Quarterly Report • Nov 11, 2024
Quarterly Report
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(CONVENIENCE TRANSLATION OF THE REPORT FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)
| INDEX | PAGE | |
|---|---|---|
| INTERIM CONDENSED STANDALONE STATEMENT OF FINANCIAL POSITION ……………………………………………………………………………………… | 1-2 | |
| INTERIM CONDENSED STANDALONE STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME……………………………………………………………………………………………………………………. |
3 | |
| INTERIM CONDENSED STANDALONE STATEMENT OF CHANGES IN EQUITY………………………………………………………………………………… | 4 | |
| INTERIM CONDENSED STANDALONE STATEMENT OF CASH FLOWS……………………………………………………………………………………………………… | 5 | |
| NOTES TO THE INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS…………………………………………………………………… | 6-37 | |
| NOTE 1 | ORGANIZATION AND OPERATION OF THE COMPANY………………………………………………………. | 6 |
| NOTE 2 | BASIS OF PRESENTATION OF THE STANDALONE FINANCIAL STATEMENTS………………………………………………………. 7-9 | |
| NOTE 3 | ACCOUNTING POLICIES… | 9-11 |
| NOTE 4 | CASH AND CASH EQUIVALENTS………………………………………………………………………………………… | 12 |
| NOTE 5 | FINANCIAL INVESTMENTS………………………………………………………………………………… | 13 |
| NOTE 6 | FINANCIAL LIABILITIES…………………………………………………………………………………………………………… 14 | |
| NOTE 7 | TRADE RECEIVABLES AND PAYABLES ………………………………………………………………………………… | 15 |
| NOTE 8 | OTHER RECEIVABLES AND PAYABLES………………………………………………………………………………… | 16 |
| NOTE 9 | INVENTORIES……………………………………………………………………………………………………… | 17-20 |
| NOTE 10 | INVESTMENT PROPERTIES ………………………………………………………………………………… | 21-22 |
| NOTE 11 | PROPERTY, PLANT AND EQUIPMENT……………………………………………………………………………… | 22 |
| NOTE 12 | INTANGIBLE ASSETS……………………………………………………………………………… | 23 |
| NOTE 13 | PROVISIONS, CONTINGENT ASSETS AND LIABILITIES………………………………………………………………………………… | 24-26 |
| NOTE 14 | EMPOYEE BENEFITS…………………………………………………………………………………………………………… 27 | |
| NOTE 15 | OTHER ASSETS…………………………………………………………………………………………………………… | 27 |
| NOTE 16 | DEFERRED INCOME AND PREPAID EXPENSES……………………………………………………………………. | 28 |
| NOTE 17 | SHAREHOLDERS' EQUITY………………………………………………………………………………………………. | 29 |
| NOTE 18 | REVENUE AND COST OF SALES………………………………………………………………………………… | 30 |
| NOTE 19 | GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES………………………………………………………………………………… | 30-31 |
| NOTE 20 | EXPENSES BY NATURE………………………………………………………………………………… | 31 |
| NOTE 21 | OTHER INCOME / EXPENSES FROM OPERATING ACTIVITIES ………………………………………………………………………………… | 32 |
| NOTE 22 | FINANCIAL INCOME / EXPENSES………………………………………………………………………………… | 32 |
| NOTE 23 | TAX ASSETS AND LIABILITIES………………………………………………………………………………… | 33 |
| NOTE 24 | RELATED PARTY DISCLOSURES………………………………………………………………………………… | 33-35 |
| NOTE 25 | EARNING PER SHARE………………………………………………………………………………… | 35-36 |
| NOTE 26 | COMMITMENTS………………………………………………………………………………………………………… | 36 |
| NOTE 27 | EVENTS AFTER THE REPORTING PERIOD………………………………………………………………………………… | 36 |
| ADDITIONAL NOTE | CONTROL OF COMPLIANCE WITH THE PORTFOLIO LIMITATIONS………………………………………………………………………………… | 37 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
| Unaudited | Audited | ||
|---|---|---|---|
| Notes | 30 September 2024 |
31 December 2023 |
|
| ASSETS | |||
| Current assets | 164,446,105 | 150,666,127 - |
|
| Cash and cash equivalents | 4 | 3,216,430 | 20,730,773 |
| Trade receivables | 7,611,082 | 10,337,886 | |
| Trade receivables due from related parties | 24 | 3,351,220 | 5,136,469 |
| Trade receivables due from third parties | 7 | 4,259,862 | 5,201,417 |
| Other receivables | 535,824 | 1,234,934 | |
| Other receivables due from third parties | 8 | 535,824 | 1,234,934 |
| Inventories | 9 | 149,496,705 | 112,416,103 |
| Prepaid expenses | 3,356 | 1,508 | |
| Prepaid expenses to third parties | 16 | 3,356 | 1,508 |
| Other current assets | 15 | 3,582,708 | 5,944,923 |
| Non-current assets | 10,951,605 | 13,496,547 | |
| Trade receivables | 3,390,094 | 6,093,938 | |
| Trade receivables due from third parties | 7 | 3,390,094 | 6,093,938 |
| Other receivables | 8 | 1,014 | 1,378 |
| Financial investments | 3,877,809 | 3,877,809 | |
| Investments in subsidiaries, joint operations and associates | 5 | 3,877,809 | 3,877,809 |
| Investment properties | 10 | 2,910,596 | 2,953,385 |
| Property, plant and equipment | 11 | 767,428 | 561,002 |
| Intangible assets | 12 | 4,664 | 9,035 |
| Total assets | 175,397,710 | 164,162,674 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
| Notes | Unaudited 30 September 2024 |
Audited 31 December 2023 |
|
|---|---|---|---|
| LIABILITIES AND EQUITY | |||
| Current liabilities | 91,795,725 | 81,983,653 | |
| Short-term borrowings | 6 | - 4,150,325 |
- 1,298,534 |
| Short-term portions of long-term borrowings | 6 | 1,821,733 | 2,964,015 |
| Trade payables | 6,447,291 | 5,199,912 | |
| Trade payables due to related parties | 24 | 218,210 | - |
| Trade payables due to third parties | 7 | 6,229,081 | 5,199,912 |
| Other payables | 2,163,790 | 1,526,536 | |
| Other payables to third parties | 8 | 2,163,790 | 1,526,536 |
| Deferred income | 76,849,365 | 70,524,696 | |
| Deferred income from related parties | 24 | 4,244,500 | 4,778,239 |
| Deferred income from third parties | 16 | 72,604,865 | 65,746,457 |
| Short-term provisions | 363,221 | 469,960 | |
| Short-term provisions for employee benefits | 14 | 108,448 | 129,426 |
| Other short-term provisions | 13 | 254,773 | 340,534 |
| Non-current liabilities | 1,010,052 | 2,633,351 | |
| Long-term borrowings | 6 | 85,339 | 1,716,363 |
| Trade payables | 369,187 | 502,009 | |
| Trade payables to third parties | 7 | 369,187 | 502,009 |
| Other payables | 440,748 | 285,683 | |
| Other payables to third parties | 8 | 440,748 | 285,683 |
| Deferred income | 4,738 | 6,437 | |
| Deferred income from third parties | 16 | 4,738 | 6,437 |
| Long-term provisions | 110,040 | 122,859 | |
| Long-term provisions for employee benefits | 14 | 110,040 | 122,859 |
| Shareholders' equity | 82,591,933 | 79,545,670 | |
| Paid-in capital | 17 | 3,800,000 | 3,800,000 |
| Capital adjustments | 17 | 48,007,236 | 48,007,236 |
| Treasury shares (-) | (60,834) | (60,834) | |
| Share premium (discounts) | 27,223,550 | 27,223,550 | |
| Other equity shares | (1,636,590) | (1,636,590) | |
| Restricted reserves appropriated from profit | 8,162,416 | 8,162,416 | |
| Retained earnings | (5,950,108) | (769,033) | |
| Net profit/(loss) for the period | 3,046,263 | (5,181,075) | |
| Total liabilities and equity | 175,397,710 | 164,162,674 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
| Notes | Unaudited 1 January- 30 September 2024 |
Unaudited 1 July - 30 September 2024 |
Unaudited 1 January- 30 September 2023 |
Unaudited 1 July - 30 September 2023 |
|
|---|---|---|---|---|---|
| Revenue | 18 | 16,300,885 | 8,460,719 | 28,856,009 | 4,217,381 |
| Cost of sales (-) | 18 | (11,262,651) | (6,082,694) | (22,524,892) | (3,510,362) |
| Gross profit | 5,038,234 | 2,378,025 | 6,331,117 | 707,019 | |
| General administrative expenses (-) | 19 | (1,853,529) | (688,707) | (3,415,406) | (656,131) |
| Marketing expenses (-) | 19 | (223,439) | (45,849) | (435,502) | (83,471) |
| Other income from operating activities | 21 | 1,549,955 | 649,890 | 3,023,685 | 683,870 |
| Other expenses from operating activities (-) | 21 | (211,225) | (7,864) | (1,970,398) | 2,583,240 |
| Operating profit | 4,299,996 | 2,285,495 | 3,533,496 | 3,234,527 | |
