Audit Report / Information • Mar 7, 2025
Audit Report / Information
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CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY – 31 DECEMBER 2024 AND INDEPENDENT AUDITOR'S REPORT
(CONVENIENCE TRANSLATION OF THE FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)
To the General Assembly of Emlak Konut Gayrimenkul Yatırım Ortaklığı A.Ş.
We have audited the accompanying consolidated financial statements of Emlak Konut Gayrimenkul Yatırım Ortaklığı A.Ş. (the "Company") and its subsidiaries (collectively referred to as the "Group") which comprise the consolidated statement of financial position as at 31 December 2024, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended and notes to the consolidated financial statements comprising a summary of significant accounting policies.
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as at 31 December 2024, and its financial performance and its cash flows for the year then ended in accordance with Turkish Financial Reporting Standards ("TFRS").
Our audit was conducted in accordance with the Standards on Independent Auditing (the "SIA") that are part of Turkish Standards on Auditing adopted within the framework of the regulations of the Capital Markets Board and issued by the Public Oversight Accounting and Auditing Standards Authority (the "POA"). Our responsibilities under these standards are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements" section of our report. We hereby declare that we are independent of the Group in accordance with the Ethical Rules for Independent Auditors (including Independence Standards) (the "Ethical Rules") the ethical requirements regarding independent audit in regulations issued by the POA; the regulations of the Capital Markets Board; and other relevant legislation are relevant to our audit of the financial statements. We have also fulfilled our other ethical responsibilities in accordance with the Ethical Rules and regulations. We believe that the audit evidence we have obtained during the independent audit provides a sufficient and appropriate basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. Key audit matters were addressed in the context of our independent audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
| Key Audit Matters | How the key audit matter was addressed in the audit |
||
|---|---|---|---|
| Revenue recognition | |||
| The Group realizes sales mostly in the form of turnkey and Land Subject to Revenue Sharing Agreements ("LSRSA") projects.("ASKGP"). |
We performed the following procedures in relation to the revenue recognition in turnkey and LSRSA projects: |
||
| The Group obtained sales revenue of 21.079.390 thousand TL from land sales and residential and commercial unit sales projected using the "LSRSA" method within the accounting period of 1 January - 31 December 2024. |
The design and implementation of the controls on the revenue process have been evaluated. The sales and delivery procedures of the Group have been analyzed. |
||
| In turnkey projects, it is the Group's responsibility to maintain and complete the project and the Group recognizes revenue when performance obligation is fulfilled (independent units are transferred to the customer). |
For the turnkey projects, the provisions regarding the delivery of residentials in the contracts with customers have been examined and the timing of the revenue recognition in the financial statements has been evaluated. Through substantive procedures, it has been focused on the record of receivables and advances received and the |
||
| In LSRSA projects, the contractor completes the construction and regarding the project, the Group receives advance payments from the buyer and makes payments to the contractor. |
evaluation of the situations where the performance obligation is not fulfilled for the independent units sold as of the balance sheet date for the turnkey projects. |
||
| Revenue in LSRSA project is recognized when performance obligation is fulfilled (the earlier of the signing of the temporary acceptance protocol with the contractor and the signing of the delivery protocol with the buyer). |
For the LSRSA projects, provisions regarding the temporary acceptance and the delivery of residentials in the projects made with contractors and timing of the revenue recognition in the financial statements has been evaluated. |
||
| As of the balance sheet date, there may be cases where the construction has been completed, but the delivery has not been realized for turnkey projects. In LSRSA projects, there may be cases where the construction has been completed as of the balance sheet date, but the delivery has not been realized and the temporary acceptance protocol has not been signed. |
Through substantive procedures, it has been focused on the record of receivables and advances received and the evaluation of the situations where the performance obligation is not fulfilled for the independent units sold as of the balance sheet date for the LSRSA projects. In addition, the adequacy of the disclosures presented in Note 17 Revenue and Cost of Sales has |
||
| Based on the above-mentioned situations, whether the revenue is recognized in the correct period in accordance with the principle of seasonality of sales has been determined as a key audit matter. |
been evaluated under TFRS. | ||
| Explanations regarding the Group's revenue accounting policies and amounts are given in Note 2 and Note 17. |
| Key Audit Matters | How the key audit matter was addressed in the audit |
|---|---|
| Impairment of inventories | |
| Inventories, as of December 31, 2024, amount to TL 167.219.003 thousand in the Group's financial statements and constitute 82% of total assets. |
We performed the following procedures in relation to the impairment on inventories: |
| Inventories consist of vacant land and plots and completed residential and commercial unit held by the Group for sale. The accounting policy regarding inventories is explained in footnote 2, and the total |
The qualification, competence and qualifications of the independent real estate appraisers appointed by the Group have been assessed. |
| inventory balance as of the end of the year is explained in footnote 8. |
The appropriateness of the valuation methods included in the valuation reports have been assessed. |
| The Group takes into consideration independent expert valuation reports for inventory separately at least once a year and uses these reports to assess impairment if any. The current impairment is |
It has been assessed whether the values assessed by the appraisers are within a reasonable range. |
| recognized in other expenses from main activities in the profit or loss and other comprehensive income statement in the period during which they are incurred. |
The fair values of the inventories have been compared with the recorded cost values and the calculation of the impairment has been checked. |
| Due to the accounting of the impairment, impairment of vacant land and plots and completed residential and commercial unit to be sold is considered a key audit matter for our audit since it has a significant impact on both the statement of financial position and the statement of profit or loss |
The adequacy of the inventory impairment provision allocated in the current period has been assessed by comparing it with the impairment realized in the past period and the accounting of the inventory impairment allocated or reversed in the income statement has been checked. |
| and other comprehensive income. | It has been assessed whether the amounts included in the inventory footnote and the standalone financial statements are consistent and whether the footnote explanations are sufficient in terms of TFRS. |
The Group management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with TFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
Responsibilities of independent auditors in an independent audit are as follows:
Our aim is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an independent auditor's report that includes our opinion. Reasonable assurance expressed as a result of an independent audit conducted in accordance with SIA is a high level of assurance but does not guarantee that a material misstatement will always be detected. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an independent audit conducted in accordance with SIA, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Assess the internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence. We also communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.
Burak Özpoyraz, SMMM Independent Auditor
Istanbul, 7 March 2025
| INDEX | PAGE | |
|---|---|---|
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION ……………………………………………………………………………………… | 1-2 | |
| CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME……………………………………………………………………………………………………………………. |
3 | |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY………………………………………………………………………………… | 4 | |
| CONSOLIDATED STATEMENT OF CASH FLOWS……………………………………………………………………………………………………… | 5 | |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS…………………………………………………………………… 6-67 | ||
| NOTE 1 | ORGANIZATION AND OPERATION OF THE COMPANY………………………………………………………. | 6-7 |
| NOTE 2 | BASIS OF PRESENTATION OF THE CONCOLIDATED FINANCIAL STATEMENTS………………………………………………………. 8-26 | |
| NOTE 3 | ACCOUNTING POLICIES………………………………………………………………………………………… | 26-28 |
| NOTE 4 | CASH AND CASH EQUIVALENTS………………………………………………………………………………………… | 29 |
| NOTE 5 | FINANCIAL LIABILITIES…………………………………………………………………………………………………………… 30-31 | |
| NOTE 6 | TRADE RECEIVABLES AND PAYABLES ………………………………………………………………………………… | 31-32 |
| NOTE 7 | OTHER RECEIVABLES AND PAYABLES………………………………………………………………………………… | 32-33 |
| NOTE 8 | INVENTORIES……………………………………………………………………………………………………… | 33-37 |
| NOTE 9 | INVESTMENT PROPERTIES ……………………………………………………………………………………………………………… 37-38 | |
| NOTE 10 | PROPERTY, PLANT AND EQUIPMENT……………………………………………………………………………… | 39 |
| NOTE 11 | INTANGIBLE ASSETS…………………………………………………………………………………………………… | 40 |
| NOTE 12 | PROVISIONS, CONTINGENT ASSETS AND LIABILITIES………………………………………………………………………………… 40-43 | |
| NOTE 13 | EMPOYEE BENEFITS…………………………………………………………………………………………………………… | 44 |
| NOTE 14 | OTHER ASSETS…………………………………………………………………………………………………………… | 45 |
| NOTE 15 | DEFERRED INCOME AND PREPAID EXPENSES……………………………………………………………………. | 45 |
| NOTE 16 | SHAREHOLDERS' EQUITY………………………………………………………………………………………………. | 46 |
| NOTE 17 | REVENUE AND COST OF SALES………………………………………………………………………………… | 47 |
| NOTE 18 | GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES………………………………………………………………………………… | 48 |
| NOTE 19 | EXPENSES BY NATURE……………………………………………………………………………………………………………………49 | |
| NOTE 20 | OTHER INCOME / EXPENSES FROM OPERATING ACTIVITIES ………………………………………………………………………………… | 49-50 |
| NOTE 21 NOTE 22 |
FINANCIAL INCOME / EXPENSES………………………………………………………………………………… TAX ASSETS AND LIABILITIES………………………………………………………………………………………………………………………… |
50 |
| NOTE 23 | EARNING PER SHARE………………………………………………………………………………………………………………………… 53 | 51-53 |
| NOTE 24 | RELATED PARTY DISCLOSURES………………………………………………………………………………… | 54-56 |
| NOTE 25 | EXPLANATIONS ON MONETARY POSITION GAINS/(LOSSES)…………………………………………………………… | 57 |
| NOTE 26 | NATURE AND LEVEL OF RISKS ARISING FROM FINANCIAL INSTRUMENTS………………………………………………58-62 | |
| NOTE 27 | FINANCIAL INSTRUMENTS………………………………………………………………………………………………………63-64 | |
| NOTE 28 | COMMITMENTS………………………………………………………………………………………………………… | 65 |
| NOTE 29 | FEES FOR SERVICES RECEIVED FROM INDEPENDENT AUDIT FIRM…………………………………………………………………… 65 | |
| NOTE 30 | EVENTS AFTER THE REPORTING PERIOD………………………………………………………………………………… | 66 |
| ADDITIONAL NOTE | CONTROL OF COMPLIANCE WITH THE PORTFOLIO LIMITATIONS………………………………………………………………………………… | 67 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Notes | Audited 31 December 2024 |
Audited 31 December 2023 |
|
|---|---|---|---|
| ASSETS | |||
| Current assets | 188,736,805 | 164,388,932 | |
| Cash and cash equivalents | 4 | 8,281,384 | 22,908,136 |
| Financial investments | 57,456 | - | |
| Trade receivables | 6,179,673 | 11,415,451 | |
| Trade receivables due from related parties | 24 | 7,738 | 5,437,793 |
| Trade receivables due from third parties | 6 | 6,171,935 | 5,977,658 |
| Other receivables | 1,190,400 | 1,422,171 | |
| Other receivables due from related parties | 24 | 260,008 | 103,394 |
| Other receivables due from third parties | 7 | 930,392 | 1,318,777 |
| Inventories | 8 | 167,219,003 | 121,918,800 |
| Prepaid expenses | 430,457 | 186,396 | |
| Prepaid expenses to third parties | 15 | 430,457 | 186,396 |
| Other current assets | 14 | 5,378,432 | 6,531,019 |
| Current tax assets | 22 | - | 6,959 |
| Non-current assets | 16,166,152 | 11,006,794 | |
| Trade receivables | 4,345,978 | 6,524,624 | |
| Trade receivables due from third parties | 6 | 4,345,978 | 6,524,624 |
| Other receivables | 25,751 | 34,550 | |
| Other receivables due from third parties | 7 | 25,751 | 34,550 |
| Investments accounted for using equity method | 2,492 | 1,951 | |
| Investment properties | 9 | 2,640,414 | 2,694,648 |
| Right-of-use assets | 23,185 | 7,005 | |
| Property, plant and equipment | 10 | 2,010,683 | 1,635,383 |
| Intangible assets | 11 | 126,640 | 87,684 |
| Prepaid expenses | 945 | - | |
| Deferred tax assets | 22 | 6,990,064 | 20,949 |
| Total assets | 204,902,957 | 175,395,726 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Notes | Audited 31 December 2024 |
Audited 31 December 2023 |
|
|---|---|---|---|
| LIABILITIES AND EQUITY | |||
| Current liabilities | 108,054,429 | 89,842,559 | |
| Short-term borrowings | 5 | 11,605,955 | 1,516,390 |
| Short-term portions of long-term borrowings | 5 | 1,299,223 | 3,151,366 |
| Lease liabilities | 5 | 3,039 | 1,363 |
| Bank Loans | 5 | 1,296,184 | 3,150,003 |
| Trade payables | 7,484,393 | 5,877,505 | |
| Trade payables due to related parties | 24 | - | - |
| Trade payables due to third parties | 6 | 7,484,393 | 5,877,505 |
| Other payables | 3,029,087 | 1,698,440 | |
| Other payables to related parties | 24 | 671 | 866 |
| Other payables to third parties | 7 | 3,028,416 | 1,697,574 |
| Deferred income | 83,983,354 | 77,067,455 | |
| Deferred income from related parties | 24 | 4,510,624 | 5,077,835 |
| Deferred income from third parties | 15 | 79,472,730 | 71,989,620 |
| Current period profit tax liability | 127,307 | - | |
| Short-term provisions | 525,110 | 531,403 | |
| Short-term provisions for employee benefits | 13 | 94,785 | 152,142 |
| Other short-term provisions | 12 | 430,325 | 379,261 |
| Non-current liabilities | 1,045,406 | 2,924,627 | |
| Long-term borrowings | 5 | 19,465 | 1,832,122 |
| Lease liabilities | 5 | 19,465 | 8,143 |
| Bank Loans | 5 | - | 1,823,979 |
| Trade payables | 369,224 | 533,485 | |
| Trade payables due to third parties | 6 | 369,224 | 533,485 |
| Other payables | 472,836 | 303,974 | |
| Other payables to third parties | 7 | 472,836 | 303,974 |
| Deferred income | 5,745 | 80,348 | |
| Deferred income from third parties | 15 | 5,745 | 80,348 |
| Long-term provisions | 178,136 | 174,698 | |
| Long-term provisions for employee benefits | 13 | 178,136 | 174,698 |
| Shareholders' equity | 95,803,122 | 82,628,540 | |
| Total equity attributable to equity holders of the Company | 95,803,122 | 82,628,540 | |
| Paid-in capital | 16 | 3,800,000 | 3,800,000 |
| Adjustment to share capital | 16 | 51,255,545 | 51,255,545 |
| Treasury shares (-) | (64,648) | (64,648) | |
| Share premium (discounts) | 28,930,464 | 28,930,464 | |
| Other comprehensive expenses not to be reclassified under profit | |||
| and loss | (22,799) | - | |
| Loss arising from defined benefit plans | (22,799) | - | |
| Other equity reserves | (1,739,204) | (1,739,204) | |
| 8,685,316 | 8,685,316 | ||
| Restricted reserves appropriated from profit Retained earnings |
(8,238,933) | (2,356,491) | |
| Net profit for the year | 13,197,381 | (5,882,442) | |
| Non-controlling interests | - | - | |
| Total liabilities and equity | 204,902,957 | 175,395,726 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Notes | Audited 1 January - 31 December 2024 |
Audited 1 January - 31 December 2023 |
|
|---|---|---|---|
| Revenue Cost of sales (-) |
17 17 |
31,899,173 (23,292,968) |
41,141,913 (28,879,050) |
| Gross profit | 8,606,205 | 12,262,863 | |
| General administrative expenses (-) Marketing expenses (-) Other income from operating activities Other expenses from operating activities (-) |
18 18 20 20 |
(3,438,317) (569,774) 8,936,512 (4,394,937) |
(5,018,182) (760,974) 3,952,561 (5,042,092) |
| Operating profit | 9,139,689 | 5,394,176 | |
| Income from investing activities Expense from investing activities (-) |
118 (875) |
9,692 - |
|
| Operating profit before financial income | 9,138,932 | 5,403,868 | |
| Financial income Financial expenses (-) Monetary loss |
21 21 25 |
3,474,303 (2,042,214) (4,043,087) |
5,921,041 (2,460,961) (14,960,263) |
| Profit/(loss) from continuing operations, before tax | 6,527,934 | (6,096,315) | |
| Tax (expense)/income from continuing operations Current period tax expense Deferred tax expense |
22 22 |
6,669,447 (291,729) 6,961,176 |
213,873 - 213,873 |
| Net profit/(loss) for the period | 13,197,381 | (5,882,442) | |
| Profit for the period is attributable to: Non-controlling interests Owners of the Company |
- 13,197,381 |
- (5,882,442) |
|
| Other comprehensive income Items that will be reclassified to profit or loss Actuarial losses related to employee benefit liabilities |
13 | (30,738) | - |
| Taxes relating to Components of other comprehensive income that will not be reclassified to profit or loss |
7,939 | - | |
| Actuarial losses related to employee benefit liabilities, tax effect |
22 | 7,939 | - |
| Other comprehensive expense | (22,799) | - | |
| Total comprehensive income for the period | 13,174,582 | (5,882,442) | |
| Total comprehensive income is attributable to: Non-controlling interests Owners of the Company |
- 13,174,582 |
- (5,882,442) |
|
| Earnings per share (in full TRY) | 23 | 0.34688 | (0.15462) |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Other accumulated comprehensive income and expense |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| not to be reclassified to | ||||||||||||
| profit or loss | Retained Earnings | |||||||||||
| Adjustment | Share | Other | Other Restricted | Gain/Loss on | Net profit | Equity | ||||||
| Share | to share | Treasury | premium/ | equity reserves appropriated | remeasurement of | Retained | for the attributable | Non-controlling | Total | |||
| capital | capital | shares | discounts | reserves | from profit defined benefit plans | earnings | period to the parent | interest | equity | |||
| 1 January 2023 | 3,800,000 | 51,255,545 | (3,264,964) | 28,930,464 | - | 8,470,072 | - | (1,641,273) | 1,306,714 | 88,856,558 | - | 88,856,558 |
| Transfers | - | - | - | - | - | 215,244 | - | 1,091,470 | (1,306,714) | - | - | - |
| Dividend (*) | - | - | - | - | - | - | - | (1,806,688) | - | (1,806,688) | - | (1,806,688) |
| Increase/(decrease) due to share buy back transactions (**) |
- | - | (957,953) | - | - | - | - | - | - | (957,953) | - | (957,953) |
| Transfers due to sale of shares | - | - | 4,158,269 | - | (4,158,269) | - | - | - | - | - | - | - |
| Share sale price (**) | - | - | - | - | 2,419,065 | - | - | - | - | 2,419,065 | - | 2,419,065 |
| Total comprehensive loss | - | - | - | - | - | - | - | - | (5,882,442) | (5,882,442) | - | (5,882,442) |
| 31 December 2023 | 3,800,000 | 51,255,545 | (64,648) | 28,930,464 | (1,739,204) | 8,685,316 | - | (2,356,491) | (5,882,442) | 82,628,540 | - | 82,628,540 |
| 1 January 2024 | 3,800,000 | 51,255,545 | (64,648) | 28,930,464 | (1,739,204) | 8,685,316 | - | (2,356,491) | (5,882,442) | 82,628,540 | - | 82,628,540 |
| Transfers | - | - | - | - | - | - | - | (5,882,442) | 5,882,442 | - | - | - |
| Total comprehensive income | - | - | - | - | - | - | (22,799) | - | 13,197,381 | 13,174,582 | - | 13,174,582 |
| 31 December 2024 | 3,800,000 | 51,255,545 | (64,648) | 28,930,464 | (1,739,204) | 8,685,316 | (22,799) | (8,238,933) | 13,197,381 | 95,803,122 | - | 95,803,122 |
(*) At the Ordinary General Assembly Meeting held on 31 March 2023, the decision to distribute a cash dividend of TRY1,806,688 from the profits of 2022 was approved by majority vote. Since the Group owns its own shares with a nominal value of TRY1 at a rate of 4.26% as of 31 March 2023, the date of the profit distribution decision, the dividend related to the shares owned by the Group is netted off from the amount of dividends to be distributed. The dividend payment was made on 14 April 2023.
