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PEKER GAYRİMENKUL YATIRIM ORTAKLIĞI A.Ş.

Quarterly Report May 12, 2025

8857_rns_2025-05-12_31abde31-d05c-448d-8fbe-84b534ef2c67.pdf

Quarterly Report

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(Convenience Translation of Financial Statements Originally Issued in Turkish)

Peker Gayrimenkul Yatırım Ortaklığı Anonim Şirketi and Its Subsidiaries

Consolidated Financial Statements for the Period January 1 – March 31, 2025

Index Page
Consolidated statements of financial position 1 – 2
Consolidated statements of profit or loss and other comprehensive income 3
Consolidated statements of changes in shareholders' equity 4
Consolidated statements of cash flows 5
Notes to the consolidated financial statements 6 – 61

Consolidated Statements of Financial Position

As of March 31, 2025

Unaudited Audited
Current period Prior period
Note March 31, 2025 December 31, 2024
Current assets 2.113.890.658 2.120.797.224
Cash and cash equivalents 4 72.904.215 59.320.666
Financial investments 5 48.313.863 51.963.154
Trade receivables
Due from related parties 7-18 190.826.518 186.029.918
Due from third parties 7 207.955.178 335.857.012
Other receivables
Due from related parties 8-18 31.619.115 6.583.968
Due from third parties 8 13.053.970 13.181.353
Inventories 9 400.548.369 427.695.182
Prepaid expenses
Due to related parties 10-18 741.916.921 670.312.389
Due to third parties 10 323.980.957 253.157.489
Current income tax assets 17 205.033 238.993
Other current assets 11 82.566.519 116.457.100
Non-current assets 6.792.850.284 6.775.923.302
Financial investments 5 - -
Other receivables
Due from third parties 8 758.857 1.517.436
Investment properties 12 6.726.472.388 6.692.691.116
Property, plant and equipment 13 59.104.110 78.129.696
Prepaid expenses - -
Due to related parties 10-18 - -
Deferred tax asset 17 6.514.929 3.585.054
Total assets 8.906.740.942 8.896.720.526

Consolidated Statements of Financial Position

As of March 31, 2025

Audited Unaudited
Current period Prior period
Note March 31, 2025 December 31, 2024
Current liabilities 2.227.592.765 2.267.782.286
Short-term borrowings 6 1.336.709.616 1.389.018.854
Short-term portion of long-term borrowings 6 68.999.810 95.014.202
Short-term portion of long-term lease liabilities 6 33.706.534 43.943.691
Trade payables
Due to related parties 7-18 7.925.230 7.413.647
Due to third parties 7 129.962.130 144.302.198
Contract liabilities 10 444.331.645 290.944.235
Employee benefit obligations 3.188.860 1.766.846
Other payables
Due to related parties 8-18 180.844.054 252.863.813
7.152.315 6.980.906
Due to third parties
Provisions
8
Other provisions 2.277.361 2.268.194
Other current liabilities 11 12.495.210 33.265.700
Non-current liabilities 2.955.146.523 2.903.453.356
Long-term borrowings 6 2.179.725.797 1.767.848.590
Long-term lease liabilities 6 339.822.331 369.330.215
Other payables
Due to related parties 8-18 1.607.524 379.804.381
Provisions
Provision for employee benefits 414.440 986.031
Deferred tax liabilities 17 433.576.431 385.484.139
Equity 3.724.001.654 3.725.484.884
Equity holders of the parent 3.526.890.933 3.502.226.232
Paid-in capital 15 2.500.000.000 2.500.000.000
Adjustment to share capital 15 1.950.338.052 1.950.338.052
Share premium 25.029 25.029
Other accumulated comprehensive income and expense
not to be reclassified to profit or loss
Gain/ (loss) arising from defined benefit plans 14.587 (877.487)
Other accumulated comprehensive income and expense to
be reclassified to profit or loss
Currency translation differences (1.551.952.622) (1.457.756.188)
Effect of combinations of businesses under common (3.001.790.247) (3.001.790.247)
control
Restricted reserves 15 294.301.294 294.301.294
Retained earnings 3.198.600.063 3.082.135.444
Net profit for the period 137.354.777 135.850.335
Non-controlling interest 197.110.721 223.258.652
Total liabilities and equity 8.906.740.942 8.896.720.526

Consolidated Statements of Profit or Loss and Other Comprehensive Income For the Period Ended March 31, 2025, and 2024

Unaudited Unaudited
Current period Prior period
Note January 1 -
March 31, 2025
January 1 -
March 31, 2024
Revenue
Cost of sales (-)
19
19
111.487.951
(27.285.957)
40.213.895
(32.820)
Gross profit/ (loss) 84.201.994 40.181.075
Marketing expenses (-)
General administrative expenses (-)
Other income from operating activities
Other expenses from operating activities (-)
20
20
21
21
(1.500.000)
(39.925.179)
400.501.355
(101.719.000)
-
(42.403.168)
323.506.262
(102.431.870)
Operating profit 341.559.170 218.852.299
Income from investment activities
Expenses from investment activities (-)
22
22
1.096.924
-
4.611.118
(42.316.086)
Operating income before financial income 342.656.094 181.147.331
Finance income
Finance expenses (-)
Net monetary position gain/ (loss)
23
23
27
1.724.269
(222.764.879)
83.356.472
1.260.530
(109.449.617)
(225.482.864)
Profit before tax from continuing operations 204.971.956 (152.524.620)
Tax income/(expense), continuing operations (80.340.314) (19.083.749)
Taxes on expense
Deferred tax expenses (-)
17
17
-
(80.340.314)
-
(19.083.749)
Net income 124.631.642 (171.608.369)
Equity holders of the parent
Non-controlling interest
137.354.777
(12.723.135)
(176.887.908)
5.279.539
Not to be reclassified to profit or loss 892.073 (151.037)
Gain/ (loss) arising from defined benefit plans
Gain/ (loss) arising from defined benefit plans, tax
effect
17 986.794
(94.721)
(151.037)
-
To be reclassified to profit or loss
Currency translation differences
(295.964.064)
(295.964.064)
(271.447.203)
(271.447.203)
Other comprehensive (expense)/ income (295.071.991) (271.598.240)
Total comprehensive income (170.440.349) (443.206.609)
Equity holders of the parent
Non-controlling interest
(144.292.418)
(26.147.931)
(443.206.609)
-
Earnings per share 16 - -

Consolidated Statements of Changes in Shareholder' Equity

For the Period Ended March 31, 2025, and 2024

Defined Benefit Effect of
Business
Equity
Paid-in Capital Equity
adjustment
differences
Treasury
Shares
Share
premium
Plans
Remeasurement
Gains/(Losses)
Currency
Translation
Differences
Legal
Reserves
Combinations
under Common
Control
Retained
Earnings
Net Profit for the
Period
Attributable to
Owners of the
Parent
Non
controlling
Interests
Total
Balances as of 1 January 2024 669.833.747 3.234.365.078 - 25.030 (844.696) (803.794.916) 183.128.811 (2.263.868.502) 2.423.087.026 1.525.532.663 4.967.464.241 323.357.044 5.290.821.285
Transfers
Total Comprehensive Income
Repurchase of Shares
-
-
-
-
-
-
-
- (99.613.459)
-
-
-
(151.037)
-
-
(248.900.895)
-
-
-
99.613.459
- -
(99.613.459)
- 1.525.532.663 (1.525.532.663) -
(176.887.908) (425.939.840) (17.266.770) (443.206.610)
(99.613.459)
-
-
-
(99.613.459)
Balances as of 31 March 2024 669.833.747 3.234.365.078 (99.613.459) 25.030 (995.733) (1.052.695.811) 282.742.270 (2.263.868.502) 3.849.006.230 (176.887.908) 4.441.910.942 306.090.274 4.748.001.216
Balances as of 1 January 2025 2.500.000.000 1.950.338.052 25.029 (877.487) (1.457.756.188) 294.301.294 (3.001.790.247) 3.082.135.445 116.464.618 3.482.840.516 223.258.652 3.706.099.168
Transfers
Total Comprehensive Income
- - - -
-
-
892.074
-
(94.196.434)
- -
-
116.464.618
-
(116.464.618)
137.354.777
- -
44.050.417 (26.147.931)
-
17.902.486
Balances as of 31 March 2025 2.500.000.000 1.950.338.052 25.029 14.587 (1.551.952.622) 294.301.294 (3.001.790.247) 3.198.600.063 137.354.777 3.526.890.933 197.110.721 3.724.001.654

Consolidated Statements of Cash Flows

For the Period Ended March 31, 2025, and 2024

Unaudited Unaudited
Current period Prior period
January 1 - January 1 -
Note March 31, 2025 March 31, 2024
A. Cash flows from operating activities (90.277.378) (80.343.913)
Net income 124.631.642 (171.608.369)
Adjustments regarding net profit reconciliation for the period (462.833.373) 123.022.251
Adjustments for depreciation and amortisation expense 13 4.788.807 5.501.101
Adjustments for provisions for employee benefits (127.948) 105.721
Adjustments for interest income 23 (1.724.269) (1.260.530)
Adjustments for interest expense 23 196.317.515 108.432.498
Adjustments for unrealised foreign exchange differences (179.999.153) (119.988.140)
Adjustments for fair value (gains) losses - (87.127.375)
Adjustments for fair value (gains) losses on investment properties 12 (133.504.447) -
Adjustments for tax expense/ (income) 17 80.340.314 19.083.749
Monetary (gain)/ loss (425.510.220)
(4.339.951)
215.624.014
(12.841.312)
Adjustments for unrealised translation differences
Adjustments for other cash flows from investing or financing activities
925.979 (4.507.476)
247.924.353 (31.748.794)
Changes in operating assets and liabilities
Adjustments for decrease (increase) in trade receivables 308.009.071
(15.084.292)
17.649.906
(9.133.028)
Adjustments for decrease (increase) in other receivables
Decrease (increase) in inventories
27.146.813 -
Decrease (increase) in prepaid expenses (71.604.528) (17.077.465)
Adjustments for increase (decrease) in deferred income
Adjustments for increase (decrease) in trade payables (11.703.269) (33.319.022)
Increase (decrease) in employee benefit liabilities 1.422.014 434.934
Adjustments for increase (decrease) in other payables (6.551.371) 39.458.431
Adjustments for (increase) decrease in other assets 33.924.541 37.666.030
Adjustments for increase (decrease) in other liabilities (17.634.626) (67.428.580)
Cash flows from operating activities - (9.001)
Payments related to provisions for employee termination benefits - (9.001)
B. Cash flows from investing activities 84.387.828 (65.570.857)
Cash outflow from purchase of property, plant, equipment 13 - (8.570.726)
Cash inflow from sale of property, plant, equipment 13 14.361.113
(15.801.218)
-
(14.315.665)
Cash outflows arising from project expenditures of investment properties
Cash outflows from other investing activities
12 153.387.410 -
Cash inflow from other investing activities (70.823.468) -
Cash outflows from purchase of funds and stocks 5 - (133.613.894)
Cash inflow from sales of funds and stocks 5 3.263.991 90.929.428
C. Cash flows from financing activities (15.716.995) 276.495.099
Cash inflow from borrowings 6 399.315.425 495.279.426
Cash outflow from repayments of borrowings 6 (376.448.317) (142.175.347)
Payments of lease liabilities 6 (3.156.653)
Interest and comission paid (5.502.312) (77.869.510)
Interest received 1.724.269 1.260.530
D. Net change in cash and cash equivalents (A+B+C) 10.042.862 130.580.330
E. Effect of monetary gain/ loss 3.792.197 (1.209.596)
F. Effect of foreign exchange gain/ loss (251.510) (983.122)
G. Cash and cash equivalents at January 1 59.320.666 91.576.349
Cash and cash equivalents at March 31 (D+E+F+G) 4 72.904.215 120.350.501

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

1. Group's organisation and nature of operations

Peker Investment Gayrimenkul Anonim Şirketi was established as of April 25, 2017 by separating part of Peker Holding Anonim Şirketi through division. The Company was registered in the trade registry as of April 25, 2017, and at the same time, it applied to the Capital Markets Board for be a Real Estate Investment Corporation. It was approved in accordance with the Capital Markets Board's decision dated September 21, 2017 and numbered 34/1144. The title of the Company, Peker Gayrimenkul Yatırım Ortaklığı A.Ş. ("Company"), was registered in the trade registry on September 28, 2017, pursuant to the permissions of the CMB and the Ministry of Customs and Trade. Peker Gayrimenkul Yatırım Ortaklığı A.Ş. and its subsidiaries (together referred to as the "Group").