| Income from investing activities | - | - | 8,819 | 8,819 | |
| Operating profit before financial income | 4,299,996 | 2,285,495 | 3,542,315 | 3,243,346 | |
| Financial income | 22 | 2,874,701 | 806,591 | 3,291,019 | 1,305,989 |
| Financial expenses (-) | 22 | (913,818) | (326,393) | (1,656,669) | (377,268) |
| Monetary loss | (3,214,616) | (340,504) | (10,523,994) | (6,325,018) | |
| Profit/(loss) for the period | 3,046,263 | 2,425,189 | (5,347,329) | (2,152,951) | |
| Net Profit/(loss) for the period | 3,046,263 | 2,425,189 | (5,347,329) | (2,152,951) | |
| Total comprehensive income/(loss) | 3,046,263 | 2,425,189 | (5,347,329) | (2,152,951) | |
| Earnings per share (full TRY) | 25 | 0.0801 | 0.0637 | (0.1406) | (0.0566) |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
| Will | Other Accumulated Comprehensive Income or Expenses That Not Be Reclassified to Profit or Loss |
Retained | Earnings | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Share capital |
Capital adjustments |
Treasury shares |
Share premium/ discounts |
Other Equity Shares |
Restricted reserves appropriated from profit |
Gain/loss on revaluation and remeasurement |
Prior years' Loss |
Net profit/(loss) for the period |
Total equity |
|
| 1 January 2023 |
3,800,000 | 48,007,236 | (3,072,330) | 27,223,550 | - | 7,961,256 | - | (657,610) | 1,789,828 | 85,051,930 |
| Transfers Dividend Decreases Related to the Acquisition of Treasury Shares Total comprehensive loss |
- - - - |
- - - - |
- - 3,011,496 - |
- - - - |
- - (1,636,590) - |
201,160 - - - |
- - - - |
1,588,668 (1,729,978) - - |
(1,789,828) - - (5,347,329) |
- (1,729,978) 1,374,906 (5,347,329) |
| 30 September 2023 |
3,800,000 | 48,007,236 | (60,834) | 27,223,550 | (1,636,590) | 8,162,416 | - | (798,920) | (5,347,329) | 79,349,529 |
| 1 January 2024 Transfers |
3,800,000 - |
48,007,236 - |
(60,834) - |
27,223,550 - |
(1,636,590) - |
8,162,416 - |
- - |
(769,033) (5,181,075) |
(5,181,075) 5,181,075 |
79,545,670 - |
| Total comprehensive income 30 September 2024 |
- 3,800,000 |
- 48,007,236 |
- (60,834) |
- 27,223,550 |
- (1,636,590) |
- 8,162,416 |
- - |
- (5,950,108) |
3,046,263 3,046,263 |
3,046,263 82,591,933 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
| 1 January - 1 January - Notes 30 September 2024 Cash flows from operating activities Profit/(loss) for the period 3,046,263 (5,347,329) Adjustments related to reconcile of profit for the period 10, 11, 12, 20 Adjustments related to depreciation and amortization expenses 83,191 79,453 Adjustments related to (reversal of) impairments (net) (1,048,684) (8,190,303) 9 Adjustments related to impairment loss (reversal of) / cost provision of inventories (1,048,684) (8,190,303) Adjustments related to provisions 24,603 (119,567) Adjustments related to (reversal of) provisions related with employee benefits 19,623 (131,332) Adjustments related to provisions for possible risks 21 4,980 11,765 Adjustments related to interest (income) and expenses (2,596,957) (2,697,502) 21, 22 Adjustments related to interest income (3,699,791) (5,088,695) 21, 22 Adjustments related to interest expense 1,102,834 2,391,193 Adjustments related to monetary loss 5,449,080 7,726,507 Net cash from operations before changes in assets and liabilities 4,957,496 |
Unaudited | Unaudited | |
|---|---|---|---|
| 30 September 2023 | |||
| (8,548,741) | |||
| Changes in net working capital: | |||
| 1,252,692 Adjustments related to (increase)/decrease in trade receivables |
(4,942,218) | ||
| Increase (decrease) in trade receivables from related parties 492,016 (54,916) |
|||
| Increase (decrease) in trade receivables from third parties 760,676 (4,887,302) |
|||
| Adjustments related to increase/(decrease) in inventories (35,985,448) |
17,527,465 | ||
| Adjustments related to increase in trade payables 2,922,782 |
(1,479,487) | ||
| Increase (decrease) in trade payables to related parties 171,740 - |
|||
| Increase (decrease) in trade payables to third parties 2,751,042 (1,479,487) |
|||
| Adjustments related to increase in other receivables from operating activities 1,737,773 |
85,672 | ||
| Adjustments related to increase in other payables from operating activities 7,230,677 |
13,289,805 | ||
| Other adjustments related to other increase in working capital (27,033) |
(291,974) | ||
| Net cash flows from operating activities | - | ||
| Payments related with provisions for employee benefits (17,338) |
(2,110) | ||
| Cash flows from operating activities (17,928,399) |
15,638,412 | ||
| Purchases of investment properties, property, plant and equipment and intangible assets 11, 12 (242,457) |
(54,998) | ||
| 11, 12 Sales of tangible and intangible assets - |
3,123 | ||
| Interest received 164,901 |
794,959 | ||
| Cash flows from investing activities (77,556) |
743,084 | ||
| Cash outflow from purchasing own shares - |
1,374,906 | ||
| Proceeds from borrowings 6,392,554 |
5,922,032 | ||
| Proceeds from loans 1,810,098 1,716,546 |
|||
| 4,582,456 4,205,486 Proceeds from issue of debt instruments |
|||
| Repayments of borrowings (4,720,403) |
(7,612,302) | ||
| (1,881,572) (3,828,007) Loan repayments |
|||
| (2,838,831) (3,784,295) Payments of issued debt instruments |
|||
| Interest paid (877,139) Dividends paid - |
(1,741,446) (1,729,978) |
||
| Interest received 3,534,890 |
4,293,736 | ||
| Cash flow from financing activities 4,329,902 |
506,948 | ||
| Inflation effect on cash and cash equivalents (3,376,033) |
(7,388,113) | ||
| Net (decrease) increase in cash and cash equivalents (17,052,086) |
9,500,331 | ||
| Cash and cash equivalents at the beginning of the period 4 19,376,153 |
11,604,446 | ||
| Cash and cash equivalents at the end of the period 4 2,324,067 21,104,777 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
Emlak Konut Gayrimenkul Yatırım Ortaklığı A.Ş. ("Emlak Konut GYO" or the "Company") was established on 26 December 1990 as a subsidiary of Türkiye Emlak Bankası A.Ş. The Company 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 Company has been registered and started its activities on 6 March 1991. The Company'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 Company is Barbaros Mah. Mor Sümbül Sok. No: 7/2 B (Batı Ataşehir) Ataşehir – İstanbul. As of 30 September 2024, the number of employees of the Company is 481 (31 December 2023 - 475).
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 standalone financial statements at 30 September 2024 have been approved by the Board of Directors on 11 November 2024.
The ultimate parent of the company 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.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
The principal accounting policies applied in the preparation of these standalone financial statements are set out below. These policies have been consistently applied to all the years presented, 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 standalone financial statements are presented in accordance with the formats specified in the "Communiqué on TFRS Taxonomy" published by the POA on 4 July 2024 and the Illustrations of Financial Statements and Application Guidance published by the CMB.
The Company has prepared its condensed separate financial statements for the interim period ended 30 September 2024 in accordance with the Communiqué Serial: XII, 14.1 and the announcements clarifying this communiqué, in accordance with TAS 34 "Interim Financial Reporting Standard".
