In 2017, recuperation in global economy has become evident.

Despite the fluctuations caused by political and geopolitical tensions, an overall recuperation has been noted in global economy in 2017 for the first time since the inception of the financial crisis.

While accelerated growth performances of developed countries caught the attention, emerging countries also attained higher growth rates and contributed to global economic activity. To such a backdrop, future projections were revised upwards.

While interest rates maintained their relatively lower level on the monetary front, investment outlays that increased on a global scale, the rise in the worldwide trade volume and higher industrial production have been the other major contributors to global economic growth.

The Turkish economy broke record in terms of growth.

During 2017, the Turkish economy has been the scene to growth rates that achieved record levels. The key drivers behind this development included the government incentives, tax reductions and expanded credit facilities. Looking at the growth performance of 7.4%. for the first nine months of the year, the Turkish economy is estimated to have closed 2017 with a growth rate of above 6%.

11.1% growth in the third quarter was driven by machinery and equipment investments and exports along with public outlays represent an important indicator with respect to the coming period. It is considered that switching to a growth composition that more heavily relies on exports and private sector investments is important for the quality and sustainability of economic growth.

Our sector kept growing.

The construction sector that gained momentum in 2017 enlarged 9.9% in the first three quarters of the reporting period. The growth rate of the real estate sector, although having lost some pace as compared with the previous year, followed a stable course in 2017 and was registered as 1.5% in the January to September period.

During 2017, the government took steps that supported our sector: During 2017, housing sales went up by 5.1% to top 1.4 million units thanks especially to the incentives for housing projects. While housing sales to foreigners during the reporting period augmented by 22.2%, record levels were reached in both sales figures. On another front, at 11.9%, the annual rise in housing prices in Turkey was near the lowest of the past six years in 2017.

To a better future together with our stakeholders…

Diversifying its portfolio by investing in real estate projects such as housing, office and retail spaces, İş REIC’s strategy is to maximize shareholder value by increasing its ongoing revenues and profitability.

Along the line, we keep working with commitment with our entire team to bring our ongoing investments to completion within the projected timelines, capitalize on investment opportunities, and achieve our targeted lease and sales figures.

I would like to thank all our shareholders for their support and confidence, who share our goal to contribute to a livable future built upon contemporary spaces that observe the environment and blend seamlessly into the texture of the city.

Yours sincerely,

Ömer Karakuş

Chairman