(**) As of 31 December 2023, it shows the effect of purchase/sale considering the orders matched during the period for the shares repurchased.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Audited | Audited | ||
|---|---|---|---|
| 1 January - | 1 January - | ||
| Notes | 31 December 2024 | 31 December 2023 | |
| Cash flows from operating activities | |||
| Profit/(loss) for the period | 13,197,381 | (5,882,442) | |
| Adjustments related to reconcile of net profit for the period | |||
| Adjustments related to depreciation and amortization expenses | 9, 10, 11, 18, 19 | 223,474 | 174,881 |
| Adjustments related to tax expense (income) | 22 | (6,669,447) | (213,873) |
| Adjustments related to (reversal of) impairments (net) | (4,688,690) | (8,088,428) | |
| Adjustments related to (reversal of) impairment of inventories (net) | 8 | (4,688,690) | (8,088,428) |
| Adjustments related to provisions | 271,191 | 435,335 | |
| Adjustments related to (reversal of) provisions for employee benefits | 13 | 90,271 | 388,415 |
| Adjustments related to (reversal of) provision for lawsuit and other | 180,920 | 46,920 | |
| Adjustments for interest (income) and expenses | (1,598,360) | (6,959,898) | |
| Adjustments for interest income | 20, 21 | (5,215,782) | (9,908,486) |
| Adjustments for interest expense | 20, 21 | 3,617,422 | 2,948,588 |
| Adjustments related to (loss)/gain on disposal of property | 757 | (9,692) | |
| (Loss)/gain on sale of property, plant and equipment | 757 | (9,692) | |
| Monetary loss | 4,068,568 | 9,897,546 | |
| Net cash from operations before changes in assets and liabilities | 4,804,874 | (10,646,571) | |
| Changes in net working capital: | |||
| Adjustments related to (increase)/decrease in trade receivable | 2,224,181 | (8,945,154) | |
| Decrease/(increase) in trade receivables from related parties | 4,399,781 | (7,107,078) | |
| Decrease/(Increase) in trade receivables from third parties | (2,175,600) | (1,838,076) | |
| Adjustments related to decrease/(increase) in inventories | (40,611,513) | 17,613,220 | |
| Adjustments related to increase/(decrease) in trade payables | 3,995,482 | 3,631,991 | |
| Increase/(decrease) in trade payables to related parties | - | (2,418,747) | |
| Increase/(decrease) in trade payables to third parties | 3,995,482 | 6,050,738 | |
| Adjustments related to decrease/(increase) in other receivables related to operations | (1,482,640) | (5,691,167) | |
| Adjustments related to increase/(decrease) in other payables related to operations | 9,316,934 | 17,157,783 | |
| Adjustments related to other increase/(decrease) in working capital | (754,370) | (166,007) | |
| Cash flows from operating activities | |||
| Interest received | 190,706 | 1,851,297 | |
| Payments related to provisions for employee benefits | (42,236) | (29,775) | |
| Tax payment | (157,463) | (6,959) | |
| Cash flows from operating activities, net | (22,516,045) | 14,768,658 | |
| Sale of investment properties, property, plant and equipment and intangible assets | 9, 10, 11 | 1,468 | 15,645 |
| Purchases of investment properties, property, plant and equipment and intangible assets | 9, 10, 11 | (585,721) | (254,563) |
| Adjustments related to the increase/decrease in financial investments | (67,257) | - | |
| Cash flows from investing activities | (651,510) | (238,918) | |
| Payments to disposal entity's shares or other equtiy instruments | - | 2,419,065 | |
| Payments to acquire entity's shares or other equtiy instruments | - | (957,953) | |
| Proceeds from borrowings | 5 | 15,742,711 | 9,205,774 |
| Proceeds from loans | 6,933,435 | 2,195,194 | |
| Proceeds from Issue of debt instruments | 8,809,276 | 7,010,580 | |
| Repayments of borrowings | 5 | (6,930,449) | (12,541,215) |
| Loan repayments | (3,093,254) | (6,126,455) | |
| Payments of issued debt instruments | (3,837,195) | (6,414,760) | |
| Interest paid | (2,478,074) | (1,929,879) | |
| Dividends paid | - | (1,806,688) | |
| Interest received | 5,025,076 | 4,919,744 | |
| Cash flow from financing activities | 11,359,264 | (691,152) | |
| Inflation impact on cash and cash equivalents | (3,020,410) | (4,942,171) | |
| Net increase (decrease) in cash and cash equivalents | (14,828,701) | 8,896,417 | |
| Cash and cash equivalents at the beginning of the period | 4 | 21,468,581 | 12,572,164 |
| Cash and cash equivalents at the end of the period | 4 | 6,639,880 | 21,468,581 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Emlak Konut Gayrimenkul Yatırım Ortaklığı A.Ş. ("Emlak Konut GYO" or the "Group") was established on 26 December 1990 as a subsidiary of Türkiye Emlak Bankası A.Ş. The Group is governed by its articles of association, and is also subject to the terms of the decree law about Public Finances Enterprises No. 233, in accordance with the statute of Türkiye Emlak Bankası A.Ş. The Group has been registered and started its activities on 6 March 1991. The Group's articles of association were revised on 19 May 2001 and it became an entity subject to the Turkish Commercial Code No. 4603.
The Company was transformed into a Real Estate Investment Company with Senior Planning Committee Decree No. 99/T-29, dated 4 August 1999, and according to Statutory Decree No. 588, dated 29 December 1999. According to Permission No. 298, dated 20 June 2002, granted by the Capital Markets Board ("CMB") regarding transformation of the Company into a Real Estate Investment Company and permission No. 5320, dated 25 June 2002, from the Republic of Turkey Ministry of Industry and Trade and amendment draft for the articles of association of the Company was submitted for the approval of the Board and the amendment draft was approved at the Ordinary General Shareholders Committee meeting of the Company convened on 22 July 2002, changing the articles of association accordingly.
The articles of association of the Company were certified by Istanbul Trade Registry Office on 29 July 2002 and entered into force after being published in Trade Registry Gazette dated 1 August 2002. As the result of the General Shareholders committee meeting of the Company convened on 28 February 2006, the title of the Company "Emlak Gayrimenkul Yatırım Ortaklığı A.Ş." was changed to "Emlak Konut Gayrimenkul Yatırım Ortaklığı A.Ş."
By the decision of the Board of Directors of Istanbul Stock Exchange Market on 26 November 2010, 25% portion of the Company's class B shares with a nominal value of TRY625,000 has been trading on the stock exchange since 2 December 2010.
The registered address of the Group is Barbaros Mah. Mor Sümbül Sok. No: 7/2 B (Batı Ataşehir) Ataşehir – İstanbul. As of 31 December 2024, the number of employees of the Group is 1,231 (31 December 2023 – 1,142).
The objective and operating activity of the Company is coordinating and executing real estate property projects mostly housing, besides, commercial units, educational units, social facilities, and all related aspects, controlling and building audit services of the ongoing projects, marketing and selling the finished housing. Due to statutory obligation to be in compliance with the Real Estate Investment Companies decrees and related CMB communiqués, The Company cannot be a part of construction business, but only can organize it by auctioning between the contractors.
The consolidated financial statements on 31 December 2024 have been approved by the Board of Directors on 7 March 2025.
The ultimate parent and ultimate controlling party of the Group is T.C. Toplu Konut İdaresi Başkanlığı (the Housing Development Administration of Turkey, "TOKİ"). TOKİ is a state institution under the control of Republic of Turkey Ministry of Enviroment Urbanisation and Climate Change.
Emlak Konut GYO will be referred to as the "Group" with its subsidiaries and interests in joint ventures.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Subsidiaries of Emlak Konut GYO operate in Turkey and their main operations are as follows:
| Subsidiaries | Main Operations |
|---|---|
| Emlak Planlama, İnşaat, Proje Yönetimi ve Tic. A.Ş. | Real Estate Investments |
| Emlak Konut Asansör Sistemleri Sanayi ve Ticaret A.Ş. | Production, Sales and Marketing |
| 31 December 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Direct and indirect ownership rate (%) |
Effective ownership rate (%) |
Direct and indirect ownership rate (%) |
Effective ownership rate (%) |
|
| Emlak Planlama İnşaat Proje Yönetimi ve Ticaret A.Ş. Emlak Konut Asansör Sistemleri Sanayi ve Ticaret A.Ş. |
100 100 |
100 100 |
100 100 |
100 100 |
Shares in Joint Operations of Emlak Konut GYO operate in Turkey and their main operations are as follows:
Dap Yapı İnşaat Sanayi ve Ticaret A.Ş. ve Eltes İnşaat Tesisat Sanayi ve Ticaret A.Ş.Ortak Girişimi – Emlak Konut GYO A.Ş. (" İstmarina AVM Adi Ortaklığı") Shopping Mall and Office Management
Büyükyalı Tesis Yönetimi A.Ş. Shopping Mall and Office Management
| 31 December 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Direct and indirect ownership rate (%) |
Effective ownership rate (%) |
Direct and indirect ownership rate (%) |
Effective ownership rate (%) |
|
| Merkez Cadde Yönetim A.Ş. | 30 | 30 | 30 | 30 |
| İstmarina AVM Adi Ortaklığı | 40 | 40 | 40 | 40 |
| Büyükyalı Tesis Yönetimi A.Ş. | 37 | 37 | 37 | 37 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
The accompanying standalone financial statements of the Company have been prepared in accordance with the communiqué numbered II-14,1 "Communiqué on the Principles of Financial Reporting In Capital Markets" ("the Communiqué") which is published on Official Gazette numbered 28676 dated 13 June 2013 and Turkish Financial Reporting Standards and appendices and interpretations related to them adopted by the Public Oversight Accounting and Auditing Standards Authority ("POA") have been taken as basis. TFRS is updated through communiqués in order to comply with the changes in the Turkish Financial Reporting Standards (TFRS).
The consolidated financial statements are presented in accordance with the formats specified in the "Communiqué on TFRS Taxonomy" published by the POA on 3 July 2024 and the Illustrations of Financial Statements and Application Guidance published by the CMB.
The Group maintains its books of account and prepares its statutory financial statements in accordance with the principals issued by CMB, the Turkish Commercial Code ("TCC"), tax legislation and the Uniform Chart of Accounts issued by the Ministry of Finance. The consolidated financial statements have been prepared on the basis of historical cost, with the necessary adjsutments and classifications reflected in the statutory records in accordance with TFRS.
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company and its subsidiaries. Control is achieved when the Company:
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:
Any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders' meetings.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to owners of the Group.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Company had directly disposed of the related assets or liabilities of the subsidiary (i.e., reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable TFRS). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under TFRS 9 Financial Instruments, when applicable, the cost on initial recognition of an investment in an associate or a joint venture.
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
The results and assets and liabilities of associates or joint ventures are incorporated in these consolidated financial statements using the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for in accordance with TFRS 5. Under the equity method, investments in associates are carried in the balance sheet at cost as adjusted for post-acquisition changes in the Group's share of the net assets of the associate, less any impairment in the value of individual investments. Losses of an associate in excess of the Group's interest in that associate (which includes any long-term interests that, in substance, form part of the Group's net investment in the associate) are not recognized. Additional losses are recognized only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.
Gains and losses arising from transactions between the Group and an associate of the Group are eliminated to the extent of the Group's interest in the relevant associate or joint venture.
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.
It has been decided that institutions registered in CMB and import companies obligated to apply financial statement adjustments stated in TAS/TFRS are required to apply hyperinflation accounting by implementing TAS 29 to financial statements for the year ended 31 December 2024, according to the rule number 81/1820 declared by CMB dated in 28 December 2023.