The Company's shares have been traded on the Borsa İstanbul Anonim Şirketi (formerly known as the Istanbul Stock Exchange) ("BIST") since February 21, 2018. As of March 31, 2025, 68,74% of its shares are traded on BIST.

The Company is affiliated to the İstanbul Ticaret Odası and its registered address is as follows: Cumhuriyet Mahallesi Silahşor Cad. Yeniyol Sk. No:8/1-G Şişli/ İstanbul.

The main objective and operations of the Company are real estate buying-selling, renting, developing real estate projects etc.

Number of employees of the Group as of March 31, 2025 is 27 (December 31, 2024: 29).

As of March 31, 2025 and March 31, 2024, the shareholder structure is as follows:

March 31, 2025 March 31, 2024
Number of Share Number of Share
shares (%) Amount shares (%) Amount
Hasan Peker
Public shares
781.406.458
1.718.593.542
31,26 781.406.458
68,74 1.718.593.542 1.718.593.542
781.406.458 31,26 781.406.458
68,74 1.718.593.542

The main operations of the companies included in the consolidation and the share percentage of the Group for these companies are as follows:

Voting right and ownership ratios (%)
March 31, 2025 March 31, 2024
Name of the Company Operation Country of operation Share (%) Share (%)
DİGH Maslak Real Estate Project Development İstanbul - Türkiye 100 -
Peker GMBH Real Estate Project Development Düsseldorf - Germany 100 100
Peker GYO Global GMBH Real Estate Project Development Düsseldorf - Germany 100 100
Blue Stone Investment GMBH Real Estate Project Development Grevenbroich -Germany 100 100
Nordstern Düsseldorf GMBH Real Estate Project Development Düsseldorf - Germany 51 51
Peker GYO Spain SL Real Estate Project Development Malaga - Spain 100 100

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

1. Group's organisation and nature of operations (cont'd)

DİGH Maslak İnsaat Proje Danışmanlık Ltd. Şti. ("DİGH Maslak")

On June 24, 2025, the Company has purchased 100% shares of the GG Gayrimenkul Geliştirme İnşaat İşletmecilik A.Ş. which owns 99% of the shares of DİGH Maslak İnsaat Proje Danışmanlık Ltd. Şti. from its related party Peker Holding A.Ş. DİGH Maslak İnsaat Proje Danışmanlık Ltd. Şti. has Peker Tower Maslak Project. The land, which has a total construction area of 16,554 m2 , is located on Büyükdere Street, in the area where plazas and business centers are most dense in Istanbul. The project, which will consist of 6 basement floors and ground floor + 15 floors, will have office sizes ranging from 120 m2 to 560 m2 . GG Gayrimenkul merged with DİGH Maslak İnsaat Proje Danışmanlık Ltd. Şti. in accordance with the simplified merger provisions in accordance with the relevant provisions of the Turkish Commercial Code and the Corporate Tax Law and was registered on October 18, 2025.

Peker GMBH

The Company has purchased 100% shares of the capital of Peker GMBH, established in Germany and with a capital amounting to 1.000.000, euros from its related parties, Peker Holding GMBH and Goldstein Investment GMBH, for 40.000.000 euros. The value of the related shares has been determined as 41.428.663 euros in the valuation report dated June 23, 2024 prepared by Konfident Steuerberatungsgesellscharft MBH which is established in Germany. Peker GMBH owns the Northgate Düsseldorf project.

Blue Stone Investment GMBH

On October 6, 2021, the Group purchased 100% shares of Blue Stone Investment GMBH, which was established to acquire land in Germany, from Peker Holding GMBH. This transaction is considered as a business combination under common control. Therefore, Blue Stone Investment GMBH has been consolidated since 2021.

Nordstern Düsseldorf GMBH

On March 1, 2021, the Group has purchased 89% of the shares of the capital of Nordstern Düsseldorf GMBH, established in Germany, from Peker GMBH. The remaining 11% of the shares were purchased from Peker GMBH on August 26, 2022 for a payment of 13.367.707 Turkish liras. With this share purchase, the Company has become the owner of all the shares of the related company. This transaction is considered as a business combination under common control and has been consolidated since 2021.

Peker GYO Spain SL

The Group established the Spain-based company Peker GYO Spain SL as part of its restructuring to plan and realize its real estate investments through subsidiaries established abroad and to realize new investments to be made in Spain in order to benefit from lower cost and long-term financing opportunities abroad.

Peker GYO Global GMBH

The Group has established Peker GYO Global GMBH, headquartered in Düsseldorf/ Germany, as part of its restructuring to plan and realize real estate investments through subsidiaries established abroad and to realize new investments to be made in Germany in order to benefit from lower cost and long-term financing opportunities abroad.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements

2.1 Basis of presentation

The consolidated financial statements of the Group have been prepared in accordance with the Turkish Financial Reporting Standards, ("TFRS") and interpretations as adopted in line with international standards by the Public Oversight Accounting and Auditing Standards Authority of Turkey ("POA") in line with the communiqué numbered II-14.1 "Communiqué on the Principles of Financial Reporting In Capital Markets" ("the Communiqué") announced by the Capital Markets Board of Turkey ("CMB") on June 13, 2013 which is published on Official Gazette numbered 28676. TFRS are updated in harmony with the changes and updates in International Financial and Accounting Standards ("IFRS") by the communiqués announced by the POA.

The consolidated financial statements are presented in accordance with "Announcement regarding with TAS Taxonomy" which was published on July 3, 2025 by POA and the format and mandatory information recommended by CMB.

The Company maintain its legal books of account and prepare their statutory financial statements ("Statutory Financial Statements") in accordance with accounting principles issued by the Turkish Commercial Code ("TCC") and tax legislation. These consolidated financial statements are based on the statutory records with adjustments and reclassifications, for the purpose of fair presentation in accordance with Turkish Financial Reporting Standards ("TFRS"). Consolidated financial statements have been prepared under the historical cost convention except for the investment properties and short-term financial assets presented at fair values. In determining the historical cost, generally the fair value of the amount paid for the assets is taken as basis.

Financial reporting in hyperinflationary economies

Pursuant to the decision of the Capital Markets Board (SPK) dated March 28, 2024 and numbered 81/1820, it has been decided that issuers and capital market institutions subject to financial reporting regulations that apply Turkish Accounting/Financial Reporting Standards will apply inflation accounting by applying the provisions of IAS 29 starting from their annual financial reports for the periods ending on March 31, 2024. With the announcements made by the Public Oversight Accounting and Auditing Standards Authority ("POA") on November 23, 2024, entities applying TFRSs have started to apply inflation accounting in accordance with TAS 29 Financial Reporting in Hyperinflation Economies as of financial statements for the annual reporting period ending on or after March 31, 2024.

The adjustments made in accordance with IAS 29 were made using the adjustment coefficient obtained from the Consumer Price Index ("CPI") of Turkey published by the Turkish Statistical Institute ("TÜİK"). As of March 31, 2025, the indices and adjustment coefficients used in the adjustment of the consolidated financial statements are as follows:

March 31, 2025 December 31, 2025 March 31, 2024
Index 2.954,52 2.684,55 2.139,47
Average Index 2.885,90 2.360,03 2.065,79
Conversion Factor 1,00000 1,10063 1,38104
Three-year Inflation Rate %250 %291 %309

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.1 Basis of presentation (cont'd)

Financial reporting in hyperinflationary economies (cont'd)

According to the standard, financial statements prepared in the currency of a hyperinflationary economy are presented in terms of the purchasing power of that currency at the balance sheet date. Prior period financial statements are also presented in the current measurement unit at the end of the reporting period for comparative purposes. The Group has therefore presented its consolidated financial statements as of March 31, 2024, on the purchasing power basis as of March 31, 2025.

The main elements of the Group's adjustment process for financial reporting in hyperinflationary economies are as follows:

  • Current period condensed consolidated financial statements prepared in TRY are expressed in terms of the purchasing power at the balance sheet date, and amounts from previous reporting periods are also adjusted and expressed in terms of the purchasing power at the end of the reporting period.
  • Monetary assets and liabilities are not adjusted as they are already expressed in terms of the current purchasing power at the balance sheet date. In cases where the inflation-adjusted values of non-monetary items exceed their recoverable amount or net realizable value, the provisions of IAS 36 "Impairment of Assets" and IAS 2 "Inventories" are applied, respectively.
  • Non-monetary assets and liabilities and equity items that are not expressed in terms of the current purchasing power at the balance sheet date have been adjusted using the relevant adjustment coefficients.
  • All items in the comprehensive income statement, except for those that have an impact on the comprehensive income statement of non-monetary items on the balance sheet, have been indexed using the coefficients calculated for the periods when the income and expense accounts were first reflected in the financial statements.
  • The impact of inflation on the Group's net monetary asset position in the current period is recorded in the net monetary gain/(loss) account in the condensed consolidated income statement.

Comperative balances:

  • Prior period financial statements are also presented in the current measurement unit at the end of the reporting period for comparative purposes.
  • Subsidiaries' assets and liabilities are translated into TRY from the foreign exchange rate at the reporting date and income and expenses are translated into TRY at the average foreign exchange rate and then applied TAS 29.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.1 Basis of presentation (cont'd)

Functional and reporting presentation currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The functional currency of the Company and its subsidiary DİGH Maslak which is operating in Türkiye is Turkish lira and the foreign subsidiaries is euro.

The accompanying condensed consolidated financial statements are prepared in Turkish lira (TL) in accordance with the requirements of Capital Markets Board ("CMB") Communiqué Serial II, No: 14.1 "Basis of Financial Reporting in Capital Markets", which was published in the Official Gazette No:28676 on June 13, 2013.

In accordance with the Public Oversight, Accounting and Auditing Standards Authority's ("POA") announcement "On the Next Measurement of Foreign Currency Monetary Items According to Turkish Accounting Standards" dated March 15, 2021, the Group carried out a valuation for the assets and liabilities in the consolidated financial statements based on the current buying and selling rates effective as of the end of the reporting period, income and expenses are translated into TRY at the average foreign exchange rate.

March 31, 2025
Buying exchange rate 36,7362
Selling exchange rate 36,8024
Average exchange rate 35,4893

The differences between the values arising from translation of the historical values of these items into the presentation currency and their carrying values from statutory records are recognized as foreign currency translation differences in the statement of other comprehensive income.

Going concern

The Group prepared consolidated financial statements in accordance with the going concern assumption.

Approval of the consolidated financial statements

The consolidated financial statements have been approved and authorized to be published on 12 May, 2025 by the Board of Directors. The General Assembly has the authority to revise the financial statements.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.2 New and amended standards and interpretations

The accounting policies applied in the preparation of the individual financial statements for the reporting period ended 31 March 2025 are consistent with those applied in the previous year, except for the new and amended Turkish Accounting Standards ("TAS") / Turkish Financial Reporting Standards ("TFRS") and TAS/TFRS interpretations that became effective as of 1 January 2024, which are summarized below. The effects of these standards and interpretations on the Company's financial position and performance are explained in the relevant paragraphs.

i) New standards, amendments, and interpretations effective as of 1 January 2025

Amendments to TAS 21 Lack of Exchangeability

ii) Standards and amendments issued but not yet effective as of 31 March 2025

As of the approval date of the financial statements, the following new standards, interpretations, and amendments have been issued but are not yet effective for the current reporting period and have not been early adopted by the Company. Unless otherwise stated, the Company will make the necessary changes to its consolidated financial statements and notes when these standards and interpretations become effective:

Amendments to TFRS 10 and TAS 28 Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture
TFRS 17 New Insurance Contracts Standard
IFRS 18 New Presentation and Disclosures in Financial
Statements Standard

The effects of these standards on the Company's financial position and performance are currently being evaluated.

iii) The amendments which are effective immediately upon issuance

Amendments to TAS 12 International Tax Reform – Pillar Two Model Rules

iv) The new amendments that are issued by the International Accounting Standards Board (IASB) but not issued by Public Oversight Authority (POA)

The following two amendments to IFRS 9 and IFRS 7, as well as the Annual Improvements to IFRS Standards, and IFRS 18 and IFRS 19 have been issued by the IASB but have not yet been endorsed or published by the Public Oversight Accounting and Auditing Standards Authority (POA). Therefore, they do not yet form part of TFRS. The Company will make the necessary changes in its financial statements and disclosures once these standards and amendments become effective under TFRS:

Amendments to TFRS 9 and TFRS 7 Classification
and Measurement of Financial
Instruments
Amendments to TFRS 9 and TFRS 7 Contracts Concerning Electricity Generated from
Natural Resources
IFRS 18 The new Standard for Presentation and Disclosure
in Financial Statements
IFRS 19 Subsidiaries
without
Public
Accountability:
Disclosures

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.3 Comparative information and restatement of consolidated financial statements with prior periods

The Group's consolidated financial statements are prepared in comparison with the previous period in order to allow for the determination of the financial position and performance trends in accordance with a new illustrative financial statements. Comparative information is reclassified when necessary and important differences are explained in order to ensure compliance with the presentation of the current period consolidated financial statements.