In accordance with TAS 34, entities are free to prepare their interim financial statements as a full set or condensed. In this context, the Company has preferred to prepare condensed interim financial statements.
The Company 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 standalone financial statements have been prepared on the basis of historical cost, with the necessary adjustments and classifications reflected in the statutory records in accordance with TFRS.
The Company prepared its financial statements as of 30 September 2024 and for the interim period ended 30 September 2024 by applying TAS 29 "Financial Reporting in Hyperinflationary Economies" in accordance with the announcement made by POA on 23 November 2023 and the "Application Guidance on Financial Reporting in Hyperinflationary Economies". In accordance with the standard, financial statements prepared in the currency of a hyperinflationary economy are stated in terms of the purchasing power of that currency at the balance sheet date and comparative figures for prior periods are expressed in terms of the measuring unit current at the end of the reporting period. Therefore, the Company has presented its financial statements as of 30 September 2024 and 31 December 2023 on a purchasing power basis as of 30 September 2024.
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 2023, according to the rule number 81/1820 declared by CMB dated in 28 December 2023.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
The restatements in accordance with TAS 29 have been made using the adjustment factor derived from the Consumer Price Index ("CPI") in Turkey published by the Turkish Statistical Institute ("TSI"). As at 30 September 2024, the indices and adjustment factors used in the restatement of the financial statements are as follows:
| Date | Index | Adjustment | 3-year cumulative |
|---|---|---|---|
| correlation | inflation ratios | ||
| 30 September 2024 |
2,526.16 | 1.00000 | 343% |
| 31 December 2023 |
1,859.38 | 1.35860 | 268% |
| 30 September 2023 |
1,691.04 | 1.49385 | 254% |
Procedure of TAS 29 is presented below:
The main components of the Company's restatement for the purpose of financial reporting in hyperinflationary economies are as follows:
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
Each item in the condensed separate financial statements of the Company is accounted for using the currency of the primary economic environment in which the Company operates ('functional currency'). The functional currency of the Company is TRY and the presentation currency is thousand TRY.
Financial assets and liabilities are offset and the net amount is 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 prior period financial statements are restated if they are of a nature to provide a more appropriate and reliable presentation of the effects of transactions and events on the entity's individual financial position, performance or cash flows in the financial statements.
Additional Note The information in the Control of Compliance with Portfolio Restrictions Table is summarized information derived from the financial statements in accordance with Article 16 of the Communiqué Serial: II, No: 14.1 "Communiqué on Principles Regarding Financial Reporting in Capital Markets" and is in the nature of summary information derived from the financial statements in accordance with Article 16 of the Communiqué Serial: III, No: 48.1 "Communiqué on Principles Regarding Real Estate Investment Trusts" and has been prepared within the framework of the provisions regarding the control of compliance with portfolio limitations.
The condensed interim financial statements as at 30 September 2024 have been prepared by applying accounting policies consistent with the accounting policies applied in the preparation of the financial statements for the period ended 30 September 2024. Accordingly, the condensed interim financial statements should be read in conjunction with the year-end financial statements for completeness.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
However, in the Board Decision of POA published in the Official Gazette dated 29 December 2023, it was announced that certain entities will be subject to mandatory sustainability reporting as of 1 January 2024. The 5 January 2024 dated "Board Decision on the Scope of Application of Turkish Sustainability Reporting Standards (TSRS)" lists the entities that fall within the scope of sustainability application in order to determine the entities that will be subject to sustainability reporting.
However, in the letter dated 6 April 2023 sent by the Public Oversight Authority (POA) to the Association of Insurance, Reinsurance and Pension Companies of Turkey, it has been reported that it has reached the opinion that it would be appropriate to apply TFRS 17 in the consolidated and separate financial statements of insurance, reinsurance and pension companies, banks that have partnerships/investments in these companies and other companies that also have partnerships/investments in these companies as of 1 January 2024. On the other hand, the implementation date of TFRS 17 has been postponed to 1 January 2025 by POA.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
.
• it has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Cash on hand | 63 | 5 |
| Banks | 2,520,831 | 20,070,179 |
| - Demand deposit | 136,854 | 22,489 |
| - Time deposits with maturities less than 3 months | 2,383,977 | 20,047,690 |
| Other cash and cash equivalents | 695,536 | 660,589 |
| 3,216,430 | 20,730,773 |
The maturity distribution of cash and cash equivalents is as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Demand | 136,854 | 22,489 |
| Up to 3 month | 2,383,977 - |
20,047,690 - |
| 2,520,831 | 20,070,179 |
Average effective annual interest rates on time deposits in TRY on the balance sheet date:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| (%) | (%) | |
| Effective interest rate | 46.55 | 40.58 |
The calculation of cash and cash equivalents of the Company for the use in statements of cash flows is as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Cash and cash equivalents | 3,216,430 | 20,730,773 |
| Less: Interest accruals on deposits | (4,131) | (162,989) |
| Less: LSRSA project deposits (*) | (917,316) | (1,214,210) |
| Add: the effect of provisions released under TFRS 9 | 29,084 | 22,579 |
| 2,324,067 | 19,376,153 |
(*) 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 Company is kept in deposits accounts in the name of the related projects under the control of the Company as stated in the agreement. There is no blocked deposit (31 December 2023: None) of the project accounts amounting TRY917,316 (31 December 2023: TRY1,214,210).
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As of 30 September 2024 and 31 December 2023, the carrying values of the subsidiaries of the Company on the balance sheet are as follows:
| 30 September 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Share (%) | TL | Share (%) | TL | |
| İnşaat Yönetimi Emlak Planlama Proje ve Ticaret A.Ş. |
100 | 2,928,279 | 100 | 2,928,279 |
| Emlak Konut Asansör Sistemleri Sanayi ve Ticaret A.Ş. |
100 | 942,650 | 100 | 942,650 |
| Total | 3,870,929 | 3,870,929 |
As of 30 September 2024 and 31 December 2023, the carrying value of the Company's interest in joint ventures in the balance sheet is as follows:
| 30 September 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Share (%) | TL | Share (%) | TL | |
| Merkez Cadde Yönetim A.Ş. | 30 | 1,221 | 30 | 1,221 |
| Büyükyalı Tesis Yönetim A.Ş. | 37 | 226 | 37 | 226 |
| İstmarina AVM Adi Ortaklığı | 40 | 5,433 | 40 | 5,433 |
| Total | 6,880 | 6,880 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As at 30 September 2024 and 31 December 2023, details of financial liabilities are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Short-term financial liabilities | ||
| Short-term bank borrowings | 1,728,325 | 75,791 |
| Issued debt instruments (*) | 2,422,000 | 1,222,743 |
| Short-term portion of long-term borrowings | 1,821,733 | 2,964,015 |
| 5,972,058 | 4,262,549 |
(*) The group has issued four different lease certificates: on 8 July 2024, a lease certificate with a nominal value of TRY400,000, a profit share rate of 45%, and a maturity date of 10 October 2024; on 13 August 2024, a lease certificate with a nominal value of TRY400,000, a profit share rate of 46%, and a maturity date of 13 November 2024; on 9 September 2024, a lease certificate with a nominal value of TRY1,122,000, a profit share rate of 45%, and a maturity date of 10 January 2025; and on the same date, 9 September 2024, another lease certificate with a nominal value of TRY500,000, a profit share rate of 45%, and a maturity date of 10 January 2025, while in 2023, the group issued lease certificates with nominal values of TRY543,441 at a 38% profit share rate and TRY679,302 at a 40% profit share rate).
| Long-term financial liabilities | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Long-term borrowings | 85,339 | 1,716,363 |
| 85,339 | 1,716,363 |
Borrowings used as of 30 September 2024 are denominated in TRY and the weighted average interest rate is 24.77% (31 December 2023: 20.66%).
