(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 – December 31, 2024

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 December 31, 2024 and 2023

		Audited	Audited
		Current period	Prior period

	Note	December 31, 2024	December 31, 2023

Current assets		1.927.006.473	2.570.651.991
Cash and cash equivalents	4	53.900.159	83.881.089
Financial investments	5	47.214.950	134.459.984
Trade receivables
Due from related parties	7-18	169.031.179	214.013.791
Due from third parties	7	305.167.617	1.019.291.029
Other receivables
Due from related parties	8-18	5.982.349	4.601.918
Due from third parties	8	11.976.889	5.606.107
Inventories	9	388.613.949	426.700.744
Prepaid expenses
Due to related parties	10-18	609.061.676	520.302.660
Due to third parties	10	230.024.877	45.729.017
Current income tax assets	17	217.155	54.111
Other current assets	11	105.815.673	116.011.541
Non-current assets		6.156.764.027	6.609.637.236

Financial investments	5	-	1.128.182
Other receivables
Due from third parties	8	1.378.778	1.365.578
Investment properties	12	6.081.137.296	6.496.244.226
Property, plant and equipment	13	70.990.488	78.810.113
Prepaid expenses
Due to related parties	10-18	-	18.811.982
Deferred tax asset	17	3.257.465	13.277.155
Total assets		8.083.770.500	9.180.289.227

Consolidated Statements of Financial Position

As of December 31, 2024 and 2023

		Audited	Audited
		Current period	Prior period
	Note	December 31, 2024	December 31, 2023
Current liabilities		2.060.560.573	553.770.567
Short-term borrowings	6	1.262.095.353	192.350.519
Short-term portion of long-term borrowings	6	86.332.149	7.540.982
Short-term portion of long-term lease liabilities	6	39.928.276	57.524.102
Trade payables
Due to related parties	7-18	6.736.215	1.418.801
Due to third parties	7	131.116.387	172.957.034
Contract liabilities	10	264.358.807	367.430
Employee benefit obligations		1.605.398	1.168.828
Other payables Due to related parties	8-18	229.758.036	2.355.735
Due to third parties	8	6.343.016	44.625.377
Provisions
Other provisions		2.060.935	520.582
Other current liabilities	11	30.226.001	72.941.177

Non-current liabilities		2.638.146.328	3.950.119.854

Long-term borrowings	6	1.606.309.003	2.896.469.414
Long-term lease liabilities	6	335.582.161	479.814.947
Other payables
Due to related parties	8-18	345.099.235	296.614.607
Provisions Provision for employee benefits		895.931	715.948
Deferred tax liabilities	17	350.259.998	276.504.938

Equity		3.385.063.599	4.676.398.806

Equity holders of the parent		3.182.205.512	4.372.979.931
Paid-in capital	15	2.500.000.000	669.833.747
Adjustment to share capital	15	1.543.682.315	2.877.613.563
Share premium		22.742	22.742
Other accumulated comprehensive income and expense
not to be reclassified to profit or loss Gain/ (loss) arising from defined benefit plans		(797.305)	(767.511)
Other accumulated comprehensive income and expense to
be reclassified to profit or loss
Currency translation differences		(1.306.937.399)	(742.242.408)
Effect of combinations of businesses under common
control		(2.727.497.551)	(2.053.850.617)
Restricted reserves	15	267.409.110	166.395.165
Retained earnings		2.800.501.095	1.900.348.109
Net profit for the period		105.822.505	1.555.627.141
Non-controlling interest		202.858.087	303.418.875

Total liabilities and equity		8.083.770.500	9.180.289.227

Consolidated Statements of Profit or Loss and Other Comprehensive Income For the Period Ended December 31, 2024, and 2023

		Audited	Audited
		Current period	Prior period
		January 1 -	January 1 -
	Note	December 31, 2024	December 31, 2023
Revenue Cost of sales (-)	19 19	141.392.796 (25.488.603)	1.294.166.990 (1.392.021.039)
Gross profit/ (loss)		115.904.193	(97.854.049)
Marketing expenses (-) General administrative expenses (-) Other income from operating activities Other expenses from operating activities (-)	20 20 21 21	(13.193.994) (193.239.039) 1.274.101.819 (341.637.134)	- (173.170.627) 1.908.325.087 (194.489.148)
Operating profit		841.935.845	1.442.811.263
Income from investment activities Expenses from investment activities (-)	22 22	65.819.449 (39.509.057)	756.068.580 (328.871)
Operating income before financial income		868.246.237	2.198.550.972
Finance income Finance expenses (-) Net monetary position gain/ (loss)	23 23 27	3.924.544 (465.717.490) (155.528.730)	9.253.128 (222.728.363) (190.415.777)
Profit before tax from continuing operations		250.924.561	1.794.659.960
Tax income/(expense), continuing operations		(165.040.030)	(172.964.266)
Taxes on expense Deferred tax expenses (-)	17 17	(12.697) (165.027.333)	- (172.964.266)
Net income		85.884.531	1.621.695.694
Equity holders of the parent Non-controlling interest		105.822.505 (19.937.974)	1.555.627.141 66.068.553
Not to be reclassified to profit or loss		(29.794)	84.612
Gain/ (loss) arising from defined benefit plans Gain/ (loss) arising from defined benefit plans, tax		(371.496)	84.612
effect	17	341.702	-
To be reclassified to profit or loss		(646.622.827)	(69.242.157)
Currency translation differences		(646.622.827)	(69.242.157)
Other comprehensive (expense)/ income		(646.652.621)	(69.157.545)
Total comprehensive income		(560.768.090)	1.552.538.149
Equity holders of the parent Non-controlling interest		(458.902.282) (101.865.808)	1.515.607.871 36.930.278
Earnings per share	16	,14	2,10