2.4 Consolidation principles

The consolidated financial statements include the accounts of the parent company, Peker GYO, and its subsidiaries on the basis set out in sections below. The financial statements of the companies included in the consolidation have been prepared as of the date of the consolidated financial statements and are based on the statutory records with adjustments and reclassifications for the purpose of presentation in conformity TAS/TFRS promulgated by the POA as set out in the communiqué numbered II-14.1, and Group accounting and disclosure policies.

Subsidiaries are included in the scope of consolidation from the date on which control over their activities is transferred to the Group, and are excluded from the scope of consolidation on the date when control disappears.

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:

  • (i) has power over the investee,
  • (ii) is exposed, or has rights, to variable returns from its involvement with the investee and
  • (iii) 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.

The table below sets out all subsidiaries included in the scope of consolidation and discloses their direct ownership, which are identical to their economic interests (%) as of reporting date.

March 31, 2025 December 31, 2024
Subsidiaries Ownership Ownership
DİGH Maslak 100% -
Peker GMBH 100% 100%
Peker GYO Global GMBH 100% 100%
Blue Stone Investment GMBH 100% 100%
Nordstern Düsseldorf GMBH 51% 51%
Peker GYO Spain SL 100% 100%

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.5 Summary of significant accounting policies

Financial instruments

Financial assets and financial liabilities are recognised in the Group's consolidated statement of financial position when the Group becomes a part of the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis.

The Group classifies its financial assets as (a) business model used for managing financial assets, (b) financial assets subsequently measured at amortized cost, at fair value through other comprehensive income or at fair value through profit or loss based on the characteristics of contractual cash flows. The Group reclassifies all financial assets effected from the change in the business model it uses for the management of financial assets. The reclassification of financial assets is applied prospectively from the reclassification date. In such cases, no adjustment is made to gains, losses (including any gains or losses of impairment) or interest previously recognized in the financial statements.

Classification of financial assets

Financial assets that meet the following conditions are measured subsequently at amortized cost:

  • the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
  • the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets that meet the following conditions are measured subsequently at fair value through other comprehensive income (FVTOCI):

  • the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets; and
  • the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL).

Despite the foregoing, the Group may make the following irrevocable election/designation at initial recognition of a financial asset; the Group may irrevocably elect to present subsequent changes in fair value of an equity investment in other comprehensive income if certain criteria are met.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.5 Summary of significant accounting policies (cont'd)

Financial instruments (cont'd)

Financial assets (cont'd)

Classification of financial assets (cont'd)

(i) Amortized cost and effective interest method

Interest income on financial assets carried at amortized cost is calculated using the effective interest method. The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. This income is calculated by applying the effective interest rate to the gross carrying amount of the financial asset:

  • a) Credit-impaired financial assets when purchased or generated. For such financial assets, the Company applies the effective interest rate on the amortized cost of a financial asset based on the loan from the date of the recognition in the financial statements.
  • b) Non-financial assets that are impaired at the time of acquisition or generation but subsequently become a financial asset that has been impaired. For such financial assets, the Company applies the effective interest rate to the amortized cost of the asset in the subsequent reporting periods.

Interest income is recognised using the effective interest method for debt instruments measured subsequently at amortized cost and at FVTOCI.

Interest income is recognised in profit or loss and is included in the "finance income – interest income" line item.

(ii) Financial assets at FVTPL

Financial assets that do not meet the criteria for being measured at amortized cost or FVTOCI are measured at FVTPL.

Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognized in profit or loss to the extent they are not part of a designated hedging relationship.

Equity instruments designated as at FVTOCI

On initial recognition, the Company may make an irrevocable election (on an instrument-by-instrument basis) to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognised by an acquirer in a business combination.

A financial asset is held for trading if:

  • it has been acquired principally for the purpose of selling it in the near term; or
  • on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has evidence of a recent actual pattern of short-term profittaking; or
  • it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.5 Summary of significant accounting policies (cont'd)

Financial instruments (cont'd)

Classification of financial assets (cont'd)

Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in the investments revaluation reserve. The cumulative gain or loss is not reclassified to profit or loss on disposal of the equity investments, instead, it is transferred to retained earnings.

Foreign exchange gains and losses

The carrying amount of financial assets that are denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period. Specifically,

  • for financial assets measured at amortized cost that are not part of a designated hedging relationship, exchange differences are recognized in profit or loss;
  • for debt instruments measured at FVTOCI that are not part of a designated hedging relationship, exchange differences on the amortized cost of the debt instrument are recognized in profit or loss.

Other exchange differences are recognized in other comprehensive income in the investments revaluation reserve;

  • for financial assets measured at FVTPL that are not part of a designated hedging relationship, exchange differences are recognized in profit or loss and
  • for equity instruments measured at FVTOCI, exchange differences are recognized in other comprehensive income in the investments revaluation reserve.

Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on investments in debt instruments that are measured at amortized cost or at FVTOCI, lease receivables, trade receivables and contract assets, as well as financial guarantee contracts. The amount of expected credit losses is updated at each Reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.

The Company utilizes a simplified approach for trade receivables, contract assets and lease receivables that does not have significant financing component and calculates the allowance for impairment against the lifetime ECL of the related financial assets.

For all other financial instruments, the Company recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. However, if on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.5 Summary of significant accounting policies (cont'd)

Financial instruments (cont'd)

Measurement and recognition of expected credit losses

The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information. As for the exposure at default, for financial assets, this is represented by the assets' gross carrying amount at the reporting date.

For financial assets, the expected credit losses are estimated as the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate.

Derecognition of financial assets

The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.

On derecognition of a financial asset measured at amortized cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in profit or loss. In addition, on derecognition of an investment in a debt instrument classified as at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss. In contrast, on derecognition of an investment in equity instrument which the Company has elected on initial recognition to measure at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings.

Financial liabilities

Financial liabilities are classified as at FVTPL on initial recognition. On initial recognition of liabilities other than those that are recognised at FVTPL, transaction costs directly attributable to the acquisition or issuance thereof are also recognised in the fair value. A financial liability is subsequently classified at amortized cost except:

  • a) Financial liabilities at FVTPL: These liabilities including derivative instruments are subsequently measured at fair value.
  • b) Financial liabilities arising if the transfer of the financial asset does not meet the conditions of derecognition from the financial statements or if the ongoing relationship approach is applied: When the Company continues to present an asset based on the ongoing relationship approach, a liability in relation to this is also recognised in the financial statements. The transferred asset and the related liability are measured to reflect the rights and liabilities that the Company continues to hold. The transferred liability is measured in the same manner as the net book value of the transferred asset.
  • c) A contingent consideration recognized in the financial statements by the entity acquired in a business combination where IFRS 3 is applied: After initial recognition, the related contingent consideration is measured as at FVTPL.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.5 Summary of significant accounting policies (cont'd)

Financial instruments (cont'd)

Financial liabilities (cont'd)

The Entity does not reclassify any financial liability.

Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company's obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

Related parties

Parties are considered related to the Company if:

a) A person or a close member of that person's family is related to a reporting entity if that;

The related person or entity that is related to the entity preparing its financial statements (for this note will be named as reporting entity):

  • (i) Has control or joint control over the reporting entity;
  • (ii) Has significant influence over the reporting entity; or
  • (iii) Is a member of the key management personnel of the reporting entity or of a parent of the reporting entity

(b) An entity is related to a reporting entity if any of the following conditions applies:

  • (i) The entity and the reporting entity are members of the same company (which means that each Parent, subsidiary and fellow subsidiary is related to the others).
  • (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a company of which the other entity is a member).
  • (iii) Both entities are joint ventures of the same third party.
  • (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.
  • (v) The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity.
  • (vi) The entity is controlled or jointly controlled by a person identified in (a).
  • (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.5 Summary of significant accounting policies (cont'd)

Property, plant and equipment

Property, plant and equipment are carried at cost less accumulated depreciation and any accumulated impairment losses. Land is not depreciated and carried at cost less accumulated impairment.

Properties in the course of construction for production, supply or administrative purposes, or for purposes not yet determined, are carried at cost, less any recognized impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the Company's accounting policy. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Depreciation is recognized so as to write off the cost or valuation of assets, other than freehold land and properties under construction, less their residual values over their estimated useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

Useful life
Vehicles 2 – 5 years
Furniture and fixtures 3 – 50 years
Leasehold improvements 5 years

Expenses after the capitalization are added to the cost of related asset and reflected in financial statements as a separate asset if they shall mostly provide an economic benefit and their cost is measured in a trustable manner. Property, plant and equipment are reviewed for impairment if there are conditions showing that the securities are more than amount recoverable. Assets are grouped at the lowest level which is cash-generating unit in order to determine impairment (cash-generating unit).

Carrying amount of a tangible asset and recoverable value is the one which is higher than the net sales price following the deduction of commensurable value for the sale of the asset. Useful life of assets are reviewed as of date of balance sheet and adjusted, if required.

Maintenance and repair expenses are recorded as expense to the statement of profit or loss of the related period. The Company omits the carrying values of the changed pieces occurred with respect to renovations from the balance sheet without considering whether they are subject to depreciation in an independent manner from other sections. Main renovations are subject to deprecation based on the shortest of residual life of the related tangible asset or useful life of the renovation itself.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.5 Summary of significant accounting policies (cont'd)

Revenue recognition

Company recognizes revenue when the goods or services are transferred to the customer and when performance obligation is fulfilled. Goods are counted to be transferred when the control belongs to the customer. The principal activities of the Company are production of iron and steel rolled products, alloyed and non-alloyed iron, steel and pig iron castings, cast and pressed products and their byproducts.

Company recognizes revenue based on the following main principles:

  • a) Identification of customer contracts
  • b) Identification of performance obligations
  • c) Determination of transaction price in the contract
  • d) Allocation of price to performance obligations
  • e) Recognition of revenue when the performance obligations are fulfilled

The Company evaluates the products it has committed in each contract with customers and determines each commitment it has made to transfer the said goods or services as a separate performance obligation. Whether the performance obligation for each contract will be realized at a certain time or over time is evaluated at the beginning of the contract. If the Company realizes the transfer of control of its goods and services over time and fulfills its performance obligation over time, it measures the progress in fulfilling the performance obligation and records the revenues in the financial statements.

Real estate (residence/ office) sales

Real estate inventories consist of buildings held for sale in the ordinary course of business, projects under construction or development for sale, and lands on which buildings are planned to be built for sale in the future, and are presented under the inventories. Revenue from the sales of real estate inventories are recognized only if the following conditions are met:

  • the Group transfers all control over the property to the buyer (the transfer of risks and gains of the sold houses to the buyer usually occurs with the final delivery of the houses and/or delivery of the title deeds),
  • the Group's ownership of the right to collect goods or services,
  • the customer's legal ownership of the goods or services,
  • transfer of possession of goods or services,
  • the customer has control arising from ownership of the goods or services,
  • takes into account the conditions under which the customer accepts the goods or services.

Sales of lands projected with the Revenue Sharing in Return for Land Sales ("RSRLS") method

The Group records the sales revenues of the lands it projects within the scope of the RSRLS contract when the control over the lands is completely transferred to the buyers and the sales revenues can be measured reliably. Revenue is recognized by signing a provisional acceptance protocol with the construction company or by transferring control to the buyers (the buyer actually taking delivery of the independent section by signing a delivery document acquitting the seller).

In cases where the provisional acceptance protocol is not signed or actual delivery or title deed transfer does not occur, the Group follows its share of income in its balance sheet as Contract Liabilities (Note 10). The Group's share in the Total Sales Revenue ("TSR") generated as a result of the projects is associated with the statement of comprehensive income as land sales revenue, and the cost of the relevant land tracked in inventories is associated with the statement of comprehensive income as the cost of the lands sold.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.5 Summary of significant accounting policies (cont'd)

Inventories

The Group's inventories consists of completed residential and commercial units Completed residential and commercial unit inventories are valued at lower of cost or net realizable value.