A statement has been made by POA at 23 November 2023 regarding the scope and implementation of TAS 29. POA stated that corporations implementing TAS/TFRS are required to present their financial statements for the year 31 December 2023 and forward adjusted to the inflation impact according to the accounting principles stated in TAS 29.
TAS 29 is implemented to any financial statements of a company whose functional currency is the currency of a hyperinflation economy, including consolidated financial statements. If an economy experiences hyperinflation, then according to TAS 29, a company whose functional currency is the currency of a hyperinflation economy needs to present its financial statements in terms of unit of measurement effective at the end of period.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Because of cumulative change of purchasing power for the last three years in relation to Consumer Price Index (CPI) is more than 100% as of current period, corporations operating in Turkey are obligated to implement TAS 29 for the year ended 31 December 2023 and forward.
The adjustments made in accordance with IAS 29 were made using the adjustment coefficient obtained from the Consumer Price Index (CPI) of Turkey published by the Turkish Statistical Institute (TSI). As of 31 December 2024, the indices and adjustment coefficients used in the adjustment of the consolidated financial statements are as follows:
| Date | Index | Adjustment | 3-year cumulative |
|---|---|---|---|
| correlation | inflation ratios | ||
| 31.12.2024 | 2,684.55 | 1.00000 | 291% |
| 31.12.2023 | 1,859.38 | 1.44379 | 268% |
| 31.12.2022 | 1,128.45 | 2.37897 | 156% |
Procedure of TAS 29 is presented below:
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Items included in the consolidated financial statements of the Group are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The functional currency of the Group is TRY and the reporting currency is thousand TRY.
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to set-off the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.
Significant changes in accounting policies and significant accounting errors are applied retrospectively and the financial statements of the previous periods are restated if the financial position, performance or cash flow effects of transactions and events are presented in a more appropriate and reliable manner.
The information presented in Additional Note of this report, regarding control of conformity with the portfolio limitations, is a summary information extracted from financial statements in accordance with Article 16 of Communiqué No: II-14.1, "Principles of Financial Reporting in Capital Markets" and is prepared in accordance with the provisions of the control of portfolio limitations of Communiqué No: III-48.1, "Principles Regarding Real Estate Investment Companies".
The significant accounting policies followed in the preparation of these consolidated financial statements are summarized below:
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Cash and cash equivalents comprise cash in hand, bank deposits and highly liquid investments, whose maturity at the time of purchase is less than three months and conversion risk on value at the date of sale is immaterial. The contractors' portion of the residential unit sales from the LSRSA projects under construction and which accumulated in the bank accounts opened under the control of the Group is kept in deposits accounts in the name of the related projects under the control of the Group as stated in the agreement. However, since the Group does not have the right of disposition of the cash and cash equivalents used in the cash flow statements, except for keeping these amounts in time deposit accounts, these amounts are exempted from cash and cash equivalents in the cash flow statement (Note 4).
Shareholders, key management personnel, Board of Directors, close family members, and companies which are controlled by those are regarded as related party for the purpose of preparation of these consolidated financial statements. In accordance with TAS 24 – Related party standards, the description of related parties has been restricted. The Group has also transactions with State owned banks and the Republic of Turkey Ministry Under Secretariat of Treasury (the ''Treasury'') however quantitative information regarding Turkish State Banks and Treasury is not disclosed in accordance with this exemption. The ultimate parent and ultimate controlling party of the Group is ("TOKİ"). TOKİ is a State institution under control of Republic of Turkey Prime Ministry. The transactions made between the Group and TOKİ and its affiliates are presented in Note 24.
The foreign exchange transactions during the year are translated using the prevailing exchange rates on the related transaction dates. The foreign currency exchange gain and losses that arise by the exchange rate change based on monetary assets and liabilities are presented in the comprehensive income statement.
The Group classifies its financial assets as "Financial assets at amortised cost", "fair value through other comprehensive income", "fair value through profit or loss". The classification is based on the business model used by the entity for the management of financial assets and the characteristics of the contractual cash flows of the financial asset. The Group makes the classification of its financial assets on the date of purchase. Financial assets are not reclassified after initial recognition, except where the business model of the Group used is changed for the management of financial assets, in case of a change in business model, the financial assets are reclassified on the first day of the following reporting period.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
"Financial assets measured at amortized cost" are non-derivative financial assets that are held within a business model whose objective is to collect contractual cash flows, including cash flows that include only the interest payments on principal dates and principal balances at certain dates. The Group's financial assets that are recognized at amortized cost include "cash and cash equivalents", "trade receivables" and "other receivables". In the initial recognition, the related assets are measured at fair value, and, in subsequent accounting, they are measured at discounted cost using the effective interest rate method. Gains and losses resulting from the valuation of non-derivative financial assets measured at amortized cost are recognized in profit or loss.
"Financial assets measured at FVTOCI" are non-derivative financial assets that are held within a business model whose objective is to collect contractual cash flows, including cash flows that include only the interest payments on principal dates and principal balances at certain dates. Gains or losses resulting from the related financial assets are recognized in other comprehensive income, except for impairment losses or gains and foreign exchange income or expenses. In case of sale of such assets, the valuation differences classified in other comprehensive income are classified to prior years' profits. For investments in equity-based financial assets, the Group may irrevocably choose the method of reflecting subsequent changes in the fair value of other comprehensive income to the financial statements for the first time. In the event that such preference is made, dividends received from related investments are recognized in the income statement.
"Financial assets measured at fair value through profit or loss", are assets that are not measured at amortised cost or at fair value through other comprehensive income. Gains and losses on valuation of these financial assets are accounted for under the consolidated statement of income.
The Group derecognizes financial assets when the rights related to the cash flows that occur in accordance with the contract related to the financial asset expire or when the Group transfers the ownership of all the risks and returns related to the financial asset through a trading transaction. Any rights created or retained to the financial assets transferred by the Group are recognized as a separate asset or liability.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Impairment on financial assets and contractual assets is calculated using the "expected credit loss financial model" (ECL). Impairment model is applied to amortized cost financial assets and contractual assets. Loss provisions were measured on the following basis;
12-month ECLs: ECLs resulting from possible default events within 12 months of the reporting date.
Lifetime ECLs: the ECLs resulting from all possible default events during the expected life of a financial instrument. Lifetime ECL measurement is applied at the reporting date when the credit risk associated with a financial asset increases significantly after the initial recognition. In all other cases where the related increase was not observed, the 12 month estimation of ECL was applied.
The Group may determine that the credit risk of the financial asset does not increase significantly if the credit risk of the financial asset has a low credit risk at the reporting date. Nevertheless, lifelong ECL measurement (simplified approach) is always applicable to trade receivables and contract assets without a significant financing element.
Trade receivables are recognized at amortized value of the amount will be received in the following periods from receivables recorded at original invoice value. Short-term receivables with no stated interest rate are measured at the original invoice amount unless the effect of imputing interest is significant. A "simplified approach" is applied for the impairment of trade receivables, which are accounted for at amortized cost and which do not include a significant financing component (less than one year). In cases where the trade receivables are not impaired due to certain reasons (except for the realized impairment losses), the provisions for losses are measured by an amount equal to the "life time expected loan losses".
In the event that all or some of the amount of the receivable that is impaired is collected following the provision for impairment, the amount collected is recognized in other income from operating activities by deducting the provision for impairment.
Income/expenses from maturity differences and foreign exchange gains/loss related to transactions are recognized under "Other Income/Expenses from Operating Activities" in the statement of profit or loss.
Trade payables consist of payables to suppliers for purchases of goods and services. Trade payables and other liabilities are offset from unaccrued financial expenses. Trade payables and other liabilities after unaccrued financial expenses are calculated by discounting the amounts to be paid of payables recognized at original invoice cost in the subsequent periods, using effective interest method. Shortterm payables without a determined interest rate stated at amortized cost if the effect of the original effective interest rate is not too significant. HAS payables are classified as short-term payables and stated at carrying value since they will be paid upon beneficiaries' request.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Financial liabilities are classified as at FVTPL on initial recognition. Financial liabilities are recognized with their acquisition costs including transaction costs and then measured at amortized cost value using the effective interest rate method. In cases where the contractual obligations are fulfilled or canceled; The Group derecognizes the financial liability from its records (Note 5).
Provision for employee termination benefit defines the current value of total expected provision for the liabilities due to retirement of the employees. Under Turkish labor law, the Group is required to pay termination benefits to each employee who has completed at least one year of service and whose employment is terminated without due cause, is called up for military service, dies or who retires after completing 25 years of service (20 years for women) and reaches the retirement age (58 for women and 60 for men). Since the legislation was changed on 23 May 2002, there are certain transitional provisions relating to length of service prior to retirement. The amount payable consists of one month's salary limited to a maximum of full TRY 41,828.42 as of 31 December 2024 (31 December 2023: full TRY 23,489.83).
The provision for the present value of the defined benefit obligation is calculated by using the projected liability method. All actuarial profits and losses are recognized in the statement of comprehensive income.
TFRS requires actuarial valuation estimates to be developed to estimate the obligation underdefined benefit plans. In the individual financial statements, the Group calculates a liability on the basis of its experience in the previous years, based on its experience in the past, and on the beneficiaries of the severance payment as of the date of termination. This provision is calculated by estimating the present value of the future probable obligation of the employees.
The principal actuarial assumption is that the maximum liability will increase in line with inflation. Thus, the effective discount rate applied represents the expected real interest rate after adjusting for the effects of future inflation. As the maximum liability amount is revised semi-annually by the authorities, the maximum amount of full TRY 46,655.43 which is effective from 1 January 2025 has been taken into consideration when calculating the liability (1 January 2024: full TRY 41,828.42) (Note 13).
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are not recognised for future operating losses.
Contingent assets or contingent obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group are not included in consolidated financial statements and are treated as contingent assets or liabilities.
The Group has four types of inventories in its consolidated financial statements. These are;
Vacant land and plots are carried at lower of cost or net realizable value and represent vacant land and plot of the Group with no ongoing or planned construction project on them. Such land and plots are classified as inventories because the Group uses such land and plots the development of residual and commercial units, as explained below, which are also classified as inventories.
Turnkey projects are valued at lower of cost or net realizable value. Turnkey projects costs consist of construction costs of the semi-finished residential units together with the cost of land (progress payments to contractor) on which these projects are developed. Upon completion of residential units costs including the cost of land are classified under completed residential unit inventories.
The Group enters into revenue sharing agreements with construction entities to maximize sales proceeds from the sale of its vacant land and plots. Such land and plot sold subject to revenue share agreements to construction entities are accounted at cost until sale is recognized.
Completed residential and commercial units comprise units build in Turnkey projects and units transferred to the Group by the contractor in order to meet minimum revenue stated in the agrements when the projects can not reach the expected revenue as stated in the agreements signed within the framework of LSRSA.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Completed residential and commercial unit inventories are valued at lower of cost or net realizable value.
The Group takes into consideration independent expert valuation reports for inventory (land, finished and semi-finished residential and commercial units) separately at least once a year and uses these reports to assess impairment if any. Fair values are determined on the basis of the price that would be realized on the valuation date between a willing buyer and a willing seller in an arm's length transaction, using the arm's length comparison method. Impairments are recognized under other expenses from operations in the statement of profit or loss and comprehensive income in the period during which they are incurred. Impairments released are recognized under other income from operations when the relevant land or residential are sold.
Property and equipment are carried at cost less accumulated depreciation and provision for impairment, if any. The cost value also includes costs that can be directly attributed to the asset to perform its operation as planned. Depreciation is calculated over of the cost of property and equipment using the straight-line method based on expected useful lives (Note 10).
The expected useful lives for property, plant and equipment are stated below:
| Years | |
|---|---|
| Buildings | 50 |
| Motor vehicles | 5 |
| Furniture and fixtures | 4-5 |
| Machinery and equipment | 5 |
The cost of major subsequent expenditures is included in the carrying amount of the asset when it is probable that future economic benefits in excess of the originally assessed of performance of the existing asset will flow to the Group and major subsequent expenditures are depreciated over the remaining useful life of the related assets. All other expenses other than these items are recognized as expense.
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down to its recoverable amount and the provision for impairment is charged to the income statement.
Gains and losses on the disposal of property and equipment are determined by comparing the carrying of the property and equipment with the collected amount and then included in the related income and expense accounts, as appropriate.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Intangible assets comprise of licenses and computer software. They are initially recognized at acquisition cost and amortized on a straight-line basis over 5 years their estimated useful lives (Note 11). Whenever there is an indication that the intangible is impaired, the carrying amount of the intangible asset is reduced to its recoverable amount.
Investment properties are defined as land and buildings held to earn rental income or capital appreciation or both, rather than for use in the production of goods or services or for administrative purposes; or sale in the ordinary course of business. The Group uses cost model for all investment properties. Investment properties are presented in the consolidated financial statements at cost less accumulated depreciation and less impairment, if any (Note 9). Investment properties consist of residences and buildings and their economic life is 40 years.
The Group reviews all assets subject to amortization at each balance sheet date in order to see if there is a sign of impairment on the stated asset. If there is such a sign, carrying amount of the stated asset is projected. Impairment exists if the carrying value of an asset is greater than its net realizable value. Net recoverable value is the higher of the net sales value or value in use. Value in use is the present value of cash flows generated from the use of the asset and the disposal of the asset after its useful life.
Impairment losses are recorded in the comprehensive income statement. Impairment loss for an asset is reversed, if an increase in recoverable amount is related to a subsequent event following the booking of impairment by not exceeding the amount reserved for impairment. The Group takes the valuation reports for each property separately into consideration over investment property at least once a year to compare carrying value of assets with its net recoverable value and calculate the impairment if any.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Turkish tax legislation does not permit a parent company and its subsidiary to file a consolidated tax return. Therefore, provisions for taxes, as reflected in the accompanying consolidated financial statements, have been calculated on a separate-entity basis.
Income tax expense represents the sum of the tax currently payable and deferred tax.
According to Article 5/1(d)(4) of the Corporate Tax Law No. 5520 ("CTL"), income derived from real estate investment trusts (REITs) is exempt from corporate tax. However, with Law No. 7524, certain conditions have been introduced for the corporate tax exemption applicable to REITs as of 1 January 2025. Accordingly, if at least 50% of the income derived from real estate is distributed as dividends, the tax rate applicable to corporate income will be 10%. Therefore, a 30% tax rate, applicable to undistributed profits, is used in the calculation of current and deferred tax assets and liabilities. The subsidiaries, associates, and joint ventures of the Group are subject to corporate tax applicable in Turkey. Necessary provisions have been recognized in the accompanying financial statements for the Group's estimated tax liabilities related to the current period's operating results.
Due to tax regulations, taxable or deductible temporary differences recognized in the financial statements as of 31 December 2024, have been calculated by applying the 30% tax rate applicable to undistributed profits for periods after 1 January 2025, to determine deferred tax liabilities or assets. In accordance with the letter titled "Reporting of Tax Amounts in Real Estate Investment Trusts and Real Estate Investment Funds" sent to REITs by the Public Oversight, Accounting, and Auditing Standards Authority (POA) on 12 February 2025, the deferred tax asset arising from the legislative change is reflected in the statement of profit or loss for 2024 in the financial statements dated 31 December 2024.
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases which is used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are recognized for all taxable temporary differences, whereas deferred tax assets consist of deductible temporary differences are recognized on the condition that it is highly probable that the differences can be utilised by earning future taxable profit. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.
Operating segments shall be reported in a manner consistent with the internal reporting provided to the chief operating decision-makers. However, since the Group operates in only one geographical segment (Turkey) and all of its operations are concentrated in one industrial department (development of residential projects on its vacant land and plot inventories), the Group does not prepare a segment report.
Chief operating decision maker of the Group is its Board of Directors. Board of Directors uses quarterly consolidated financial statements of the Group prepared in accordance with the TFRS when making decisions.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
The Group recognizes revenue in the financial statements within the 5-step model below in accordance with TFRS 15 "Revenue from Contracts with Customers" standard that is effective as of 1 January 2018.