The redemption schedules of the borrowings as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| 2025 | 85,339 | 1,716,363 |
| 85,339 | 1,716,363 |
The maturity distributions of the remaining time of borrowings to repricing are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Less than 3 months | 1,846,343 | 1,222,743 |
| Between 3 - 12 months | 1,703,715 | 1,817,063 |
| Between 1 - 5 years | 85,339 | 1,716,363 |
| 3,635,397 | 4,756,169 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
The details of trade receivables and payables as of 30 September 2024, and 31 December 2023, are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Short-term trade receivables | ||
| Receivables from related parties (Note 24) | 3,351,220 | 5,136,469 |
| Receivables from land sales | 1,619,030 | 1,109,570 |
| Receivables from sale of residential and commercial units | 2,190,924 | 2,549,412 |
| Receivables from contractors of the lands invoiced under LSRSA | 782,017 | 1,905,403 |
| Receivables from lessees | 74,035 | 36,121 |
| Other | 11,003 | 11,647 |
| Unearned finance income | (417,147) | (410,736) |
| 7,611,082 | 10,337,886 | |
| Doubtful receivables | 1,696 | 2,496 |
| Less: Provision for doubtful receivables | (1,696) | (2,496) |
| 7,611,082 | 10,337,886 | |
| 30 September 2024 | 31 December 2023 | |
| Long-term trade receivables | ||
| Receivables from sale of residential and commercial units | 3,962,374 | 5,464,296 |
| Receivables from land sales | 429,637 | 1,978,234 |
| Unearned finance income | (1,001,917) | (1,348,592) |
| 3,390,094 | 6,093,938 | |
| 30 September 2024 | 31 December 2023 | |
| Short-term trade payables | ||
| Trade payables | 5,152,833 | 3,086,690 |
| Payables to contractors according to revenue sharing basis | 726,781 | 1,255,192 |
| Interest accruals on time deposits of contractors (*) | 349,467 | 858,030 |
| Payables to related parties (Note 24) | 218,210 | - |
| 6,447,291 | 5,199,912 |
(*) 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 Company is kept in deposits accounts in the name of the related projects under the control of the Company as stated in the agreement. The Company tracks the contractor's share of the interest obtained from the advances accumulated in these accounts in short-term payables.
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Long-term trade payables | ||
| Trade payables | 369,187 | 502,009 |
| 369,187 | 502,009 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As at 30 September 2024 and 31 December 2023, details of other receivables and payables are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Short-term other receivables | ||
| Advances given to contractor firms | 476,755 | 732,935 |
| Receivables from the authorities | 41,751 | 38,037 |
| Other | 17,318 | 463,962 |
| 535,824 | 1,234,934 | |
| 30 September 2024 | 31 December 2023 | |
| Long-term other receivables | ||
| Deposits and guarantees given | 1,014 | 1,378 |
| 1,014 | 1,378 | |
| 30 September 2024 | 31 December 2023 | |
| Short-term other payables | ||
| Taxes and funds payable | 2,126,507 | 1,422,807 |
| Payables to shareholders | 66 | 90 |
| Other | 37,217 | 103,639 |
| 2,163,790 | 1,526,536 |
As of 30 September 2024, other long-term payables are amount to TRY440,748 and consist of deposits and guarantees received (31 December 2023: TRY285,683).
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As at 30 September 2024 and 31 December 2023, details of inventories are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Lands | 37,937,440 | 24,258,067 |
| Cost | 44,709,990 | 32,016,184 |
| Impairment | (6,772,550) | (7,758,117) |
| Planned land by LSRSA | 42,100,472 | 45,768,174 |
| Planned land by turnkey project | 39,764,702 | 29,233,271 |
| Planned land by turnkey project | 46,360,366 | 35,828,935 |
| Impairment (*) | (6,595,664) | (6,595,664) |
| Residential and commercial units ready for sale | 12,734,999 | 11,546,877 |
| Cost | 14,231,043 | 13,106,038 |
| Impairment | (1,496,044) | (1,559,161) |
| Advances given for inventories (**) | 16,959,092 | 1,609,714 |
| 149,496,705 | 112,416,103 |
(*) It is the provision for impairment due to the increase in construction costs in the Global and Turkish markets.
(**) As of 30 September 2024, an amount of TRY14,308,883 from the advances given for inventories consists of the payment made for 1,615 independent units purchased under the Yeni Fikirtepe project undertaken on behalf of the Republic of Turkey 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 the provision for impairment, if any, is based on the valuation reports prepared by Acar Taşınmaz Değerleme ve Danışmanlık A.Ş. and Yetkin Gayrimenkul Değerleme A.Ş. as of 31 December 2023.
The movements of impairment on inventories are as follows:
| Opening balance at 1 January | 2024 15,912,942 |
2023 23,524,147 |
|---|---|---|
| Impairment on inventories within the current period |
- | 1,160,590 |
| Reversal of impairment on invetories within the current period |
(1,048,684) | (9,350,893) |
| Closing balance at 30 September | 14,864,258 | 15,333,844 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As of 30 September 2024 and 31 December 2023 the details of land and residential inventories of the Company are as follows:
| Lands | 30 September 2024 | 31 December 2023 |
|---|---|---|
| İstanbul Esenler Lands | 13,933,574 | 4,714,930 |
| İstanbul Küçükçekmece Lands | 6,817,494 | 6,779,728 |
| İstanbul Avcılar Lands | 4,968,079 | 3,914,124 |
| Muğla Bodrum Lands | 4,120,965 | 4,950,495 |
| İzmir Çeşme Lands | 1,592,082 | - |
| Aydın Didim Lands | 1,517,092 | - |
| Antalya Alanya Lands | 946,060 | - |
| İstanbul Çekmeköy Lands | 654,155 | 654,156 |
| İstanbul Başakşehir Lands | 620,518 | 852,574 |
| İstanbul Eyüp Lands | 540,107 | 537,809 |
| İstanbul Kartal Lands | 501,129 | 121,772 |
| İzmir Urla Lands | 432,022 | 432,022 |
| İstanbul Arnavutköy Lands | 260,208 | 602,473 |
| Muğla Milas Lands | 200,736 | 200,726 |
| Antalya Konyaaltı Lands | 156,841 | - |
| İzmir Karşıyaka Lands | 133,025 | - |
| İzmir Seferihisar Lands | 137,878 | 160,689 |
| Zonguldak Merkez Lands | 104,946 | - |
| Tekirdağ Çorlu Lands | 100,301 | 100,301 |
| İstanbul Tuzla Lands | 86,704 | 86,703 |
| İzmir Konak Umurbey Lands | 66,176 | 66,175 |
| Ankara Çankaya Lands | 28,448 | 28,449 |
| İstanbul Sarıyer Lands | 10,388 | - |
| Kocaeli Lands | 8,206 | - |
| İstanbul Ataşehir Lands | 106 | - |
| Other | 200 | 54,941 |
| 37,937,440 | 24,258,067 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As of 30 September 2024 and 31 December 2023, the Company's projected land details are as follows:
| Planned lands by LSRSA | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Nidapark İstinye Project | 6,179,448 | 6,182,876 |
| Bizim Mahalle 2. Etap 1. Kısım Project | 3,439,052 | 2,005,204 |
| Merkez Ankara Project | 3,084,765 | 3,086,471 |
| Nidapark Küçükyalı Project | 3,038,641 | 3,040,322 |
| Yeni Levent Project | 2,200,933 | 2,181,428 |
| Bizim Mahalle 2. Etap 2. Kısım Project | 2,004,095 | 3,441,107 |
| Çekmeköy Çınarköy Project | 1,897,120 | 1,898,169 |
| Meydan Başakşehir Project | 1,797,571 | 1,797,421 |
| Batıyakası 2. Etap Project | 1,623,354 | 1,624,251 |
| Next Level İstanbul Project | 1,503,275 | 1,504,107 |
| Beşiktaş Akat Project | 1,480,033 | 1,447,808 |