The Group takes into consideration independent expert valuation reports for inventory (land, finished and semi-finished residential and commercial units) separately at least once a year and uses these reports to assess impairment if any. Fair values are determined on the basis of the price that would be realized on the valuation date between a willing buyer and a willing seller in an arm's length transaction, using the arm's length comparison method. Impairments are recognized under other expenses from operations in the statement of profit or loss and comprehensive income in the period during which they are incurred. Impairments released are recognized under other income from operations when the relevant land or residential are sold.

Investment property

Investment properties are properties held to earn rentals and/or for capital appreciation, including property under construction for such purposes. Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at fair value.

Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognized in the consolidated statement of profit or loss under income (expense) from investment activities.

Transfers are made to or from investment property only when there is a change in use. For a transfer from investment property to owner occupied property, the deemed cost for subsequent accounting is the fair value at the date of change in use. If owner occupied property becomes an investment property, the Company accounts for such property in accordance with the policy stated under property, plant and equipment up to the date of change in use.

No assets held under operating lease have been classified as investment properties.

Foreign currency transactions

The Group records foreign currency (currencies other than the functional currency of the related company) transactions using exchange rates of the date the transaction is completed. Foreign currency monetary items are evaluated with exchange rates as of reporting date and arising foreign exchange income/expenses are recorded in consolidated statement of profit or loss. All monetary assets and liabilities are evaluated with exchange rates of the reporting date and related foreign currency translation differences are transferred to consolidated statement of profit or loss.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.5 Summary of significant accounting policies (cont'd)

Employee benefits

According to the Turkish and Romanian law and union agreements, employee termination payments are made to employees in the case of retiring or involuntarily leaving. Such payments are considered as a part of defined retirement benefit plan in accordance with TAS 19 (revised) Employee Benefits ("TAS 19").

The termination indemnities accounted in the balance sheet and seniority incentive premium in accordance with the union agreements in force represent the present value of the residual obligation.

The Group makes certain assumptions about discount rates, inflation rates, future salary increases and employee turnover rates in calculation of provisions for employee benefits. The impact of the changes in assumptions is recognized in the statement of profit or loss. The details related with the defined benefit plans are stated below:

Interest rate % 27,15 Inflation rate % 23,03

March 31, 2025

TAS 19 ("Employee Benefits") has been restated for the accounting periods starting after January 1, 2013. In accordance with the revised standard, actuarial gains / losses on employee benefits are recognized in the statement of comprehensive income.

Provisions, contingent liabilities and contingent assets

Provisions

Provisions are recognized when the Group has a present obligation ("legal or constructive") as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Contingent liabilities and contingent assets

A possible obligation or asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group have not been recognized in these consolidated financial statements and treated as contingent liabilities and contingent assets.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.5 Summary of significant accounting policies (cont'd)

Corporate tax and deferred tax

In Turkey, according to Article 5/1(d) (4) of the Corporate Tax Law No. 5520 ("CVK"), the profits obtained from real estate investment partnerships were exempted from Corporate Tax until March 31, 2025. However, with the Law No. 7524 on Amendments to Tax Laws and Certain Laws and the Decree Law No. 375 published in the Official Gazette dated August 2, 2025, the application principles of this exemption for real estate investment partnerships and real estate investment funds were changed and the changes detailed below entered into force as of January 1, 2025.

  • The application of the corporate tax exemption provided to the earnings of Real Estate Investment Partnerships ("REITs") and Real Estate Investment Funds ("REITs") is conditioned on the distribution of at least 50% of the earnings obtained from the real estates owned by the funds and partnerships in question as dividends by the end of the second month following the month in which the corporate tax return must be filed,
  • With the addition of subparagraph c to Article 32 of the Corporate Tax Law, a 10% domestic minimum corporate tax application was introduced and it was stipulated that the earnings obtained from the real estates of REITs and REITs cannot be taken into account as an exemption or deduction from the corporate earnings for which the minimum corporate tax will be calculated.

If the profit distribution condition is not met, the earnings of REITs and REITs will be subject to a 30% corporate tax.

Deferred tax

The Group recognizes deferred tax assets and liabilities based upon temporary differences arising between their statement of financial position accounts prepared in accordance with TAS/TFRS promulgated by POA Financial Reporting Standards and their statutory financial statements.

The Company did not calculate deferred tax in previous periods since its income was exempt from corporate tax according to the Corporate Tax Law. However, following the changes in tax legislation detailed above, the Company has calculated the deferred tax in the current period and recorded it in its financial statements. In this calculation, since the profit distribution decision is under the responsibility of the general assembly, the tax rate used in the calculation of deferred tax assets and liabilities for 2025 has been determined as 30%. If the relevant exemption condition is met after the general assembly decision of the Company and tax is paid at 10% according to the minimum corporate tax, the necessary updates will be reported under the period tax income/(expense) item in the profit or loss statement in the next accounting period.

Subsidiaries in Germany and Spain deferred tax assets and liabilities based upon the temporary differences arising between its taxable statutory financial statements and its financial statements prepared in accordance with the TFRS.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.5 Summary of significant accounting policies (cont'd)

Statement of cash flow

Cash flows during the period are classified and reported as operating, investing, and financing activities in the statement of cash flows.

Cash flows from operating activities represent the cash flows generated from the Group's activities.

Cash flows related to investing activities represent the cash flows that are used in or provided from the investing activities of the Group (investment of tangible and intangible assets and financial investments).

Cash flows arising from financing activities represent the cash proceeds from the financing activities of the Group and the repayments of these funds.

Subsequent events

Subsequent events include all events that take place between the balance sheet date and the date of authorization for the release of the balance sheet, although the events occurred after the announcements related to the net profit/ loss or even after the public disclosure of other selective financial information.

In the case that events occur requiring an adjustment, the Group adjusts the amounts recognized in its financial statements to reflect the adjustments after the balance sheet date. Post period end events that are not adjusting events are disclosed in the notes when material.

Earnings per share

Earnings per share presented in the consolidated statements of profit or loss are determined by dividing consolidated net income attributable to that class of shares by the weighted average number of such shares outstanding during the year concerned.

In Turkey, companies can increase their share capital by making a pro-rata distribution of shares ("bonus shares") to existing shareholders from retained earnings or inflation adjustments. For the purpose of earnings per share computations, the weighted average number of shares outstanding during the year has been adjusted in respect of bonus shares issued without a corresponding change in resources by giving them retroactive effect for the year in which they were issued and for each earlier period. Treasury shares are also included in calculation per share.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

2. Basis of presentation of the consolidated financial statements (cont'd)

2.6 Critical accounting judgments, estimates and assumptions

The preparation of consolidated financial statements requires estimates and assumptions to be made regarding the amounts for the assets and liabilities at the balance sheet date, and explanations for the contingent assets and liabilities as well as the amounts of income and expenses realized in the reporting period. These estimates and assumptions are reviewed regularly, taking into account past experiences and factors expected to arise in the future under certain conditions. Uncertainty about these estimates and assumptions may require significant adjustments in the carrying values of assets and liabilities. Actual results may differ from estimates and assumptions.

The estimates and assumptions that may cause a material adjustment to the carrying amounts of assets and liabilities for the next reporting period are outlined below:

Fair value of investment properties

The basic assumptions of the appraisal reports used in determining the fair value of properties classified as investment properties in the financial statements are stated in Note 12.

3. Segmental reporting

Within the framework of TFRS 8 - Operating Segments, there are no operating segments that meet limits and require segment reporting (March 31, 2024: None).

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

4. Cash and cash equivalents

The details of cash and cash equivalents as of March 31, 2025 and 2024 are as follows:

March 31, 2025 December 31, 2024
Cash on hand:
- Turkish lira 3.882 7.650
Cash at banks:
Time deposits
- Turkish lira 2.210.344 1.309.185
- US dollar 75.531 77.532
- Euro 610.529 606.570
Demand deposits
- Turkish lira 9.332.968 2.377.829
- US dollar 57.219 966.428
- Euro 60.103.945 53.095.953
- British pound 509.797 879.519
Total 72.904.215 59.320.666

As of March 31, 2025 and 2024, the details of the time deposits are as follows:

Maturity Interest rate (%) March 31, 2025
Turkish lira January '25 41,5 2.210.344
US dollar January '25 3,50 75.531
Euro January '25 2,00 610.529
Total 2.896.404
Maturity Interest rate (%) December 31, 2024
Turkish lira January '24 44,50 1.309.185
US dollar January '24 3,50 77.532
Euro January '24 2,00 606.570
Total

As of March 31, 2025, there is no blockage on the bank accounts (March 31, 2024: None).

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

5. Financial investments

a) Short-term financial investments

The details of short-term financial investments as of March 31, 2025 and 2024 are as follows:

March 31, 2025 December 31, 2024
Foreign funds
Investment funds (*)
Other
48.307.351
-
6.512
48.365.040
3.592.236
5.878
Total 48.313.863 51.963.154

(*) As of March 31, 2025, investment funds consist of domestic money market funds.

6. Financial liabilities

The details of financial liabilities as of March 31, 2025 and 2024 are as follows:

March 31, 2025 December 31, 2024
Short-term bank loans 503.743.083 836.474.782
Current portion of long-term bank loans 68.999.810 95.014.202
Current portion of lease liabilities (*) 33.706.534 43.943.691
Commercial papers 832.966.533 552.544.072
Short-term borrowings 1.439.415.960 1.527.976.747
Long-term bank loans 2.179.725.797 1.767.848.590
Long-term lease liabilities (*) 339.822.331 369.330.215
Long-term borrowings 2.519.548.128 2.137.178.805
Total 3.958.964.088 3.665.155.552

(*) As of 31 March 2025 and 31 December 2024, lease liabilities consist of "sale and leaseback" transactions related to the Ritz Carlton A95 unit included under investment properties, the Ataköy NEF 22 Project B8 and D2 units included under inventories, and land lease transactions under the Peker Maslak Tower project.

The movements of the Group's bank loans for the periods ended 31 March 2025 and 2024 are as follows:

2025 2024
1 January 2.699.337.574 3.385.244.002
Loan proceeds 399.315.425 234.340.156
Principal repayments (-) (367.666.018) (27.505.719)
Accrued / (paid) interest, net 41.496.479 27.948.348
Foreign exchange differences 34.887.456 (229.020.276)
Monetary gain (54.902.226) (27.759.174)
31 March 2.752.468.690 3.363.247.337

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

6. Financial liabilities (cont'd)

As of 31 March 2025, the details of the Group's commercial papers are as follows:

ISIN Code Nominal
Amount
Interest
Type
Compound
Interest
Rate (%)
Type Maturity Date Net Present
Value
TRFPEGY72515 513.000.000 Fixed 54,00% Zero-coupon 4 July 2025 566.158.767
TRFPEGY82514 150.000.000 Fixed 52,00%
BIST TL
Zero-coupon 8 August 2025 158.907.028
TRFPEGY42518 100.000.000 Floating REF + %5 Coupon-bearing 30 April 2025 107.900.738

The movements of the Group's commercial papers for the periods ended 31 March 2025 are as follows:

2024
1 January 552.544.072
Issuance of commercial papers 663.000.000
Principal repayments (-) (340.092.250)
Accrued interest (Note 23b) 69.966.533
Monetary gain (-) (112.451.822)
31 March 832.966.533

The movements of the Group's finance lease liabilities for the periods ended 31 March 2025 and 31 December 2024 are as follows:

2025
1 January 413.273.906
Additions -
Payments (-) (11.938.952)
Accrued interest (Note 23b) 13.908.626
Interest paid (-) (5.502.312)
Monetary gain (-) (36.212.403)
31 March 373.528.865

Interest rate risks related to financial borrowings are disclosed in Note 24.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

7. Trade receivables and payables

a) Short-term trade receivables

The details of short-term trade receivables as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Trade receivables from third parties (*)
Trade receivables from related parties (Note 18)
207.955.178
190.826.518
335.857.012
186.029.918
Total 398.781.696 521.886.930

(*) As of March 31, 2025 and 2024, trade receivables from third parties mainly consist of receivables arising from the sale of 40% of the shares of Nordstern Dusseldorf GMBH, operating in Germany, to DATE Investment GMBH and EN FA Investment GMBH on March 28, 2024.

b) Short-term trade payables

The details of short-term trade payables as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Trade payables to third parties (*)
Trade payables to related parties (Note 18)
129.962.130
7.925.230
144.302.198
7.413.647
Total 137.887.360 151.715.845

(*) Trade payables to third parties mainly consist of trade payables of Peker GMBH to DeSa Construction GMBH and the Company's payables to Timur Gayrimenkul Geliştirme Yapı ve Yatırımları A.Ş. regarding trading areas purchased pursuant to the additional protocol of the "Revenue Sharing Project in Return for Land" agreement within the scope of the Ataköy project.

