description Fee income €m 0.0 38