Consolidated Statements of Changes in Shareholder' Equity

For the Period Ended December 31, 2024, and 2023

	Paid-in capital	Adjustment to share capital	Share premium	Gain/ (loss) arising from defined benefit plans	Currency translation differences	Restricted reserves	Effect of combinations of businesses under common control	Retained earnings	Net profit for the period	Equity holders of the parent	Non controlling interest	Total
Balance at January 1, 2023	669.833.747	2.877.613.563	22.742	(852.123)	(702.138.526)	139.270.123	9.668.043	2.113.612.407	-	5.107.029.976	(3.015.849)	5.104.014.127
Transfers Total comprehensive income	-	-	-	-	-	27.125.042	-	(27.125.042)	-	-	-	-
Net income Other comprehensive income	- -	- -	- -	- 84.612	- (40.103.882)	- -	- -	- -	1.555.627.141 -	1.555.627.141 (40.019.270)	66.068.553 (29.138.275)	1.621.695.694 (69.157.545)
Transactions with non-controlling shares Effect of combinations of	-	-	-	-	-	-	-	(186.139.256)	-	(186.139.256)	269.504.446	83.365.190
businesses under common control	-	-	-	-	-	-	(2.063.518.660)	-	-	(2.063.518.660)	-	(2.063.518.660)
Balance at December 31, 2023	669.833.747	2.877.613.563	22.742	(767.511)	(742.242.408)	166.395.165	(2.053.850.617)	1.900.348.109	1.555.627.141	4.372.979.931	303.418.875	4.676.398.806
Transfers Total comprehensive income		1.830.166.253 (1.333.931.248)	-	-	-	101.013.945	-		958.378.191 (1.555.627.141)	-	-	-
Net income	-	-	-	-	-	-	-	-	105.822.505	105.822.505	(19.937.974)	85.884.531
Other comprehensive income Increase/(decrease) due to	-	-	-	(29.794)	(564.694.991)	-	-	-	-	(564.724.785)	(81.927.834)	(646.652.619)
acquisition of treasury shares	-	-	-	-	-	-	-	(56.914.754)	-	(56.914.754)	-	(56.914.754)
Transactions with non-controlling shares Effect of combinations of	-	-	-	-	-	-	-	(1.310.451)	-	(1.310.451)	1.305.020	(5.431)
businesses under common control	-	-	-	-	-	-	(673.646.934)	-	-	(673.646.934)	-	(673.646.934)
Balance at December 31, 2024	2.500.000.000	1.543.682.315	22.742		(797.305) (1.306.937.399)	267.409.110	(2.727.497.551)	2.800.501.095	105.822.505	3.182.205.512	202.858.087	3.385.063.599