| Ümraniye İnkılap Project | 1,372,192 | 1,371,653 |
| İstanbul Kayabaşı 9. Etap Project | 1,342,387 | 1,343,129 |
| Başakşehir Ayazma 4. Etap Project | 1,212,920 | 1,213,592 |
| İstanbul Tuzla Merkez Project | 1,199,276 | 1,199,939 |
| Batıyakası 1. Etap Project | 1,055,744 | 1,056,658 |
| İstanbul Kayabaşı 8. Etap Project | 909,276 | 909,779 |
| İstanbul Eyüpsultan Kemerburgaz Project | 875,876 | 876,320 |
| Avcılar Firüzköy 1. Etap 2. Kısım Project | 846,480 | 847,323 |
| Avcılar Firüzköy 2. Etap Project | 836,065 | 836,527 |
| Avcılar Firüzköy 1. Etap 1. Kısım Project | 777,506 | 777,493 |
| Nişantaşı Koru Project | 700,100 | 4,312,349 |
| Bodrum Türkbükü Project | 630,541 | 630,891 |
| Nezihpark Project | 386,616 | 386,819 |
| Antalya Aksu Project | 339,771 | 338,935 |
| Barbaros 48 Project | 335,095 | 333,252 |
| İstanbul Ataşehir Küçükbakkalköy Project | 313,345 | 313,517 |
| İstanbul Kayabaşı 10. Etap Project | 292,755 | 292,916 |
| Cer İstanbul Project | 193,021 | 193,128 |
| Ankara Çayyolu 2. Etap Project | 164,867 | 164,557 |
| Allsancak Project | 42,255 | - |
| Other | 26,097 | 160,233 |
| 42,100,472 | 45,768,174 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As of 30 September 2024 and 31 December 2023, the details of the Company's land plots designed as turnkey projects are as follows:
| Planned lands by turnkey project | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Çekmeköy Çınarköy Project | 22,094,108 | 17,405,000 |
| Arnavutköy Yenişehir Project | 7,023,509 | 232,039 |
| Emlak Konut Vadi Evleri Project | 4,234,651 | 2,868,365 |
| Bizim Mahalle Project | 2,949,974 | 2,327,290 |
| Balıkesir Altıeylül Project | 1,926,132 | 1,193,381 |
| İstanbul Avcılar Firuzköy Project | 1,063,900 | 2,151,183 |
| Ankara Saraçoğlu Project | - | 3,056,013 |
| Other | 472,428 | - |
| 39,764,702 | 29,233,271 |
As of 30 September 2024 and 31 December 2023, the details of the Company's completed residential and commercial units are as follows:
| Residential and commercial units completed | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Merkez Ankara Project | 5,126,901 | 5,170,278 |
| Saraçoğlu Mahallesi Project | 2,197,770 | - |
| Kuzey Yakası Project | 1,698,653 | 1,863,340 |
| Maslak 1453 Project | 1,290,458 | 1,315,851 |
| Komşu Finans Evleri | 989,063 | 990,099 |
| Sarphan Finanspark Project | 371,000 | 409,503 |
| Bizim Mahalle 1. Etap 1. Kısım Project | 357,685 | 530,054 |
| Denizli Merkez Efendi İkmal İşi Project | 224,779 | 485,206 |
| Bizim Mahalle 1. Etap 2. Kısım Project | 151,339 | 303,013 |
| Semt Bahçekent 1. Etap 2. Kısım Project | 87,586 | 87,586 |
| Köy 2. Etap Project | 53,590 | 76,040 |
| Nidapark İstinye Project | 44,925 | 44,925 |
| Büyükyalı Project | 40,856 | 40,856 |
| Metropol İstanbul Project | 26,338 | 26,338 |
| İdealist Cadde / Koru Project | 38,737 | - |
| Karat 34 Project | 14,465 | 52,071 |
| Kocaeli Körfezkent Emlak Konutları | 10,869 | 10,869 |
| Göl Panorama Project | 4,158 | 4,159 |
| Başakşehir Ayazma Emlak Konutları | 4,056 | 4,055 |
| Temaşehir Project | 1,771 | 3,207 |
| Evora Denizli Project | - | 19,492 |
| Emlak Konut Florya Evleri | - | 105,198 |
| Ormanköy Project | - | 4,737 |
| 12,734,999 | 11,546,877 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
Lease income is generated from investment properties, and the expertise used in the calculation of impairment is made through peer comparison and income reduction.
The movements of investment properties as of 30 September 2024 and 2023 are as follows:
| Atasehir general management building A |
|||
|---|---|---|---|
| Cost Value | Lands, residential | block | Total |
| Opening balance as of 1 January 2024 | 2,821,121 | 354,869 | 3,175,990 |
| Transfers to commercial units and land inventories |
- | - | - |
| Transfers from residential and commercial units inventories |
- | - | - |
| Closing balance as of 30 September 2024 | 2,821,121 | 354,869 | 3,175,990 |
| Accumulated Depreciation | |||
| Opening balance as of 1 January 2024 | 171,392 | 51,213 | 222,605 |
| Charge for the period | 37,466 | 5,323 | 42,789 |
| Closing balance as of 30 September 2024 | 208,858 | 56,536 | 265,394 |
| Net book value as of 30 September 2024 | 2,612,263 | 298,333 | 2,910,596 |
| Atasehir general | |||
|---|---|---|---|
| Lands, residential | management building A | ||
| Cost Value | and commercial units | block | Total |
| Opening balance as of 1 January 2023 | 4,219,597 | 354,869 | 4,574,466 |
| Transfers to commercial units and land | (1,405,307) | ||
| inventories | (1,405,307) | - | |
| Transfers from residential and | |||
| commercial units inventories | 53,845 | - | 53,845 |
| Closing balance as of 30 September 2023 | 2,868,135 | 354,869 | 3,223,004 |
| Accumulated Depreciation | |||
| Opening balance as of 1 January 2023 | 119,006 | 44,115 | 163,121 |
| Charge for the period | 40,079 | 5,323 | 45,402 |
| Closing balance as of 30 September 2023 | 159,085 | 49,438 | 208,523 |
| Net book value as of 30 September 2023 | 2,709,050 | 305,431 | 3,014,481 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As of 31 December 2023, the valuation reports prepared by Acar Taşınmaz Değerleme ve Danışmanlık A.Ş. and Yetkin Gayrimenkul Değerleme 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:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Independent commercial units of Büyükyalı AVM | 2,483,503 | 2,483,503 |
| Atasehir general management building A block | 1,685,788 | 1,685,788 |
| Independent commercial units of Istmarina AVM | 1,572,105 | 1,572,105 |
| Lands, residential and commercial units | 844,269 | 844,269 |
| 6,585,665 | 6,585,664 |
As of 30 September 2024 and 2023, the details of property, plant and equipment are as follows
| Motor | Furniture, | Other property, | |||
|---|---|---|---|---|---|
| 30 September 2024 | Buildings | vehicles | equipment and fixtures |
plant and equipment |
Total |
| Net book value as of 1 January 2024 | 481,449 | 28,595 | 50,942 | 16 | 561,002 |
| Additions | 233,222 | 7,966 | 1,269 | - | 242,457 |
| Disposal (-) | - | - | - | - | - |
| Depreciation expense (-) | (10,033) | (7,399) | (18,591) | (8) | (36,031) |
| Net book value 30 September 2024 | 704,638 | 29,162 | 33,620 | 8 | 767,428 |
| Cost | 796,697 | 46,717 | 299,673 | 31 | 1,143,118 |
| Accumulated depreciation (-) | (92,059) | (17,555) | (266,053) | (23) | (375,690) |
| Net book value 30 September 2024 | 704,638 | 29,162 | 33,620 | 8 | 767,428 |
| Motor | Furniture, equipment |
Other property, plant and |
|||
|---|---|---|---|---|---|
| 30 September 2023 | Buildings | vehicles | and fixtures | equipment | Total |
| Net book value as of 1 January 2023 | 494,591 | 7,854 | 36,056 | 26 | 538,527 |
| Additions | - | 24,588 | 30,410 | - | 54,998 |
| Disposal (-) | (1,847) | (1,145) | (131) | - | (3,123) |
| Depreciation expense (-) | (8,478) | (4,103) | (13,650) | (8) | (26,239) |
| Net book value 30 September 2023 | 484,266 | 27,194 | 52,685 | 18 | 564,163 |
| Cost | 563,572 | 58,490 | 295,351 | 31 | 917,444 |
| Accumulated depreciation (-) | (79,306) | (31,296) | (242,666) | (13) | (353,281) |
| Net book value 30 September 2023 | 484,266 | 27,194 | 52,685 | 18 | 564,163 |
All of the depreciation expenses are included in the general administrative expenses.