Revenue is comprises of sale of vacant land and plots, sale of residential units produced by turnkey projects and sale of land and plots by way of LSRSA.
Revenue is recognized when the unprojectized lands are transferred to the customer according to the contract and performance obligations are fulfilled. Unprojectized land are carried over when the customer takes control of the land.
Revenue is recognized when the independent units are transferred to according to the contract and performance obligations are fulfilled. Residential units are carried over when the customer takes control of the units.
The Group recognizes the revenue for the sale of land by way of LSRSA when performance obligations (the one before the signing of the temporary acceptance protocol with the contractor or the signing of the delivery protocol with the buyer) are fulfilled. In cases where the temporary acceptance protocol or delivery protocol with the buyer is not signed, the Group follows-up its revenue share in the deferred revenue (Note 15) and the share of the construction entity as a liability to contractors (Note 5). The Group's share in the Total Sales Revenue ("TSR") is recorded as revenue from sale of land and the related cost of land is recognised as cost of land sold in the comprehensive income statement (Note 17).
The Group provides project consultancy services as its core business. Within the scope of consultancy services, the Group undertakes works such as controlling the production processes of customers' projects, sales and follow-up of the project to third parties. The Company recognizes consultancy income on a periodic accrual basis, taking into account the substance of the contract.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Interest income and expense are recognised on an accrual basis using the internal rate of return method. Interest income comprises mostly interest income from time deposits and interest income from credit sales of residences (Note 21).
Ordinary shares are classified in equity. Costs related to the issue of new shares are recognized in equity less the amounts discounted by tax effect.
Repurchased shares are recognized in the financial statements in accordance with the CMB's Communiqué No. II-22.1 "Treasury Shares". In the statements of shareholders' equity, it is recorded under "Repurchased Shares" account. In addition, in accordance with the related communiqué the amount equal to the repurchase price of the repurchased shares as "Reserves related to the repurchased shares restricted reserves".
Share premiums represent the difference between the fair value of the shares held by the Group at a price higher than the nominal value of the Group or the difference between the fair value and the fair value of the shares of the Group that the Group has acquired. Expenses that are directly attributable to the secondary public offering, in which the shares are re-issued and provide cash inflows to the Group, are deducted from the premiums on issue of share sales.
Earnings per share are determined by dividing net comprehensive income by the weighted average number of shares that have been outstanding during the period concerned.
In Turkey, companies can increase their share capital by making a pro rata distribution of their shares "bonus shares" to existing shareholders funded from retained earnings. For the purpose of earnings per share computations, such "bonus share" issuances are regarded as issued shares. Accordingly, the weighted average number of shares used in earnings per share computations are determined by taking into consideration the retroactive effect of aforementioned share distributions. In case of increase in issued shares after balance sheet date but before the date that consolidated financial statement is prepared due to the bonus share distribution, earning per share calculation is performed taking account of total new share amount.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
HAS was a compulsory of saving fund, established by the state to be used by fund participants in the future for acquisition of affordable housing between 1987 and 1995. This system aimed to collect the deducted amounts in a single account, apply interest to the savings and provide the employees with these contributions at the time they wish to acquire a house/residential unit in the future. However, this project was suspended in 1996 and as per decree law No. 588, issued in 1999, the decision was taken to terminate the HAS accounts. With this decree law, real estate corresponding to the monetary value of the HAS deductions which were held by Emlak Bankası was transferred to the Company.
Within the scope of Law No. 5664, dated 30 May 2007, and the regulation issued on 14 August 2007, the decision was taken to pay back these savings, which were still held as capital in kind in the accounts of the Company, to the HAS beneficiaries. Accordingly, the shares of HAS beneficiaries were removed from the Company's equity capital and comprehensive income for the current period based on the ratios specified in the law and recognized as debts to HAS beneficiaries under other payables. The amount payable was determined as the share in the net asset value of the Company at 28 February 2008. The payable amount does not bear any interest or does not change with subsequent changes in the net asset value in subsequent periods and is payable on demand any date after 28 February 2008. The Company has borrowed funds from the Treasury to make such payments.
In addition, the Treasury has an interest liability against HAS beneficiaries calculated before 1999. In accordance with an agreement signed in 2008, the Company undertook this liability on behalf of the Treasury and recorded as payable be paid together with the Company's own payables. However, Company resources are not used for this extra liability. Since all payments are made on behalf of the Treasury, they are instantly collected by cashing the government bonds given for these payments from the Treasury to the Company beforehand.
In accordance with the relevant articles of Law No. 5564 on HAS to the Owners of KEY and Payment to the Rightholders, the receivables that are not requested within five years from the announcement date are recorded as revenue to the Treasury. Due to the expiry of the payment request period of the beneficiaries in the current period, the Company's receivables and debts obligations within the scope of HAS have expired.
Dividends payable are recognized as an appropriation of the profit in the period in which they are declared and reflected in the Group's financial statements as liability.
Cash flows during the period are classified and reported by operating, investing and financing activities in the cash flow statements.
Cash flows from operating activities represent the cash flows of the Group generated from its main activities. Cash flows related to investing activities represent the cash flows that are used in or provided from the investing activities of the Group (fixed investments and financial investments).
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Cash flows arising from financing activities represent the cash proceeds from the financing activities of the Group and the repayments of these funds.
Cash and cash equivalents comprise cash on hand and bank deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash with maturities equal or less than three months.
Events after the reporting period cover any events that arise between the reporting date and the balance sheet date, even if they occurred after any declaration of the net profit for the period or specific financial information publicly disclosed. The Company adjusts its standalone financial statements if such events arise which require an adjustment to the standalone financial statements (Note 30).
The preparation of financial statements requires the use of assumptions and estimates that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues expenses which are reported throughout the period. Even though these assumptions and estimates rely on the best estimates of the Group management both the actual results may differ and not material for these financial statements.
When the estimated net realizable value of land and commercial units is less than the cost value, the allowance is recognized to reduce the value of inventories to their estimated net realizable value. As of 31 December 2024, valuation reports prepared by Net Kurumsal Gayrimenkul Değerleme ve Danışmanlık A.Ş., Form Gayrimenkul Değerleme ve Danışmanlık A.Ş. and Yetkin Gayrimenkul Değerleme ve Danışmanlık A.Ş. have been taken into consideration when determining the net realizable value of lands and residential inventories.
As of 31 December 2024, lawsuits filed against the Company, possible and potential lawsuits against the Company Provision has been recognized for the parts for which an outflow of resources is probable, based on the opinion of the lawyers. According to the legal judgment of the lawyers, there is no risk of outflow of resources for the cases for which no provision has been recognized. is not seen.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
To facilitate the identification of financial position and performance trends, the Group's consolidated financial statements are prepared on a comparative basis with the previous period. Comparative information is reclassified when necessary to ensure consistency with the presentation of the current period's consolidated financial statements, and significant differences are explained.
Except for the changes mentioned in the paragraph below, the Group has applied consistent accounting policies in its consolidated financial statements for the presented periods and has not made any significant changes in accounting policies or estimates during the current period.
In order to align with the presentation in the cash flow statement dated 31 December 2024, the monetary loss/gain balance of TRY 9,884,342 on cash and cash equivalents as of 31 December 2023, has been reclassified to monetary loss/gain arising from operating activities.
The Consolidated financial statements as of 31 December 2024 have been prepared by applying accounting policies that are consistent with the accounting policies applied in the preparation of the financial statements for the year ended 31 December 2024. Therefore, the consolidated financial statements should be read together with the end-of-year financial statements in order to create coherence.
The accounting policies adopted in preparation of the consolidated financial statements as of 31 December 2024 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and Turkey Financial Reporting Interpretations Committee's ("TFRIC") interpretations effective as of 1 January 2024.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the financial statements are as follows. The Company will make the necessary changes if not indicated otherwise, which will be affecting the financial statements and disclosures, when the new standards and interpretations become effective.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Cash on hand | 91 | 111 |
| Banks | 6,151,030 | 22,204,157 |
| - Demand deposit | 431,934 | 112,881 |
| - Time deposits with maturities less than 3 months | 5,719,096 | 22,091,276 |
| Other cash and cash equivalents | 2,130,263 | 703,868 |
| 8,281,384 | 22,908,136 |
Maturities of cash and cash flows are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Demand | 431,934 | 112,881 |
| Up to 3 month | 5,719,096 | 22,091,276 |
| 6,151,030 | 22,204,157 |
Average effective annual interest rates on time deposits in TRY on the balance sheet date:
| 31 December 2024 | 31 December 2023 |
|---|---|
| (%) | (%) |
| 46.34 Effective annual interest rate |
40.58 |
The calculation of cash and cash equivalents of the Group for the use in statements of cash flows is as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Cash and cash equivalents | 8,281,384 | 22,908,136 |
| Less: Interest accruals on deposits | (3,079) | (173,208) |
| Less: LSRSA project deposits (*) | (1,641,783) | (1,290,341) |
| Add: the effect of provisions released under TFRS 9 | 3,358 | 23,994 |
| 6,639,880 | 21,468,581 |
(*) The contractors' portion of the residential unit sales from the LSRSA projects under construction and which accumulated in the bank accounts opened under the control of the Group is kept in deposits accounts in the name of the related projects under the control of the Group as stated in the agreement. There is no blocked deposit (31 December 2023: None) project accounts amounting TRY1,641,783 (31 December 2023: TRY1,290,341).
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Short-term financial liabilities | ||
| Short-term bank loans | 6,458,455 | 216,981 |
| Issued debt instruments (*) | 5,147,500 | 1,299,409 |
| Short-term portion of long-term borrowings | 1,296,184 | 3,150,003 |
| Lease obligation | 3,039 | 1,363 |
| 12,905,178 | 4,667,756 |
(*) The Company issued lease certificates on various dates, including 9 September 2024 (TRY 1,122,000 and TRY 500,000, maturing on 10 January 2025, at 45%), 10 October 2024 (TRY 1,000,000, maturing on 16 January 2025, at 46%), 13 November 2024 (TRY 1,000,000, maturing on 12 February 2025, at 44%), 25 November 2024 (TRY 300,000, maturing on 26 May 2025, at 43%), and 10 December 2024 (TRY 1,225,500, maturing on 12 June 2025, at 42.5%), while previously issuing two lease certificates on 5 October 2023 (TRY 577,515, maturing on 3 January 2024, with a 38% profit share) and 15 November 2023 (TRY 721,894, maturing on 15 February 2024, with a 40% profit share).
| Long-term financial liabilities | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Long-term borrowings | - | 1,823,979 |
| Lease obligation | 19,465 | 8,143 |
| 19,465 | 1,832,122 |
Borrowings used as of 31 December 2024 are denominated in TRY and the weighted average interest rate is 48.38% (31 December 2023: 20.66%).
The redemption schedules of the borrowings as of 31 December 2024 and 31 December 2023 are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| 2025 | - | 1,823,979 |
| - | 1,823,979 |
The maturity distributions of the borrowings are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Less than 3 months | 2,345,300 | 1,435,992 |
| Between 3 - 12 months | 10,556,839 | 3,230,401 |
| Between 1 - 5 years | - | 1,823,979 |
| 12,902,139 | 6,490,372 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
As of 31 December 2024 and 2023, the movement schedule of financial borrowings is as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance, 1 January | 6,490,372 | 14,717,757 |
| Additions during the period | 15,742,711 | 9,205,774 |
| Payments during the period | (6,930,449) | (12,541,215) |
| Interest accruals | 1,139,348 | 1,164,722 |
| Monetary loss | (3,539,843) | (6,056,666) |
| Closing balance, 31 December | 12,902,139 | 6,490,372 |
| Short-term trade receivables | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Receivables from sale of residential and commercial units | 4,288,410 | 2,803,094 |
| Receivables from contractors of the lands | ||
| invoiced under LSRSA | 1,225,209 | 2,024,872 |
| Receivables from land sales | 1,110,492 | 1,179,140 |
| Notes of receivables | 149,567 | 305,212 |
| Receivables from lessees | 69,501 | 99,493 |
| Due from related parties (Note 24) | 7,738 | 5,437,793 |
| Other | 20,174 | 12,783 |
| Unearned finance income | (691,418) | (446,936) |
| 6,179,673 | 11,415,451 | |
| Doubtful receivables | 12,462 | 7,570 |
| Less: Provision for doubtful receivables | (12,462) (3,414) | (7,123) (7,570) |
| 6,179,673 | 11,415,451 | |
| 31 December 2024 | 31 December 2023 | |
| Long-term trade receivables | ||
| Receivables from sale of residential and commercial units | 5,762,153 | 5,855,503 |
| Receivables from land sales | 710,650 | 2,102,269 |
| Unearned finance income | (2,126,825) | (1,433,148) |
| 4,345,978 | 6,524,624 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Short-term trade payables | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Trade payables | 5,764,136 | 3,631,785 |
| Payables to LSRSA contractors invoiced | 1,475,278 | 1,333,892 |
| Interest accruals on time deposits of contractors (*) | 244,979 | 911,828 |
(*) The contractors' portion of the residential unit sales from the LSRSA projects under construction and which accumulated in the bank accounts opened under the control of the Group is kept in deposits accounts in the name of the related projects under the control of the Group as stated in the agreement. The Group tracks the contractor's share of the interest obtained from the advances accumulated in these accounts in short-term payables.
7,484,393 5,877,505
| 369,224 | 533,485 |
|---|---|
| 369,224 | 533,485 |
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Short-term other receivables | ||
| Advances given to contractor firms | 802,116 | 778,890 |
| Other receivables from related parties (Note 24) | 260,008 | 103,394 |
| Receivables from the authorities | 31,843 | 40,422 |
| Other | 96,433 | 499,465 |
| 1,190,400 | 1,422,171 | |
| 31 December 2024 | 31 December 2023 | |
| Long-term other receivables | ||
| Other receivables from third parties | 24,737 | 33,086 |
| Deposits and guarantees given | 1,014 | 1,464 |
| 25,751 | 34,550 | |
| 31 December 2024 | 31 December 2023 | |
| Short-term other payables | ||
| Taxes and funds payable | 2,901,914 | 1,563,775 |
| Other payables to related parties (Note 24) | 671 | 866 |
| Other | 126,502 | 133,799 |
| 3,029,087 | 1,698,440 |
As of 31 December 2024, other long-term payables are amount to TRY 472,836 and consist of deposits and guarantees received (31 December 2023: TRY 303,974)
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Lands | 49,330,319 | 26,997,245 |
| Cost | 53,007,743 | 35,241,795 |
| Impairment | (3,677,424) | (8,244,550) |
| Planned land by LSRSA | 43,820,333 | 48,637,834 |
| Planned land by turnkey project | 11,812,160 | 31,161,158 |
| Planned land by turnkey project | 11,812,160 | 38,170,369 |
| Impairment (*) | - | (7,009,211) |
| Residential and commercial units ready for sale | 42,110,545 | 12,341,363 |
| Cost | 50,200,505 | 13,998,283 |
| Impairment | (8,089,960) | (1,656,920) |
| Inventories of Emlak Konut Asansör | 2,488,684 | 1,070,557 |
| Advances given for inventories (**) | 17,656,962 | 1,710,643 |
| Cost | 18,111,569 | 1,710,643 |
| Impairment | (454,607) | - |
| 167,219,003 | 121,918,800 |
(*) It is the provision for impairment due to the increase in construction costs in the Global and Turkish markets.
(**) As of 31 December 2024, TL 15,118,731 of the advances given for inventory consists of the amount paid for 1,615 independent units purchased within the scope of the Yeni Fikirtepe Project, undertaken on behalf of the Republic of Türkiye Ministry of Environment, Urbanization, and Climate Change.