Consolidated Statements of Cash Flows

For the Period Ended December 31, 2024, and 2023

		Audited	Audited

		Current period	Prior period
		January 1 -	January 1 -
		December 31,	December 31,
	Note	2024	2023
A. Cash flows from operating activities		(111.956.582)	(972.342.516)
Net income		85.884.531	1.621.695.694
Adjustments regarding net profit reconciliation for the period		(197.958.806)	(1.155.998.961)
Adjustments for depreciation and amortisation expense	13	18.930.233	13.946.429
Adjustments for impairment loss (reversal)
Adjustments for impairment loss (reversal) of inventory Adjustments for provision (reversal of provision) for receivables	9	18.776.357 -	(1.341.023) (2.008.565)
Adjustments for provisions for employee benefits		340.666	(623.912)
Adjustments for interest income	23	(3.708.788)	(3.480.506)
Adjustments for interest expense	23	366.085.399	135.142.765
Adjustments for unrealised foreign exchange differences		(187.833.059)	(662.210.995)
Adjustments for fair value (gains) losses
Adjustments for fair value (gains) losses on investment properties Adjustments for fair value (gains) losses on financial investments	12 5	(762.816.620) 7.967.560	(1.081.191.563) (74.958)
Adjustments for tax expense/ (income)	17	165.027.333	172.964.266
Monetary (gain)/ loss		174.016.276	190.785.078
Adjustments for unrealised translation differences		39.459.615	82.223.586
Adjustments for losses (gains) on disposal of non-current assets	22	1.059.661	-
Adjustments for other cash flows from investing or financing activities		(35.263.439)	(129.563)
Changes in operating assets and liabilities		540.557	(1.429.475.064)
Adjustments for decrease (increase) in trade receivables Adjustments for decrease (increase) in other receivables		551.145.003 (445.385.212)	(1.148.166.540) 398.687.240
Decrease (increase) in inventories		19.310.438	28.950.505
Decrease (increase) in prepaid expenses		(69.947.034)	(147.552.674)
Adjustments for increase (decrease) in deferred income		-	-
Adjustments for increase (decrease) in trade payables		(27.755.328)	(9.639.254)
Increase (decrease) in employee benefit liabilities		436.570	(781.000)
Adjustments for increase (decrease) in other payables Adjustments for other (increase) decrease in changes in operating		245.424	(534.132.095)
assets and liabilities
Adjustments for (increase) decrease in other assets		10.032.824	(83.529.461)
Adjustments for increase (decrease) in other liabilities		(37.542.128)	66.688.215
Cash flows from operating activities		(422.864)	(8.564.185)
Payments related to provisions for employee termination benefits		(422.864)	(887.360)
Income taxes refund (paid)		-	(7.676.825)
B. Cash flows from investing activities		(152.833.674)	142.088.948
Cash outflow from purchase of property, plant, equipment Cash inflow from sale of property, plant, equipment	13 13	(33.987.121) 16.652.165	(19.791.827) -
Cash outflows arising from project expenditures of investment properties	12	(289.624.640)	(602.850.988)
Cash inflow from sales of investment properties	12	-	1.360.198.400
Cash outflows from other investing activities		263.991.377	297.310.249
Cash inflow from other investing activities		(184.295.860)	-
Cash outflows from purchase of funds and stocks	5	(2.094.685.703)	(162.155.211)
Cash inflow from sales of funds and stocks Cash inflow from sale of subsidiary	5 5	2.181.879.561 1.128.182	16.446.621 -
Cash outflows from subsidiary acquisition		(13.891.635)	(747.068.296)
C. Cash flows from financing activities		235.847.903	726.541.687
Cash inflow from borrowings	6	1.313.689.143	1.078.267.537
Cash outflow from repayments of borrowings	6	(783.592.045)	(359.564.018)
Payments of lease liabilities	6	(9.289.577)	(5.244.690)
Cash outflows from acquisition of treasury shares		(56.914.754)	-
Transactions with non-controlling shares Interest and comission paid		(5.431) (231.748.221)	83.365.190 (73.762.838)
Interest received		3.708.788	3.480.506
D. Net change in cash and cash equivalents (A+B+C)		(28.942.353)	(103.711.881)

E. Effect of monetary gain/ loss		(1.908.349)	(35.791.119)

F. Effect of foreign exchange gain/ loss		869.772	90.021.233

G. Cash and cash equivalents at January 1		83.881.089	133.362.856

Cash and cash equivalents at December 31 (D+E+F+G)	4	53.900.159	83.881.089

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024, 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 December 31, 2024 is 29 (December 31, 2023: 27).

As of December 31, 2024 and December 31, 2023, the shareholder structure is as follows:

	December 31, 2024				December 31, 2023
	Number of			Number of
	shares	Share (%)	Amount	shares	Share (%)	Amount

Hasan Peker	781.406.458	31,26	781.406.458	262.364.967		39,17 262.364.967
Public shares	1.718.593.542	68,74	1.718.593.542	407.468.780		60,83 407.468.780

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 (%)
			December 31, 2024	December 31, 2023
Name of the Company	Operation	Country of operation	Share (%)	Share (%)

DİGH Maslak	Gayrimenkul proje geliştirme	İstanbul - Türkiye	100	-
Peker GMBH	Gayrimenkul proje geliştirme	Düsseldorf - Germany	100	100
Peker GYO Global GMBH	Gayrimenkul proje geliştirme	Düsseldorf - Germany	100	100
Blue Stone Investment GMBH	Gayrimenkul proje geliştirme	Grevenbroich -Germany	100	100
Nordstern Düsseldorf GMBH	Gayrimenkul proje geliştirme	Düsseldorf - Germany	51	51
Peker GYO Spain SL	Gayrimenkul proje geliştirme	Malaga - Spain	100	100

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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, 2024, 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, 2024.

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, 2023 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 December 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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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, 2024 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 December 28, 2023 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 December 31, 2023. With the announcements made by the Public Oversight Accounting and Auditing Standards Authority ("POA") on November 23, 2023, 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 December 31, 2023.

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 December 31, 2024, the indices and adjustment coefficients used in the adjustment of the consolidated financial statements are as follows:

	2024	2023	2022	2021
Index	2.684,55	1.859,37	1.128,38	686,95
Average Index	2.360,03	1.488,92	967,70	561,61
Conversion Factor	1,00000	1,44379	2,37912	3,90793
Period - Inflation Rate	44,38%	64,78%	64,26%
Three-year Inflation Rate	290,79%	268,33%	156,16%

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2023, on the purchasing power basis as of December 31, 2024.

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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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.

