CONSOLIDATED FINANCIAL STATEMENTS FOR INTERIM PERIOD 1 JANUARY – 31 MARCH 2025 AND INDEPENDENT AUDITOR'S REPORT

(CONVENIENCE TRANSLATION OF THE FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)

EMLAK KONUT GAYRİMENKUL YATIRIM ORTAKLIĞI A.Ş.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION ……………………………………………………………………………………… INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME……………………………………………………………………………………………………………………. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY………………………………………………………………………………… INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS……………………………………………………………………………………………………… NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS…………………………………………………………………… ORGANIZATION AND OPERATION OF THE GROUP………………………………………………………… NOTE 1 BASIS OF PRESENTATION OF THE CONCOLIDATED FINANCIAL STATEMENTS……………………………………………………….8-11 NOTE 2 NOTE 3 ACCOUNTING POLICIES…………………………………………………………………………………………… NOTE 4 CASH AND CASH EQUIVALENTS…………………………………………………………………………………………… NOTE 5 FINANCIAL LIABILITIES………………………………………………………………………………………………………………
	1-2

	3
	4
	5
	6-44
	6-7

	12-13
	14
	15
NOTE 6 TRADE RECEIVABLES AND PAYABLES ……………………………………………………………………………………	16
NOTE 7 OTHER RECEIVABLES AND PAYABLES…………………………………………………………………………………… 17
NOTE 8 INVENTORIES………………………………………………………………………………………………………… 18-22
NOTE 9 INVESTMENT PROPERTIES ……………………………………………………………………………………………………………… 22-23
NOTE 10 PROPERTY, PLANT AND EQUIPMENT…………………………………………………………………………………	24
NOTE 11 INTANGIBLE ASSETS………………………………………………………………………………………………………	25
NOTE 12 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES…………………………………………………………………………………25-28
EMPOYEE BENEFITS……………………………………………………………………………………………………………… NOTE 13	29
NOTE 14 OTHER ASSETS………………………………………………………………………………………………………………	30
NOTE 15 DEFERRED INCOME AND PREPAID EXPENSES………………………………………………………………………	30
NOTE 16 SHAREHOLDERS' EQUITY…………………………………………………………………………………………………	31
NOTE 17 REVENUE AND COST OF SALES……………………………………………………………………………………	32
NOTE 18 GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES………………………………………………………………………………… 33
EXPENSES BY NATURE…………………………………………………………………………………………………………………… NOTE 19	34
OTHER INCOME / EXPENSES FROM OPERATING ACTIVITIES ………………………………………………………………………………… 34-35 NOTE 20
FINANCIAL INCOME / EXPENSES…………………………………………………………………………………… NOTE 21	35
NOTE 22 TAX ASSETS AND LIABILITIES………………………………………………………………………………………………………………………… 36-38
NOTE 23 EARNING PER SHARE………………………………………………………………………………………………………………………… 38
NOTE 24 RELATED PARTY DISCLOSURES……………………………………………………………………………………39-41
NOTE 25 EXPLANATIONS ON MONETARY POSITION GAINS/(LOSSES)……………………………………………………………… 42
NOTE 26 COMMITMENTS……………………………………………………………………………………………………………	43
NOTE 27 EVENTS AFTER THE REPORTING PERIOD……………………………………………………………………………………	43
CONTROL OF COMPLIANCE WITH THE PORTFOLIO LIMITATIONS………………………………………………………………………………… 44 ADDITIONAL NOTE

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

		Unaudited	Audited
		31 March	31 December
	Notes	2025	2024
ASSETS
Current assets		199,550,011	207,728,948
Cash and cash equivalents	4	4,607,292	9,114,720
Financial investments		88,573	63,238
Trade receivables		9,428,682	6,801,519
Trade receivables due from related parties	24	326,987	8,517
Trade receivables due from third parties	6	9,101,695	6,793,002
Other receivables		1,260,428	1,310,187
Other receivables due from related parties	24	384,863	286,172
Other receivables due from third parties	7	875,565	1,024,015
Inventories	8	178,889,569	184,045,861
Prepaid expenses		637,557	473,773
Prepaid expenses to third parties	15	637,557	473,773
Other current assets	14	4,637,910	5,919,650
Non-current assets		- 18,522,960	- 17,792,914

Trade receivables		5,740,302	4,783,304
Trade receivables due from third parties	6	5,740,302	4,783,304
Other receivables		25,729	28,342
Other receivables due from third parties	7	25,729	28,342
Investments accounted for using equity method		5,042	2,743
Investment properties	9	3,245,108	2,906,113
Right-of-use assets		81,497	25,518
Property, plant and equipment	10	2,395,759	2,213,013
Intangible assets	11	147,866	139,383
Prepaid expenses		1,097	1,040
Deferred tax assets	22	6,880,560	7,693,458
Total assets		218,072,971	225,521,862

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

	Notes	Unaudited 31 March 2025	Audited 31 December 2024
LIABILITIES AND EQUITY
Current liabilities		108,730,559	118,927,695
Short-term borrowings	5	12,109,407	12,773,835
Short-term portions of long-term borrowings	5	595,025	1,429,961
Lease liabilities	5	3,039	3,345
Bank loans	5	591,986	1,426,616
Trade payables		11,153,159	8,237,530
Trade payables due to third parties	6	11,153,159	8,237,530
Other payables		2,056,512	3,333,897
Other payables to related parties	24	826	739
Other payables to third parties	7	2,055,686	3,333,158
Deferred income		80,756,996	92,434,403
Deferred income from related parties	24	486,373	4,964,518
Deferred income from third parties	15	80,270,623	87,469,885
Current period profit tax liability	22	1,539,480	140,118
Short-term provisions		519,980	577,951
Short-term provisions for employee benefits	13	87,981	104,323
Other short-term provisions	12	431,999	473,628
Non-current liabilities		641,431	1,150,602
Long-term borrowings	5	19,465	21,424
Lease liabilities	5	19,465	21,424
Trade payables		385	406,378
Trade payables due to third parties	6	385	406,378
Other payables		432,049	520,416
Other payables to third parties	7	432,049	520,416
Deferred income		5,846	6,323
Deferred income from third parties	15	5,846	6,323
Long-term provisions		183,686	196,061
Long-term provisions for employee benefits	13	183,686	196,061
Shareholders' equity		108,700,981	105,443,565
Total equity attributable to equity holders of the Company		108,700,981	105,443,565
Paid-in capital	16	3,800,000	3,800,000
Adjustment to share capital	16	56,795,656	56,795,656
Treasury shares (-)		(71,153)	(71,153)
Share premium (discounts)		31,841,669	31,841,669
Other comprehensive expenses		(20,964)	(25,093)
not to be reclassified under profit and loss
Loss arising from defined benefit plans		(20,964)	(25,093)
Other equity reserves		(1,914,216)	(1,914,216)
Restricted reserves appropriated from profit		9,559,299	9,559,299
Retained earnings		5,457,403	(9,068,000)
Net profit for the year		3,253,287	14,525,403
Non-controlling interests		-	-
Total liabilities and equity		218,072,971	225,521,862

INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2025 AND 2024

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

	Notes	Unaudited 1 January - 31 March 2025	Unaudited 1 January - 31 March 2024

Revenue	17	22,779,241	3,114,081
Cost of sales (-)	17	(16,818,142)	(1,816,023)
Gross profit		5,961,099	1,298,058
General administrative expenses (-)	18	(760,051)	(750,337)
Marketing expenses (-)	18	(191,724)	(117,838)
Other income from operating activities	20	1,947,250	963,934
Other expenses from operating activities (-)	20	(744,664)	(179,822)
Operating profit		6,211,910	1,213,995
Operating profit before financial income		6,211,910	1,213,995
Financial income	21	428,576	1,436,370
Financial expenses (-)	21	(1,306,001)	(553,539)
Monetary loss	25	148,804	(1,930,048)
Profit from continuing operations, before tax		5,483,289	166,778
Tax expense from continuing operations		(2,230,002)	(54,025)
Current period tax expense	22	(1,418,481)
Deferred tax expense	22	(811,521)	- (54,025)
Net profit for the period		3,253,287	112,753
Profit for the period is attributable to:
Non-controlling interests		-	-
Owners of the Company		3,253,287	112,753
Earnings per share (in full TRY)	23	0.08551	0.00296
Other comprehensive expense
Items that will be reclassified to profit or loss
Actuarial losses related to
employee benefit liabilities	13	5,506	-
Taxes related to components of other comprehensive
income that will be reclassified to profit or loss		(1,377)	-
Actuarial losses related to
employee benefit liabilities, tax effect	22	(1,377)	-
Other comprehensive expense		4,129	-
Total comprehensive income for the period		3,257,416	112,753
Total comprehensive income is attributable to:
Non-controlling interests		-	-
Owners of the Company		3,257,416	112,753

EMLAK KONUT GAYRİMENKUL YATIRIM ORTAKLIĞI A.Ş. VE BAĞLI ORTAKLIKLARI

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 1 JANUARY - 31 MARCH 2025 AND 2024

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

							Other accumulated comprehensive income and expense not to be reclassified to profit or loss	Retained earnings
	Share capital	Adjustment to share capital	Treasury shares	Share premium/ discounts	Other reserves	Other restricted equityreserves appropriated from profit	Gain/loss on remeasurement of defined benefit plans	Retained earnings	Net profit for the period	Equity to the parent	attributable Non-controlling interest	Total equity
1 January 2024	3,800,000	56,795,656	(71,153)	31,841,669	(1,914,216)	9,559,299	-	(2,593,619)	(6,474,381)	90,943,255	-	90,943,255
Transfers Total comprehensive income	- -	- -	- -	- -	- -	- -	- -	(6,474,381) -	6,474,381 112,749	- 112,749	- -	- 112,749
31 March 2024	3,800,000	56,795,656	(71,153)	31,841,669	(1,914,216)	9,559,299	-	(9,068,000)	112,749	91,056,004	-	91,056,004
1 January 2025	3,800,000	56,795,656	(71,153)	31,841,669	(1,914,216)	9,559,299	(25,093)	(9,068,000)	14,525,403	105,443,565		- 105,443,565
Transfers Total comprehensive income	- -	- -	- -	- -	- -	- -	- 4,129	-	14,525,403 (14,525,403) 3,253,287	- 3,257,416	- -	- 3,257,416
31 March 2025	3,800,000	56,795,656	(71,153)	31,841,669	(1,914,216)	9,559,299	(20,964)	5,457,403	3,253,287	108,700,981		- 108,700,981

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 1 JANUARY 31 MARCH 2025 AND 2024

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

		Unaudited	Unaudited
		1 January -	1 January -
		31 March 2025	31 March 2024
Cash flows from operating activities
Profit/(loss) for the period		3,253,287	112,753
Adjustments related to reconcile of net profit for the period		56,354	107,281
Adjustments related to depreciation and amortization expenses	9, 10, 11, 18, 19 22	2,230,002	54,025
Adjustments related to tax expense Adjustments related to (reversal of) impairments (net)		(4,124,546)	304,090
Adjustments related to (reversal of) impairment of inventories (net)	8	(4,124,546)	304,090
Adjustments related to provisions		13,014	7,405
Adjustments related to (reversal of)
provisions for employee benefits	13	6,790	(3,312)
		6,224	10,717
Adjustments related to (reversal of) provision for lawsuit and other		701	(984,040)
Adjustments for interest (income) and expenses		(1,996,594)	(1,609,535)
Adjustments for interest income	20, 21	1,997,295	625,495
Adjustments for interest expense Monetary gain/loss	20, 21		3,251,126
Net cash from operations		(1,270,339)
before changes in assets and liabilities		158,473	2,852,640
Changes in net working capital:
Adjustments related to (increase)/decrease in trade receivable		(4,755,535)	3,644,045
Decrease/(increase) in trade receivables from related parties		(326,963)	1,418,496
Decrease/(Increase) in trade receivables from third parties		(4,428,572)	2,225,549
Adjustments related to decrease/(increase) in inventories		9,280,838	(6,148,436)
Adjustments related to increase/(decrease) in trade payables		3,379,667	(1,276,751)
Increase/(decrease) in trade payables to related parties		-	696,902
Increase/(decrease) in trade payables to third parties		3,379,667	(1,973,653)
Adjustments related to decrease/(increase) in other receivables related to operations		522,876	(14,826,637)
Adjustments related to increase/(decrease) in other payables related to operations		(12,716,049)	1,224,569
Adjustments related to other increase/(decrease) in working capital		353,607	(105,828)
Cash flows from operating activities
Interest received		44,862	171,566
Payments related to provisions for employee benefits		(665)	(8,114)
Cash flows from operating activities, net		(3,731,926)	(14,472,946)
Purchases of investment properties,
property, plant and equipment and intangible assets	9, 10, 11	(586,578)	(87,815)
Adjustments related to the increase/decrease in financial investments		(31,869)	-
Cash flows from investing activities		(618,447)	(87,815)
Proceeds from borrowings	5	5,662,596	1,144,451
Proceeds from loans		2,417,020	-
Proceeds from Issue of debt instruments		3,245,576	1,144,451
Repayments of borrowings	5	(5,883,201)	(2,190,556)
Loan repayments		(2,173,679)	(866,640)
Payments of issued debt instruments		(3,709,522)	(1,323,916)
Interest paid		(906,797)	(353,148)
Interest received		1,951,732	1,051,621
Cash flow from financing activities		824,330	(347,632)
Inflation impact on cash and cash equivalents		(470,940)	(3,093,393)
Net increase (decrease) in cash and cash equivalents		(3,996,983)	(18,001,786)
Cash and cash equivalents at the beginning of the period	4	7,308,035	23,628,915
Cash and cash equivalents at the end of the period	4	3,311,052	5,627,129

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 1 – ORGANIZATION AND OPERATION OF THE GROUP

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 March 2025, the number of employees of the Group is 1,228 (31 December 2024 - 1,231).

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 March 2025 have been approved by the Board of Directors on 9 May 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.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 1 – ORGANIZATION AND OPERATION OF THE GROUP (Continued)

Subsidiaries

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. ("EPP") Real Estate Investments Emlak Konut Asansör Sistemleri Sanayi ve Ticaret A.Ş. Production, Sales and Marketing

	31 March 2025		31 December 2024
	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.	100	100	100	100
Emlak Konut Asansör Sistemleri Sanayi ve Ticaret A.Ş.	100	100	100	100

Shares in Joint Operations

Shares in Joint Operations of Emlak Konut GYO operate in Turkey and their main operations are as follows:

Shares in Joint Operations Main Operations

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 March 2025		31 December 2024
	Direct and indirect ownership rate (%)	Effective ownership rate (%)	Direct and indirect ownership rate (%)	Effective ownership rate (%)
Merkez Cadde Yönetim A.Ş.	30	30	-	-
İstmarina AVM Adi Ortaklığı	40	40	40	40
Büyükyalı Tesis Yönetimi A.Ş.	37	37	37	37

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 2 – BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

2.1. Basis of Presentation

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 interim condensed consolidated financial statements are presented in accordance with the formats specified in the "Communiqué on TFRS Taxonomy" published by the POA on 15 April 2019 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 adjustments and classifications reflected in the statutory records in accordance with TFRS.

Basis of Consolidation

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:

has the ability to use its power to affect its returns
is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns

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:

The size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
Potential voting rights held by the Company, other vote holders or other parties;
Rights arising from other contractual arrangements

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.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 2 – BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.1. Basis of Presentation (Continued)

Basis of Consolidation (Continued)

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 Existing Subsidiaries

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.