The determination of the net realizable value of the Company's assets classified as "Inventories" and the calculation of any impairment provision, if necessary, have been based on valuation reports prepared by Net Kurumsal Gayrimenkul Değerleme ve Danışmanlık A.Ş., Form Gayrimenkul Değerleme ve Danışmanlık A.Ş., and Yetkin Gayrimenkul Değerleme ve Danışmanlık A.Ş. as of 31 December 2024.
The movements of impairment on inventories are as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance at 1 January | 16,910,681 15,912,942 |
24,999,109 23,524,147 |
| Impairment on inventories within the current period |
2,418,720 | 10,007,089 |
| Reversal of impairment on invetories within the current period |
(7,107,410) | (18,095,517) |
| Closing balance at 31 December | 12,221,991 | 16,910,681 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
As of 31 December 2024 and 2023 the details of land and residential inventories of the Group are as follows:
| Lands | 31 December 2024 | 31 December 2023 |
|---|---|---|
| İstanbul Esenler Lands |
20,848,361 | 5,010,556 |
| İstanbul Küçükçekmece Lands |
8,316,344 | 7,204,817 |
| İstanbul Avcılar Lands |
5,808,911 | 4,159,539 |
| Muğla Bodrum Lands | 4,840,510 | 5,260,891 |
| İzmir Çeşme Lands |
1,691,905 | - |
| Aydın Didim Lands | 1,604,384 | - |
| İstanbul Başakşehir Lands |
1,189,657 | 1,469,813 |
| Antalya Alanya Lands | 1,005,378 | - |
| İstanbul Arnavutköy Lands |
881,704 | 640,248 |
| İstanbul Çekmeköy Lands |
721,048 | 695,146 |
| İstanbul Kartal Lands |
591,033 | 129,407 |
| İzmir Urla Lands |
486,495 | 459,110 |
| İzmir Aliağa Lands |
366,386 | 302,300 |
| İstanbul Resneli Lands |
208,956 | 229,285 |
| Antalya Konyaaltı Lands | 166,675 | - |
| İzmir Seferihisar Lands |
116,677 | 170,764 |
| Tekirdağ Çorlu Lands | 107,068 | 106,591 |
| Zonguldak Merkez Lands | 97,909 | - |
| İstanbul Tuzla Lands |
97,720 | 98,248 |
| Sakarya Sapanca Lands | 61,009 | 66,947 |
| İstanbul Eyüp Lands |
56,293 | 571,529 |
| Yalova Lands | 41,172 | - |
| İstanbul Sarıyer Lands |
14,022 | 14,275 |
| Kocaeli Lands | 6,438 | 21,840 |
| Muğla Milas Lands | - | 213,311 |
| İzmir Konak Umurbey Lands |
- | 70,323 |
| Balıkesir Lands | - | 18,875 |
| Ankara Çankaya Lands | - | 30,231 |
| Other | 4,264 | 53,199 |
| 49,330,319 | 26,997,245 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Planned land by LSRSA | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Nidapark İstinye Project |
6,566,899 | 6,570,542 |
| Bizim Mahalle 2. Etap 2. Kısım Project | 3,654,680 | 3,656,865 |
| Merkez Ankara Project | 3,278,179 | 3,279,993 |
| Nidapark Küçükyalı Project | 3,229,163 | 3,230,950 |
| Yeni Levent Project | 2,319,672 | 2,318,203 |
| Bizim Mahalle 2. Etap 1. Kısım Project | 2,129,751 | 2,130,930 |
| Çekmeköy Çınarköy Project | 2,016,069 | 2,017,184 |
| Batıyakası 2. Etap Project | 1,725,138 | 1,726,092 |
| Next Level İstanbul Project |
1,597,530 | 1,598,414 |
| Beşiktaş Akat Project | 1,572,831 | 1,538,585 |
| Ümraniye İnkılap Project |
1,458,229 | 1,457,655 |
| İstanbul Kayabaşı 9. Etap Project |
1,426,554 | 1,427,343 |
| Başakşehir Ayazma 4. Etap Project | 1,288,970 | 1,289,684 |
| İstanbul Tuzla Merkez Project |
1,274,470 | 1,275,175 |
| Meydan Başakşehir Project | 986,009 | 1,910,120 |
| İstanbul Kayabaşı 8. Etap Project |
973,331 | 966,822 |
| Batıyakası 1. Etap Project | 946,827 | 1,122,910 |
| İstanbul Eyüpsultan Kemerburgaz Project |
930,793 | 931,265 |
| Avcılar Firüzköy 1. Etap 2. Kısım Project | 899,554 | 900,450 |
| Avcılar Firüzköy 2. Etap Project | 888,487 | 888,978 |
| Avcılar Firüzköy 1. Etap 1. Kısım Project | 826,583 | 826,242 |
| Nişantaşı Koru Project | 736,564 | 4,582,732 |
| Bodrum Türkbükü Project | 670,076 | 670,447 |
| Nezihpark Project | 410,857 | 411,072 |
| Antalya Aksu Project | 361,074 | 360,186 |
| Barbaros 48 Project | 354,194 | 354,147 |
| İstanbul Ataşehir Küçükbakkalköy Project |
332,992 | 333,174 |
| İstanbul Kayabaşı 10. Etap Project |
311,110 | 311,282 |
| Muğla Milas Meşelik Project | 213,322 | - |
| Cer İstanbul Project |
205,123 | 205,237 |
| Ankara Çayyolu 2. Etap Project | 174,842 | 174,874 |
| Allsancak Project | 37,926 | - |
| Other | 22,534 | 170,281 |
| 43,820,333 | 48,637,834 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Residential and commercial units ready for sale | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Çekmeköy Konut Parselleri 2. Etap Project | 5,276,075 | - |
| Çekmeköy Villa Parselleri Project | 4,847,232 | - |
| Merkez Ankara Project | 4,150,047 | 5,494,454 |
| Çekmeköy Konut Parselleri 3. Etap 4. Kısım Project | 3,855,318 | - |
| Çekmeköy Konut Parselleri 3. Etap 1. Kısım Project | 3,082,650 | - |
| Çekmeköy Konut Parselleri 3. Etap 3. Kısım Project | 2,789,659 | - |
| Ataşehir Küçükbakkalköy Project | 2,625,000 | - |
| Bizim Mahalle 1. Etap 3. Kısım Project | 2,510,550 | - |
| Balıkesir Altıeylül Gümüşçeşme Project | 2,237,388 | - |
| Saraçoğlu Mahallesi Project | 1,921,564 | - |
| Kuzey Yakası Project | 1,725,533 | 1,980,171 |
| Maslak 1453 Project | 1,309,970 | 1,398,355 |
| Çekmeköy Konut Parselleri 4. Etap 3. Kısım Project | 1,161,240 | - |
| Bizim Mahalle 1. Etap 4. Kısım Project | 939,834 | - |
| Komşu Finans Evleri Project | 798,858 | 1,052,178 |
| Hoşdere Vadi Evleri 1. Etap Project | 714,495 | - |
| Çekmeköy Konut Parselleri 4. Etap 1. Kısım Project | 381,011 | - |
| Hoşdere Vadi Evleri 2. Etap Project | 330,518 | - |
| Samsun Canik Kentssel Dönüşüm Project | 327,603 | - |
| Sarphan Finanspark Project | 314,015 | 435,179 |
| Bizim Mahalle 1. Etap 1. Kısım Project | 310,817 | 563,288 |
| Bizim Mahalle 1. Etap 2. Kısım Project | 121,593 | 322,012 |
| Semt Bahçekent 1. Etap 2. Kısım Project | 93,078 | 93,078 |
| Denizli Merkez Efendi İkmal İşi Project |
74,063 | 515,629 |
| Büyükyalı Project | 43,418 | 43,418 |
| İdealist Cadde / Koru Project |
33,050 | - |
| Metropol İstanbul Project |
27,989 | 27,989 |
| Karat 34 Project | 18,472 | 55,336 |
| Kocaeli Körfezkent Emlak Konutları Project | 8,850 | 11,550 |
| Göl Panorama Project | 4,419 | 4,419 |
| Başakşehir Ayazma Emlak Konutları Project | 4,310 | 4,311 |
| Temaşehir Project | 1,430 | 3,409 |
| Evora Denizli Project | - | 20,714 |
| Yalova Armutlu Project | - | 70,496 |
| Emlak Konut Florya Evleri | - | 111,794 |
| Köy 2. Etap Project | - | 80,807 |
| Nidapark İstinye Project |
- | 47,742 |
| Other | 70,496 | 5,034 |
42,110,545 12,341,363
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Planned land by turnkey project | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Arnavutköy Yenişehir Project | 8,664,749 | 246,589 |
| Çekmeköy Çınarköy Project | 1,365,943 | 18,496,292 |
| İstanbul Avcılar Firuzköy Project |
1,130,607 | 2,286,062 |
| Emlak Konut Vadi Evleri Project | - | 3,048,211 |
| Bizim Mahalle Project | - | 2,473,211 |
| Balıkesir Altıeylül Project | - | 1,268,206 |
| Ankara Saraçoğlu Project | - | 3,247,624 |
| Other | 650,861 | 94,963 |
| 11,812,160 | 31,161,158 |
Rent income is obtained in investment properties and the appraisal used in calculation of low value is made through a precedent comparison and income reduction. As of 31 December 2024 the Group evaluated that there is no situation that would lead to low value in investment properties.
The movements of investment properties as of 31 December 2024 and 2023 are as follows:
| Lands, residential and | ||
|---|---|---|
| Cost Value | commercial units | Total |
| Opening balance as of 1 January 2024 | 2,912,765 | 2,912,765 |
| Transfers to commercial units and land inventories | ||
| Transfers to residential and commercial unit inventories | - | - |
| - | - | |
| Disposal (-) | - | - |
| Closing balance as of 31 December 2024 | 2,912,765 | 2,912,765 |
| Accumulated Depreciation | ||
| Opening balance as of 1 January 2024 | 218,117 | 218,117 |
| Charge for the year | 54,234 | 54,234 |
| Disposal (-) | - | - |
| Closing balance as of 31 December 2024 | 272,351 | 272,351 |
| Net book value as of 31 December 2024 | 2,640,414 | 2,640,414 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Lands, residential and | ||
|---|---|---|
| Cost Value | commercial units | Total |
| Opening balance as of 1 January 2023 | 4,398,925 | 4,398,925 |
| Transfers to commercial units and land inventories | (1,543,380) | (1,543,380) |
| Transfers to residential and commercial unit inventories | 57,220 | 57,220 |
| Closing balance as of 31 December 2023 | 2,912,765 | 2,912,765 |
| Accumulated Depreciation | ||
| Opening balance as of 1 January 2023 | 164,342 | 164,342 |
| Charge for the year | 53,775 | 53,775 |
| Closing balance as of 31 December 2023 | 218,117 | 218,117 |
| Net book value as of 31 December 2023 | 2,694,648 | 2,694,648 |
As of 31 December 2024, the valuation reports prepared by Net Kurumsal Gayrimenkul Değerleme ve Danışmanlık A.Ş., Form Gayrimenkul Değerleme ve Danışmanlık A.Ş. and Yetkin Gayrimenkul Değerleme ve Danışmanlık A.Ş. have taken into consideration when determining the fair values of investment properties. The fair values of the investment property determined by independent valuation experts are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Independent commercial units of Büyükyalı AVM | 2,537,028 | 2,639,218 |
| Atasehir General Management Office A Block | 2,100,000 | 1,791,486 |
| Independent commercial units of Istmarina AVM | 1,446,784 | 1,670,676 |
| Lands and completed units | 1,182,841 | 897,204 |
| 7,266,653 | 6,998,584 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Machinary | Furniture, | ||||||
|---|---|---|---|---|---|---|---|
| 31 December 2024 | Buildings | Motor vehicles |
and equipment |
equipment and fixtures |
Special Cost |
Construction in progress |
Total |
| Net book value as of 1 January 2024 | 975,298 | 30,388 | 175,224 | 198,505 | 59,892 | 196,076 | 1,635,383 |
| Additions | 286,276 | 20,453 | 51,960 | 48,007 | 99,183 | 1,745 | 507,624 |
| Transfers | - | - | - | (39,607) | 234,198 | (194,591) | - |
| Disposal, (net) (-) | - | (359) | - | (1,866) | - | - | (2,225) |
| Depreciation expense(-) | (15,445) | (12,749) | (27,634) | (51,095) | (23,176) | - | (130,099) |
| Net book value 31 December 2024 | 1,246,129 | 37,733 | 199,550 | 153,944 | 370,097 | 3,230 | 2,010,683 |
| Cost | 1,369,647 | 85,684 | 257,576 | 511,190 | 407,787 | 3,230 | 2,635,114 |
| Accumulated depreciation (-) | (123,518) | (47,951) | (58,026) | (357,246) | (37,690) | - | (624,431) |
| Net book value 31 December 2024 | 1,246,129 | 37,733 | 199,550 | 153,944 | 370,097 | 3,230 | 2,010,683 |
| Machinary | Furniture, | ||||||
|---|---|---|---|---|---|---|---|
| Motor | and | equipment | Special | Construction | |||
| 31 December 2023 | Buildings | vehicles | equipment | and fixtures | Cost | in progress | Total |
| Net book value as of 1 January 2023 | 999,178 | 8,348 | 133,501 | 114,394 | 67,909 | 233,709 | 1,557,039 |
| Additions | - | 29,562 | 60,105 | 79,763 | 601 | 1,974 | 172,005 |
| Transfers from construction in progres, net | - | - | - | 39,607 | - | (39,607) | - |
| Disposal, (net) (-) | (2,066) | (1,217) | - | (1,630) | (1,040) | - | (5,953) |
| Depreciation expense(-) | (21,814) | (6,305) | (18,382) | (33,629) | (7,578) | - | (87,708) |
| Net book value 31 December 2023 | 975,298 | 30,388 | 175,224 | 198,505 | 59,892 | 196,076 | 1,635,383 |
| Cost | 1,083,371 | 65,590 | 205,616 | 504,656 | 74,406 | 196,076 | 2,129,715 |
| Accumulated depreciation (-) | (108,073) | (35,202) | (30,392) | (306,151) | (14,514) | - | (494,332) |
| Net book value 31 December 2023 | 975,298 | 30,388 | 175,224 | 198,505 | 59,892 | 196,076 | 1,635,383 |
All of the depreciation expenses are included in the general administrative expenses.
The expected useful lives for property, plant and equipment are as follows:
| Years | |
|---|---|
| Buildings | 50 |
| Motor vehicles | 5 |
| Furniture, equipment and fixtures | 4-5 |
| Machinery and equipment |
5 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Computer | ||||
|---|---|---|---|---|
| 31 December 2024 | Licenses | software | Rights | Total |
| Net book value, 1 January 2024 | 8,436 | 36,414 | 42,834 | 87,684 |
| Additions | 4,952 | 54,357 | 18,788 | 78,097 |
| Amortization expense (-) | (7,792) | (20,436) | (10,913) | (39,141) |
| Net book value 31 December 2024 | 5,596 | 70,335 | 50,709 | 126,640 |
| Cost | 121,196 | 132,973 | 83,796 | 337,965 |
| Accumulated amortization (-) | (115,600) | (62,638) | (33,087) | (211,325) |
| Net book value 31 December 2024 | 5,596 | 70,335 | 50,709 | 126,640 |
| Computer | ||||
|---|---|---|---|---|
| 31 December 2023 | Licenses | software | Rights | Total |
| Net book value, 1 January 2023 Additions |
16,814 1,878 |
9,578 31,099 |
12,132 49,581 |
38,524 82,558 |
| Amortization expense (-) | (10,256) | (4,263) | (18,879) | (33,398) |
| Net book value 31 December 2023 | 8,436 | 36,414 | 42,834 | 87,684 |
| Cost | 116,244 | 78,616 | 65,008 | 259,868 |
| Accumulated amortization (-) | (107,808) | (42,202) | (22,174) | (172,184) |
| Net book value 31 December 2023 | 8,436 | 36,414 | 42,834 | 87,684 |
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Provisions | ||
| Provision for lawsuits | 400,522 | 373,240 |
| Provision for bonuses and premiums | 29,803 | 6,021 |
| 430,325 | 379,261 |
The amount of risk arising from the total possible cash outflow is TRY 671,069 (31 December 2023: TRY 872,272) and the lawsuits are still pending. According to the opinions of the Group's lawyers, provisions amounting to TRY 400,522 have been made as of 31 December 2024 (31 December 2023: TRY 373,240). As of 31 December 2024, there are 2 cases of defect, 8 cases of loss of rent, 5 cases of cancellation of title deeds and registration, 10 cases of business and 34 other cases.