The expencted useful lives of property, plant and equipment are as follows:
| Years | |
|---|---|
| Buildings | 50 |
| Motor vehicles | 5 |
| Furniture, equipment and fixtures | 4-5 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As of 30 September 2024 and 2023, intangible assets are as follows:
| Computer | |||
|---|---|---|---|
| 30 September 2024 | Licenses | software | Total |
| Net book value as of 1 January 2024 | 7,938 | 1,097 | 9,035 |
| Additions | - | - | - |
| Amortization expense (-) | (3,790) | (581) | (4,371) |
| Net book value 30 September 2024 | 4,148 | 516 | 4,664 |
| Cost | 109,384 | 3,871 | 113,255 |
| Accumulated amortization (-) | (105,236) | (3,355) | (108,591) |
| Net book value 30 September 2024 | 4,148 | 516 | 4,664 |
| Computer | |||
|---|---|---|---|
| 30 September 2023 | Licenses | software | Total |
| Net book value as of 1 January 2023 | 15,824 | 1,871 | 17,695 |
| Additions Amortization expense (-) |
- (7,231) |
- (581) |
- (7,812) |
| Net book value 30 September 2023 | 8,593 | 1,290 | 9,883 |
| Cost | 107,619 | 3,871 | 111,490 |
| Accumulated amortization (-) | (99,026) | (2,581) | (101,607) |
| Net book value 30 September 2023 | 8,593 | 1,290 | 9,883 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As of 30 September 2024 and 31 December 2023, the details of provisions are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Provisions | ||
| Provision for lawsuits | 254,773 | 340,534 |
| 254,773 | 340,534 |
According to the opinions of the Company's lawyers, provision for litigation amounting to TRY254,773 has been set aside as of 30 September 2024 (31 December 2023: TRY340,534). As of 30 September 2024, there are 1 deficiency lawsuit, 10 lawsuits for loss of rent, 7 lawsuits for cancellation and registration of deed, 2 labor lawsuits and 35 other miscellaneous lawsuits filed against the Company.
The movements of provision for lawsuits as of 30 September 2024 and 30 September 2023 are as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance at 1 January | 340,534 | 583,913 |
| Provision added within the current period (Note 21) Monetary gain loss |
4,980 (90,741) |
11,765 (223,885) |
| Closing balance at 30 September | 254,773 | 371,793 |
13.1.1 The LSRSA Project Agreement dated 21 December 2005 regarding 750 units in İzmir Mavisehir Upper North Area 2. Phase was abolished on 21 December 2009 since the contractor did not meet the requirements of the provisions in the agreement. Following the cancellation of the agreement, the project was transferred to the Company and the remaining part of the project was completed by another construction company which was assigned in accordance with Public Tender Law. The related units have been completed and are sold by the Company as in Turnkey projects.
The contractor filed a lawsuit against the Company claiming that the completion percentage of the project was significantly high and that the agreement between the parties was based on construction right in return for flat. Izmir Karsiyaka Commercial Court of First Instance issued an expert report and determine that the level of work was at around 83%, and that the legal relationship of the parties were not related to construction right in return of the flat. The Company and the contractor filed counter lawsuits in the following period and an additional report was decided to be issued. The additional report is about the final receivables and payables of the parties considering all the claims. As a result of the examination of the additional report at the hearing on 11 June 2014, the second expert committee was examined however, since the expert report was not received, the date of the case was not finalized. In addition, the file was transferred to the delegation, as the Commercial Courts turned into Delegation Judges. According to the various expert reports submitted to the file during the proceedings, the plaintiff has not recognized the value of the lawsuit and increased it to TRY76,161. As of 30 September 2024, a provision amounting to TRY139,770 has been provided including interest and legal expenses. The lawsuit has been partially accepted and partially rejected and the trial is ongoing.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
In the financial statements prepared as of 30 September 2024, the ongoing litigation liabilities were evaluated in the following matters. According to the opinion of the Company Management and its lawyers, no provision has been made in the financial statements prepared as of 30 September 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 Company in order to fulfill its obligation.
13.2.1 Concerning the İzmir Mavisehir Upper North Area Phase 2 LSRSA project, a lawsuit was filed based on the assignments given by the contractor in favor of the complainant. The case is proceeding. According to the opinion of the company lawyer, no liability is expected to arise as a result of the related lawsuit.
13.3.1 As of 30 September 2024 and 31 December 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:
| Off-balance sheet | |||
|---|---|---|---|
| 30 September 2024 | Trade Receivables | deferred revenue | Total |
| 1 year | 3,809,954 | 11,401,601 | 15,211,555 |
| 2 year | 1,798,886 | 7,154,951 | 8,953,837 |
| 3 year | 847,624 | 2,769,258 | 3,616,882 |
| 4 year | 559,198 | 1,304,920 | 1,864,118 |
| 5 year and above | 1,186,303 | 564,819 | 1,751,122 |
| 8,201,965 | 23,195,549 | 31,397,514 |
| 31 December 2023 | Trade Receivables | Off-balance sheet deferred revenue |
Total |
|---|---|---|---|
| 1 year | 3,658,982 | 12,649,269 | 16,308,251 |
| 2 year | 2,787,019 | 8,921,936 | 11,708,955 |
| 3 year | 2,104,672 | 5,876,602 | 7,981,274 |
| 4 year | 689,427 | 1,724,016 | 2,413,443 |
| 5 year and above | 1,861,412 | 1,036,150 | 2,897,562 |
| 11,101,512 | 30,207,973 | 41,309,485 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As of 30 September 2024 and 31 December 2023, short-term employee benefits are as follows is as follows:
| Short-term provisions | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Unused vacation provision | 108,448 | 129,426 |
| 108,448 | 129,426 |
As of 30 September 2024 and 31 December 2023, details of long-term employee benefits is as follows:
| Long-term provisions | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Provision for employment termination benefit | 110,040 | 122,859 |
| 110,040 | 122,859 |
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:
| 30 September 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.
As of 30 September 2024 and 31 December 2023, details of other current assets are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Other current assets | ||
| Deferred VAT | 2,071,302 | 1,938,018 |
| Progress payments to contractors | 1,287,031 | 3,343,207 |
| Income accruals | 124,547 | 484,035 |
| Receivables from tax office | 99,828 | 179,663 |
| 3,582,708 | 5,944,923 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As of 30 September 2024 and 31 December 2023, the details of short-term deferred income are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Short-term deferred income | ||
| Advances taken from turnkey project sales | 30,837,088 | 25,721,010 |
| Deferred income from LSRSA projects(*) | 23,716,924 | 22,913,575 |
| Advances taken from LSRSA contractors(**) | 17,381,564 | 16,609,558 |
| Advances received from related parties(Note 24) | 4,244,500 | 4,778,239 |
| Deferred income related to sales of independent units | 669,289 | 502,314 |
| 76,849,365 | 70,524,696 |
(*) 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.
As of 30 September 2024 and 31 December 2023, the details of short-term prepaid expenses are as follows
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Prepaid expenses | ||
| Prepaid expenses | 3,356 | 1,508 |
| 3,356 | 1,508 |
As of 30 September 2024 and 31 December 2023, the details of long-term deferred income are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Long-term deferred income | ||
| Other advances received | 4,738 | 6,437 |
| 4,738 | 6,437 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
The Company'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 Company's shareholders and their shareholding percentages as of 30 September 2024 and 31 December 2023 is as follows:
| 30 September 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 |
| Adjustment to share capital | 48,007,236 | 48,007,236 | ||
| 51,807,236 | 51,807,236 |
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 Company'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,
There is no any use of the adjustment to share capital except adding it to the share capital.
