Dear Stakeholders,

In the first half of 2023, we maintained our strong financial position

Having completed 2022, a challenging year for the general economy and the construction industry, with successful financial and operational results, our Company maintained its strong financial position in the first half of 2023.

In line with its core strategy of increasing profitability through the effective and dynamic management of its real estate portfolio and thereby providing the highest possible benefit to its stakeholders, our Company continued its efforts, on the one hand, to develop projects on the lands in its portfolio in accordance with the best use of the land and to increase its rental income, on the other.

In the first half of 2023, our company's rental income increased by 85% compared to the same period of the previous year and amounted to TRY 315.2 million. Total revenues amounted to TRY 365 million, while net profit for the period, including value increase profit, amounted to TRY 4,802.5 million. Our company's total assets were TRY 23,107 million, and the total value of our real estate portfolio was TRY 21,218 million. As of June 30, 2023, our stakeholders' equity maintained its strong position at TRY 18,777 million.

Our projects and efforts to improve our portfolio are ongoing

2022 witnessed a breakthrough in the Altunizade and Tuzla land projects in our company's portfolio, as well as Çekmeköy land plot that was included in it as part of our strategy mentioned above.

Following the completion of the construction of 16 villas, which are part of Kasaba Evleri, on the land in Çekmeköy, Istanbul, which our company added to its portfolio in 2020, new lands were purchased in 2022 thanks to the trust in the region and the project. We are working on the continuation of Kasaba Evleri in 2023 with a new phase of 165 residences to be built on the aforementioned lands added to the portfolio in 2022.

In 2022, our company decided to start investing in the project of approximately 1000 residences that it planned to build on the land it purchased with the aim of continuing its investments in Tuzla. In June 2023, excavation and shoring works were completed and efforts continued to update the building license. Work has been accelerated to launch the project in the last quarter of 2023.

The construction and sales of the Litus Istanbul Altunizade housing project, which is being developed together with Tecim Yapı Elemanları İnşaat Servis ve Yönetim Hizmetleri San. ve Tic. Ltd. Şti., are ongoing. Consisting of 6 residential blocks and 1 office block including commercial areas, the project is planned to be delivered in the first quarter of 2024.

We aim at starting the construction and sales of the residence project planned to be developed in the place of the building located in Balmumcu, Istanbul, which was included in our Company's portfolio, in the last quarter of the year after obtaining the building license.

Our Company is currently working on the development of a revenue-sharing housing project on the land of Profilo Shopping Mall, which was included in the portfolio at the end of 2022. The project is expected to generate revenue as of 2024.

With a 33,000 m² leasable/salable area, our Istanbul Finance Center project was completed in June 2023, in coordination with the projects of other companies within the center. Leasing activities will be initiated in the last quarter of 2023.

Focused on our goals with a clear roadmap

Due to the actual rate of return in a high inflationary environment, real estate will continue to be the popular investment tool and the housing sector will continue to gain value in the upcoming period.

In the road map we have established in this context, we will initiate, in the last quarter of the year, the sales of the residences we designed, and take actions focused on our main strategy which is based on sustainable profitability and effective risk management, through our reflexes that are sensitive to changes and crises. Our main strategy in this regard and our company's long-term prioritized objectives are to maximize the rental and sales revenues of our company's new real estate properties, to develop projects that provide optimum benefits in accordance with the best use of the land in the portfolio and thus continue to create livable, modern, safe, and distinguished places that will ultimately generate high returns for our stakeholders.

I would like to extend my sincere thanks to our stakeholder Türkiye İş Bankası A.Ş., our Board of Directors, all our business partners, shareholders and employees, who have never withheld their support and trust as we move rapidly towards our goals.

Best regards,

Ömer Barlas Ülkü

General Manager