The movements of provision for lawsuits as of 31 December 2024 and 2023 are as follows:
| 2024 | 2023 | |
|---|---|---|
| Balance at 1 January | 379,261 | 588,414 |
| Provision added within the current period | 172,470 | 26,141 |
| Monetary gain/loss | (121,406) | (235,294) |
| Closing balance at 31 December | 430,325 | 379,261 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
12.1.1 On 21 December 2005, a contract was signed for the İzmir Mavişehir Project, consisting of 750 independent units in the İzmir Mavişehir Northern Upper Region 2nd Phase LSRSA project. However, due to the contractor's failure to fulfill the contractual obligations, the contract was terminated on December 21, 2009. Following the termination, the project was transferred to the Company, and the remaining portion of the project was tendered in accordance with the Public Procurement Law and completed by another construction company.
The sales of the related independent units have been carried out by the Company, similar to turnkey projects. The contractor filed a lawsuit claiming unjust termination and partial receivables, arguing that the level of completion was significantly high and that the legal relationship between the parties was based on a revenue-sharing construction contract. An expert report prepared upon the instruction of the İzmir Karşıyaka Commercial Court of First Instance determined that the completion level was approximately 83% and concluded that the legal relationship between the parties was not a revenue-sharing construction contract. Upon the Company's objections regarding unclear aspects of the report and the completion level, an additional expert report was requested. Subsequently, both the contractor and the Company filed additional lawsuits against each other. Regarding the case, the Istanbul 10th Commercial Court of First Instance ruled partial acceptance of the main claim and determined that the contract was unjustly terminated by the defendant. However, as the plaintiff had assigned its receivable and compensation claim to Vakıflar Bankası T.A.O., the court dismissed the claim in terms of active legal standing.
The court also ruled partial acceptance of the material compensation claim within the scope of a partial lawsuit, while dismissing the remaining claims due to the statute of limitations. Additionally, the court ordered the return of the letter of guarantee amount and dismissed the remaining claims. In the counterclaim, the court ruled partial acceptance, and in line with the rectification petition, ordered the payment of the relevant deposit pledge and building inspection costs to Emlak Konut GYO A.Ş. During the litigation process, based on various expert reports submitted to the case file, the plaintiff increased the claim amount to TRY 122,651. As of 31 December 2024, a provision amounting to TRY 238,452, including interest and litigation costs, has been recognized.
12.1.2 Within the scope of the İstanbul Riva Land Revenue Sharing Tender for the properties located in İstanbul Province, Beykoz District, Riva Neighborhood, parcels 3201, 3202, and 3203, the contractor participating in the tender submitted temporary letters of guarantee to the Company through the Joint Venture in accordance with Article 14 of the Tender Specifications. During the second session of the tender held on 15 June 2017, it was decided to award the tender to the Joint Venture, which submitted the most economically advantageous bid. However, the companies invited to sign the contract applied to the Company, requesting a revision of the tender conditions and criteria, citing the amendments introduced in the Planned Areas Zoning Regulation published in the Official Gazette No. 30113 dated 3 July 2017, by the Ministry of Environment, Urbanization, and Climate Change of the Republic of Turkey. These amendments significantly reduced the construction area subject to the zoning coefficient for the project. The Company rejected the revision requests, stating that the enforcement of the said regulation would not affect the construction area subject to the zoning coefficient, and granted a deadline until 15 August 2017, for the contract to be signed.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
12.1.2 Since the contract was not signed within the given period, the Company confiscated the temporary letters of guarantee submitted by the plaintiff companies as part of the İstanbul Beykoz Riva Land Revenue Sharing Tender and awarded the tender to the contractor that submitted the second most favorable bid.
The lawsuit in question is a material and moral compensation claim filed on the grounds that the rejection of the plaintiffs' revision requests and the confiscation of their letters of guarantee were unlawful.For the plaintiff, the court ruled that the guarantee amount should be collected from the defendant along with advance interest accruing from 17 August 2017, and paid to the plaintiff; additionally, the amount required under LSRSA and commissions should be collected from the defendant with advance interest accruing from 15 September 2017, and paid to the plaintiff. The court also ruled similarly for another plaintiff. Other claims regarding material and moral damages beyond these were rejected. The court further ruled that the prepaid portion of the court fees should be deducted from the total fee, with the remaining amount collected from the defendant and recorded as revenue for the Treasury. The entire litigation costs, including summons and expert fees, incurred by the plaintiffs should be recovered from the defendant and reimbursed to the plaintiffs. If any balance remains in the litigation advance fund after the finalization of the decision, it should be refunded to the plaintiffs. Additionally, according to the Attorney's Minimum Fee Tariff applicable at the date of the decision, the relative attorney's fee should be collected from the defendant and paid to the plaintiff. The case is currently at the appeal stage, and as of 31 December 2024, a provision amounting to TRY 14,276, including interest and litigation costs, has been recognized.
In the financial statements prepared as of 31 December 2024, the ongoing litigation liabilities were evaluated in the following matters. According to the opinion of the Group Management and its lawyers, no provision has been made in the financial statements prepared as of 31 December 2024 on the grounds that it is not probable that the outflow of resources with economic benefits will be realized in cases filed against the Group in order to fulfill its obligation.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
12.2.1 The lawsuit was filed due to the alleged wrongful termination of the contract related to the infrastructure and landscaping works within the Alemdağ Emlak Konutları Construction Area in Çekmeköy District, İstanbul, on 17 September 2012. The contractor claimed that the cost of the completed works was not included in the progress payments. However, the court dismissed the case, ruling that the plaintiff failed to provide sufficient evidence. The Appellate Court determined that the lower court's decision was based on an incomplete examination and that a new expert report should be obtained. The court instructed that the additional report should assess all contractual obligations of the parties by considering the annexes to the contract and the General Specifications for Construction Works. The assessment should determine which obligations were primary and whether the termination was justified based on the principle that a party failing to fulfill its primary obligation cannot demand performance from the other party. Consequently, the Appellate Court overturned the lower court's decision and remanded the case for further investigation and a new ruling in line with these principles. Following the reevaluation, the primary lawsuit was dismissed due to a lack of evidence, while the consolidated lawsuit was dismissed due to the statute of limitations. The plaintiff has appealed the decision. Based on the opinion obtained from the Company's legal counsel, no liability is expected to arise from this case.
12.3.1 As of 31 December 2024 and 2023, breakdown of nominal commercial receivables from residential and commercial unit sales by maturities and based on the residential and commercial units that are under construction or completed but not yet delievered within the scope of the sales promise contract that is not yet included in the balance sheet as it does not meet the TFRS 15 criteria, expected collection times of nominal installments that are not due or collected by maturities are as follows:
| 31 December 2024 | Trade Receivables | Off-balance sheet deferred revenue |
Total |
|---|---|---|---|
| 1 year | 5,398,902 | 14,272,242 | 19,671,144 |
| 2 years | 3,338,360 | 8,958,901 | 12,297,261 |
| 3 years | 1,188,192 | 3,326,623 | 4,514,815 |
| 4 years | 732,984 | 1,242,280 | 1,975,264 |
| 5 years and above | 1,213,267 | 549,908 | 1,763,175 |
| 11,871,705 | 28,349,954 | 40,221,659 |
| 31 December 2023 | Trade Receivables | Off-balance sheet deferred revenue |
Total |
|---|---|---|---|
| 1 year | 3,888,400 | 13,442,377 | 17,330,777 |
| 2 years | 2,961,766 | 9,481,341 | 12,443,107 |
| 3 years | 2,236,634 | 6,245,065 | 8,481,699 |
| 4 years | 732,653 | 1,832,112 | 2,564,765 |
| 5 years and above | 1,978,123 | 1,101,116 | 3,079,239 |
| 11,797,576 | 32,102,011 | 43,899,587 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Short-term provisions | ||
| Unused vacation provision | 94,785 | 152,142 |
| 94,785 | 152,142 | |
| Long-term provisions | ||
| Provision for employment termination benefit | 178,136 | 174,698 |
| 178,136 | 174,698 | |
TAS 19 requires actuarial valuation methods to be developed to estimate the Company's provision for severance pay. Accordingly, the following actuarial assumptions were used in the calculation of the total liability:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Discount Rate (%) | 3.50 | 3.50 |
| Turnover rate to estimate probability of retirement (%) | 1.10 | 1.10 |
The basic assumption is that the ceiling provision for each year of service will increase in line with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the expected effects of inflation.
Movement in the provision for severance pay during the period is as follows:
| 2024 | 2023 | |
|---|---|---|
| Balance at 1 January | 174,698 | 115,982 |
| Service cost | 30,142 | 121,662 |
| Interest cost | 47,730 | 61,943 |
| Severance payments during the current period | (42,236) | (29,775) |
| Actuarial gain/loss | 30,738 | - |
| Monetary gain/loss | (62,936) | (95,114) |
| Closing balance at 31 December | 178,136 | 174,698 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Other current assets | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Deferred VAT | 4,194,032 | 2,239,827 |
| Other payments to contractors | 869,641 | 3,552,824 |
| Receivables from tax office | 165,203 | 190,928 |
| Income accruals | 130,878 | 527,668 |
| Prepaid income tax | 6,298 | 10,242 |
| Other | 12,380 | 9,530 |
| 5,378,432 | 6,531,019 |
| Short-term deferred income | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Advances taken from turnkey project sales | 34,799,310 | 29,456,648 |
| Deferred income from LSRSA projects (*) | 25,269,533 | 24,348,188 |
| Advances taken from LSRSA contractors (**) | 16,990,601 | 17,650,976 |
| Advances received from related parties (Note 24) | 4,510,624 | 5,077,835 |
| Deferred income related to sales of independent units | 2,413,286 | 533,808 |
| 83,983,354 | 77,067,455 |
(*) The balance is comprised of deferred income of future land sales regarding the related residential unit's sales under LSRSA projects.
(**) Before the contract is signed with the contractor companies in the ASKGP projects, the company collects the first payment of the total income corresponding to the share of the company from the total sales income in advance at the determined rates.
| Long-term deferred income | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Other advances given | 5,745 | 80,348 |
| 5,745 | 80,348 | |
| Prepaid expenses | 31 December 2024 | 31 December 2023 |
| Prepaid expenses | 430,457 | 186,396 |
| 430,457 | 186,396 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
The Group's authorized capital amount is TRY3,800,000 (31 December 2023: TRY3,800,000) and consists of 380,000,000,000 (31 December 2023: 380,000,000,000) authorized number of shares with a nominal value of TRY0.01 each.
The Group's shareholders and their shareholding percentages as of 31 December 2024 and 2023 is as follows:
| 31 December 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Shareholders | Share (%) | TL | Share (%) | TL |
| Public offering portion | 50.66 | 1,925,119 | 50.66 | 1,925,119 |
| T.C. Toplu Konut İdaresi Başkanlığı "TOKİ" | 49.34 | 1,874,831 | 49.34 | 1,874,831 |
| HAS beneficiaries | 0.00 | 48 | 0.00 | 48 |
| Other | 0.00 | 2 | 0.00 | 2 |
| Total paid-in capital | 100 | 3,800,000 | 100 | 3,800,000 |
| Share capital adjustments | 51,255,545 | 51,255,545 | ||
| 55,055,545 | 55,055,545 |
The legal reserves consist of first and second reserves, appropriated in accordance with the Turkish Commercial Code ("TCC"). The TCC stipulates that the first legal reserve is appropriated out of statutory profits at the rate of 5% per annum, until the total reserve balance reaches 20% of the Group's paid-in share capital. The second legal reserve is appropriated at the rate of 10% per annum of all cash distributions in excess of 5% of the paid-in share capital. Under the TCC, the legal reserves can only be used to offset losses and are not available for any other usage unless they exceed 50% of paid-in share capital.
In accordance with the Communiqué Serial: II, No: 14,1 which became effective as of 13 June 2013 and according to the CMB's announcements clarifying the said Communiqué, "Share Capital", "Restricted Reserves Appropriated from Profit" and "Share Premiums" need to be recognized over the amounts contained in the legal records. The valuation differences (such as inflation adjustment differences) shall be disclosed as follows:
The capital adjustment differences can only be used for capitalization and have no other usage. The Company's explanation regarding the restated equity calculations prepared in accordance with IAS 29, based on the Capital Markets Board Bulletin published on 7 March 2024, is as follows:
| PPI Indexed Legal Records |
CPI Indexed Records | Amounts followed in Accumulated Profit/Low |
|---|---|---|
| 77,476,728 | 51,255,545 | (26,221,183) |
| 44,380,812 | 28,930,464 | (15,450,348) |
| 12,349,508 | (1,739,204) | (14,088,712) |
| Inflation accounting | Inflation accounting after balance |
|
| 19,132,461 | (8,238,933) | |
| before balance |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| 1 January - | 1 January - | |
|---|---|---|
| Sales income | 31 December 2024 | 31 December 2023 |
| Land sales | 12,013,198 | 21,758,659 |
| Sales of planned lands by way of LSRSA | 8,172,233 | 7,593,532 |
| Land sales income | 3,840,965 | 14,165,127 |
| Residential and commercial units sales | 12,907,157 | 17,200,950 |
| Consultancy income | 6,442,209 | 2,069,397 |
| Elevator sales income | 373,538 | 100,934 |
| Rent income | 177,135 | 200,457 |
| 31,913,237 | 41,330,397 | |
| Sales returns and discounts | (14,064) | (188,484) |
| Net sales income | 31,899,173 | 41,141,913 |
| Cost of sales | ||
| Cost of lands | (9,068,763) | (12,508,403) |
| Cost of lands planned by way of | ||
| LSRSA | (6,617,950) | (5,057,679) |
| Cost of lands sold | (2,450,813) | (7,450,724) |
| Cost of residential and commercial units sold | (12,772,172) | (16,080,778) |
| Cost of elevator | (367,075) | (289,869) |
| Cost of consultancy | (1,084,958) | - |
| (23,292,968) | (28,879,050) | |
| Gross Profit | 8,606,205 | 12,262,863 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| 1 January - | |
|---|---|
| 31 December 2024 | 31 December 2023 |
| (1,919,175) | (1,588,605) |
| (262,469) | (545,924) |
| (256,332) | (481,366) |
| (226,441) | (198,620) |
| (223,474) | (174,881) |
| (89,132) | (43,714) |
| (71,008) | (53,095) |
| (72,967) | (1,565,679) |
| (50,280) | (37,590) |
| (22,934) | (28,612) |
| (75,315) | (47,005) |
| (6,741) | |
| (17,878) | (23,922) |
| (141,493) | (222,428) |
| (3,438,317) | (5,018,182) |
| 1 January - (9,419) |
| Marketing and sales expenses | 1 January - 31 December 2024 |
1 January - 31 December 2023 |
|---|---|---|
| Advertising expenses | (311,022) | (471,528) |
| Personnel expenses | (154,674) | (145,486) |
| Consultancy expenses | (41,253) | (41,198) |
| Other | (62,825) | (102,762) |
| (569,774) | (760,974) |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| 1 January - | 1 January - | |
|---|---|---|
| 31 December 2024 | 31 December 2023 | |
| Expense by nature | ||
| Expenses from residential and commercial units sales | 12,772,172 | 16,080,778 |
| Land costs | 9,068,763 | 12,508,403 |
| Personnel expenses | 2,073,849 | 1,734,091 |
| Cost of consultancy | 1,084,958 | - |
| Cost of elevator | 367,075 | 289,869 |
| Advertising expenses | 311,022 | 471,528 |
| Consultancy expenses | 297,585 | 522,564 |
| Taxes,duties and fees | 262,469 | 545,924 |
| Security and cleaning expenses | 226,441 | 198,620 |
| Depreciation and amortisation (Note 9, 10,11) | 223,474 | 174,881 |
| Maintenance and repair expenses | 75,315 | 47,005 |
| Donations | 72,967 | 1,565,679 |
| Due and contribution expenses | 71,008 | 53,095 |
| Information technologies expenses | 50,280 | 37,590 |
| Insurance expenses | 22,934 | 28,612 |
| Lawsuit and notary expenses | 17,878 | 23,922 |
| Communication expenses | 9,419 | 6,741 |
| Other | 293,450 | 368,904 |
| 27,301,059 | 34,658,206 |
| 1 January - 31 December 2024 |
1 January - 31 December 2023 |
|
|---|---|---|
| Other income from operating activities | ||
| Impairment provisions released | 6,075,219 | 738,122 |
| Financial income from forward sales | 1,605,507 | 544,529 |
| Income from transfer commissions | 294,436 | 355,557 |
| Default interest income from projects | 190,706 | 1,851,297 |
| Foreign exchange gains | - | 74,511 |
| Other | 770,644 | 388,545 |
| 8,936,512 | 3,952,561 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| 1 January - 31 December 2024 |
1 January - 31 December 2023 |
|
|---|---|---|
| Other expenses from operating activities | ||
| Provision for impairment of land and | ||
| residential inventories | (2,272,764) | (4,028,913) |
| Reversal of unaccrued financial expense | (1,636,413) | (911,013) |
| Provision for lawsuits (Note 12) | (172,470) | (26,141) |
| Foreign exchange loss | (96,235) | - |
| Other | (217,055) | (76,025) |
| (4,394,937) | (5,042,092) |
.