In accordance with the Capital Markets Board Bulletin published on 7 March 2024 The explanation related to adjusted equity accounts in accordance with TAS 29 is as follows:
| PPI Indexed Legal Records |
CPI Indexed Records |
Amounts followed in Accumulated Profit/Low |
|
|---|---|---|---|
| Adjustment to share capital | 75,684,216 | 48,007,236 | (27,676,980) |
| Share premium | 43,354,012 | 27,223,550 | (16,130,462) |
| Restricted reserves appropriated from profit | 11,649,269 | 8,162,416 | (3,486,853) |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As of 30 September 2024 and 2023, the details of revenue and cost of sales are as follows:
| 1 January- | 1 July - | 1 January- | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 | 30 September 2024 | 30 September 2023 | 30 September 2023 | |
| Sales income | ||||
| Land sales | 9,354,989 | 5,598,225 | 15,459,246 | 722,587 |
| Sales of planned lands by way of LSRSA | 6,243,660 | 5,598,225 | 3,144,667 | 545,137 |
| Land sales income | 3,111,329 | - | 12,314,579 | 177,450 |
| Residential and commercial units sales | 2,113,688 | 721,656 | 11,669,502 | 2,971,393 |
| Consultancy income | 4,706,281 | 2,104,765 | 1,771,994 | 675,003 |
| Rent income | 128,016 | 38,162 | 185,427 | 74,947 |
| 16,302,974 | 8,462,808 | 29,086,169 | 4,443,930 | |
| Sales returns | (2,089) | (2,089) | (230,160) | (226,549) |
| Net sales income | 16,300,885 | 8,460,719 | 28,856,009 | 4,217,381 |
| Cost of sales | ||||
| Cost of lands | (7,935,166) | (5,008,956) | (9,740,204) | (784,553) |
| Cost of lands planned by way of LSRSA | (5,439,148) | (5,008,956) | (4,189,946) | (784,553) |
| Cost of lands sold | (2,496,018) | - | (5,550,258) | - |
| Consultancy cost | (1,854,556) | (619,820) | - | - |
| Cost of residential and commercial units sold |
(1,472,929) | (453,918) | (12,784,688) | (2,725,809) |
| (11,262,651) | (6,082,694) | (22,524,892) | (3,510,362) | |
| Gross Profit | 5,038,234 | 2,378,025 | 6,331,117 | 707,019 |
As of 30 September 2024 and 2023, the details of general administrative expenses are as follows:
| 1 January- | 1 July - | 1 January- | 1 July - | |
|---|---|---|---|---|
| General administrative expenses | 30 September 2024 | 30 September 2024 | 30 September 2023 | 30 September 2023 |
| Personnel expenses | (993,352) | (310,503) | (861,540) | (317,211) |
| Security and cleaning expenses | (179,510) | (61,003) | (140,254) | (42,581) |
| Taxes, duties and fees | (116,620) | (21,704) | (381,607) | (59,064) |
| Consultancy expenses | (80,932) | (18,838) | (280,316) | (129,426) |
| Depreciation and amortization | (83,191) | (25,327) | (79,453) | (30,970) |
| Due and contribution expenses | (49,716) | (15,067) | (43,771) | (19,930) |
| Travel expenses | (53,416) | (19,178) | (28,325) | (10,279) |
| Information technologies expenses | (21,928) | (8,090) | (32,319) | (9,446) |
| Insurance expenses | (14,239) | (2,821) | (8,405) | (3,643) |
| Maintenance and repair expenses | (11,851) | (3,888) | (27,536) | (11,737) |
| Communication expenses | (6,661) | (2,741) | (4,615) | (3,008) |
| Lawsuit and notary expenses | (4,298) | (987) | (5,933) | (2,820) |
| Donations | (28,100) | (28,100) | (1,477,232) | - |
| Other | (209,715) | (170,460) | (44,100) | (16,016) |
| (1,853,529) | (688,707) | (3,415,406) | (656,131) |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As of 30 September 2024 and 2023, the details of marketing and sales expenses are as follows:
| 1 January- 30 September 2024 |
1 July - 30 September 2024 |
1 January- 30 September 2023 |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| Marketing and sales expenses | ||||
| Advertising expenses | (129,638) | (14,802) | (338,378) | (45,262) |
| Personnel expenses | (59,828) | (21,946) | (62,834) | (23,109) |
| Consultancy expenses | (32,644) | (8,810) | (30,875) | (14,937) |
| Other | (1,329) | (291) | (3,415) | (163) |
| (223,439) | (45,849) | (435,502) | (83,471) |
As of 30 September 2024 and 2023, the details of expenses by nature are as follows:
| 1 January- | 1 July - | 1 January- | 1 July - | |
|---|---|---|---|---|
| 30 September 2024 | 30 September 2024 | 30 September 2023 | 30 September 2023 | |
| Land costs | 7,935,166 | 5,008,957 | 9,740,204 | 784,553 |
| Consultancy cost | 1,854,556 | 619,820 | - | - |
| Expenses from residential and commercial units sales | 1,472,929 | 453,917 | 12,784,688 | 2,725,809 |
| Personnel expenses | 1,053,180 | 332,449 | 924,374 | 340,320 |
| Security and cleaning expenses | 179,510 | 61,003 | 140,254 | 42,581 |
| Advertising expenses | 129,638 | 14,802 | 338,378 | 45,262 |
| Taxes,duties and fees | 116,620 | 21,704 | 381,607 | 59,064 |
| Consultancy expenses | 113,576 | 27,648 | 311,191 | 144,363 |
| Depreciation and amortisation (Note 10,11) | 83,191 | 25,327 | 79,453 | 30,970 |
| Due and contribution expenses | 49,716 | 15,067 | 43,771 | 19,930 |
| Information technologies expenses | 21,928 | 8,090 | 32,319 | 9,446 |
| Insurance expenses | 14,239 | 2,821 | 8,405 | 3,643 |
| Maintenance and repair expenses | 11,851 | 3,888 | 27,536 | 11,737 |
| Communication expenses | 6,661 | 2,741 | 4,615 | 3,008 |
| Lawsuit and notary expenses | 4,298 | 987 | 5,933 | 2,820 |
| Donations | 28,100 | 28,100 | 1,477,232 | - |
| Other | 264,460 | 189,929 | 75,840 | 26,458 |
| 13,339,619 | 6,817,250 | 26,375,800 | 4,249,964 |
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
As of 30 September 2024 and 2023, the details other operating income are as follows:
| 1 January- 30 September 2024 |
1 July - 30 September 2024 |
1 January- 30 September 2023 |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| Other income from operating activities | ||||
| Financial income from forward sales | 661,441 | 414,572 | 1,011,842 | 164,078 |
| Impairment provisions released | 496,747 | - | 723,268 | 124,302 |
| Income from transfer commissions | 174,745 | 49,742 | 239,336 | 60,920 |
| Default interest income from projects | 164,901 | 163,300 | 794,959 | 125,819 |
| Other | 52,121 | 22,276 | 254,280 | 208,751 |
| 1,549,955 | 649,890 | 3,023,685 | 683,870 |
As of 30 September 2024 and 2023, the details other operating income are as follows:
| Other expenses from operating activities | 1 January- 30 September 2024 |
1 July - 30 September 2024 |
1 January- 30 September 2023 |
1 July - 30 September 2023 |
|---|---|---|---|---|
| Reversal of unaccrued financial expense, net | (191,496) | (2,513) | (735,870) | (6,623) |
| Provision for lawsuits (Note 13) | (4,980) | (3,232) | (11,765) | - |
| Provision for impairment of land and | ||||
| residential inventories | - | - | (1,160,590) | 2,592,422 |
| Other | (14,749) | (2,119) | (62,173) | (2,559) |
| (211,225) | (7,864) | (1,970,398) | 2,583,240 |
As of 30 September 2024 and 2023, the details financial income and expenses are as follows:
| 1 January- | 1 July - | 1 January- | 1 July - | |
|---|---|---|---|---|
| Financial income | 30 September 2024 | 30 September 2024 | 30 September 2023 | 30 September 2023 |
| Interest income from time deposits | 1,769,312 | 380,357 | 3,128,650 | 1,282,400 |
| Interest and update income | 1,104,137 | 424,982 | 153,244 | 23,569 |
| Foreign exchange gains | 1,252 | 1,252 | 9,125 | 20 |
| 2,874,701 | 806,591 | 3,291,019 | 1,305,989 | |
| 1 January- | 1 July - | 1 January- | 1 July - | |
| Financial expenses | 30 September 2024 | 30 September 2024 | 30 September 2023 | 30 September 2023 |
| Borrowings interest and lease certificate expenses | (911,338) | (325,257) | (1,569,795) | (369,325) |
| T.C. Çevre, Şehircilik ve İklim Değişikliği Bakanlığı interest expenses (*) |
- | - | (85,528) | (7,392) |
| Foreign exchange losses | (2,480) | (1,136) | (1,346) | (551) |
| (913,818) | (326,393) | (1,656,669) | (377,268) |
(*) This amount consists of interest expense accrued as of 30 September 2024, for the lands received by the Company from the Republic of Turkey Ministry of Environment, Urbanization, and Climate Change.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
The company is exempt from Corporate Tax in accordance with the paragraph 4-d of Article 8 of the Corporate Tax Law. According to the paragraph 6-a of Article 94 of the Income Tax Law the earnings of real estate investment companies are subject to withholding and withholding tax rate is determined as "0" according to the Council of Ministers Decision, No: 93/5148.