Investments in Associates and Joint Ventures

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.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 2 – BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.1. Basis of Presentation (Continued)

Basis of Consolidation (Continued)

Investments in Associates and Joint Ventures (Continued)

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.

Interests in Joint Operations

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.

Adjustment of Consolidated Financial Statements in Hyperinflation Periods

The Company prepared its consolidated financial statements as of 31 March 2025 and for the interim period ended 31 March 2025 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 Group has presented its consolidated financial statements as of 31 March 2024 and 31 December 2024 on a purchasing power basis as of 31 March 2025.

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.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 2 – BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.1. Basis of Presentation (Continued)

Adjustment of Consolidated Financial Statements in Hyperinflation Periods (Continued)

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 31 March 2025, the indices and adjustment factors used in the restatement of the consolidated financial statements are as follows:

Date	Index	Adjustment	3-year cumulative
		correlation	inflation ratios
31.03.2025	2,954.69	1.00000	250%
31.12.2024	2,684.55	1.10063	291%
31.03.2024	2,139.47	1.38104	309%

Procedure of TAS 29 is presented below:

a) All accounts, excluding accounts that are presented with current purchasing power at the current period, are restated with their related price index correlation. Same method is applied for previous years.
b) Monetary balance sheet accounts are not restated because these accounts are presented with current purchasing power at the current period. Monetary accounts are accounts that are either received or paid in cash.

The main components of the Company's restatement for the purpose of financial reporting in hyperinflationary economies are as follows:

The consolidated financial statements for the current period presented in Turkish Lira are expressed in terms of the purchasing power at the balance sheet date and the amounts for previous reporting periods have been restated in accordance with the purchasing power at the end of the reporting period.
Monetary assets and liabilities are not restated as they are currently expressed in terms of the measuring unit current at the balance sheet date. Where the inflation-adjusted amounts of nonmonetary items exceed their recoverable amount or net realizable value, the provisions of TAS 36 and TAS 2 have been applied, respectively.
Non-monetary assets, liabilities and equity items that are not expressed in the current purchasing power at the balance sheet date are restated by using the relevant adjustment factors.
"All items in the statement of comprehensive income, except for the effect of non-monetary items in the balance sheet on the statement of comprehensive income, have been restated by applying the coefficients calculated over the periods in which the income and expense accounts were initially recognized in the financial statements.
The effect of inflation on the Group's net monetary asset position in the current period has been recognized in the consolidated income statement in the net monetary position gains account.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 3 – ACCOUNTING POLICIES

Interim condensed consolidated financial statements as of 31 March 2025 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, interim condensed financial statements should be read together with the end-of-year financial statements in order to create coherence.

3.1 New and Revised Turkish Financial Reporting Standards
a) Standards, amendments, and interpretations applicable as of 31 March 2025:
Amendments to IAS 21 - Lack of Exchangeability; effective from annual periods beginning on or after 1 January 2025. An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative delay), and the transaction would take place through a market or exchange mechanism that creates enforceable rights and obligations.
b) Standards, amendments, and interpretations that are issued but not effective as of 31 March 2025:
Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments; effective from annual reporting periods beginning on or after 1 January 2026 (early adoption is available). These amendments:
- clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
- clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
- add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets); and
- make updates to the disclosures for equity instruments designated at Fair Value through Other Comprehensive Income (FVOCI).

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 3 – ACCOUNTING POLICIES (Continued)

3.1 New and Revised Turkish Financial Reporting Standards (Continued)
b) Standards, amendments, and interpretations that are issued but not effective as of 31 March 2025: (Continued)
- Annual improvements to IFRS – Volume 11; effective from annual periods beginning on or after 1 January 2026 (earlier application permitted). Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards:
  - IFRS 1 First-time Adoption of International Financial Reporting Standards;
  - IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
  - IFRS 9 Financial Instruments;
  - IFRS 10 Consolidated Financial Statements; and
  - IAS 7 Statement of Cash Flows.
- Amendment to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity; effective from annual periods beginning on or after 1 January 2026 but can be early adopted subject to local endorsement where required. These amendments change the 'own use' and hedge accounting requirements of IFRS 9 and include targeted disclosure requirements to IFRS 7. These amendments apply only to contracts that expose an entity to variability in the underlying amount of electricity because the source of its generation depends on uncontrollable natural conditions (such as the weather). These are described as 'contracts referencing nature-dependent electricity'.
- IFRS 18 Presentation and Disclosure in Financial Statements; effective from annual periods beginning on or after 1 January 2027. This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:
  - the structure of the statement of profit or loss;
  - required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, managementdefined performance measures); and
  - enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.
- IFRS 19 Subsidiaries without Public Accountability: Disclosures; effective from annual periods beginning on or after 1 January 2027. This new standard works alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. IFRS 19's reduced disclosure requirements balance the information needs of the users of eligible subsidiaries' financial statements with cost savings for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries. A subsidiary is eligible if:
  - it does not have public accountability; and
  - it has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 4 - CASH AND CASH EQUIVALENTS

	31 March 2025	31 December 2024
Cash on hand	297	100
Banks	3,215,761	6,769,994
- Demand deposit	496,241	475,399
- Time deposits with maturities less than 3 months	2,719,520	6,294,595
Other cash and cash equivalents	1,391,234	2,344,626
	4,607,292	9,114,720

Maturities of cash and cash flows are as follows:

	31 March 2025	31 December 2024
Demand	496,241	475,399
Up to 3 month	2,719,520	6,294,595
	3,215,761	6,769,994

Average effective annual interest rates on time deposits in TRY on the balance sheet date:

	31 March 2025	31 December 2024
	(%)	(%)
Effective annual interest rate	42.70	46.34

The calculation of cash and cash equivalents of the Group for the use in statements of cash flows is as follows:

	31 March 2025	31 December 2024
Cash and cash equivalents	4.607.292	9.114.720
Less: Interest accruals on deposits	(4.371)	(3.389)
Less: LSRSA project deposits (*)	(1.295.227)	(1.806.992)
Add: the effect of provisions released under TFRS 9	3.358	3.696
	3.311.052	7.308.035

(*) 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 2024: None) project accounts amounting TRY1,295,227 (31 December 2024: TRY1,806,992).

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 5 – FINANCIAL LIABILITIES

	31 March 2025	31 December 2024
Short-term financial liabilities
Short-term bank loans	7,097,787	7,108,354
Issued debt instruments	5,011,620	5,665,481
Short-term portion of long-term borrowings	591,986	1,426,616
Lease obligation	3,039	3,345
	12,704,432	14,203,796
Long-term financial liabilities	31 March 2025	31 December 2024
Lease obligation	19,465	21,424
	19,465	21,424

Borrowings used as of 31 March 2025 are denominated in TRY and the weighted average interest rate is 32.99% (31 December 2024: 48.38%).

As of 31 March 2025, the entity completed a lease certificate issuance, with a weighted average interest rate of 42.25% (31 December 2024: 44.25%).

The maturity distributions of the borrowings are as follows:

	31 March 2025	31 December 2024
Less than 3 months	2,345,300	2,581,302
Between 3 - 12 months	10,356,093	11,619,149
	12,701,393	14,200,451

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 6 – TRADE RECEIVABLES AND PAYABLES
Short-term trade receivables	31 March 2025	31 December 2024
Receivables from sale of residential and commercial units	6,573,871	4,719,943
Receivables from contractors of the lands invoiced under LSRSA	1,997,531	1,348,499
Receivables from land sales	849,159	1,222,238
Notes of receivables	71,705	164,618
Receivables from lessees	116,652	76,495
Due from related parties (Note 24)	326,987	8,517
Other	12,119	22,203
Unearned finance income	(519,342)	(760,994)
	9,428,682	6,801,519
Doubtful receivables	12,462	13,716
Less: Provision for doubtful receivables	(12,462)	(13,716)
	9,428,682	6,801,519
	31 March 2025	31 December 2024
Long-term trade receivables
Receivables from sale of residential and commercial units	8,028,381	6,341,985
Receivables from land sales	650,257	782,161
Unearned finance income	(2,938,336)	(2,340,842)
	5,740,302	4,783,304
	31 March 2025	31 December 2024
Short-term trade payables
Trade payables	9,461,595	6,344,168
Payables to LSRSA contractors invoiced	1,492,689	1,623,732
Interest accruals on time deposits of contractors (*)	198,875	269,630

(*) 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.