	December 31, 2024	December 31, 2023
Buying exchange rate	36,7362	32,5739
Selling exchange rate	36,8024	32,6326
Average exchange rate	35,4893	25,7198

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 February, 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 December 31, 2024, and 2023 (Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 adopted in preparation of the consolidated financial statements as of December 31, 2024 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRS interpretations effective as of January 1, 2024 and thereafter.

i) The new standards, amendments and interpretations which are effective as of January 1, 2024 are as follows:

Amendments to TAS 1	Classification of Liabilities as Current and Non Current Liabilities
Amendments to TFRS 16	Lease Liability in a Sale and Leaseback
Amendments to TAS 7 and TFRS 7	Disclosures: Supplier Finance Arrangements

ii) Standards issued but not yet effective and not early adopted

Amendments to TFRS 10 and TAS 28	Sale or Contribution of Assets between an
	Investor and its Associate or Joint Venture
TFRS 17	The new Standard for insurance contracts
Amendments to TAS 21	Lack of exchangeability

The Group will assess the effects of these changes after the mentioned standards have been finalized.

iii) The amendments which are effective immediately upon issuance

Amendments to TAS 12
----------------------

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 amendments to TFRS 9 and TFRS 7 as well as TFRS 18 and TFRS 19 are issued by IASB but not yet adapted/issued by POA. Therefore, they do not constitute part of TFRS. The Group will make the necessary changes to its consolidated financial statements after the amendments and new Standard are issued and become effective under TFRS.

Amendments to TFRS 9 and TFRS 7	Classification and measurement of financial
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

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.

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

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

2.4 Consolidatipn 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.

	December 31, 2024	December 31, 2023
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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024, and 2023 (Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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:

Inflation rate % 23,03

December 31, 2024 Interest rate % 27,15

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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024. 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, 2024, 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 2024 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.

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 (December 31, 2023: None).

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

4. Cash and cash equivalents

The details of cash and cash equivalents as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023

Cash on hand:
- Turkish lira	6.951	5.125
Cash at banks:
Time deposits
- Turkish lira	1.189.556	713.679
- US dollar	70.447	85.005
- Euro	551.144	-
Demand deposits
- Turkish lira	2.160.552	1.424.279
- US dollar	878.119	147.885
- Euro	48.244.238	80.921.384
- British pound	799.152	583.732
Total	53.900.159	83.881.089

As of December 31, 2024 and 2023, the details of the time deposits are as follows:

	Maturity	Interest rate (%)	December 31, 2024

Turkish lira	January '25	44,50	1.189.556
US dollar	January '25	3,50	70.447
Euro	January '25	2,00	551.144

Total			1.811.147

	Maturity	Interest rate (%)	December 31, 2023

Turkish lira	January '24	42,50 - 47,50	713.679
US dollar	January '24	4,10	85.005

Total			798.684

As of December 31, 2024, there is no blockage on the bank accounts (December 31, 2023: None).

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

5. Financial investments

a) Short-term financial investments

The details of short-term financial investments as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023

Foreign funds	43.945.081	47.029.954
Investment funds (*)	3.263.991	-
Stock certificates	-	87.422.505
Other	5.878	7.525
Total	47.214.950	134.459.984

(*) As of December 31, 2024, investment funds consist of domestic money market funds.

Movement of foreign funds for the periods ended December 31, 2024 and 2023 are as follows:

	2024	2023

January 1	47.029.954	-
Addition	4.036.943	46.373.306
Fair value change (Note 22a)	3.535.261	-
Translation differences	(10.657.077)	656.648
December 31	43.945.081	47.029.954

Movement of investment funds for the periods ended December 31, 2024 and 2023 are as follows:

	2024	2023

January 1	-	-
Addition	1.950.216.432	16.423.272
Disposal (-)	(1.959.002.796)	(16.446.621)
Profit from sales of investment funds, net (Note 22a-b)	9.272.594	129.627
Monetary gain/ (loss)	2.777.761	(106.278)

December 31	3.263.991	-

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

5. Financial investments (cont'd)

a) Short-term financial investments (cont'd)

Movement of stock certificates for the periods ended December 31, 2024 and 2023 are as follows:

	2024	2023

January 1	87.422.505	-
Addition	140.432.328	99.358.633
Sales of stock certificate (-)	(222.876.765)	-
Fair value change (Note 22a-b)	(11.502.821)	74.958
Profit from sales of stock certificate (Note 22a)	25.992.492	-
Monetary loss (-)	(19.467.739)	(12.011.086)

December 31	-	87.422.505

As of December 31, 2023 the details of the stock certificates are as follows:

				Purchasing power of the TL at
Code of stock	Number of shares	Price of stock	Fair value	December 31, 2024

EKGYO	3.470.000	6,88	23.873.600	34.468.527
KRDMD	950.000	23,76	22.572.000	32.589.285
THYAO	30.000	228,6	6.858.000	9.901.529
AVPGY	150.000	38,78	5.817.000	8.398.541
ADGYO	50.000	28,6	1.430.000	2.064.623

b) Long-term financial investments

The details of long-term financial investments as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Peker Real Estate GMBH	-	1.128.182
Total	-	1.128.182

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

6. Financial liabilities

The details of financial liabilities as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023

Short-term bank loans	760.040.753	192.350.519
Short-term portion of long-term borrowings	86.332.149	7.540.982
Short-term portion of long-term lease liabilities (*)	39.928.276	57.524.102
Commercial paper	502.054.600	-

Short-term financial liabilities	1.388.355.778	257.415.603

Long-term bank loans	1.606.309.003	2.896.469.414
Long-term lease liabilities (*)	335.582.161	479.814.947

Long-term financial liabilities	1.941.891.164	3.376.284.361

Total	3.330.246.942	3.633.699.964

(*) As of December 31, 2024 and 2023, lease liabilities consist of the "sale-leaseback" transaction for the Ritz Carlton A95, which is included in the investment properties, the B8 and D2 independent sections of the Ataköy NEF 22 project and land rental transaction within the scope of Peker Maslak Tower project.

