ALARKO GAYRİMENKUL YATIRIM ORTAKLIĞI A.Ş.

Regulatory Filings • Apr 30, 2024

RATING ANNOUNCEMENT FORM

Rating Agency Rated Institution	: JCR AVRASYA DERECELENDİRME A.Ş. : : :ALARKO GAYRİMENKUL YATIRIM ORTAKLIĞI A.Ş.
Address	: Maslak Mahallesi Taş :: yoncası Sokak No:1/F F2 Blok Kat:2 34485 Sarıyer, İstanbul- Türkiye
Telephone and Fax No	: 0212 352 56 73 : – 0212 352 56 75
Date	: :30.04.2024
Subject	: :Article 26 of the CMB Serial VIII, No. 51 Communiqué on Principles

To the CMB- Department of Accounting Standards Central Securities Depository of Türkiye- Public Disclosure Platform

"Alarko Gayrimenkul Yatırım Ortaklığı A.Ş." has been evaluated by JCR Eurasia.

• Significant portion of the real estate portfolio providing predictable cash flows via long term leases,
• Solid debt service capacity with cash surplus position thanks to high level of cash equivalents,
• Sustainable core profitability indicators with satisfactory margins,
• Strong Loan-to-Value (LTV) ratio evaluated as a sector-specific leverage metric, despite a slight increase in 2023,
• Satisfactory equity size supported by net profits, mainly stemming from valuation of investment properties,
• Proven successful and deep-rooted track record as a part of Alarko Group, together with strong brand recognition,
• High level of compliance with corporate governance practices as a publicly traded real estate investment trust company,
• Expected increase in financial liabilities in the upcoming period due to ongoing hotel investment may put potential pressure on debt service capacity, despite the long-term funding structure,
• Leading economic indicators signal global economic slowdown whereas quantitative tightening actions aim to restrict consumption growth and achieve a soft-landing in the domestic side.

Essentially, the ratings of 'Alarko Gayrimenkul Yatırım Ortaklığı A.Ş.' has been determined as follows considering the above issues.

Long-Term National Issuer Credit Rating	:	AA+ (tr) / (Stable Outlook)
Short-Term National Issuer Credit Rating	:	J1+ (tr) / (Stable Outlook)
Long-Term International Foreign Currency Issuer Credit Rating	:	BB / (Negative Outlook)
Long-Term International Local Currency Issuer Credit Rating	:	BB / (Negative Outlook)

NOTE: JCR Eurasia Rating ratings are objective and independent opinions as to the creditworthiness of a security and issuer and not to be considered a recommendation to buy, hold or sell any security or to issue a loan. Rating reports are valid for 1 year from the date of publication unless otherwise stated. The validity date of interim reviews cannot exceed the validity date of the original report.

Regards, JCR AVRASYA DERECELENDİRME A.Ş.

Zeki Metin ÇOKTAN Executive Vice President

Prof. Dr. Feyzullah YETGİN General Manager

Copyright © 2007, by JCR Eurasia Rating Maslak Mahallesi Taşyoncası Sokak No:1/F F2 Blok Kat:2 34485 Sarıyer, Istanbul- Türkiye Telephone: +90 212 352 56 73 Fax: +90 (212) 352 56 75 Reproduction is prohibited except by permission. All rights reserved. All of the information has been obtained from sources JCR ER believes are reliable and information/clarifications provided by the Company. However, JCR-ER does not guaranty the truth, accuracy, adequacy of this information. A JCR ER Rating is an objective and independent opinion as to the creditworthiness of a security and issuer, not a recommendation to buy, hold, sell any security and to issue a loan. This rating report has been composed within the frameworks of SPK (Capital Markets Board of Türkiye) regulations and internationally accepted rating principles and guidelines but is not covered by the NRSRO regulations. http://www.jcrer.com.tr