Dear Stakeholders,

Macroeconomic outlook has yet to clarify.

The Covid-19 variants and the developments related to the course of the pandemic made the highlights on the agendas of global markets also in 2021. Measures and restrictions implemented in numerous countries with the emergence of the new

variants following the progress achieved towards normalcy in the first half of the year braked economic revival. As supply chain issues caused supply-demand mismatches, inflationist pressures persisted. With increased concerns regarding

inflation, central banks made decisions to accelerate the tightening of supportive monetary policies. Various countries including the US, Germany and Japan revised their 2021 growth estimations downwards due to disruptions in the supply chain servicing the industrial production. Speculating that the Omicron variant might further aggravate the worldwide supply issue and in turn, push inflation further up, projections for recapturing pre-pandemic levels in global economy started to be postponed to after 2023.

Our country had a tough year as well due to the pandemic circumstances that endured throughout the year and to the global economic environment. With the contribution of the recovery tendency in economic activity and the low base effect, the Turkish economy grew by 11.7% in the first three quarters of 2021.

While global inflationist pressures and the depreciation of the Turkish currency, coupled with the strong outlook of domestic demand, reflected on inflation indicators, the CPI was high throughout the year and hit 36.08% at the end of 2021, the highest level of the past 19 years.

The CBRT altered its policy and initiated rate cuts from September 2021, bringing the policy rate down gradually from 19% to 14% until the end of the year. In this process, high inflation and exchange rate became stronger threats for the economy. To this backdrop, the Government targeted to curb the depreciation of the Turkish lira by introducing the FCindexed

TL deposit account instrument. The deferred demand that kicked in in global trade combined with the strong exports performance throughout the year that was driven also by the high loss of value sustained by the Turkish lira, and recovery in tourism and transportation revenues brought along improved current accounts balance. However, the uptrend in commodity and energy prices continue to put an upside risk on the current deficit.

Economic recuperation in emerging countries was at lower levels than it was in developed economies due to a variety of reasons including inequalities in the healthcare systems, public policies, labor shortage in certain sectors, and permanent inflation. In the light of these developments, the International Monetary Fund (IMF) reported its global economic growth estimation for 2021 as 5.9% and for 2022 as 4.9% in its World Economic Outlook. The same report forecasted Turkey’s growth rate at 9% for 2021 and 3.3% for 2022.

The negative implications of the pandemic upon property markets remain.

The pandemic kept taking its toll in different forms on all areas of property markets. Secondary home sales that picked up due to the pandemic came in addition to the purchases for investment purposes in the housing sector. Along this line,

both sales prices and rents increased remarkably. Postponement of returnto- office depending on the course of

the pandemic has been delaying the recovery in the office market. Similarly, total lockdown implemented in the

reporting period and other social measures and restrictions negatively affected the anticipated turnover level and visitor traffic in the retail sector.

We will overcome these challenging days with our agile management philosophy.

Since 2020, we are fighting an unpredictable power that imposed change upon humanity, people’s habits, business and living orders. Starting the second year of the pandemic with the experiences we have acquired and with the consciousness of the fact that recovery will not be as fast and easy as anticipated increased our preparedness against numerous uncertainties. Along this line, our Company’s operations were pursued on the back of sustainable and effective actions throughout the year, and property investments were made which will generate development profit.

In the period ahead, we will keep managing our existing property portfolio with a dynamic approach by establishing the ideal balance between revenues and costs and by acting in line with our main strategy erected on effective risk management.

On behalf of the Board of Directors and myself, I would like to thank all our stakeholders who make the sustainable value we generate possible.