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

6. Financial liabilities (cont'd)

The details of bank loans as of December 31, 2024 are as follows:

Currency	TL equivalent	Interest	Interest rate (%)

Euro	607.192.383	Fixed	2,09
Euro	552.284.280	Fixed	2,09
Euro	552.036.000	Fixed	12,00
Euro	220.814.400	Fixed	4,99
Euro	184.012.000	Fixed	4,85
Euro	29.441.825	Fixed	4,50
Euro	20.129.956	Fixed	4,50
Turkish lira	26.847.965	Fixed	50,00
Turkish lira	23.985.573	Floating	61,00
Turkish lira	22.028.407	Fixed	50,00
Turkish lira	19.512.237	Fixed	44,40
Turkish lira	19.289.147	Floating	61,50
Turkish lira	17.548.508	Fixed	53,04
Turkish lira	15.886.893	Fixed	53,88
Turkish lira	13.361.120	Fixed	50,00
Turkish lira	11.389.050	Fixed	45,00
Turkish lira	11.346.761	Fixed	55,00
Turkish lira	10.525.306	Fixed	50,88
Turkish lira	9.195.053	Fixed	51,60
Turkish lira	8.431.689	Fixed	48,48
Turkish lira	8.181.119	Fixed	48,48
Turkish lira	7.365.280	Fixed	48,00
Turkish lira	5.451.223	Fixed	49,08
Turkish lira	5.125.298	Fixed	43,80
Turkish lira	5.087.391	Fixed	43,80
Turkish lira	4.241.025	Floating	61,50
Turkish lira	4.186.010	Fixed	49,50
Turkish lira	3.554.429	Fixed	42,00
Turkish lira	3.392.997	Fixed	49,08
Turkish lira	3.373.929	Fixed	49,08
Turkish lira	2.694.794	Fixed	48,00
Turkish lira	2.578.548	Fixed	48,48
Turkish lira	2.443.114	Fixed	59,28
Turkish lira	2.422.106	Fixed	57,00
Turkish lira	2.077.552	Fixed	47,52
Turkish lira	1.903.809	Fixed	45,28
Turkish lira	1.780.888	Fixed	58,92
Turkish lira	1.457.305	Fixed	43,56
Turkish lira	1.287.395	Fixed	48,48
Turkish lira	1.245.793	Fixed	49,56
Turkish lira	933.049	Fixed	49,08
Turkish lira	896.359	Fixed	48,48
Turkish lira	779.491	Fixed	48,60
Turkish lira	706.132	Fixed	45,49
Turkish lira	706.132	Fixed	45,49
Turkish lira	706.132	Fixed	45,49
Turkish lira	706.132	Fixed	45,49
Turkish lira	567.649	Fixed	51,96
Turkish lira	491.168	Fixed	48,60
Turkish lira	407.355	Fixed	64,32
Turkish lira	292.052	Fixed	48,00
Turkish lira	208.542	Fixed	49,20
Turkish lira	173.154	Fixed	50,00

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

6. Financial liabilities (cont'd)

The details of bank loans as of December 31, 2023 are as follows:

Currency	TL equivalent	Interest	Interest rate (%)

Euro	795.692.755	Fixed	2,09
Euro	727.033.844	Fixed	2,09
Euro	706.720.567	Fixed	12,00
Euro	282.688.227	Fixed	4,99
Euro	235.573.522	Fixed	4,85
Euro	118.493.482	Floating	2,90
Turkish lira	34.384.451	Fixed	47,40
Euro	32.837.528	Fixed	4,50
Turkish lira	27.356.562	Fixed	53,00
Euro	26.909.161	Fixed	4,50
Turkish lira	26.883.365	Floating	47,00
Turkish lira	13.950.451	Fixed	45,60
Turkish lira	11.619.180	Fixed	52,92
Turkish lira	7.269.253	Fixed	48,48
Turkish lira	5.954.273	Fixed	53,00
Turkish lira	5.901.812	Floating	47,00
Turkish lira	5.027.434	Fixed	52,92
Turkish lira	4.855.772	Fixed	20,68
Euro	4.472.094	Fixed	4,50
Turkish lira	3.807.952	Fixed	42,60
Turkish lira	3.686.811	Fixed	43,20
Turkish lira	3.629.585	Fixed	48,48
Turkish lira	3.364.903	Fixed	43,20
Turkish lira	2.382.089	Fixed	51,24
Turkish lira	1.754.562	Fixed	51,24
Turkish lira	1.732.551	Fixed	45,60
Turkish lira	1.503.976	Fixed	50,52
Turkish lira	874.753	Fixed	16,80

Movement of bank loans for the periods ended December 31, 2024 and 2023 are as follows:

	2024	2023

January 1	3.096.360.915	2.403.078.308
Addition	412.459.846	988.116.552
Principal payments (-)	(359.778.175)	(355.206.610)
Interest accrual/ (paid), net	24.068.097	8.913.754
Translation differences	(645.792.995)	124.303.048
Monetary gain (-)	(74.635.783)	(72.844.137)