11,153,159 8,237,530

Long-term trade payables	31 March 2025	31 December 2024
Trade payables	385	406,378
	385	406,378

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 7 – OTHER RECEIVABLES AND PAYABLES

	31 March 2025	31 December 2024
Short-term other receivables
Advances given to contractor firms	745,942	882,831
Other receivables from related parties (Note 24)	384,863	286,172
Receivables from the authorities	31,843	35,047
Other	97,780	106,137
	1,260,428	1,310,187
	31 March 2025	31 December 2024
Long-term other receivables
Other receivables from third parties	24,715	27,226
Deposits and guarantees given	1,014	1,116
	25,729	28,342
	31 March 2025	31 December 2024
Short-term other payables
Taxes and funds payable	1,931,098	3,193,927
Other payables to related parties (Note 24)	826	739
Other	124,588	139,231
	2,056,512	3,333,897

As of 31 March 2025, other long-term payables are amount to TRY432,049 and consist of deposits and guarantees received (31 December 2024: TRY520,416).

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 8 – INVENTORIES

	31 March 2025	31 December 2024

Lands	63,365,534	54,294,313
Cost	67,076,931	58,341,788
Impairment	(3,711,397)	(4,047,475)
Planned land by LSRSA	48,744,173	48,229,871
Planned land by turnkey project	15,141,483	13,000,790
Planned land by turnkey project	15,141,483	13,000,790
Impairment (*)	-	-
Residential and commercial units ready for sale	29,274,649	46,348,031
Cost	34,390,215	55,252,065
Impairment	(5,115,566)	(8,904,034)
Inventories of Emlak Konut Asansör	2,929,989	2,739,114
Advances given for inventories (**)	19,433,741	19,433,742
Cost	19,934,094	19,934,095
Impairment	(500,353)	(500,353)
	178,889,569	184,045,861

(*) It is the provision for impairment due to the increase in construction costs in the Global and Turkish markets.

(**) As of 31 March 2025, TL 16,630,604 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:

	2025	2024
Opening balance at 1 January	13,451,862-	18,612,362-
Impairment on inventories within the current period	-	581,014
Reversal of impairment on invetories within the current period	(4,124,546)	(276,924)
Closing balance at 31 March	9,327,316	18,916,452

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 8 – INVENTORIES (Continued)

As of 31 March 2025 and 31 December 2024 the details of land and residential inventories of the Group are as follows:

Lands	31 March 2025	31 December 2024
İstanbul Esenler Lands	32,046,034	22,946,283
İstanbul Küçükçekmece Lands	9,153,198	9,153,198
İstanbul Avcılar Lands	6,393,448	6,393,448
Muğla Bodrum Lands	5,327,599	5,327,599
İzmir Çeşme Lands	1,862,157	1,862,157
Aydın Didim Lands	1,765,829	1,765,829
İstanbul Başakşehir Lands	1,309,369	1,309,369
Antalya Alanya Lands	1,106,547	1,106,547
İstanbul Arnavutköy Lands	970,428	970,428
İstanbul Çekmeköy Lands	793,605	793,605
İstanbul Kartal Lands	621,979	650,507
İzmir Urla Lands	535,450	535,450
İzmir Aliağa Lands	403,255	403,255
İstanbul Resneli Lands	229,982	229,983
Antalya Konyaaltı Lands	183,447	183,447
İzmir Seferihisar Lands	128,418	128,418
Tekirdağ Çorlu Lands	117,842	117,842
Zonguldak Merkez Lands	107,761	107,761
İstanbul Tuzla Lands	107,553	107,553
Sakarya Sapanca Lands	67,148	67,148
İstanbul Eyüp Lands	61,958	61,958
Yalova Lands	45,315	45,315
İstanbul Sarıyer Lands	15,433	15,433
Kocaeli Lands	7,086	7,086
Other	4,693	4,694
	63,365,534	54,294,313

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 8 - INVENTORIES (Continued)

Planned land by LSRSA	31 March 2025	31 December 2024
Nidapark İstinye Project	7,227,711	7,227,711
Bizim Mahalle 2. Etap 2. Kısım Project	4,022,451	4,022,442
Merkez Ankara Project	3,608,055	3,608,055
Nidapark Küçükyalı Project	3,568,554	3,554,106
Yeni Levent Project	2,553,120	2,553,095
Bizim Mahalle 2. Etap 1. Kısım Project	2,344,072	2,344,063
Çekmeköy Çınarköy Project	2,219,938	2,218,941
Batıyakası 2. Etap Project	1,899,925	1,898,735
Next Level İstanbul Project	1,758,286	1,758,286
Beşiktaş Akat Project	1,731,419	1,731,101
Ümraniye İnkılap Project	1,604,967	1,604,967
İstanbul Kayabaşı 9. Etap Project	1,573,160	1,570,105
Başakşehir Ayazma 4. Etap Project	1,421,010	1,418,676
İstanbul Tuzla Merkez Project	1,402,717	1,402,717
Esenler Atışalanı 1. Etap Project	1,333,248	-
Meydan Başakşehir Project	1,091,811	1,085,229
İstanbul Kayabaşı 8. Etap Project	1,073,330	1,071,275
İstanbul Eyüpsultan Kemerburgaz Project	1,024,409	1,024,457
Avcılar Firüzköy 1. Etap 2. Kısım Project	990,074	990,074
Avcılar Firüzköy 2. Etap Project	980,447	977,893
Avcılar Firüzköy 1. Etap 1. Kısım Project	909,760	909,760
Nişantaşı Koru Project	810,597	810,683
Bodrum Türkbükü Project	737,504	737,504
Nezihpark Project	452,497	452,201
Antalya Aksu Project	397,816	397,408
Barbaros 48 Project	390,158	389,836
İstanbul Ataşehir Küçükbakkalköy Project	366,500	366,500
İstanbul Kayabaşı 10. Etap Project	342,416	342,416
Muğla Milas Meşelik Project	234,788	234,788
Cer İstanbul Project	225,764	225,764
Ankara Çayyolu 2. Etap Project	192,596	192,436
Batıyakası 1. Etap Project	184,174	1,042,104
Allsancak Project	43,737	41,742
Other	27,162	24,801
	48,744,173	48,229,871

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 8 - INVENTORIES (Continued)