The main shareholder of the Company 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 Company 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 Company 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 Repulic of Turkey Undersecretariat of Treasury.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
The transactions between the Company and the related parties are as follows:
| Trade receivables from related parties | 30 September 2024 | 31 December 2023 |
|---|---|---|
| T.C. Çevre, Şehircilik ve İklim Değişikliği Bakanlığı (*) |
3,351,220 | 5,116,960 |
| İstmarina AVM Adi Ortaklığı |
- | 16,150 |
| Büyükyalı Tesis Yönetim A.Ş. | - | 3,003 |
| Emlak Konut Asansör Sistemleri San. ve Tic. A.Ş. | - | 356 |
| 3,351,220 | 5,136,469 |
(*) The Company's trade receivables from the Çevre ve Şehircilik Bakanlığı consist of payments made by the Company for urban transformation projects.
| Trade payables to related parties | 30 September 2024 | 31 December 2023 |
|---|---|---|
| T.C. Toplu Konut İdaresi Başkanlığı ("TOKİ") (*) |
218,210 | - |
| 218,210 | - |
(*) According to the protocols signed with TOKİ regarding to land purchases, the cost of lands purchased from TOKİ is kept in time deposit accounts of Emlak Konut in the name of TOKİ, until the payment date determined by TOKİ. Interest amounts on time deposits of TOKİ arising from these transactions are netted off from time deposit interest income in the financial statements. All of this accumulated interest income on time deposits will be paid to TOKİ.
| Deposits at related parties | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Türkiye Emlak Katılım Bankası A.Ş. | 295,242 | 61,037 |
| 295,242 | 61,037 | |
| Deferred income from related parties | 30 September 2024 | 31 December 2023 |
| Türkiye Emlak Katılım Bankası A.Ş. (*) | 4,244,500 | 4,778,239 |
| 4,244,500 | 4,778,239 |
(*) Includes amounts received by the Company for 29 commercial units sold to Türkiye Emlak Katılım Bankası A.Ş.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
| Purchases from related parties | 1 January- 30 September 2024 |
1 July - 30 September 2024 |
1 January- 30 September 2023 |
1 July - 30 September 2023 |
|---|---|---|---|---|
| T.C. Çevre, Şehircilik ve İklim Değişikliği Bakanlığı | ||||
| Kentsel Dönüşüm Hizmetleri Genel Müdürlüğü | 29,738,170 | 12,629,247 | 7,811,157 | - |
| Emlak Planlama, İnşaat, Proje Yönetimi ve Ticaret A.Ş. | 1,740,070 | 667,857 | 164,149 | 59,507 |
| T.C. Toplu Konut İdaresi Başkanlığı ("TOKİ") | 635,002 | 81,529 | 10,133,008 | - |
| Emlak Basın Yayın A.Ş. | - | - | 3,503 | 556 |
| 32,113,242 | 13,378,633 | 18,111,817 | 60,063 | |
| 1 January- | 1 July - | 1 January- | 1 July - | |
| Sales to related parties | 30 September 2024 | 30 September 2024 | 30 September 2023 | 30 September 2023 |
| Emlak Planlama, İnşaat, Proje Yönetimi ve Ticaret A.Ş. | 2,914 | 1,085 | 4,311 | 4,311 |
| Emlak Konut Asansör Sistemleri San. ve Tic. A.Ş. | 1,209 | 443 | 4,458 | 4,458 |
| T.C. Çevre, Şehircilik ve İklim Değişikliği Bakanlığı | ||||
| Kentsel Dönüşüm Hizmetleri Genel Müdürlüğü | - | - | 1,117,905 | 416,440 |
| İller Bankası A.Ş. | - | - | 1,554,356 | - |
| GEDAŞ Gayrimenkul Değerleme A.Ş | - | - | 64,686 | - |
| 4,123 | 1,528 | 2,745,716 | 425,209 |
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 Company 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- 30 September 2024 |
1 July - 30 September 2024 |
1 January- 30 September 2023 |
1 July - 30 September 2023 |
|---|---|---|---|---|
| Salaries and other short-term benefits | 43,204 | 14,849 | 55,397 | 23,239 |
| 43,204 | 14,849 | 55,397 | 23,239 |
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 Company's shares for the period.
The Company 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.
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
| 1 January- 30 September 2024 |
1 July - 30 September 2024 |
1 January- 30 September 2023 |
1 July - 30 September 2023 |
|
|---|---|---|---|---|
| Net income attributable to equity holders of the parent in full TL |
3,046,263 | 2,425,189 | (5,347,329) | (2,152,951) |
| Weighted average number of ordinary shares | 3,804,550,291 | 3,804,550,291 | 3,804,550,291 | 3,804,550,291 |
| Earnings per share in full TL | 0.0801 | 0.0637 | (0.1406) | (0.0566) |
Company's mortgage and guarantees received as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Guarantees received (*) | 37,999,619 | 32,722,396 |
| Mortgages received (**) | 752,162 | 1,021,890 |
| 38,751,781 | 33,744,286 |
(*) 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 Company as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| A. Total amount of CPM given on behalf of the Company's own legal entity |
160,837 | 201,573 |
| B. Total amount of CPM given against the subsidiaries included in full consolidation |
- | - |
| C. Total amount of CPM given to maintain operations and collect payables from third parties |
- | - |
| D. Total amount of other CPM given | - | |
| i) In the name of the parent Company | - | - |
| ii) In the name of other group companies that are not included in the scope of item B and C |
- | - |
| iii) In the name of third parties that are not included in the scope of item C | - | - |
| 160,837 | 201,573 |
None
(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 30 September 2024, unless otherwise stated.)
| Unconsolidated (Separate) Financial Statement Main Account Items |
Related Regulation | 30 September 2024 | 31 December 2023 | |
|---|---|---|---|---|
| A | Money and Capital Market Instruments | Series: III-No.48, Art.24/(b) | 4,158,699 | 19,376,153 |
| Properties, Projects based on Properties and Rights based on | ||||
| B | Properties | Series: III-No.48, Art.24/(a) | 155,294,840 | 117,682,796 |
| İŞ | Subsidiaries | Series: III-No.48, Art.24/(b) | 3,877,809 | 3,877,809 |
| Due from Related Parties (Non-trade) | Series: III-No.48, Art.23/(f) | - | - | |
| DV Other Assets | 12,066,362 | 23,225,916 | ||
| D | Total Assets (Total Assets) | 175,397,710 | 164,162,674 | |
| E | Financial Liabilities | Series: III-No.48, Art.24/(b) | 6,057,397 | 5,978,912 |
| 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 | 82,591,933 | 79,545,670 | |
| EB Other Resources | 86,748,380 | 78,638,092 | ||
| D | Total Resources | Series: III-No.48, Art.3/(k) | 175,397,710 | 164,162,674 |
| Non-Consolidated (Standole) Other Financial Information | Related Regulation | 30 September 2024 | 31 December 2023 | |
| The portion of Money and Capital Market Instruments held for | ||||
| Payables of | ||||
| A1 | Properties for the following 3 years | Series: III-No.48, Art.24/(b) | 4,158,699 | 19,376,153 |
| A2 Term / Demand / Currency | Series: III-No.48, Art.24/(b) | 3,216,430 | 20,730,773 | |
| 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) | 14,062,907 | 13,660,598 | |
| C1 Foreign Subsidiaries | Series: III-No.48, Art.24/(d) | - | - | |
| C2 Subsidiaries of the Operating Company | Series: III-No.48, Art.28 | 3,555,261 | 1,423,816 | |
| J | Non-Cash Loans | Series: III-No.48, Art.31 | 160,837 | 201,573 |
| Mortgage amount of servient lands which will be developed and | ||||
| K | not owned | Series: III-No.48, Art.22/(e) | ||
| Portfolio Restrictions | Related Regulation | 30 September 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) | 91% | 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% |
| 5 Idle Land | Series: III-No.48, Art.24/(c) | 8% | 8% | |
| 6 Subsidiaries of the Operating Company | Series: III-No.48, Art.28 | 2% | 1% | |
| 7 Borrowing Limit | Series: III-No.48, Art.31 | 8% | 8% | |
| 8 TRY and Foreign Currency Time and Demand Deposits | Series: III-No.48, Art.22/(e) | 0% | 1% |
Informations in the Control of Compliance with Portfolio Limitations are in the nature of summary information derived from financial statements in accordance with article 16 of Serial: II, No: 14.1 "Communiqué on Principles of Financial Reporting in Capital Markets" and have been prepared within the framework of the provisions of the "Communiqué on Principles Regarding Real Estate Investment Trusts", Serial: III, No: 48.1, published in the Official Gazette No. 28660 on 28 May 2013, on the control of compliance with portfolio limitations.
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