8. Other receivables and payables

a) Short-term other receivables

The details of short-term other receivables as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Deposits and guarantees given 12.551.078 12.871.724
Other receivables from third parties 339.734 143.146
Receivables from the tax authorities 163.158 166.483
Other receivables from related parties (Note 18) 31.619.115 6.583.968
Total 44.673.085 19.765.321

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

8. Other receivables and payables (cont'd)

b) Long-term other receivables

The details of long-term other receivables as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Deposits and guarantees given 758.857 1.517.436
Total 758.857 1.517.436

c) Short-term other payables

The details of short-term other payables as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Deposits and guarantees taken 7.152.315 6.958.224
Other payables to third parties (*) - 22.682
Other payables to related parties (Note 18) 180.844.054 252.863.813
Total 187.996.369 259.844.719

(*) As of March 31, 2024, other payables mainly consist of payables to Deniz Yatırım Menkul Kıymetler A.Ş. within the scope of stock purchases.

d) Long-term other payables

The details of long-term other payables as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Other payables to related parties (Note 18) 1.607.524 379.804.381
Total 1.607.524 379.804.381

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

9. Inventories

The details of inventories as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 March 31, 2024
Ataköy Nef 22 independent sections (*) 325.723.575 325.723.575
Land shares of Ataköy Project (**) 107.643.429 107.643.431
Housing of Sultan Makamı (***) 35.771.770 62.918.581
Inventories, gross 469.138.774 496.285.587
Ataköy Nef 22 independent sections (-) (*) (41.680.490) (41.680.490)
Land shares of Ataköy Project (-) (**) (26.909.915) (26.909.915)
Impairment (-) (68.590.405) (68.590.405)
Inventories, net 400.548.369 427.695.182
  • (*) With the protocol signed between the Company and Timur Gayrimenkul on March 28, 2017, 23 commercial areas amounting to 74.898.337 Turkish liras in the Ataköy project were purchased by the Company. 15 of the purchased commercial areas were returned, and 45 independent sections (16 commercial areas and 29 residences) were purchased within the framework of property sharing between the Company and Nef. As of March 31, 2025, there are 4 workplaces, 4 warehouse workplaces and 2 mezzanine-floor warehouse workplaces (March 31, 2024: 5 workplaces, 4 warehouse workplaces and 2 mezzanine-floor warehouse workplaces).
  • (**) The "Revenue Sharing Project for Land Sale" is carried out with the contract concluded between Nef and the Company on the Company's land located in Istanbul, Bakırköy, Ataköy. The sales revenue will be shared between the landowner Peker GYO and the contractor Nef, 50% of the landowner and 50% of the contractor. There are 1,438 residences and 125 workplaces in the project. The delivery of the independent sections sold by Nef has started, and the land share invoices of the delivered independent sections have been invoiced to Nef. In addition, the land shares (76 in total) of the independent sections subject to the independent section sharing between the Company and Nef in the current period were invoiced to Nef. As of March 31, 2025, the land shares of 5 commercial areas that were not delivered are included in the inventories (March 31, 2024: 5 commercial areas).
  • (***) It consists of an independent section in the "Sultan Makamı Konutları" located on the parcel 879 of the Çengelköy, in the Istanbul, Üsküdar. (March 31, 2024: An independent section).

Movement of inventories for the periods ended March 31, 2025 and 2024 are as follows:

2025 2024
January 1
Sales of inventories (Note 19)
Transfer to investment properties
Impairment (-) (Note 21b)
Impairment reversal (Note 21a)
427.695.182
(27.146.812)
-
-
-
-
469.612.206
March 31 400.548.370 469.612.206

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

10. Prepaid expenses and contract liabilities

a) Short-term prepaid expenses

The details of short-term prepaid expenses as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Advances given to third parties (*)
Prepaid expenses for next months
Advances given to related parties (Note 18)
322.724.413
1.256.544
741.916.921
251.894.953
1.262.536
670.312.389
Total 1.065.897.878 923.469.878

b) Contract liabilities

The details of contract liabilities as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 March 31, 2024
Liabilities from customer contracts 444.331.645 290.944.235
Total 444.331.645 290.944.235

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

11. Other assets and liabilities

a) Other current assets

The details of other current assets as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Deferred VAT
Personnel and job advances
Other
79.178.302
210.000
3.178.217
112.938.703
110.057
3.408.340
Total 82.566.519 116.457.100

b) Other current liabilities

The details of other current liabilities as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Taxes and funds payables 12.495.210 33.265.700
Total 12.495.210 33.265.700

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

12. Investment properties

The details of investment properties as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Northgate Hotel - Düsseldorf - Peker GMBH (1) 3.472.279.089 3.449.134.624
Peker Tower Maslak (9) 1.325.107.515 1.325.107.515
Land - Düsseldorf - Nordstern (2) 858.810.090 853.085.694
Land - Solingen - Peker GYO Global (3) 399.285.639 396.624.202
Right of use land 175.041.085 175.041.085
Erft-Lofts Project - Grevenbroich – Bluestone (4) 127.396.947 126.547.783
Ritz Carlton A 95 - Peker GYO (5) 85.003.292 85.003.292
Nef 22 - Peker GYO (6) 73.240.776 73.240.776
Modular villa - Benalmadena - Spain (8) 57.774.988 57.389.889
Single house - Grevenbroich - Peker GMBH (1) 57.186.170 56.804.995
Modular villa - Mijas - Spain (8) 47.522.063 47.205.304
Three Building - Grevenbroich - Peker GYO Global (3) 27.880.802 27.694.962
Kaiserwall - Peker GYO (7) 19.943.932 19.810.995
Total 6.726.472.388 6.692.691.116
  • (1) Peker GMBH owns the Northgate Düsseldorf project. Related project; It is a project with a gross indoor construction area of 26.200 m2 located in Düsseldorf, Germany. The project, which was developed on a land of 11,600 m2 , has a total net usage area of 24.000 m2 (8.400 m2 hotel, 5.800 m2 boarding, 1.800 m2 office, 8.000 m2 common use area). The 431-room hotel project, the construction of which started in 2019, was completed at the beginning of 2024. The related hotel is one of the largest hotels in the city of Düsseldorf and has been leased to the Novum Hotels Group for 25+5 years. The hotel continues to operate.
  • (2) Nordstern Düsseldorf GMBH owns a land of 8,891 m2 in Düsseldorf, Germany, and continues its project development activities on the relevant land. In addition, with the purchase agreement signed between Nordstern Düsseldorf GMBH and Düsseldorf Municipality on August 31, 2024, a new land of 9,163 m2 was purchased on the parcel adjacent to the mentioned land.
  • (3) Peker GYO Global GMBH owns 3 adjoining buildings in Grevenbroich, Nordrhein-Westfalen, Germany, and plans to design these three real estates together. In addition, it has a land area of 2,690 m2 in the city of Solingen, and it is planned to build a project with a total of 45 flats, 33 indoor parking lots, 14 outdoor parking lots and motor parking lots.
  • (4) It is planned to develop a residential project on a land of 2,370 m2 in Gerevenbroich, Germany.
  • (5) On July 26, 2024, the Company purchased the independent section numbered 95 amounting to 48.303.840 TL + VAT, which is located on the 14th floor of the A Block of the project. Related project; It is located in Istanbul, Şişli, Teşvikiye. The project is located on a parcel with a surface area of 5.032,56 m2 , registered with the parcel number 840 and 114. There are 3 blocks in the project, consisting of blocks A, B and C.
  • (6) Due to the rental of 2 residences, which were previously in Nef 22 independent section inventories, the related residences were classified as investment properties as of March 31, 2022 and March 31, 2024, respectively.
  • (7) A real estate consisting of 3 flats and 1 commercial area with a leasable area of 417 m2 in the city of Recklinghausen, Westphalia, Germany, was purchased for 500.000 euros. Rental income is obtained from the said real estate.
  • (8) As part of the restructuring the Group has created for new investments to be made in Spain; Avellano purchased a 609.11 m2 plot at the address 9.3, Benalmadena 1 29639 Malaga and a 670 m2 plot at the address of Ficus Buena Vista Sol, 2, Buenavista, 29650, Mijas, Malaga.
  • (9) On June 24, 2025, the Company has purchased 100% shares of the GG Gayrimenkul Geliştirme İnşaat İşletmecilik A.Ş. which owns 99% of the shares of DİGH Maslak İnsaat Proje Danışmanlık Ltd. Şti. from its related party Peker Holding A.Ş. DİGH Maslak İnsaat Proje Danışmanlık Ltd. Şti. has Peker Tower Maslak Project. The land, which has a total construction area of 16,554 m2 , is located on Büyükdere Street, in the area where plazas and business centers are most dense in Istanbul. The project, which will consist of 6 basement floors and ground floor + 15 floors, will have office sizes ranging from 120 m2 to 560 m2 . The Group has accounted for its investment properties under construction at cost until their fair values can be measured reliably. Since the fair value of the relevant real estate can be measured reliably as of March 31, 2025, it has been accounted for at fair value.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

12. Investment properties (cont'd)

Movement of investment properties for the periods ended March 31, 2025 and 2024 are as follows:

2025 2024
January 1 6.517.650.031 6.507.988.626
Additions 15.801.218 14.315.665
Transfer from inventories (Note 9) - -
Sales of investment properties (Note 19) - -
Translation differences (115.524.393) (564.633.627)
Fair value change (Note 21a) 133.504.447 99.786.985
March 31 6.551.431.303 6.057.457.649

The Group classifies its rights for the lands that are rented to develop investment real estate as investment real estates. In such a case, the rights to the related land are recognized as if it were a financial lease. The fair values of the investment properties developed on the leased land have been deducted from the estimated cash flows to be paid for the rents and therefore the discounted values of rentable rentals related to the related land are accounted for in the investment property and lease liabilities accounts. Movement of right of use land for the periods ended March 31, 2025 and 2024 are as follows:

2024
January 1
Arrangements
175.041.085
-
March 31 175.041.085

As of March 31, 2025, the fair values of the investment properties are as follows:

March 31, 2025
Name of Investment Property Date of Appraisal
Report
Fair Value
(Appraisal
Report)
Currency Fair Value
(TL)
Northgate Hotel - Düsseldorf - Peker GMBH
Land under development - Düsseldorf - Nordstern
30 December 2022
20 December 2022
85,310,000
21,100,000
Euro
Euro
3,472,279,089
858,810,090
Land under development - Solingen - Peker GYO
Global
13 December 2022 9,810,000 Euro 399,285,639
Erft-Lofts Project - Grevenbroich – Bluestone
Ritz Carlton A 95 - Peker GYO
Nef 22 - Peker GYO
Single house - Grevenbroich - Peker GMBH
Modular villa - Benalmadena - Spain
Modular villa - Mijas - Spain
19 December 2022
31 December 2024
31 December 2024
13 December 2022
13 Jan 2025
10 Jan 2025
3,130,000
85,003,292
73,240,776
1,405,000
1,419,467
1,167,564
Euro
Turkish lira
Turkish lira
Euro
Euro
Euro
127,396,947
85,003,292
73,240,776
57,186,170
57,774,988
47,522,063
Three Buildings - Grevenbroich - Peker GYO
Global
30 December 2022 685,000 Euro 27,880,802
Kaiserwall - Peker GYO
Peker Tower Maslak
Right of use land
13 Jan 2025
31 December 2024
490,000
1,325,107,515
175,041,085
Euro
Turkish lira
Turkish lira
19,943,932
1,325,107,515
175,041,085

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

12. Investment properties (cont'd)

Valuation method use Based on valuation
method
Income discount
Precent comparison
Cost analysis, Precent comparison, Precent comparison
Precent comparison Precent comparison
Precent comparison
Precent comparison
Precent comparison
Precent comparison
Precent comparison
Precent comparison, Income discount
Cost analysis, Income discount
Income discount
Precent comparison
Income discount
Income discount
Precent comparison, Income discount
Precent comparison
Income discount
Precent comparison, Income discount
Precent comparison, Income discount
Precent comparison
Precent comparison
Precent comparison

As of March 31, 2024, the fair values of the investment properties are as follows:

March 31, 2024
Name of Investment Property Date of
Appraisal
Report
Fair Value
(Appraisal
Report)
Currency Fair Value
(TL)
Northgate Hotel - Düsseldorf - Peker GMBH Jan 5, 2025 85,310,000 Euro 3,449,134,624
Land under development - Düsseldorf - Nordstern Jan 4, 2025 21,100,000 Euro 853,085,694
Land under development - Solingen - Peker GYO Global Jan 3, 2025 9,810,000 Euro 396,624,202
Erft-Lofts Project - Grevenbroich – Bluestone Jan 3, 2025 3,130,000 Euro 126,547,783
Ritz Carlton A 95 - Peker GYO Dec 31, 2024 77,236,000 Turkish lira 85,003,292
Nef 22 - Peker GYO Dec 31, 2024 66,548,300 Turkish lira 73,240,776
Single house - Grevenbroich - Peker GMBH Jan 2, 2025 1,405,000 Euro 56,804,995
Modular villa - Benalmadena - Spain Jan 13, 2025 1,419,467 Euro 57,389,889
Modular villa - Mijas - Spain Jan 10, 2025 1,167,564 Euro 47,205,304
Three Attached Buildings - Grevenbroich - Peker GYO
Global
Jan 4, 2025 685,000 Euro 27,694,962
Kaiserwall - Peker GYO Jan 13, 2025 490,000 Euro 19,810,995
Peker Tower Maslak Dec 31, 2024 1,204,024,000 Turkish lira 1,325,107,515
Right of use land 159,046,466 Turkish lira 175,041,085
Name of investment property Valuation method use Based on valuation
method
Northgate Hotel - Düsseldorf - Peker GMBH Precent comparison, Income discount Income discount
Land - Düsseldorf - Nordstern Precent comparison Precent comparison
Land - Solingen - Peker GYO Global Cost analysis, Precent comparison,
Income discount
Precent comparison
Erft-Lofts Project - Grevenbroich - Bluestone Precent comparison Precent comparison
Ritz Carlton A 95 - Peker GYO Precent comparison, Income discount Precent comparison
Nef 22 - Peker GYO Precent comparison, Income discount Precent comparison
Single house - Grevenbroich - Peker GMBH Precent comparison Precent comparison
Modular villa - Benalmadena - Spain Precent comparison Precent comparison
Modular villa - Mijas - Spain Precent comparison Precent comparison
Three Building - Grevenbroich - Peker GYO Global Precent comparison, Income discount Precent comparison
Kaiserwall - Peker GYO Cost analysis, Income discount Income discount

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

12. Investment properties (cont'd)

As of March 31, 2025 the fair values classification of the investment properties are as follows:

March 31, 2025 1. level 2. level 3. level
Northgate Hotel - Düsseldorf - Peker GMBH 3.472.279.089 - 3.472.279.089 -
Peker Tower Maslak 1.325.107.515 - 1.325.107.515 -
Land - Düsseldorf - Nordstern 858.810.090 - 858.810.090 -
Land - Solingen - Peker GYO Global 399.285.639 - 399.285.639 -
Erft-Lofts Project - Grevenbroich – Bluestone 127.396.947 - 127.396.947 -
Ritz Carlton A 95 - Peker GYO 85.003.292 - 85.003.292 -
Nef 22 - Peker GYO 73.240.776 - 73.240.776 -
Modular villa - Benalmadena - Spain 57.774.988 - 57.774.988 -
Single house - Grevenbroich - Peker GMBH 57.186.170 - 57.186.170 -
Modular villa - Mijas - Spain 47.522.063 - 47.522.063 -
Three Building - Grevenbroich - Peker GYO
Global
27.880.802 - 27.880.802 -
Kaiserwall - Peker GYO 19.943.932 - - 19.943.932
Total 6.551.431.303 - 6.531.487.371 19.943.932

As of March 31, 2024 the fair values classification of the investment properties are as follows:

March 31, 2024 1. level 2. level 3. level
Northgate Hotel - Düsseldorf - Peker GMBH 3.449.134.624 - 3.449.134.624 -
Land - Düsseldorf - Nordstern 853.085.694 - 853.085.694 -
Land - Solingen - Peker GYO Global 396.624.202 - 396.624.202 -
Erft-Lofts Project - Grevenbroich – Bluestone 126.547.783 - 126.547.783 -
Ritz Carlton A 95 - Peker GYO 85.003.292 - 85.003.292 -
Nef 22 - Peker GYO 73.240.776 - 73.240.776 -
Modular villa - Benalmadena - Spain 56.804.995 - 56.804.995 -
Single house - Grevenbroich - Peker GMBH 57.389.889 - 57.389.889 -
Modular villa - Mijas - Spain 47.205.304 - 47.205.304 -
Three Building - Grevenbroich - Peker GYO Global 27.694.962 - 27.694.962 -
Kaiserwall - Peker GYO 19.810.995 - - 19.810.995
Total 5.192.542.516 - 5.172.731.522 19.810.995

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

13. Property, plant and equipment

Movement of property, plant and equipment and accumulated depreciation for the periods ended March 31, 2025 and 2024 are as follows:

January 1, Translation
2025 Addition Disposal Transfer difference March 31, 2025
Cost:
Vehicles 102.712.746 - (16.257.864) - (1.686.537) 84.768.345
Furniture and fixtures 18.541.657 - - - (4.682.980) 13.858.677
Leasehold improvements 93.688 - - - - 93.688
Total 121.348.091 - (16.257.864) - (6.369.517) 98.720.710
Accumulated
depreciation (-):
Vehicles 37.516.318 4.313.892 (1.896.751) - (1.677.540) 38.255.919
Furniture and fixtures 5.688.024 470.231 - - (4.816.311) 1.341.944
Leasehold improvements 14.053 4.684 - - - 18.737
Total 43.218.395 4.788.807 (1.896.751) - (6.493.851) 39.616.600
Book value 78.129.696 59.104.110
January 1, Translation
2024 Addition Disposal difference March 31, 2024
Cost:
Vehicles 105.071.664 8.295.967 - (1.002.971) 112.364.660
Furniture and fixtures 22.246.965 274.759 - (1.439.898) 21.081.826
Total 127.318.629 8.570.726 - (2.442.869) 133.446.486
Accumulated
depreciation (-):
Vehicles 35.606.260 4.834.746 - (159.957) 40.281.049
Furniture and fixtures 4.976.662 666.355 - (278.151) 5.364.866
Total 40.582.922 5.501.101 - (438.108) 45.645.915
Book value 86.735.707 87.800.571

As of March 31, 2025 and 2024, there are pledges on vehicles amounting to 7.178.085 Turkish liras and 7.001.525 Turkish liras (Note 14).

As of March 31, 2025 and 2024 there are no property, plant and equipment acquired through financial leasing.

As of March 31, 2025 and 2024 there is no capitalized borrowing cost.

For the periods ended March 31, 2025 and 2024, depreciation expenses are included in general administrative expenses (Note 20b).

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

14. Provisions, commitments and contingencies

a) Provisions

As of 31 March 2025 and 31 December 2024, there are 8 lawsuits to which the Group is a party. The Group does not foresee a significant cash outflow risk for the related lawsuits.

b) Contingent assets

The details of collaterals, pledges and mortgages ("CPM") received as of March 31, 2025 and 2024 are as follows:

March 31, 2025 March 31, 2024
Letter of guarantees taken
- Turkish lira - 2.060.200
- US dollar 74.002.488 68.115.909
Total 74.002.488 70.176.109

As of March 31, 2025 and 2024, letter of guarantees taken consist of the letter of guarantees received from the customers regarding the undelivered residences and workplaces within the scope of the sales contracts made within the scope of Nef 22 Project.

c) Contingent liabilities

The details of collaterals, pledges and mortgages ("CPM") given as of March 31, 2025 and 2024 are as follows:

March 31, 2025 March 31, 2024
A. Total amount of guarantees provided by the Company
on behalf of itself (*) 519.513.018 323.628.085
B. Total amount for guarantees provided on behalf of
subsidiaries accounted under full consolidation method (**) 2.636.155.912 2.636.155.912
C. Provided on behalf of third parties in order to maintain
operating activities - -
D. Other guarantees given - -
i. Total amount of guarantees given on behalf of the parent
company - -
ii. Total amount of guarantees provided on behalf of the
associates which are not in the scope of B and C - -
iii. Total amount of guarantees provided on behalf of third
parties which are not in the scope of C - -
Total 3.155.668.930 2.959.783.997

(*) As of March 31, 2025, guarantees, pledges and mortgages consist of amounting to 251.450.000 Turkish liras consist of mortgages on independent sections and within the scope of "sale-leaseback", amounting to 7.178.085 Turkish liras consist of pledges on vehicles (Note 13), amounting to 65.000.000 Turkish liras consist of warranties within the scope of "saleleaseback" and bank loans. As of March 31, 2024, guarantees, pledges and mortgages consist of amounting to 145.332.157 Turkish liras consist of mortgages on independent sections and mortgages within the scope of "saleleaseback", amounting to 7.001.525 Turkish liras consist of pledges on vehicles, amounting to 56.889.370 Turkish liras is from liens within the scope of "sale-leaseback", amounting to 60.456.328 Turkish liras cocnsist of pledges within the scope of "sale-leaseback" and 39.704.295 Turkish liras consist of warranties of within the scope of "sale-leaseback" and bank loans.

(**) As of March 31, 2025 and March 31, 2024, guarantees provided on behalf of subsidiaries accounted under full consolidation method consist of mortgage amounting to 11.000.000 euros related to land in Nordstern, amounting to 10.000.000 euros related to land in Solingen, amounting to 50.000.000 euros related to Hotel in Northgate and amounting to 630.000 euros related to real estates in Grevenbroich.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

15. Shareholders's equity

a) Paid-in capital

The details of paid-in capital as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025
December 31, 2024
Name of shareholder Share (%) Amount Share (%) Amount
Hasan Peker 31,26 781.406.458 31,26 781.406.458
Public shares 68,74 1.718.593.542 68,74 1.718.593.542
Total 100 2.500.000.000 100 2.500.000.000
Inflation adjustment to share capital 1.950.338.052 1.950.338.052
Total 4.450.338.052 4.450.338.052

As of 31 March 2025 and 31 December 2024, the Company's share capital consists of 2,500,000,000 and 669,833,747 shares, respectively, each with a nominal value of 1 Turkish lira.

March 31, 2025 December 31, 2024
Shareholder Units of share Amount Units of
share
Amount Group Type
Hasan Peker
Hasan Peker
Public shares
157.377.360
624.029.098
1.718.593.542
157.377.360
624.029.098
1.718.593.542
157.377.360
624.029.098
1.718.593.542
157.377.360
624.029.098
1.718.593.542
A
B
B
Registered
Bearer
Bearer
Total 2.500.000.000 2.500.000.000 2.500.000.000 2.500.000.000

The shares representing the Company's current share capital are divided into Class A and Class B shares, with Class A shares being privileged. The nominal value of the privileged shares is 157,377,360 Turkish lira. Class A shares have the privilege of nominating candidates for election to the Board of Directors. If the Board of Directors consists of 5 members, 3 members; and if it consists of 6 or 7 members, 4 members are elected by the General Assembly from among the candidates nominated by the holders of Class A shares.

Control of the Company is held by the Class A shareholders through their majority ownership of the privileged shares.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

15. Shareholders's equity (cont'd)

c) Restricted reserves

In accordance with the Turkish Commercial Code ("TCC"), unless the required reserves and the dividend for shareholders as determined in the article of association or in the dividend distribution policy of the Company are set aside, no decision may be made to set aside other reserves, to transfer profits to the subsequent year or to distribute dividends to the holders of usufruct right certificates, to the members of the board of directors or to the employees; and no dividend can be distributed to these persons unless the determined dividend for shareholders is paid in cash.

The Turkish Commercial Code ("TCC") stipulates that the legal reserve is appropriated out of statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of the Group's paid-in share capital. Other legal reserve is appropriated out of 10% of the distributable income after 5% dividend is paid to shareholders. Under the TCC, legal reserves can only be used for compensating losses, continuing operations in severe conditions or preventing unemployment and taking actions for relieving its effects in case general legal reserves does not exceed half of paid-in capital or issued capital.

March 31, 2025, the total amount of legal reserves is 267.409.110 Turkish liras (March 31, 2024: 166.395.165 Turkish liras).