Residential and commercial units ready for sale	31 March 2025	31 December 2024
Çekmeköy Konut Parselleri 2. Etap Project	5,565,871	5,806,994
Merkez Ankara Project	4,567,657	4,567,657
Çekmeköy Konut Parselleri 3. Etap 4. Kısım Project	2,992,069	4,243,270
Balıkesir Altıeylül Gümüşçeşme Project	2,462,531	2,462,531
Çekmeköy Konut Parselleri 3. Etap 1. Kısım Project	2,124,801	3,392,850
Kuzey Yakası Project	1,899,169	1,899,169
Saraçoğlu Mahallesi Project	1,821,590	2,114,926
Maslak 1453 Project	1,418,578	1,441,789
Bizim Mahalle 1. Etap 3. Kısım Project	1,017,579	2,763,181
Çekmeköy Villa Parselleri	960,915	5,334,998
Komşu Finans Evleri	788,274	879,245
Çekmeköy Konut Parselleri 4. Etap 3. Kısım Project	575,878	1,278,093
Çekmeköy Konut Parselleri 3. Etap 3. Kısım Project	434,003	3,070,376
Çekmeköy Konut Parselleri 4. Etap 1. Kısım Project	362,525	419,351
Samsun Canik Kentssel Dönüşüm Project	360,569	360,569
Sarphan Finanspark Project	345,614	345,614
Bizim Mahalle 1. Etap 1. Kısım Project	301,041	342,094
Bizim Mahalle 1. Etap 4. Kısım Project	252,067	1,034,407
Hoşdere Vadi Evleri 1. Etap Project	182,278	786,393
Hoşdere Vadi Evleri 2. Etap Project	181,486	363,777
Çekmeköy Konut Parselleri 3. Etap 2. Kısım Project	142,618	-
Bizim Mahalle 1. Etap 2. Kısım Project	111,306	133,829
Semt Bahçekent 1. Etap 2. Kısım Project	102,444	102,444
Büyükyalı Project	47,787	47,787
Denizli Merkez Efendi İkmal İşi Project	45,500	81,516
İdealist Cadde / Koru	36,376	36,376
Metropol İstanbul Project	30,805	30,805
Karat 34 Project	20,331	20,331
Kocaeli Körfezkent Emlak Konutları	9,741	9,741
Göl Panorama Project	4,864	4,864
Başakşehir Ayazma Emlak Konutları	4,744	4,744
Temaşehir Project	1,568	1,574
Ataşehir Küçükbakkalköy Project	-	2,889,148
Other	102,070	77,588
	29,274,649	46,348,031

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 8 - INVENTORIES (Continued)

Planned land by turnkey project	31 March 2025	31 December 2024
Arnavutköy Yenişehir Project	11,683,810	9,536,662
Çekmeköy Çınarköy Project	1,503,395	1,503,395
İstanbul Avcılar Firuzköy Project	1,244,377	1,244,377
Other	709,901	716,356
	15,141,483	13,000,790

NOTE 9 – INVESTMENT PROPERTIES

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 March 2025 and 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 March 2025 and 2024 are as follows:

	Lands, residential and
Cost Value	commercial units	Total
Opening balance as of 1 January 2025	3,205,870	3,205,870
Additions	357,106	357,106
Closing balance as of 31 March 2025	3,562,976	3,562,976
Accumulated Depreciation
Opening balance as of 1 January 2025	299,757	299,757
Charge for the year	18,111	18,111
Disposal (-) Closing balance as of 31 March 2025	- 317,868	- 317,868
Net book value as of 31 March 2025	3,245,108	3,245,108

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 9 – INVESTMENT PROPERTIES (Continued)

	Lands, residential and
Cost Value	commercial units	Total

Opening balance as of 1 January 2024	3,205,870	3,205,870
Transfers to commercial units and land inventories	-	-
Transfers to residential and commercial unit inventories	-	-
Closing balance as of 31 March 2024	3,205,870	3,205,870

240,066	240,066
63,321	63,321
- 303,387	- 303,387
2,902,483	2,902,483

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 March 2025	31 December 2024
Independent commercial units of Büyükyalı AVM	2,792,323	2,792,323
Atasehir General Management Office A Block	2,311,318	2,311,318
Independent commercial units of Istmarina AVM	1,592,370	1,592,370
Lands and completed units	1,301,868	1,301,868
	7,997,879	7,997,879

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 10 – PROPERTY, PLANT AND EQUIPMENT

			Machinary	Furniture,
		Motor	and	equipment and	Special	Construction
31 March 2025	Buildings	vehicles	equipment	fixtures	cost	in progress	Total

Net book value as of 1 January 2025	1,371,524	41,530	219,630	169,435	407,339	3,555	2,213,013
Additions	172,425	-	-	26,088	3,202	9,032	210,747
Depreciation expense (-)	(5,963)	(4,036)	(760)	(10,797)	(6,445)	-	(28,001)
Net book value 31 March 2025	1,537,986	37,494	218,870	184,726	404,096	12,587	2,395,759
Cost	1,679,896	94,306	283,495	588,718	452,024	12,587	3,111,026
Accumulated depreciation (-)	(141,910)	(56,812)	(64,625)	(403,992)	(47,928)	-	(715,267)
Net book value 31 March 2025	1,537,986	37,494	218,870	184,726	404,096	12,587	2,395,759

			Machinary	Furniture,
		Motor	and	equipment and	Special	Construction
31 March 2024	Buildings	vehicles	equipment	fixtures	cost	in progress	Total

Net book value as of 1 January 2024	1,073,440	33,445	192,856	218,482	65,918	215,807	1,799,948
Additions	-	5,179	44,543	13,758	-	-	63,480
Transfers from construction in progress	-	-	-	37,886	-	(37,886)	-
Depreciation expense (-)	(14,771)	(2,483)	(6,720)	(6,427)	(2,102)	-	(32,503)
Net book value 31 March 2024	1,058,669	36,141	230,679	263,699	63,816	177,921	1,830,925
Cost	1,192,388	77,369	270,849	607,082	81,893	177,921	2,407,502
Accumulated depreciation (-)	(133,719)	(41,228)	(40,170)	(343,383)	(18,077)	-	(576,577)
Net book value 31 March 2024	1,058,669	36,141	230,679	263,699	63,816	177,921	1,830,925

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

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 11 – INTANGIBLE ASSETS

31 March 2025	Licenses	software	Rights	Total

Net book value, 1 January 2025	6,159	77,413	55,811	139,383
Additions	18,725	-	-	18,725
Amortization expense (-)	(1,932)	(6,226)	(2,084)	(10,242)
Net book value 31 March 2025	22,952	71,187	53,727	147,866
Cost	152,117	146,354	92,228	390,699
Accumulated amortization (-)	(129,165)	(75,167)	(38,501)	(242,833)
Net book value 31 March 2025	22,952	71,187	53,727	147,866
		Computer
31 March 2024	Licenses	software	Rights	Total
Net book value, 1 January 2024	9,285	40,078	47,145	96,507
Additions	-	24,335	-	24,335
Amortization expense (-)	(1,986)	(4,360)	(5,111)	(11,457)
Net book value 31 March 2024	7,299	60,053	42,033	109,385
Cost	127,941	110,861	71,550	310,352
Accumulated amortization (-)	(120,642)	(50,808)	(29,517)	(200,967)
Net book value 31 March 2024	7,299	60,053	42,033	109,385

NOTE 12 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

	31 March 2025	31 December 2024
Provision for lawsuits	413,401	440,826
Provision for bonuses and premiums	18,598	32,802
	431,999	473,628

According to the opinions of the Group's lawyers, the total risk amount of lawsuits filed against the Company is TRY662,564 as of 31 March 2025 (31 December 2024: TRY738,597).provisions amounting to TRY413,401 have been made as of 31 March 2025 (31 December 2024: TRY440,826). As of 31 March 2025, there are 1 cases of defect, 10 cases of loss of rent, 7 cases of cancellation of title deeds and registration, 2 cases of business and 35 other cases.