| 1 January - | 1 January - | |
|---|---|---|
| Financial income | 31 December 2024 | 31 December 2023 |
| Interest income from time deposits | 2,273,998 | 4,919,744 |
| Interest and updating income | 1,145,571 | 930,590 |
| Foreign exchange gains | 54,734 | 70,707 |
| 3,474,303 | 5,921,041 | |
| 1 January - | 1 January - | |
| Financial expenses | 31 December 2024 | 31 December 2023 |
| (2,042,214) | (2,460,961) | |
|---|---|---|
| Other | (28,033) | (6,640) |
| interest expense (*) | - | (97,999) |
| T.C. Çevre, Şehircilik ve İklim Değişikliği Bakanlığı |
||
| Foreign exchange loss | (33,172) | (423,385) |
| Borrowings interest and lease certificate expenses | (1,981,009) | (1,932,937) |
(*) This amount consists of interest expense accrued as of 31 December 2023 for the Company's debt in return for the land purchased from The Ministry of Environment, Urbanisation and Climate Change.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Significant changes have been made to the tax regulations for Real Estate Investment Trusts (REITs) and Real Estate Investment Funds (REIFs) in Turkey, effective from January 1, 2025. According to these changes, earnings generated until December 31, 2024, will remain subject to the current regulations and will be exempt from corporate tax. However, new conditions and taxation practices will apply to earnings generated from January 1, 2025, onwards.
The Group's subsidiaries, associates and joint operations are subject to Turkish corporate taxes. Provision is made in the accompanying financial statements for the estimated charge based on the Group's results for the years and periods. Turkish tax legislation does not permit a parent company and its subsidiary to file a consolidated tax return. Therefore, provisions for taxes, as reflected in the accompanying consolidated financial statements, have been calculated on a separate-entity basis.
Corporate tax is applied on taxable corporate income, which is calculated from the statutory accounting profit by adding back non-deductible expenses, and by deducting dividends received from resident companies, other exempt income and other incentives (prior year's losses if any and investment incentives used if preferred) utilized.
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Current tax liability | ||
| Current corporate tax provision | 291,729 | - |
| Less: prepaid taxes and funds | (164,422) | (6,959) |
| Current period profit tax (liability) | 127,307 | (6,959) |
The Group's tax expenses/income as of 31 December 2024 and 2023 is as follows:
| 1 January- | 1 January | |
|---|---|---|
| Tax expense comprises: | 31 December 2024 | 31 December 2023 |
| Current tax expense | (291,729) | - |
| Deferred tax expense | 6,961,176 | 213,873 |
| Total tax expense | 6,669,447 | 213,873 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
The Group recognizes deferred tax assets and liabilities based upon temporary differences arising from the differences between its consolidated financial statements as reported for TFRS purposes and its statutory tax financial statements. These differences usually result in the recognition of revenue and expenses in different reporting periods for TFRS and tax purposes and they are given below.
The tax rate used in the calculation of deferred tax assets and liabilities has been determined at 30-25% based on the temporary timing differences expected to reverse in the future.
In Turkey, the companies cannot declare a tax return, therefore subsidiaries that have deferred tax assets position were not netted off against subsidiaries that have deferred tax liabilities position and disclosed separately.
| Deferred tax (assets)/liabilities: | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Adjustments to TFRS 9 expected credit loss | 1,007 | - |
| Adjustment to inventories | 4,232,444 | 11,380 |
| Effect of amortized cost method on receivables | 843,513 | 621 |
| Depreciation / amortization differences of | ||
| property, plant and equipment and other intangible assets | 6,927 | (15,638) |
| Adjustments to investment properties | 405,399 | - |
| Adjustment to deferred income | 1,388,592 | 9,901 |
| Provision for provisions | 196,779 | 14,685 |
| Adjustment to prepaid expenses | (86,029) | - |
| Adjustment to leases | 1,432 | - |
| 6,990,064 | 20,949 |
The movements of deferred tax (asses)/ liabilities for the periods ended 31 December 2024 and 2023 are as follows:
| Movement of deferred tax (assets)/liabilities: | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Opening balance as of 1 January | 20,949 | (192,924) |
| Charged to profit or loss | 6,961,176 | 213,873 |
| Other comprehensive income | 7,939 | - |
| Closing balance at 31 December | 6,990,064 | 20,949 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Reconciliation of tax provision: | 31 December 2024 | 31 December 2023 |
|---|---|---|
| Profit/(loss) from operations before tax | 6,527,934 | (6,096,315) |
| Tax income rate at 2024: 30%-25% (2023:30%-25%) | (1,958,380) | (1,524,079) |
| Tax effects of: | ||
| - Non-deductible expenses | (36,383) | - |
| - Discounts and exceptions | 39,473 | - |
| - Non-taxable income | 783,829 | 1,376,481 |
| - Current period loss for which deferred tax has not been recognized | (57,798) | - |
| - Temporary differences for which tax has not been recognized previously | 10,821,919 | - |
| - Monetary gain/loss | (2,960,092) | 303,551 |
| - Other | 36,879 | 57,920 |
| Total tax income | 6,669,447 | 213,873 |
In Turkey, companies can increase their share capital by making a pro rata distribution of shares "bonus shares" to existing shareholders from retained earnings. The issue of such shares is treated as the issuance of ordinary shares in the calculation of earnings per share. Accordingly, the weighted average number of shares used in these calculations is determined by taking into consideration the retroactive effects of these share distributions. Earnings per share is calculated by considering the total number of new shares when there is an increase in issued shares because of distribution of bonus shares after the balance sheet date but before the preparation of financial statements.
The earnings per share stated in income statement are calculated by dividing net income for the period by the weighted average number of the Group's shares for the period.
The Group can withdraw the issued shares. The weighted average number of shares taken back changes the calculation of earnings per share in line with the number of shares.
| 1 January - | 1 January - | |
|---|---|---|
| 31 December 2024 | 31 December 2023 | |
| Net income/loss attributable to equity holders | ||
| of the parent in full TL | 13,197,381 | (5,882,442) |
| Weighted average number of ordinary shares | 3,804,550,291 | 3,804,550,291 |
| Earnings/(loss) per share in full TRY | 0.34688 | (0.15462) |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
The main shareholder of the Group is T.C. Toplu Konut İdaresi Başkanlığı ("TOKİ"). TOKİ is a state institution under the control of Republic of Turkey Ministry of Enviroment and Urbanisation. Related parties of the Group are as listed below.
According to the revised TAS 24 – "Related Parties Transactions Standard", exemptions have been made to the related party disclosures of state institutions and organizations. The Group has transactions with state banks (T.C.Ziraat Bankası A.Ş., Türkiye Vakıflar Bankası T.A.O., Türkiye Halk Bankası A.Ş., Türkiye Emlak Katılım Bankası A.Ş.) and Republic of Turkey Undersecretariat of Treasury.
The transactions between the Group and the related parties are as follows:
| Trade receivables from related parties | 31 December 2024 | 31 December 2023 |
|---|---|---|
| T.C. Çevre, Şehircilik ve İklim Değişikliği Bakanlığı (*) | 5,118 | 5,437,793 |
| T.C. Toplu Konut İdaresi Başkanlığı ("TOKİ") | 2,620 | - |
| 7,738 | 5,437,793 |
(*) The Company's trade receivables from the Ministry of Environment and Urbanization consist of payments made by the Company for urban transformation projects
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| 31 December 2024 | 31 December 2023 |
|---|---|
| 259,076 | 13,436 |
| - | 89,887 |
| 932 | 71 |
| 260,008 | 103,394 |
| 31 December 2024 | 31 December 2023 |
| 1,834,203 | 64,864 |
| 1,834,203 | 64,864 |
| 31 December 2024 | 31 December 2023 |
| 4,510,624 | 5,077,835 |
| 4,510,624 | 5,077,835 |
| (*) Includes amounts received by the Group for 29 commercial units sold to Türkiye Emlak Katılım Bankası | |
| 31 December 2024 | 31 December 2023 |
| 671 | 866 |
671 866
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| 1 January - | 1 January - | |
|---|---|---|
| Purchases from related parties | 31 December 2024 | 31 December 2023 |
| T.C. Çevre, Şehircilik ve İklim Değişikliği Bakanlığı |
35,422,907 | - |
| Marmara Kentsel Dönüşüm Müdürlüğü | 6,222,605 | - |
| T.C. Toplu Konut İdaresi Başkanlığı ("TOKİ") |
523,031 | - |
| Emlak Basın Yayın A.Ş. | - | 3,690 |
| 42,168,543 | 3,690 | |
| 1 January - | 1 January - | |
| Sales to related parties | 31 December 2024 | 31 December 2023 |
| T.C. Toplu Konut İdaresi Başkanlığı ("TOKİ") |
- | 67,093 |
| T.C. Çevre, Şehircilik ve İklim Değişikliği Bakanlığı |
- | 1,681,223 |
| Gedaş Gayrimenkul Değerleme A.Ş. | - | 46,311 |
| İller Bankası A.Ş. |
- | - |
| - | 1,794,627 |
Key management personnel are those who have the authority and responsibility to plan, manage and control the activities (administrative or other) directly or indirectly of the Group including any manager. Salaries and other short-term benefits provided to the key management personnel, General Manager of the Board of Directors, Assistant General Managers and General Manager Consultant, are as follows:
| Compensation to key management | 1 January - 31 December 2024 |
1 January - 31 December 2023 |
|---|---|---|
| Salaries and other short-term benefits | 92,769 | 57,809 |
| 92,769 | 57,809 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
The monetary position gains (losses) reported in the statement of profit or loss arise from the monetary/non-monetary financial statement items listed below:
| 31 December 2024 |
|---|
| Non-monetary items | |
|---|---|
| Statement of financial position items | |
| Inventories | 32,866,458 |
| Given advances | 277,467 |
| Investment properties, tangible and intangible assets | 1,352,360 |
| Deferred tax assets | 36,842 |
| Deferred income | (17,140,819) |
| Share premiums / discounts | (8,892,571) |
| Paid-in capital | (16,922,830) |
| Treasury shares (-) | 19,871 |
| Restricted reserves appropriated from profit | (2,669,670) |
| Gain / (loss) arising from defined benefit plans | 2,997 |
| Other equity items | 534,592 |
| Retained earnings / accumulated losses | 2,532,463 |
| Statement of profit or loss items | |
| Revenue | (9,469,635) |
| Cost of sales (-) | 13,425,117 |
| General administrative expenses (-) | 359,338 |
| Marketing expenses (-) | 55,684 |
| Other income from main operations | (198,488) |
| Other expenses from main operations (-) | 146,420 |
| Income from investing activities (-) | 10 |
| Expenses from investing activities (-) | - |
| Finance income | (535,644) |
| Finance costs (-) | 172,807 |
| Current tax expense (-) | 4,144 |
| Monetary loss | (4,043,087) |
|---|---|
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
The Group's activities expose it to a variety of financial risks, including the effects of changes in debt and equity market prices, foreign currency exchange rates and interest rates. The Company's management focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Group.
Liquidity risk is the inability of the Group to match the net funding requirements with sufficient liquidity.
The Group management monitors the undiscounted estimated cash flows arising from the financial liabilities and trade payables of the Group with special reporting methods and analysis. The maturity distribution of financial liabilities of the Group as of 31 December 2024 and 2023 is as follows:
| 31 December 2024 | Carrying value |
Constractual cash flows |
Up to 3 months |
3 months to 1 year |
1 year to 5 years |
|---|---|---|---|---|---|
| Short-term financial liabilities (Non-derivative): |
|||||
| Financial liabilities | 12,905,178 | 16,726,600 | 8,380,193 | 8,346,407 | - |
| Trade payables | 7,484,393 | 7,484,393 | 7,484,393 | - | - |
| Other payables | 3,029,087 | 3,029,087 | 3,029,087 | - | - |
| 23,418,658 | 27,240,080 | 18,893,673 | 8,346,407 | - | |
| Long-term financial liabilities (Non-derivative): |
|||||
| Financial liabilities | 19,465 | 30,706 | - | - | 30,706 |
| Trade payables | 369,224 | 369,224 | - | - | 369,224 |
| Other payables | 472,836 | 472,836 | - | - | 472,836 |
| 861,525 | 872,766 | - | - | 872,766 | |
| 31 December 2023 | Carrying value |
Constractual cash flows |
Up to 3 months |
3 months to 1 year |
1 year to 5 years |
| Short-term financial liabilities (Non-derivative): |
|||||
| Financial liabilities | 4,667,756 | 6,049,950 | 3,031,085 | 3,018,865 | - |
| Trade payables | 5,877,505 | 5,877,505 | 5,877,505 | - | - |
| Other payables | 1,698,440 | 1,698,440 | 1,697,574 | 866 | - |
| 12,243,701 | 13,625,895 | 10,606,164 | 3,019,731 | - | |
| Long-term financial liabilities (Non-derivative): |
|||||
| Financial liabilities | 1,832,122 | 2,890,147 | - | - | 2,890,147 |
| Trade payables | 533,485 | 533,485 | - | - | 533,485 |
| Other payables | 303,974 | 303,974 | - | - | 303,974 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
The Group is vulnerable to interest rate arising from the change of interest rates due to its interestearning asset and interest-paid liabilities. This risk is managed through on-balance sheet method by balancing the amount and maturity of interest rate sensitive assets and liabilities. In this context, great importance is attached to the fact that not only the due dates of receivables and payables, but also the periods of interest renewal are similar.