It was published in the Official Gazette dated 30 March 2024 and numbered 32415 (Second Extraordinary) pursuant to the Tax Procedure Law. According to the relevant Communiqué, the balance sheet dated March 31, 2025, prepared in accordance with the Tax Procedure Law, has been corrected by using the Producer Prices General Indices ("PPI") published by the Turkish Statistical Institute within the scope of inflation accounting application. The attached financial statements have been subjected to inflation adjustment using the Consumer Price Indices ("CPI") published by the Turkish Statistical Institute in accordance with TAS 29, and ultimately the amounts for the current and previous reporting period are expressed in terms of purchasing power as of March 31, 2025. Due to the use of distinct indices in the Tax Procedural Law and TAS 29 inflation accounting differences have emerged between The amounts included in the balance sheet prepared in accordance with the Tax Procedure Law regarding the items "Inflation Adjustment on Capital" and "Restricted reserves appropriated from profits" the amounts included in the financial statements prepared in accordance with TAS/ TFRS. These differences are accounted in the "Retained Earnings or Losses" item in the TAS/ TFRS financial statements, and these differences are given in detail below:

March 31, 2025
Inflation adjustment to Restricted
share capital Share premium reserves
According to TAS/ TFRS 1.950.338.052 25.029 294.301.294
According to Tax Procedure Law 2.683.182.246 24.157 83.774
Differences 732.844.194 (872) (294.217.520)

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

16. Earnings per share

Earnings per share disclosed in the consolidated statements of income are determined by dividing the net income per share by the weighted average number of shares that have been outstanding during the year.

March 31, 2025 March 31, 2024
Profit for the year
Weighted average number of ordinary shares with
nominal value
137.354.777
2.500.000.000
135.850.335
2.500.000.000
Earnings per share (0,04) (0,05)

17. Taxation

Companies that have obtained Real Estate Investment Trust (REIT) status are exempt from Corporate Income Tax and provisional corporate tax pursuant to Article 5, paragraph 1, subparagraph (d/4) of the Corporate Tax Law No. 5520. According to Article 15, paragraph 3 of the Corporate Tax Law, the withholding tax rate to be applied on the exempt earnings of such entities is currently zero, in accordance with the Council of Ministers Decree No. 2009/14594 (for the year 2008, Decree No. 2003/6577).

Deferred tax is calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities in the financial statements prepared in accordance with TFRS and their tax bases. The tax rates in effect as of the balance sheet date are used in this calculation. Since the Company is exempt from corporate income tax following the approval by the Capital Markets Board (CMB) for its conversion into a real estate investment trust in accordance with the current tax legislation, no deferred tax assets or liabilities have been recognized on temporary and taxable differences.

Subsidiaries in Germany and Spain recognize deferred tax assets and liabilities on temporary taxable differences arising between the statutory financial statements prepared for tax purposes and the financial statements prepared in accordance with IFRS. These differences arise entirely from changes in the fair value of investment properties. As of 31 March 2025, the deferred tax asset amounts to 6,514,929 Turkish lira (31 December 2024: 3,585,054 Turkish lira), and the deferred tax liability amounts to 433,576,431 Turkish lira (31 December 2024: 385,484,139 Turkish lira).

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

18. Related parties

a) Short-term trade receivables

The details of short-term trade receivables from related parties as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Peker Holding GMBH (*) 186.880.012 184.297.870
Peker Port GMBH 745.903 433.012
Pollux Construction GMBH 1.227.350 433.012
PekFor 95 GMBH 745.903 433.012
Peker Investment GMBH 1.227.350 433.012
Total 190.826.518 186.029.918

(*) As of 31 March 2025 and 31 December 2024, short-term trade receivables from related parties consist of receivables arising from the sale of a 9% stake in the Company's subsidiary, Nordstern Düsseldorf GMBH, to Peker Holding GMBH.

b) Short-term other receivables

The details of short-term other receivables from related parties as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Hasan Peker 5.707.154 5.669.113
Peker Investment GMBH 920.994 914.855
Peker Holding GMBH 24.990.967 -
Total 31.619.115 6.583.968

c) Short-term prepaid expenses

The details of short-term prepaid expenses to related parties as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Marbella Lifestyle Investment SL (*) 470.097.422 450.006.040
Pollux Construction GMBH 271.819.499 220.306.349
Total 741.916.921 670.312.389

(*) The Company signed a real estate purchase agreement amounting to 8.900.000 euros with its related party, Marbella Life Style Investments SL, regarding the purchase of a villa with 16 rooms and a total construction area of 1,992 m2 on a 7,100 m2 land in Malaga, Spain. Pursuant to the aforesaid agreement, the title deed will be transferred after the permissions for the construction of 4 additional villas on the land area excluding the existing villa are obtained. Within the scope of the relevant agreement, an advance of 8.900.000 euros was paid to the seller (December 31, 2024: 8.500.00 euros)

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

18. Related parties (cont'd)

d) Short-term trade payables

The details of short-term prepaid expenses to related parties as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Peker Port GMBH 3.907.382 3.882.045
Peker Management GMBH 3.096.967 2.986.009
Pollux Construction GMBH 484.353 481.992
Peker International Property Investment Yön. Hiz.
A.Ş. 180.000 -
Pek Yönetim Hizmetleri A.Ş. 198.738 -
Peker Holding A.Ş. 57.790 63.601
Total 7.925.230 7.413.647

e) Short-term other payables

The details of short-term trade payables to related parties as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Hasan Peker 156.000.250 171.688.524
Peker Holding A.Ş. 24.359.455 80.563.853
Peker Management GMBH 484.349 611.436
Total 180.844.054 252.863.813

f) Long-term other payables

The details of long-term other payables to related parties as of 31 March 2025 and 31 December 2024 are as follows:

March 31, 2025 December 31, 2024
Peker Holding A.Ş.
Peker Holding Ltd.
67.242
1.540.282
378.271.608
1.532.772
Total 1.607.524 379.804.381

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

18. Related parties (cont'd)

i) Benefits of the key management

The Company's key management personnel consists of the members of the board of directors, the general manager, and directors. For the periods ended 31 March 2025 and 31 December 2024, the benefits provided to key management comprise salaries paid and vehicle lease expenses. As of 31 March 2025 and 31 December 2024, the total amount of benefits provided to key management is 6.730.213 and 27.015.012 Turkish lira, respectively.

19. Sales and cost of sales

For the periods ended March 31, 2025 and 2024, the details of sales and cost of sales are as follows:

January 1 -
March 31, 2025
January 1 -
March 31, 2024
Domestic sales ()
Export sales (
*)
Rent income
76.386.918
-
35.101.033
-
-
40.213.895
Net sales 111.487.951 40.213.895
Cost of domestic sales (-) (Note 9-12)
Cost of export sales (-) (Note 9-12)
Other (-)
(27.146.813)
-
(139.144)
-
(32.820)
Cost of sales (-) (27.285.957) (32.820)
Gross profit/ (loss) 84.201.994 40.181.075

(*) For the period ended March 31, 2025, sales consist of sales of workplace in Ataköy NEF 22. For the period ended March 31, 2024, domestic sales consist of sales of the investment property with a land of 11,020 m2 in Üsküdar, and residences and warehouses in Sultan Makamı Residences.

(**) For the period ended March 31, 2023, export sales consist of the sales of investment properties numbered 18 and 19 in the Urbanization Oasis Club project in Malaga Marbella, Spain.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

20. Marketing and general administrative expenses

a) Marketing expenses

For the periods ended March 31, 2025 and 2024, the details of marketing expenses are as follows:

January 1 -
March 31, 2025
January 1 -
March 31, 2024
Sponsorship expenses 1.500.000 -
Total 1.500.000 -

b) General administrative expenses

For the periods ended March 31, 2025 and 2024, the details of general administrative expenses are as follows:

January 1 -
March 31, 2025
January 1 -
March 31, 2024
Personnel expenses 12.471.837 14.418.522
Consultancy expenses 2.570.115 5.999.231
Taxes, duties and other charges 7.385.058 1.516.628
Rent expenses 4.122.182 5.224.641
Amortization and depreciation expenses (Note 13) 4.788.807 5.501.101
Insurance expenses 2.317.945 2.256.994
Travel and accommodation expenses 185.793 267.916
Maintenance and repair expenses 1.622.672 751.784
Travel expenses 1.911.881 1.292.135
Outsourced benefits and services 360.566 412.034
Donations and grants 86.029 34.358
Other (**) 2.102.294 4.727.824
Total 39.925.179 42.403.168

(*) For the periods ended 31 March 2025 and 2023, other expenses mainly consist of capital market listing expenses.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

21. Other income and expenses from operating activities

a) Other income from operating activities

For the periods ended March 31, 2025 and 2024, the details of other income from operating activities are as follows:

January 1 - January 1 -
March 31, 2025 March 31, 2024
Fair value differences of investment properties (Note
12)
149.124.575 118.557.135
Foreign exchange gains 250.060.439 200.612.843
Taxes, duties and other charges refunds - 4.277.419
Provision no longer required (Note 9) - -
Late interest income (*) - -
Other 1.316.341 58.865
Total 400.501.355 323.506.262

(*) For the period ended March 31, 2024, late interest income consists of interest income related to trade receivables from UK Imperial Investment Ltd.

b) Other expenses from operating activities

For the periods ended March 31, 2025 and 2024, the details of other expenses from operating activities are as follows:

January 1 -
March 31, 2025
January 1 -
March 31, 2024
Foreign exchange loss 83.572.686 81.586.182
Fair value differences of investment properties (Note
12)
Provision for impairment on inventories (Note 9)
15.620.117
-
18.770.151
-
Taxes, duties and other charges
Insurance compensation expenses
164.807
-
1.961.509
-
Other 1.840.814 114.028
Total 101.198.424 102.431.870

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

22. Income and expenses from investing activities

a) Income from investing activities

For the periods ended March 31, 2025 and 2024, the details of income from investing activities are as follows:

January 1 -
March 31, 2025
January 1 -
March 31, 2024
Profit from sales of funds (Note 5a) 983.062 4.507.476
Profit from sales of stocks (Note 5a)
Fair value gain of foreign funds (Note 5a)
Interest income from funds
-
-
-
-
-
79.820
Fair value gain of stocks (Note 5a)
Profit from sales of subsidiaries
-
113.862
23.822
Total 1.096.924 4.611.118

b) Expense from investing activities

For the periods ended March 31, 2025 and 2024, the details of expense from investing activities are as follows:

January 1 -
March 31, 2025
January 1 -
March 31, 2024
Loss from sales of funds (Note 5a)
Fair value loss of stocks (Note 5a)
Loss from sales of property plant and equipment
-
-
-
29.632.654
12.683.432
-
Total - 42.316.086

23. Income and expenses from financing activities

a) Income from financing activities

For the periods ended March 31, 2025 and 2024, the details of income from financing activities are as follows:

January 1 -
March 31, 2025
January 1 -
March 31, 2024
Interest income from time deposits 1.724.269 1.260.530
Total 1.724.269 1.260.530

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

23. Income and expenses from financing activities (cont'd)

b) Expense from financing activities

For the periods ended March 31, 2025 and 2024, the details of expense from financing activities are as follows:

January 1 - January 1 -
March 31, 2025 March 31, 2024
Interest and comission expenses related to loans 81.623.676 50.893.993
Interest expenses related to commerical papers (Note
6) 100.570.940 11.161.317
Late interest expenses 24.587.473 33.138.927
Interest and comission expenses related to lease
liabilities (Note 6) 5.815.791 13.238.262
Interest expenses related to lease liabilities (Note 6) 8.092.835 -
Interest expense related to group companies 361.955 -
Bank comission expenses 131.160 282.293
Taxes, duties and other charges 830.029 440.205
Interest expenses related to retirement payment liability 214.273 32.114
Other 536.747 262.506
Total 222.764.879 109.449.617

24. Nature and level of risks arising from financial instruments

The primary financial instruments of the Group consist of bank loans, cash and short-term deposits. The main objective of the related financial instruments is to finance the Group's business activities. The Group also has other financial instruments such as trade receivables and trade payables arising directly from its operating activities.

a) Capital risk management

The Group manages its capital through the optimization of the debt and the equity balance that minimizes the financial risk.

Through the forecasts regularly prepared by the Group, the future capital amount, debt to equity ratio and similar ratios are forecasted and required precautions are taken to strengthen the capital.

The capital structure of the Group consists of debt which includes the financial liabilities disclosed in Note 6, cash and cash equivalents disclosed in Note 4 and equity attributable to equity holders of the parent company, comprising issued capital, reserves and retained earnings as disclosed in Note 15.

As of reporting date the net financial debt/ equity ratio is as follows:

March 31, 2025 March 31, 2024
Financial liabilities 3.958.964.088 3.665.155.552
Less: Cash and cash equivalents (72.904.215) (59.320.666)
Net financial debt 3.886.059.873 3.605.834.886
Total equity 3.724.001.654 3.725.484.884
Net financial debt/ Total equity ratio 1,04 0,97

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

24. Nature and level of risks arising from financial instruments (cont'd)

b) Financial risk factors

The Group's activities expose it to a variety of financial risks: foreign exchange risk, credit risk and liquidity risk. Group Management and Board of Directors examines and approves the policies on the management of risks stated below. In addition, the Group also considers the market risk of all of its financial instruments.

b.1) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults.