December 31	2.452.681.905	3.096.360.915

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

6. Financial liabilities (cont'd)

The details of commercial paper as of December 31, 2024 are as follows:

ISIN Code	Nominal value	Interest type	Compound interest (%)	Type	Due date	Net present value
TRFPEGY12511	315.000.000	Fixed	70,71	Coupon payment	Jan 28, 2025	302.338.672
TRFPEGY22510	100.000.000	Fixed	69,60	No payment	Feb 28, 2025	91.815.192
TRFPEGY42518	100.000.000	Floating	58,82	Coupon payment	Apr 30, 2025	107.900.736

Movement of commercial paper for the period ended December 31, 2024 and 2023 is as follows:

	2024

January 1	-
Issued of commercial paper	901.229.297
Principal payments (-)	(400.620.342)
Interest accrual (Note 23b)	118.349.277
Interest paid (-)	(57.347.511)
Monetary gain (-)	(59.556.121)
December 31	502.054.600

Movement of lease liabilities for the period ended December 31, 2024 and 2023 is as follows:

	2024	2023

January 1	537.339.049	711.420.360
Addition	-	90.150.985
Principal payments (-)	(32.483.105)	(9.602.098)
Interest accrual (Note 23b)	72.644.945	60.209.345
Interest paid (-)	(23.487.230)	(7.974.554)
Monetary gain (-)	(178.503.222)	(306.864.989)

December 31	375.510.437	537.339.049

Interest risks related to financial liabilities are explained in Note 24.

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

7. Trade receivables and payables

a) Short-term trade receivables

The details of short-term trade receivables as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Trade receivables from third parties (*) Trade receivables from related parties (Note 18)	305.167.617 169.031.179	1.019.291.029 214.013.791
Total	474.198.796	1.233.304.820

(*) As of December 31, 2024 and 2023, 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 December 28, 2023.

b) Short-term trade payables

The details of short-term trade payables as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Trade payables to third parties (*) Trade payables to related parties (Note 18)	131.116.387 6.736.215	172.957.034 1.418.801
Total	137.852.602	174.375.835

(*) 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 December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Deposits and guarantees given	11.695.553	470.300
Other receivables from third parties	130.066	22.864
Receivables from the tax authorities	151.270	5.112.943
Other receivables from related parties (Note 18)	5.982.349	4.601.918
Total	17.959.238	10.208.025

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

8. Other receivables and payables (cont'd)

b) Long-term other receivables

The details of long-term other receivables as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Deposits and guarantees given	1.378.778	1.365.578
Total	1.378.778	1.365.578

c) Short-term other payables

The details of short-term other payables as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023

Deposits and guarantees taken	6.322.407	1.293.356
Other payables to third parties (*)	20.609	43.332.021
Other payables to related parties (Note 18)	229.758.036	2.355.735

Total	236.101.052	46.981.112

(*) As of December 31, 2023, 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 December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Other payables to related parties (Note 18)	345.099.235	296.614.607
Total	345.099.235	296.614.607

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

9. Inventories

The details of inventories as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023

Ataköy Nef 22 independent sections (*)	295.960.137	315.270.575
Land shares of Ataköy Project (**)	97.807.365	97.807.365
Housing of Sultan Makamı (***)	57.169.310	57.169.310

Inventories, gross	450.936.812	470.247.250

Ataköy Nef 22 independent sections (-) (*)	(37.871.878)	(28.184.581)
Land shares of Ataköy Project (-) (**)	(24.450.985)	(15.361.925)

Impairment (-)	(62.322.863)	(43.546.506)

Inventories, net	388.613.949	426.700.744

(*) With the protocol signed between the Company and Timur Gayrimenkul on December 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 December 31, 2024, there are 4 workplaces, 4 warehouse workplaces and 2 mezzanine-floor warehouse workplaces (December 31, 2023: 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 December 31, 2024, the land shares of 5 commercial areas that were not delivered are included in the inventories (December 31, 2023: 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. (December 31, 2023: An independent section).

Movement of inventories for the periods ended December 31, 2024 and 2023 are as follows:

	2024	2023
January 1 Sales of inventories (Note 19) Transfer to investment properties Impairment (-) (Note 21b) Impairment reversal (Note 21a)	426.700.744 (19.310.438) - (20.482.007) 1.705.650	488.093.753 (28.950.505) (33.783.527) (40.191.064) 41.532.087
December 31	388.613.949	426.700.744

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

10. Prepaid expenses and contract liabilities

a) Short-term prepaid expenses

The details of short-term prepaid expenses as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Advances given to third parties (*)	228.877.707	36.354.329
Prepaid expenses for next months	1.147.170	9.374.688
Advances given to related parties (Note 18)	609.061.676	520.302.660
Total	839.086.553	566.031.677

(*) As of December 31, 2024, advances given to third parties mainly consist of advances given to Tenet İnşaat Sanayi ve Ticaret A.Ş.

b) Long-term prepaid expenses

The details of long-term prepaid expenses as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Advances given to related parties (Note 18)	-	18.811.982
Total	-	18.811.982

c) Contract liabilities

The details of contract liabilities as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Liabilities from customer contracts	264.358.807	367.430
Total	264.358.807	367.430