Average effective annual interest rates of balance sheet items as of 31 December 2024 and 2023 are as follows:
The table showing the Group's interest rate sensitive financial instruments is as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Financial instruments with fixed interest rate | ||
| Time deposits | 5,719,096 | 22,091,276 |
| Financial liabilities | 12,924,643 | 6,499,878 |
The Group is subject to credit risk arising from trade receivables related to forward sales, other receivables and deposits at banks. The Group manages credit risk of bank deposits by working mainly with state banks established in Turkey and having long standing relations with the Group. Majority of bank deposits in this regard are with the state owned retail banks.Credit risk of receivables from third parties is managed by securing receivables with collaterals covering receivables at the highest possible proportion. Methods used are as follows:
In credit risk control, the credit quality of each customer is assessed; taking into account its financial position, past experience and other factors, individual risk limits are set in accordance and the utilisation of credit limits is regularly monitored.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
As of 31 December 2024 and 2023, details of credit and receivables risk are as follows:
| Trade Receivables | Other Receivables | ||||||
|---|---|---|---|---|---|---|---|
| 31 December 2024 | Related Party | Other | Related Party | Other | Deposits at Banks |
||
| Maximum credit risks exposed | |||||||
| as of reporting date | 7,738 | 10,517,913 | 260,008 | 956,143 | 6,151,030 | ||
| Secured portion of the maximum | |||||||
| credit risk by guarantees,etc, | 7,738 | 10,517,913 | 260,008 | 956,143 | 6,151,030 | ||
| A. | Net carrying value of financial assets that | ||||||
| are neither past due nor impaired | 7,738 | 10,517,913 | 260,008 | 956,143 | 6,151,030 | ||
| Secured portion by guarantees etc. | 7,738 | 10,517,913 | 260,008 | 956,143 | - | ||
| B. | Net carrying value of assets with negotiated terms | ||||||
| Secured portion by guarantees etc. | - | - | - | - | - | ||
| C. | Net carrying value of fianancial assets | ||||||
| that are past due but not impaired | - | - | - | - | - | ||
| Secured portion by guarantees etc. | - | - | - | - | - | ||
| D. | Net carrying value of | ||||||
| impaired assets | - | - | - | - | - | ||
| Past due (Gross carrying value) | - | 12,462 | - | - | - | ||
| Impairment (-) | - | (12,462) | - | - | - | ||
| Secured portion by guarantees etc. | - | - | - | - | - | ||
| Trade Receivables | Other Receivables | ||||||
| 31 December 2023 | Related Party | Other | Related Party | Other | Deposits at Banks |
||
| Maximum credit risks exposed | |||||||
| as of reporting date | 5,437,793 | 12,502,282 | 103,394.00 | 1,353,327 | 22,204,157 | ||
| Secured portion of the maximum | |||||||
| credit risk by guarantees,etc, | 5,437,793 | 12,502,282 | 103,394 | 1,353,327 | 22,204,157 | ||
| A. | |||||||
| Net carrying value of financial assets that are neither past due nor impaired |
5,437,793 | 12,502,282 | 103,394 | 1,353,327 | 22,204,157 | ||
| Secured portion by guarantees etc. | 5,437,793 | 12,502,282 | 103,394 | 1,353,327 | - | ||
| B. | Net carrying value of assets with negotiated terms | ||||||
| Secured portion by guarantees etc. | - | - | - | - | - | ||
| C. | Net carrying value of fianancial assets | ||||||
| that are past due but not impaired | - | - | - | - | - | ||
| Secured portion by guarantees etc. | - | - | - | - | - | ||
| D. | Net carrying value of | ||||||
| impaired assets | - | - | - | - | - | ||
| Past due (Gross carrying value) | - | 7,570 | - | - | - | ||
| Impairment (-) | - | (7,570) | - | - | - | ||
| Secured portion by guarantees etc. | - | - | - | - | - |
In determining the amounts above, factors that enhance credit reliability, such as received collaterals, have not been taken into account. The Group has no off-balance sheet items involving credit risk.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
The Group is subject to the foreign currency risk due to the foreign currency deposits in the bank deposit account. Since the Group does not use foreign currency in its main operations, the foreign currency risk is only originated from deposits of the Group.
Foreign currency denominated assets, liabilities and effects arising from foreign exchanges arising from having off-balance sheet items constitute exchange rate risk.
As of 31 December 2024, the Group's foreign currency assets and liabilities did not need to be balanced with any off-balance sheet items. The table below summarizes the Group's foreign currency position of the Group as of 31 December 2024 and 2023. TRY equivalents of carrying values of assets and liabilities denominated in foreign currencies are as follows:
| 31 December 2024 | ||||
|---|---|---|---|---|
| TL Equivalent (Functional currency) |
US Dollar | EURO | ||
| 1a. Monetary Finacial Assets | 274,431 | 182 | 7,295 | |
| 2.CURRENT ASSETS | 274,431 - |
182 - |
7,295 - |
|
| 3. TOTAL ASSETS | 274,431 | 182 | 7,295 | |
| 5. CURRENT LIABILITIES | - | - | - | |
| 6.TOTAL LIABILITIES | - | - | - | |
| 7.Net foreign currency asset / liability position | 274,431 | 182 | 7,295 | |
| 8. Monetary items net foreign currency asset / liability position (1a-4a) |
274,431 | 182 | 7,295 |
| TL Equivalent (Functional | |||
|---|---|---|---|
| currency) | US Dollar | EURO | |
| 1a. Monetary Finacial Assets 2.CURRENT ASSETS |
48,472 | 4,525 | - |
| 3. TOTAL ASSETS | 48,472 48,472 |
4,525 4,525 |
- - |
| 5. CURRENT LIABILITIES | - | - | - |
| 6.TOTAL LIABILITIES | - | - | - |
| 7.Net foreign currency asset / liability position | 48,472 | 4,525 | - |
| 8. Monetary items net foreign currency asset / liability position (1a-4a) |
48,472 | 4,525 | - |
31 December 2023
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
The Group attempts to manage its capital by minimizing the investment risk with portfolio diversification. The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
While managing the capital, the Group's objectives are to maintain the Group's operability in order to maintain the most appropriate capital structure in order to provide benefits to its shareholders, benefit from other stakeholders and reduce the cost of capital.
Gearing ratio as of 31 December 2024 and 2023 is as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Financial liabilities | 12,924,643 | 6,499,878 |
| Less: cash and cash equivalents | (8,281,384) | (22,908,136) |
| Net liability/(asset) | 4,643,259 | (16,408,258) |
| Total shareholder's equity | 95,803,122 | 82,628,540 |
| Equity + net debt | 100,446,381 | 66,220,282 |
| Net debt (assets) / equity ratio | 5% | (25%) |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price, if one exists.
The Group has determined the estimated fair values of financial instruments using current market information and appropriate valuation methods. However, evaluating market information and estimating fair values requires interpretation and judgment. As a result, the estimations presented here cannot be an indication of the amounts that the Group can obtain in a current market transaction.
The following methods and assumptions are used to estimate the fair values of financial instruments that are practically possible to estimate fair values:
| 31 December 2024 | 31 December 2023 | |||||
|---|---|---|---|---|---|---|
| Net book Value |
Fair value | Net book Value |
Fair value | Note | ||
| Financial assets | ||||||
| Cash and cash equivalents | 8,281,384 | 8,281,384 | 22,908,136 | 22,908,136 | 4 | |
| Short-term financial investments | 57,456 | 57,456 | - | - | ||
| Trade receivables | 10,517,913 | 10,517,913 | 12,502,282 | 12,502,282 | 6 | |
| Trade receivables from related parties | 267,746 | 267,746 | 5,541,187 | 5,541,187 | 24 | |
| Other receivables | 956,143 | 956,143 | 1,353,327 | 1,353,327 | 7 | |
| Total financial assets | 20,080,642 | 20,080,642 | 42,304,932 | 42,304,932 | ||
| Financial liabilities | ||||||
| Borrowings | 12,924,643 | 12,924,643 | 6,499,878 | 6,499,878 | 5 | |
| Trade payables | 7,853,617 | 7,853,617 | 6,410,990 | 6,410,990 | 6 | |
| Due to related parties | 671 | 671 | 866 | 866 | 24 | |
| Other payables | 3,501,252 | 3,501,252 | 2,001,548 | 2,001,548 | 7 | |
| Total financial liabilities | 24,280,183 | 24,280,183 | 14,913,282 | 14,913,282 | ||
| Net | (4,199,541) | (4,199,541) | 27,391,650 | 27,391,650 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Fair Value of Financial Instruments (Continued)
The fair values of cash and due from banks are considered to approximate their respective carrying values due to their short-term nature.
The carrying values of trade and other receivables are expected to reflect the fair value along with the relevant impairment provisions.
It is estimated that the fair values of the foreign currency balances converted with the exchange rates at the end of the period are close to their carrying values.
Special issue Government Debt Securities issued by the Treasury and given to the Group for the payments to be made to the HAS beneficiaries are not subject to trading in the secondary market and do not contain interest. They are recognized with their carrying value which is their fair value by the Group and they can be amortised at carrying value by the Group against the Treasury.
As of the period-end, there are no financial assets measured at fair value.
The Group's borrowing from the Treasury in order to finance HAS payments are calculated at each interest payment period based on the weighted average compound interest rate of the Government Debt Securities. Therefore, the carrying value of this financial borrowing of the Group approximate their fair value.
Short-term trade payables and other liabilities with no stated interest rate are measured at original invoice amount. Since, these trade payables and other liabilities will be paid when requested they are considered as short-term.
It is anticipated that there is no significant difference between the cost values and fair values of the borrowings with floating interest rates including its accruals for the regarding period.
The fair value of financial assets and liabilities are determined as follows:
As of the period-end, there are no financial liabilities measured at fair value.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
The Group's mortgage and guarantees received as of 31 December 2024 and 2023 are as follows:
| 31 December 2024 | 31 December 2023 | |
|---|---|---|
| Guarantees received (*) | 53,781,529 | 34,810,578 |
| Mortgages received (**) | 670,005 | 1,085,962 |
| 54,451,534 | 35,896,540 |
(*) Guarantees received consist of letters of guarantee given by contractors for construction projects and temporary guarantee letters received during the tender process.
(**) Mortgages received consist of mortgaged independent sections and lands sold but not yet collected.
The collaterals, pledges and mortgages ("CPM") of the Group as of 31 December 2024 and 2023 are as follows :
| ii) In the name of other group companies that are not included in the scope of item B and C |
- | - |
|---|---|---|
| i) In the name of the parent Company | - | - |
| D. Total amount of other CPM given | ||
| C. Total amount of CPM given to maintain operations and collect payables from third parties |
- | - |
| B. Total amount of CPM given against the subsidiaries included in full consolidation |
- | - |
| A. Total amount of CPM given on behalf of the Company's own legal entity |
606,452 | 423,755 |
| 31 December 2024 | 31 December 2023 |
| 2024 | 2023 | |||||
|---|---|---|---|---|---|---|
| BDK | Other BDK | Total | BDK | Other BDK | Total | |
| Independent audit fee for the reporting period | 4,647 | - | 4,647 | 3,350 - 1,917 - |
3,350 | |
| Fees for tax advisory services | - | 2,777 | 2,777 | 1,917 | ||
| 4,647 | 2,777 | 7,424 | 3,350 | 1,917 | 5,267 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
Our Group has signed a protocol with the Republic of Turkey Ministry of Environment, Urbanization, and Climate Change Mass Housing Administration (TOKİ) for the purchase of the real estate located in Istanbul, Esenler district, Atışalanı neighborhood, parcel number 1692/2, for a total price of 6,884,300 TL (VAT exempt). This protocol has been executed in line with our strategy to expand our portfolio and develop our areas of operation.
In the scope of developing our Istanbul Esenler Atışalanı Phase 1 revenue-sharing land sale project, it has been decided to enter into a partnership based on the Musharakah principles with Türkiye Emlak Katılım Bankası A.Ş. This collaboration represents a strategic step towards diversifying financial resources and expanding our investment portfolio. Under the Musharakah model, the project's revenues and expenses will be shared equally between the parties.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 December 2024, unless otherwise stated.)
| Unconsolidated (Separate) Financial Statement Main | ||||
|---|---|---|---|---|
| Account Items | Related Regulation | 31 December 2024 | 31 December 2023 | |
| A | Money and Capital Market Instruments | Series: III-No.48, Art.24/(b) | 6,268,468 | 20,591,036 |
| Properties, Projects based on Properties and Rights based on | ||||
| B | Properties | Series: III-No.48, Art.24/(a) | 171,305,359 | 125,061,497 |
| İŞ | Subsidiaries | Series: III-No.48, Art.24/(b) | 4,120,947 | 4,120,947 |
| Due from Related Parties (Non-trade) | Series: III-No.48, Art.23/(f) | - | - | |
| DV Other Assets | 19,913,653 | 24,682,179 | ||
| D | Total Assets (Total Assets) | 201,608,427 | 174,455,659 | |
| E | Financial Liabilities | Series: III-No.48, Art.24/(b) | 12,902,139 | 6,353,789 |
| F | Other Financial Liabilities | Series: III-No.48, Art.24/(a) | - | - |
| G | Due from Financial Leases | Series: III-No.48, Art.24/(b) | - | - |
| H | Due to Related Parties (Non commercial) | Series: III-No.48, Art.23/(f) | - | - |
| İ | Shareholders' equity | 97,317,081 | 84,533,176 | |
| EB Other Resources | 91,389,207 | 83,568,694 | ||
| D | Total Resources | Series: III-No.48, Art.3/(k) | 201,608,427 | 174,455,659 |
| Non-Consolidated (Standole) Other Financial Information | Related Regulation | 31 December 2024 | 31 December 2023 | |
| The Portion of Money and Capital Market Instruments Held for 3- | ||||
| A1 | Year Real Estate Payments | Series: III-No.48, Art.24/(b) | 6,268,468 | 20,591,036 |
| A2 Term / Demand / Currency | Series: III-No.48, Art.24/(b) | 7,906,893 | 22,030,591 | |
| A3 Foreign Capital Market Instruments | Series: III-No.48, Art.24/(d) | - | - | |
| Foreign Properties, Projects based on properties and rights based | ||||
| B1 | on Properties | Series: III-No.48, Art.24/(d) | - | - |
| B2 Idle Land | Series: III-No.48, Art.24/(c) | 14,900,885 | 14,517,117 | |
| C1 Foreign Subsidiaries | Series: III-No.48, Art.24/(d) | - | - | |
| C2 Subsidiaries of the Operating Company | Series: III-No.48, Art.28 | 4,393,955 | 1,513,090 | |
| J | Non-Cash Loans | Series: III-No.48, Art.31 | 165,113 | 214,212 |
| Mortgage amount of servient lands which will be developed and | ||||
| K | not owned | Series: III-No.48, Art.22/(e) | ||
| Portfolio Restrictions | Related Regulation | 31 December 2024 | 31 December 2023 | |
| Mortgage amount of Servient Lands Which Will be Developed | ||||
| 1 And Not Owned |
Series: III-No.48, Art.22/(e) | 0% | 0% | |
| Properties, Projects based on Properties and Rights based on | ||||
| 2 Properties |
Series: III-No.48, Art.24/(a),(b) | 88% | 83% | |
| 3 Money and Capital Market Instruments and Affiliates | Series: III-No.48, Art.24/(b) | 2% | 2% | |
| Foreign Properties, Projects based on properties and rights based | ||||
| on Properties, | ||||
| 4 Subsidiaries, Capital Market Instruments |
Series: III-No.48, Art.24/(d) | 0% | 0% |
The information in the table of Control of Compliance with the Portfolio Limitations is condensed information derived from financial statements as per Article 16 of Communiqué Serial II, No: 14.1 "Basis of Financial Reporting in Capital Markets" and is prepared within the frame of provisions related to compliance to portfolio limitations stated in the Communiqué Serial III No 48.1 "Principles Regarding Real Estate Investment Trusts" published in the Official Gazette No. 28660 on 28 May 2013.
Idle Land Series: III-No.48, Art.24/(c) 7% 8% Subsidiaries of the Operating Company Series: III-No.48, Art.28 2% 1% Borrowing Limit Series: III-No.48, Art.31 13% 8% Term / Demand / Currency Series: III-No.48, Art.22/(e) 1% 1%
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