Credit risk of receivables is managed by securing receivables with collaterals covering receivables at the highest possible proportion. Methods used are bank guarantees, mortgages and cheques-notes negotiated.

In credit risk control, for the customers which are not secured with collaterals, the credit quality of the customer is assessed by taking into account its financial position, past experience and other factors. Individual risk limits are set in accordance and the utilization of credit limits is regularly monitored.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

24. Nature and level of risks arising from financial instruments (cont'd)

b) Financial risk factors (cont'd)

b.1) Credit risk (cont'd)

Current period Receivables
March
31, 2025
Trade
receivables
Trade
receivables
Bank
deposits
Financial
investments
Maximum net credit risk as of balance sheet date (A+B+C+D+E) (*) 398.781.696 45.431.942 72.900.333 48.313.863
-
The part of maximum risk under guarantee with collateral
- - - -
A. Net book value of financial assets that are neither overdue nor impaired 398.781.696 45.431.942 72.900.333 48.313.863
B. Net book value of financial assets that are renegotiated - - - -
C. Net book value of financial assets that are overdue but not impaired - - - -
-
The part of maximum risk under guarantee with collateral
- - - -
D. Net book value of impaired asset - - - -
-
Overdue (gross net book value)
- - - -
-
Impairment (-)
- - - -
-
The part of net value under guarantee with collateral etc
- - - -
-
Undue (gross net book value)
- - - -
-
Impairment (-)
- - - -
-
The part of net value under guarantee with collateral etc.
- - - -
E. Credit risk off the statement of financial position - - - -

(*) The factors that increase the credit reliability, such as guarantee received are not considered in the determination of the balance.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

24. Nature and level of risks arising from financial instruments (cont'd)

b) Financial risk factors (cont'd)

b.1) Credit risk (cont'd)

Prior period Receivables
Trade Other Bank Financial
December
31, 2024
receivables receivables deposits investments
Maximum net credit risk as of balance sheet date (A+B+C+D+E) (*) 521.886.930 21.282.757 59.313.016 51.963.154
-
The part of maximum risk under guarantee with collateral
- - - -
A. Net book value of financial assets that are neither overdue nor impaired 521.886.930 21.282.757 59.313.016 51.963.154
B. Net book value of financial assets that are renegotiated - - - -
C. Net book value of financial assets that are overdue but not impaired - - - -
-
The part of maximum risk under guarantee with collateral
- - - -
D. Net book value of impaired asset - - - -
-
Overdue (gross net book value)
- - - -
-
Impairment (-)
- - - -
-
The part of net value under guarantee with collateral etc
- - - -
-
Undue (gross net book value)
- - - -
-
Impairment (-)
- - - -
-
The part of net value under guarantee with collateral etc.
- - - -
E. Credit risk off the statement of financial position - - - -

(*) The factors that increase the credit reliability, such as guarantee received are not considered in the determination of the balance.

There is no additional impairment loss on the Group's financial assets related to credit risk.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

24. Nature and level of risks arising from financial instruments (cont'd)

b) Financial risk factors (cont'd)

b.2) Liquidity risk

Liquidity risk is the risk of the Group not meeting its net funding requirements. The following tables detail the Group's remaining contractual maturity for its non-derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows.

The Group management eliminates of the liquidity risk with the principle of managing the balance sheet in accordance with the expected cash flow by keeping sufficient cash and cash equivalents for daily transactions and ensuring the availability of high quality credit providers. The Group management also tries to adjust the maturity structures of the financial debts used for construction costs and investment property development according to the cash flow of the incomes to be obtained from these real estates as much as possible.

As of 31 March 2025 and 31 December 2024 the maturity analysis of the financial liabilities is as follows:

Total cash outflow
according to contract
Less than 3 3-12 1-5 More than 5
March 31, 2025 Carrying value (I+II+III) months (I) months (II) years (III) years (IV)
Non derivative financial
liabilities
Bank loans 2.752.468.690 2.530.221.127 270.617.350 634.892.439 1.624.711.338 -
Commercial paper 832.966.533 935.493.425 112.082.192 823.411.233 - -
Lease liabilities 373.528.865 787.101.255 23.602.183 23.698.564 95.721.835 644.078.674
Trade payables 137.887.360 137.887.360 129.962.130 7.925.230 - -
Other payables 189.603.893 189.603.893 7.152.315 180.844.054 1.607.524 -
Total liabilities 4.286.455.341 4.580.307.060 543.416.170 1.670.771.520 1.722.040.697 644.078.674
Total cash outflow
according to contract Less than 3 3-12 1-5 More than 5
December 31, 2024 Carrying value (I+II+III) months (I) months (II) years (III) years (IV)
Non derivative financial
liabilities
Bank loans 3.387.056.927 3.494.135.533 373.711.882 876.761.405 2.243.662.246 -
Commercial paper 693.317.591 744.564.739 589.783.654 154.781.084 - -
Lease liabilities 518.565.096 1.089.440.277 18.425.822 45.832.224 122.740.733 902.441.497

Other payables 802.614.662 802.614.662 8.759.455 317.286.781 476.568.426 - Total liabilities 5.591.923.280 6.321.124.214 1.146.389.565 1.429.321.747 2.842.971.405 902.441.497

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

24. Nature and level of risks arising from financial instruments (cont'd)

b) Financial risk factors (cont'd)

b.3) Interest rate risk

Changes in interest rates create significant risks over financial results with due to the impact on interest sensitive assets and liabilities. These exposures are managed by establishing a fixed-floating balance in the consolidated financial statements and balancing interest rate sensitive assets and maturity with inter balance sheet items.

As of 31 March 2025 and 31 December 2024 interest rate table of financial instruments is as follow:

March 31, 2025 March 31, 2024
2.896.404 1.993.286
2.704.952.945 2.647.043.375
725.065.796 433.792.223
413.273.906
47.515.745 52.294.199
107.900.736 118.751.849

b.4) Foreign currency risk

The Group is exposed to foreign exchange risk arising from foreign currency transactions.

As of March 31, 2025 and 2024 details of foreign currency positions of assets and liabilities of the Group are as follows:

Current period
March 31, 2025
Foreign exchange position TL equivalent USD EUR GBP
1. Monetary financial assets 44,341,729 7,030 1,082,904
2. Trade receivables 536,912,536 3,923,132 8,300,000 1,043,672
3. Other receivables
4. Current assets (1+2+3) 581,254,265 3,930,162 9,382,904 1,043,672
5. Trade receivables
6. Other receivables 56,512 1,071
7. Non-current assets (5+6) 56,512 1,071
8. Total assets (4+7) 581,310,777 3,930,162 9,382,904 1,044,743
9. Trade payables 397,780 9,773
10. Other payables (850,575,643) (870,268) (20,115,255) 20,896
11. Short-term liabilities (9+10) (850,177,863) (870,268) (20,105,482) 20,896
12. Other payables
13. Long-term liabilities (12)
14. Total liabilities (11+13) (850,177,863) (870,268) (20,105,482) 20,896
15. Net foreign currency position (8+14) (268,867,086) 3,059,894 (10,722,578) 1,065,639

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

24. Nature and level of risks arising from financial instruments (cont'd)

b) Financial risk factors (cont'd)

b.4) Foreign currency risk (cont'd)

Prior period
December 31, 2024
Foreign exchange position TL equivalent USD EUR GBP
1. Monetary financial assets 7,259,227 26,930 150,002 18,062
2. Trade receivables 468,743,797 11,500,000 1,044,177
3. Other receivables 47,387 1,071
4. Current assets (1+2+3) 476,050,411 26,930 11,650,002 1,063,310
5. Other receivables 1,766,171,815 48,068,268
6. Non-current assets (5) 1,766,171,815 48,068,268
7. Total assets (4+6) 2,242,222,226 26,930 59,718,270 1,063,310
8. Trade payables (3,797,305) (103,348)
9. Other payables (781,512) (21,270)
10. Short-term liabilities (8+9) (4,578,817) (124,618)
11. Other payables (927,316,769) (25,237,985)
12. Long-term liabilities (11) (927,316,769) (25,237,985)
13. Total liabilities (10+12) (931,895,586) (25,362,603)
14. Net foreign currency position (7+13) 1,310,326,640 26,930 34,355,667 1,063,310

Foreign currency sensitivity

The Group is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the USD, EUR and GBP.

In foreign currency sensitivity analysis gain/ loss section as of March 31, 2025 and 2024, the exposure of the 10% loss/ gain of Turkis lira against foreign currencies on the comprehensive financial income statement is disclosed. During the foreign currency sensitivity analysis, all variables, especially interest rates are assumed to be fixed.

Foreign currency sensitivity table
Current period March 31, 2025
Profit/ (loss)
Appreciation of foreign Depreciation of foreign
currency currency
US dollar against Turkish lira by 10%
1- US dollar denominated net assets/ (liabilities) 11.555.873 (11.555.873)
2- Hedged amount against US dollar risk (-) - -
3- Net effect of USD (1+2) 11.555.873 (11.555.873)
EUR against Turkish lira by 10%
4- EUR denominated net assets/ (liabilities) (43.642.931) 43.642.931
5- Hedged amount against EUR risk (-) - -
6- Net effect of EUR (4+5) (43.642.931) 43.642.931
GBP against Turkish lira by 10%
7- GBP denominated net assets/ (liabilities) 5.199.924 (5.199.924)
8- Hedged amount against GBP risk (-) - -
9- Net effect of GBP (7+8) 5.199.924 (5.199.924)
Total (3+6+9) (26.887.134) 26.887.134

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

24. Nature and level of risks arising from financial instruments (cont'd)

b) Financial risk factors (cont'd)

b.4) Foreign currency risk (cont'd)

Foreign currency sensitivity (cont'd)

Foreign currency sensitivity table
Prior period March 31, 2024
Profit/ (loss)
Appreciation of foreign Depreciation of foreign
currency currency
US dollar against Turkish lira by 10%
1- US dollar denominated net assets/ (liabilities) 94.855 (94.855)
2- Hedged amount against US dollar risk (-) - -
3- Net effect of USD (1+2) 94.855 (94.855)
EUR against Turkish lira by 10%
4- EUR denominated net assets/ (liabilities) 126.233.109 (126.233.109)
5- Hedged amount against EUR risk (-) - -
6- Net effect of EUR (4+5) 126.233.109 (126.233.109)
GBP against Turkish lira by 10%
7- GBP denominated net assets/ (liabilities) 4.704.700 (4.704.700)
8- Hedged amount against GBP risk (-) - -
9- Net effect of GBP (7+8) 4.704.700 (4.704.700)
Total (3+6+9) 131.032.664 (131.032.664)

25. Subsequent events

On 1 November 2024, the Company issued a commercial paper with ISIN code TRFPEGY42518, bearing an interest rate of BIST TL REF + 5%, with a nominal value of 100,000,000 Turkish lira and quarterly coupon payments. On 30 April 2025, the Company made a coupon payment and principal repayment amounting to 100,000,000 Turkish lira for this instrument.

On 30 April 2025, the Company issued a zero-coupon commercial paper with ISIN code TRFPEGYE2519, bearing a simple annual interest rate of 59.00% and a compound annual interest rate of 67.84%, with a nominal value of 100,000,000 Turkish lira and a maturity date of 27 October 2025, through a private placement to qualified investors.

Notes to the Consolidated Financial Statements

As of and for the Period Ended March 31, 2025

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at March 31, 2025 unless otherwise indicated.)

26. Explanations regarding net monetary position gains/(loses)

For the period ended March 31, 2025, the details of net monetary position gains/(loses) are as follows:

January 1 -
March 31, 2025
Statement of financial position items
Subsidiaries 129.454.529
Advances given -
Investment properties 222.071.281
Treasury shares -
Inventories 44.621.927
Property, plant and equipment 18.217.475
Prepaid expenses 61.921.102
Gain/ (loss) arising from defined benefit plans (1.367)
Share Premium (2.287)
Contract liabilities 15.121.815
Restricted reserves 42.466.379
Paid-in capital (83.542.127)
Retained earnings (372.566.922)
Profit or Loss Statement Items
Revenue 540.810
Cost of sales 2.480.577
Marketing expenses 2.469.016
General administrative expenses (2.701.086)
Other income from operating activities 1.293.517
Other expenses from operating activities (25.054)
Income from investment activities -
Expenses from investment activities (43.945)
Finance income 1.580.832
Finance expenses -
Net monetary position gains/(losses) 83.356.472

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