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

11. Other assets and liabilities

a) Other current assets

The details of other current assets as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Deferred VAT Personnel and job advances Other	102.618.774 100.000 3.096.899	111.723.505 72.165 4.215.871
Total	105.815.673	116.011.541

b) Other current liabilities

The details of other current liabilities as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Taxes and funds payables	30.226.001	72.941.177
Total	30.226.001	72.941.177

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

12. Investment properties

The details of investment properties as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023

Northgate Hotel - Düsseldorf - Peker GMBH (1)	3.133.965.222	4.044.576.029
Peker Tower Maslak (9)	1.204.024.000	353.301.874
Land - Düsseldorf - Nordstern (2)	775.133.820	1.022.901.496
Land - Solingen - Peker GYO Global (3)	360.382.122	306.870.449
Right of use land	159.046.466	229.630.104
Erft-Lofts Project - Grevenbroich – Bluestone (4)	114.984.306	131.919.020
Ritz Carlton A 95 - Peker GYO (5)	77.236.000	89.515.138
Nef 22 - Peker GYO (6)	66.548.300	73.272.470
Modular villa - Benalmadena - Spain (8)	52.145.809	65.729.269
Single house - Grevenbroich - Peker GMBH (1)	51.614.361	69.369.182
Modular villa - Mijas - Spain (8)	42.891.855	54.416.329
Three Building - Grevenbroich - Peker GYO Global (3)	25.164.297	32.450.668
Kaiserwall - Peker GYO (7)	18.000.738	22.292.198
Total	6.081.137.296	6.496.244.226

(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 2023. 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, 2023, 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, 2023, 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 December 31, 2022 and March 31, 2023, 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, 2024, 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 December 31, 2024, it has been accounted for at fair value.

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

12. Investment properties (cont'd)

Movement of investment properties for the periods ended December 31, 2024 and 2023 are as follows:

	2024	2023

January 1	6.266.614.122	5.995.315.194
Additions	289.624.640	602.850.988
Transfer from inventories (Note 9)	-	33.783.527
Sales of investment properties (Note 19)	-	(1.360.198.400)
Translation differences	(1.396.964.552)	(86.328.750)
Fair value change (Note 21a)	762.816.620	1.081.191.563

December 31	5.922.090.830	6.266.614.122

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 December 31, 2024 and 2023 are as follows:

	2024	2023
January 1 Arrangements	229.630.104 (70.583.638)	378.390.834 (148.760.730)
December 31	159.046.466	229.630.104

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

	December 31, 2024
Name of investment property	Date of appraisal report	Fair value	Currency	Fair value (TL)
Northgate Hotel - Düsseldorf - Peker GMBH	Jan 5, 2025	85.310.000	Euro	3.133.965.222
Peker Tower Maslak	Dec 31, 2024	1.204.024.000	Turkish lira	1.204.024.000
Land - Düsseldorf - Nordstern	Jan 4, 2025	21.100.000	Euro	775.133.820
Land - Solingen - Peker GYO Global	Jan 3, 2025	9.810.000	Euro	360.382.122
Right of use land	-	159.046.466	Turkish lira	159.046.466
Erft-Lofts Project - Grevenbroich – Bluestone	Jan 3, 2025	3.130.000	Euro	114.984.306
Ritz Carlton A 95 - Peker GYO	Dec 31, 2024	77.236.000	Turkish lira	77.236.000
Nef 22 - Peker GYO	Dec 31, 2024	66.548.300	Turkish lira	66.548.300
Modular villa - Benalmadena - Spain	Jan 13, 2025	1.419.467	Euro	52.145.809
Single house - Grevenbroich - Peker GMBH	Jan 2, 2025	1.405.000	Euro	51.614.361
Modular villa - Mijas - Spain	Jan 10, 2025	1.167.564	Euro	42.891.855
Three Building - Grevenbroich - Peker GYO Global	Jan 4, 2025	685.000	Euro	25.164.297
Kaiserwall - Peker GYO	Jan 13, 2025	490.000	Euro	18.000.738

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

12. Investment properties (cont'd)

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	Emsal karşılaştırma
Nef 22 - Peker GYO	Precent comparison, Income discount	Emsal karşılaştırma
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	Emsal karşılaştırma
Kaiserwall - Peker GYO	Cost analysis, Income discount	Income discount
Peker Tower Maslak	Income discount	Income discount

As of December 31, 2023, the fair values of the investment properties are as follows:

	December 31, 2023
	Date of
	appraisal
Name of investment property	report	Fair value	Currency	Fair value (TL)

Northgate Hotel - Düsseldorf - Peker GMBH	Dec 14, 2023	86.000.000	Euro	4.044.576.029
Peker Tower Maslak	Dec 12, 2023	21.750.000	Euro	1.022.901.496
Land - Düsseldorf - Nordstern	-	353.301.874	Turkish lira	353.301.874
Land - Solingen - Peker GYO Global	Dec 14, 2023	6.525.000	Euro	306.870.449
Right of use land	-	229.630.104	Turkish lira	229.630.104
Erft-Lofts Project - Grevenbroich – Bluestone	Dec 14, 2023	2.805.000	Euro	131.919.020
Ritz Carlton A 95 - Peker GYO	Jan 8, 2024	62.000.000	Turkish lira	89.515.138
Nef 22 - Peker GYO	Jan 8, 2024	50.750.000	Turkish lira	73.272.470
Modular villa - Benalmadena - Spain	Dec 14, 2023	1.475.000	Euro	69.369.182
Single house - Grevenbroich - Peker GMBH	Jan 15, 2024	1.397.604	Euro	65.729.269
Modular villa - Mijas - Spain	Jan 16, 2024	1.157.057	Euro	54.416.329
Three Building - Grevenbroich - Peker GYO Global	Dec 14, 2023	690.000	Euro	32.450.668
Kaiserwall - Peker GYO	Dec 31, 2023	474.000	Euro	22.292.198