The movements of provision for lawsuits as of 31 March 2025 and 2024 are as follows:

	2025	2024
Balance at 1 January	473,628	417,426
Provision added within the current period	6,224	10,717
Monetary gain	(47,853)	(60,571)
Closing balance at 31 March	431,999	367,572

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 12 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Continued)

12.1 Continuing Lawsuits and Provisions

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 March 2025, 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.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 12 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Continued)

12.1 Continuing Lawsuits and Provisions (Continued)

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 March 2025, a provision amounting to TRY14,276, including interest and litigation costs, has been recognized.
12.1.3 The lawsuit was filed by Şekerbank T.A.Ş., which had acquired the receivable of TRY 46,000 arising and to arise from Emlak Konut GYO A.Ş. on behalf of the contractor Yeni Sarp-Özarak Ordinary Partnership for the İstanbul Ümraniye 1st Phase Land Revenue Sharing Project. The plaintiff claimed that the remaining assigned receivable amounting to TRY34,135 had been unjustly unpaid and sought the establishment of a mortgage on certain properties within the scope of the project as security for the claimed receivable. On 15 October 2020, the court ruled for the dismissal of the case. The plaintiff appealed the decision, and the appellate court overturned the ruling. Following the retrial after the reversal, the court ruled in favor of the plaintiff. This decision was subsequently appealed by the Company, and as of 31 March 2025, a provision amounting to TRY94,617, including interest and litigation costs, has been recognized.
12.1.4 The lawsuit was filed for compensation due to defective construction in Çerkezköy Yıldızkent Ayışığı Complex. In the ongoing trial, the latest expert report has applied the principle of compensatory justice in its calculations. The litigation process is still ongoing, and as of 31 March 2025, a provision amounting to TRY25,750, including interest and litigation costs, has been recognized.

12.2 Contingent Liabilities of the Group

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 March 2025 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.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 12 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Continued)

12.2 Contingent Liabilities of the Group (Continued)

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 Contingent Assets of the Group

12.3.1 As of 31 March 2025 and 31 December 2024, 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 delivered 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
31 March 2025	Trade Receivables	deferred revenue	Total
1 year	7,423,030	14,272,242	21,695,272
2 years	4,677,026	8,958,901	13,635,927
3 years	1,744,950	3,326,623	5,071,573
4 years	952,035	1,242,280	2,194,315
5 years and above	1,304,627	549,908	1,854,535
	16,101,668	28,349,954	44,451,622


31 December 2024	Trade Receivables	Off-balance sheet deferred revenue	Total
1 year	5,942,181	15,708,424	21,650,605
2 years	3,674,291	9,860,414	13,534,705
3 years	1,307,757	3,661,373	4,969,130
4 years	806,742	1,367,288	2,174,030
5 years and above	1,335,356	605,244	1,940,600

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 13 -EMPLOYEE BENEFITS

	31 March 2025	31 December 2024
Short-term provisions
Unused vacation provision	87,981	104,323
	87,981	104,323
Long-term provisions
Provision for employment termination benefit	183,686	196,061
	183,686	196,061

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 March 2025	31 December 2024
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.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 14 – OTHER ASSETS

Other current assets	31 March 2025	31 December 2024
Deferred VAT	3,197,025	4,616,068
Other payments to contractors	1,141,709	957,151
Receivables from tax office	163,171	181,827
Income accruals	120,484	144,048
Prepaid income tax	1,870	6,932
Other	13,651	13,624
	4,637,910	5,919,650

NOTE 15 – DEFERRED INCOME AND PREPAID EXPENSES

Short-term deferred income	31 March 2025	31 December 2024
Advances taken from turnkey project sales	31,300,968	38,301,083
Deferred income from LSRSA projects (*)	27,473,578	27,812,347
Advances taken from LSRSA contractors (**)	18,680,371	18,700,326
Advances received from related parties (Note 24)	486,373	4,964,518
Deferred income related to sales of independent units	2,815,706	2,656,129
	80,756,996	92,434,403

(*) 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 March 2025	31 December 2024
Other advances given	5,846	6,323
	5,846	6,323
Prepaid expenses	31 March 2025	31 December 2024
Prepaid expenses	637,557	473,773
	637,557	473,773

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 16 – SHAREHOLDERS' EQUITY

The Group's authorized capital amount is TRY3,800,000 (31 December 2024: TRY3,800,000) and consists of 380,000,000,000 (31 December 2024: 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 March 2025 and 31 December 2024 is as follows:

	31 March 2025		31 December 2024
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		56,795,656		56,795,656
		60,595,656		60,595,656

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:

If the difference is arising from the valuation of "Paid-in Capital" and not yet been transferred to capital should be classified under the "Inflation Adjustment to Share Capital";
If the difference is arising from valuation of "Restricted Reserves Appropriated from Profit" and "Share Premium" and the amount has not been subject to dividend distribution or capital increase, it shall be classified under "Retained Earnings". Other equity items should be revaluated in accordance with the CMB standards.

There is no any use of the adjustment to share capital except adding it to the share capital.

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
Adjustment to share capital	64,638,455	56,795,656	(7,842,799)
Share premium	37,026,694	31,841,669	(5,185,025)
Restricted reserves appropriated from profit	10,373,449	9,559,299	(814,150)

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 17 – REVENUE AND COST OF SALES

	1 January -	1 January -
Sales income	31 March 2025	31 March 2024
Land sales	2,552,121	664,761
Sales of planned lands
by way of LSRSA	2,552,121	520,850
Land sales income	-	143,911
Residential and commercial units sales	18,377,974	1,442,854
Consultancy income	1,528,666	966,155
Elevator sales income	273,633	12,537
Rent income	53,796	33,548
	22,786,190	3,119,855

Sales returns and discounts	(6,949)	(5,774)
Net sales income	22,779,241	3,114,081
Cost of sales
Cost of lands	(818,934)	(619,057)
Cost of lands planned
by way of LSRSA	(818,934)	(104,031)
Cost of lands sold	-	(515,026)
Cost of residential and commercial units sold	(15,185,272)	(994,537)
Cost of elevator	(240,189)	(34,919)
Cost of consultancy	(573,747)	(167,510)
	(16,818,142)	(1,816,023)
Gross Profit	5,961,099	1,298,058

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 18 - GENERAL ADMINISTRATIVE EXPENSES, MARKETING EXPENSES

	1 January - 31 March 2025	1 January - 31 March 2024
General administrative expenses
Personnel expenses	(367,096)	(417,515)
Security and cleaning expenses	(71,363)	(78,704)
Consultancy expenses	(65,654)	(26,343)
Depreciation and amortization	(56,354)	(107,281)
Taxes, duties and fees	(38,997)	(9,734)
Maintenance and repair expenses	(30,008)	(5,999)
Due and contribution expenses	(22,138)	(22,835)
Information technologies expenses	(22,729)	(5,110)
Travel expenses	(18,496)	(19,794)
Insurance expenses	(12,555)	(1,864)
Communication expenses	(1,905)	(2,344)
Lawsuit and notary expenses	(1,487)	(2,218)
Other	(51,269)	(50,596)
	(760,051)	(750,337)
	1 January -	1 January -
	31 March 2025	31 March 2024
Marketing and sales expenses
Advertising expenses	(128,628)	(61,284)
Personnel expenses	(40,150)	(24,190)
Consultancy expenses	(11,259)	(13,424)
Other	(11,687)	(18,940)

(191,724) (117,838)

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 19 – EXPENSE BY NATURE

	1 January -	1 January -
	31 March 2025	31 March 2024
Expense by nature
Expenses from residential and commercial units sales	15,185,272	994,536
Land costs	818,934	619,057
Personnel expenses	407,246	441,706
Cost of consultancy	573,747	167,510
Cost of elevator	240,189	34,919
Advertising expenses	128,628	61,284
Consultancy expenses	76,913	39,767
Security and cleaning expenses	71,363	78,704
Depreciation and amortisation (Note 9, 10,11)	56,354	107,281
Taxes,duties and fees	38,997	9,734
Maintenance and repair expenses	30,008	5,999
Information technologies expenses	22,729	5,110
Due and contribution expenses	22,138	22,835
Insurance expenses	12,555	1,864
Lawsuit and notary expenses	1,487	2,218
Communication expenses	1,905	2,344
Other	81,452	89,330
	17,769,917	2,684,198

NOTE 20 – OTHER INCOME/EXPENSES FROM OPERATING ACTIVITIES

	1 January - 31 March 2025	1 January - 31 March 2024

Other income from operating activities
Financial income from forward sales	1,524,793	171,566
Foreign exchange gains	246,414	-
Income from transfer commissions	76,902	68,323
Default interest income from projects	44,862	9,394
Impairment provisions released	810	581,014
Diğer	53,469	133,637
	1,947,250	963,934

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 20 – OTHER INCOME/EXPENSES FROM OPERATING ACTIVITIES (Continued)

	1 Ocak -	1 Ocak -
	31 March 2025	31 March 2024
Other expenses from operating activities
Reversal of unaccrued financial expense	(696,446)	(152,061)
Provision for lawsuits (Note 12)	(6,224)	(10,717)
Other	(41,994)	(17,044)
	(744,664)	(179,822)

NOTE 21 – FINANCIAL INCOME / EXPENSES

	1 January -	1 January -
Financial income	31 March 2025	31 March 2024
Interest and updating income	426,939	1,428,575
Other	1,637	7,795
	428,576	1,436,370
	1 January -	1 January -
Financial expenses	31 March 2025	31 March 2024
Borrowings interest and lease certificate expenses	(1,300,849)	(473,434)
Other	(5,152)	(80,105)
	(1,306,001)	(553,539)

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 22 – INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES)

Corporate Tax

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 31 December 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 1 January 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.

The current tax liability of the Group as of 31 March 2025 and 31 December 2024 is as follows:

	31 March 2025	31 December 2024

Current tax expense	(1.418.481)	-
Deferred tax expense	(811.521)	(54.025)
Total tax expense	(2.230.002)	(54.025)

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 22 – INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (Continued)

Deferred Tax:

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.

	31 March	31 December
Deferred tax (assets)/liabilities:	2025	2024
Adjustments to TFRS 9 expected credit loss	1,007	1,108
Adjustment to inventories	4,021,838	4,658,345
Effect of amortized cost method on receivables	1,035,335	928,394
Depreciation / amortization differences of
property, plant and equipment and other intangible assets	(27,555)	7,624
Adjustments to investment properties	318,953	446,193
Adjustment to deferred income	1,426,923	1,528,323
Provision for provisions	180,929	216,580
Adjustment to prepaid expenses	(62,121)	(94,685)
Adjustment to leases	(14,749)	1,576
	6,880,560	7,693,458

The movements of deferred tax (asses)/ liabilities for the periods ended 31 March 2025 and 2024 are as follows:

	1 January-	1 January
	31 March	31 March
Movement of deferred tax (assets)/liabilities:	2025	2024
Opening balance as of 1 January	7,693,458	23,057
Charged to profit or loss	(811,521)	(54,025)
Other comprehensive income	(1,377)	-
Closing balance at 31 March	6,880,560	(30,968)

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 23 – EARNINGS PER SHARE

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 March 2025	31 March 2024

Net profit/(loss) attributable to Shareholders (TRY)	3,253,287	112,753
Weighted average number of ordinary shares	3,804,550,291	3,804,550,291
Earnings/(loss) per share in full TRY	0.08551	0.00296

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 24 – RELATED PARTY DISCLOSURES

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.

1. T.C. Toplu Konut İdaresi Başkanlığı ("TOKİ")
1. GEDAŞ (Gayrimenkul Değerleme A.Ş.) (an affiliate of TOKİ)
1. TOBAŞ (Toplu Konut Büyükşehir Bel. İnş. Emlak ve Proje A.Ş.) (an affiliate of TOKİ)
1. Vakıf Gayrimenkul Yatırım Ortaklığı A.Ş. (an affiliate of TOKİ)
1. Vakıf İnşaat Restorasyon ve Ticaret A.Ş. (an affiliate of TOKİ)
1. Emlak-Toplu Konut İdaresi Spor Kulübü
1. Emlak Planlama İnşaat Proje Yönetimi ve Tic. A.Ş. Emlak Basın Yayın A.Ş. Ortak Girişimi
1. Ege Yapı Emlak Planlama, İnşaat, Proje Yönetimi ve Tic. A.Ş. Ortak Girişimi
1. Emlak Planlama, İnşaat, Proje Yönetimi ve Tic. A.Ş. Cathay Ortak Girişimi
1. Emlak Konut Spor Kulübü Derneği
1. Türkiye Emlak Katılım Bankası A.Ş.
1. T.C. Çevre, Şehircilik ve İklim Değişikliği Bakanlığı Kentsel Dönüşüm Hizmetleri Genel Müdürlüğü
1. İller Bankası A.Ş.
1. Emlak Basın Yayın A.Ş.

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 Group keeps its deposits predominantly in state banks in accordance with the relevant provisions. As of 31 March 2025 the Group has deposits amounting to TRY 3,140,135 in state banks (31 December 2024: TRY6,390,599). Average effective interest rates of time deposits of the Group as of 31 March 2025 are explained in Note 4.

The transactions between the Group and the related parties are as follows:

Trade receivables from related parties	31 March 2025	31 December 2024
T.C. Çevre, Şehircilik ve İklim Değişikliği Bakanlığı (*)	326,987	5,633
T.C. Toplu Konut İdaresi Başkanlığı ("TOKİ")	-	2,884
	326,987	8,517

(*) The Company's trade receivables from the Ministry of Environment and Urbanization consist of payments made by the Company for urban transformation projects.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 24 – RELATED PARTY DISCLOSURES (Continued)

Short-term other receivables from related parties	31 March 2025	31 December 2024
Emlak Planlama, İnşaat, Proje Yönetimi ve Tic. A.Ş.
– Şua İnşaat Adi Ortaklığı	383,837	285,146
Other	1,026	1,026
	384,863	286,172

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.

Deferred revenue from related parties	31 March 2025	31 December 2024
Türkiye Emlak Katılım Bankası A.Ş. (*)	486,373	4,964,518
	486,373	4,964,518

(*) Includes amounts received by the Group for 29 commercial units sold to Türkiye Emlak Katılım Bankası A.Ş.

Short-term other payables from related parties	31 March 2025	31 December 2024
Emlak Planl. İnş. Prj. Yön. A.Ş. - Cathay Ortak Girişimi	826	739
	826	739
Deposits with related parties	31 March 2025	31 December 2024
Türkiye Emlak Katılım Bankası A.Ş.	1.644.636	2.018.775
	1.644.636	2.018.775

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 24 – RELATED PARTY DISCLOSURES (Continued)

	1 January -	1 January -
Purchases from related parties	31 March 2025	31 March 2024
T.C. Toplu Konut İdaresi Başkanlığı ("TOKİ")	7.388.326	647.362
Marmara Kentsel Dönüşüm Müdürlüğü	2.968.031	-
Emlak Basın Yayın A.Ş.	886	-
Kentsel Dönüşüm Hizmetleri Genel Müdürlüğü
	10.357.243	18.665.879

	1 January -	1 January -
Sales to related parties	31 March 2025	31 March 2024
T.C. Toplu Konut İdaresi Başkanlığı ("TOKİ")	33.005	51.146
T.C. Çevre, Şehircilik ve İklim Değişikliği Bakanlığı	5.437	1.281.629
Gedaş Gayrimenkul Değerleme A.Ş.	-	35.304

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 March 2025	1 January - 31 March 2024
Ücret ve diğer kısa vadeli faydalar	22,560	44,069
	22,560	44,069

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 25 – EXPLANATIONS ON MONETARY POSITION GAINS/(LOSSES)

The monetary position gains (losses) reported in the statement of profit or loss arise from the monetary/non-monetary financial statement items listed below:

Non-monetary items

31 March 2025

Statement of financial position items
Inventories	10.419.426
Given advances	198.683
Investment properties, tangible and intangible assets	471.543
Right of use asset	54.227
Deferred tax assets	715.065
Deferred income	(162.472)
Share premiums / discounts	(2.911.205)
Paid-in capital	(5.540.111)
Treasury shares (-)	6.505
Restricted reserves appropriated from profit	(834.943)
Gain / (loss) arising from defined benefit plans	3.271
Other equity items	175.012
Retained earnings / accumulated losses	(644.614)
Statement of profit or loss items
Revenue	(6.592.756)
Cost of sales (-)	4.779.529
General administrative expenses (-)	19.133
Marketing expenses (-)	5.242
Other income from main operations	(49.778)
Other expenses from main operations (-)	17.566
Finance income	(11.414)
Finance costs (-)	30.895

Monetary gain 148.804

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

NOTE 26 – COMMITMENTS

The Group's mortgage and guarantees received as of 31 March 2025 and 31 December 2024 are as follows:

	31 March 2025	31 December 2024
Guarantees received (*)	54,107,964	59,193,439
Mortgages received (**)	670,005	737,426
	54,777,969	59,930,865

(*) 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 March 2025 and 31 December 2024 are as follows :

	31 March 2025	31 December 2024
CPM given on behalf of the Company's legal personality	606,504	667,478
CPM given on behalf of fully consolidated subsidiaries	-	-
CPM given for continuation of its economic activities on behalf of third parties	-	-
Total amount of other CPM i) Total amount of CPM given on behalf of majority shareholder	-	-
ii) Total amount of CPM given on behalf of other companies which are not in scope of B and C	-	-
iii) Total amount of CPM given on behalf of third parties which are not in scope of C	-	-
	667,478	667,478

NOTE 27 - EVENTS AFTER THE REPORTING PERIOD

As part of the Group's long-term strategy, the purchase of land parcels with a total area of 75,272.82 m² located in Atışalanı Neighborhood, Esenler District, Istanbul, has been completed for a total consideration of TRY 2,898,004 (excluding VAT), within the scope of the protocol signed with the Ministry of Environment, Urbanization and Climate Change, Directorate of Urban Transformation.

The agreement titled "Revenue Sharing Model on Land Sale for the Istanbul Eyüpsultan Kemerburgaz Project," signed on 28.02.2023 between the Group, Emlak Konut Real Estate Investment Company, and the Contractor Joint Venture composed of CABA Construction Energy Tourism Industry and Trade Inc., MESA Mesken Construction Inc., and MESA Holding Inc., has been mutually terminated through a Termination Protocol signed on 18.04.2025, prior to the commencement of production and sales activities.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

(Amounts expressed in thousands of Turkish Lira ("TRY") in terms of the purchasing power of TRY as of 31 March 2025, unless otherwise stated.)

ADDITIONAL NOTE – CONTROL OF COMPLIANCE WITH THE PORTFOLIO LIMITATIONS

	Non-Consolidated (Standole) Financial Statement Main
	Account Items	Related Regulation		31 March 2025 31 December 2024
A	Money and Capital Market Instruments	Series: III-No.48, Art.24/(b)	3,037,168	6,899,249
	Properties, Projects based on Properties and Rights based on
B	Properties	Series: III-No.48, Art.24/(a)	183,016,433	188,543,417
IS	Subsidiaries	Series: III-No.48, Art.24/(b)	4,535,628	4,535,628
	Due from Related Parties (Non-trade)	Series: III-No.48, Art.23/(f)	-	-
	DV Other Assets		22,551,657	21,917,518
D	Total Assets (Total Assets)		213,140,886	221,895,812
E	Financial Liabilities	Series: III-No.48, Art.24/(b)	12,701,393	14,200,451
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)	-	-
I	Shareholders' equity		109,927,232	107,109,870
EB	Other Resources		90,512,261	100,585,491
D	Total Resources	Series: III-No.48, Art.3/(k)	213,140,886	221,895,812
	Non-Consolidated (Standole) Other Financial Information	Related Regulation		31 March 2025 31 December 2024
	The Portion of Money and Capital Market Instruments Held for 3-
A1	Year Real Estate Payments	Series: III-No.48, Art.24/(b)	3,037,168	6,899,249
A2	Term / Demand / Currency	Series: III-No.48, Art.24/(b)	4,329,037	8,702,545
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)	16,356,709	16,400,327
C1	Foreign Subsidiaries	Series: III-No.48, Art.24/(d)	-	-
C2	Subsidiaries of the Operating Company	Series: III-No.48, Art.28	4,836,108	4,836,108
J	Non-Cash Loans	Series: III-No.48, Art.31	165,443	181,728
	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 March 2025 31 December 2024

	Portfolio Restrictions	Related Regulation		31 March 2025 31 December 2024
	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)	87%	88%
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%	7%
6	Subsidiaries of the Operating Company	Series: III-No.48, Art.28	2%	2%
7	Borrowing Limit	Series: III-No.48, Art.31	12%	13%
8	Term / Demand / Currency	Series: III-No.48, Art.22/(e)	1%	1%

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.

.…………….………

AI Terminal

EMLAK KONUT GAYRİMENKUL YATIRIM ORTAKLIĞI A.Ş.

5907_rns_2025-05-09_889c65ff-2525-4c41-b7ac-a0fbf7c8506f.pdf

CONSOLIDATED FINANCIAL STATEMENTS FOR INTERIM PERIOD 1 JANUARY – 31 MARCH 2025 AND INDEPENDENT AUDITOR'S REPORT

EMLAK KONUT GAYRİMENKUL YATIRIM ORTAKLIĞI A.Ş.

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 31 MARCH 2025

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 31 MARCH 2025

INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2025 AND 2024

EMLAK KONUT GAYRİMENKUL YATIRIM ORTAKLIĞI A.Ş. VE BAĞLI ORTAKLIKLARI

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 1 JANUARY - 31 MARCH 2025 AND 2024

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 1 JANUARY 31 MARCH 2025 AND 2024

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 1 – ORGANIZATION AND OPERATION OF THE GROUP

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 1 – ORGANIZATION AND OPERATION OF THE GROUP (Continued)

Subsidiaries

Subsidiaries Main Operations

Shares in Joint Operations

Shares in Joint Operations Main Operations

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 2 – BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

2.1. Basis of Presentation

Basis of Consolidation

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 2 – BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.1. Basis of Presentation (Continued)

Basis of Consolidation (Continued)

Changes in the Group's Ownership Interests in Existing Subsidiaries

Investments in Associates and Joint Ventures

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 2 – BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.1. Basis of Presentation (Continued)

Basis of Consolidation (Continued)

Investments in Associates and Joint Ventures (Continued)

Interests in Joint Operations

Adjustment of Consolidated Financial Statements in Hyperinflation Periods

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 2 – BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.1. Basis of Presentation (Continued)

Adjustment of Consolidated Financial Statements in Hyperinflation Periods (Continued)

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 3 – ACCOUNTING POLICIES

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 3 – ACCOUNTING POLICIES (Continued)

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 4 - CASH AND CASH EQUIVALENTS

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 5 – FINANCIAL LIABILITIES

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 7 – OTHER RECEIVABLES AND PAYABLES

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 8 – INVENTORIES

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 8 – INVENTORIES (Continued)

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 8 - INVENTORIES (Continued)

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 8 - INVENTORIES (Continued)

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 8 - INVENTORIES (Continued)

NOTE 9 – INVESTMENT PROPERTIES

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 9 – INVESTMENT PROPERTIES (Continued)

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 10 – PROPERTY, PLANT AND EQUIPMENT

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 11 – INTANGIBLE ASSETS

NOTE 12 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 12 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Continued)

12.1 Continuing Lawsuits and Provisions

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 12 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Continued)

12.1 Continuing Lawsuits and Provisions (Continued)

12.2 Contingent Liabilities of the Group

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

NOTE 12 – PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (Continued)

12.2 Contingent Liabilities of the Group (Continued)

12.3 Contingent Assets of the Group