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	Emsal karşılaştırma
Nef 22 - Peker GYO	Precent comparison, Income discount	Emsal karşılaştırma
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	Emsal karşılaştırma
Kaiserwall - Peker GYO	Cost analysis, Income discount	Income discount

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

12. Investment properties (cont'd)

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

	December 31, 2024	1. level	2. level	3. level

Northgate Hotel - Düsseldorf - Peker GMBH	3.133.965.222	-	3.133.965.222	-
Peker Tower Maslak	1.204.024.000	-	1.204.024.000	-
Land - Düsseldorf - Nordstern	775.133.820	-	775.133.820	-
Land - Solingen - Peker GYO Global	360.382.122	-	360.382.122	-
Erft-Lofts Project - Grevenbroich – Bluestone	114.984.306	-	114.984.306	-
Ritz Carlton A 95 - Peker GYO	77.236.000	-	77.236.000	-
Nef 22 - Peker GYO	66.548.300	-	66.548.300	-
Modular villa - Benalmadena - Spain	52.145.809	-	52.145.809	-
Single house - Grevenbroich - Peker GMBH	51.614.361	-	51.614.361	-
Modular villa - Mijas - Spain	42.891.855	-	42.891.855	-
Three Building - Grevenbroich - Peker GYO Global	25.164.297	-	25.164.297	-
Kaiserwall - Peker GYO	18.000.738	-	-	18.000.738
Total	5.922.090.830	-	5.904.090.092	18.000.738

As of December 31, 2023 the fair values classification of the investment properties are as follows:

	December 31, 2023	1. level	2. level	3. level

Northgate Hotel - Düsseldorf - Peker GMBH	4.044.576.029	-	4.044.576.029	-
Land - Düsseldorf - Nordstern	1.022.901.496	-	1.022.901.496	-
Land - Solingen - Peker GYO Global	306.870.449	-	306.870.449	-
Erft-Lofts Project - Grevenbroich – Bluestone	131.919.020	-	131.919.020	-
Ritz Carlton A 95 - Peker GYO	89.515.138	-	89.515.138	-
Nef 22 - Peker GYO	73.272.470	-	73.272.470	-
Modular villa - Benalmadena - Spain	69.369.182	-	69.369.182	-
Single house - Grevenbroich - Peker GMBH	65.729.269	-	65.729.269	-
Modular villa - Mijas - Spain	54.416.329	-	54.416.329	-
Three Building - Grevenbroich - Peker GYO Global	32.450.668	-	32.450.668	-
Kaiserwall - Peker GYO	22.292.198	-	-	22.292.198

Total	5.913.312.248	-	5.891.020.050	22.292.198

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

13. Property, plant and equipment

Movement of property, plant and equipment and accumulated depreciation for the periods ended December 31, 2024 and 2023 are as follows:

	January 1, 2024	Addition	Disposal	Transfer	Translation difference	December 31, 2024

Cost: Vehicles	95.470.600	33.174.844	(32.581.773)	54.712	(2.791.151)	93.327.232
Furniture and fixtures	20.189.710	672.438	-	-	(4.014.761)	16.847.387
Leasehold improvements	-	85.127	-	-	-	85.127
Advances given	-	54.712	-	(54.712)	-	-

Total	115.660.310	33.987.121	(32.581.773)	-	(6.805.912)	110.259.746

Accumulated
depreciation (-): Vehicles	32.352.692	17.050.611	(14.869.947)	-	(445.140)	34.088.216
Furniture and fixtures	4.497.505	1.866.853	-	-	(1.196.085)	5.168.273
Leasehold improvements	-	12.769	-	-	-	12.769

Total	36.850.197	18.930.233	(14.869.947)	-	(1.641.225)	39.269.258

Book value	78.810.113					70.990.488

	January 1,				Translation	December 31,
	2023	Addition	Disposal		difference	2023

Cost:
Vehicles Furniture and fixtures	78.867.634 16.536.361	16.710.773 3.081.054		- -	(107.807) 572.295	95.470.600 20.189.710

Total	95.403.995	19.791.827		-	464.488	115.660.310

Accumulated
depreciation (-):
Vehicles	20.381.627	11.988.256		-	(17.191)	32.352.692
Furniture and fixtures	2.091.856	1.958.173		-	447.476	4.497.505
Total	22.473.483	13.946.429		-	430.285	36.850.197

Book value	72.930.512					78.810.113

As of December 31, 2024 and 2023, there are pledges on vehicles amounting to 7.178.085 Turkish liras and 7.001.525 Turkish liras (Note 14).

As of December 31, 2024 and 2023 there are no property, plant and equipment acquired through financial leasing.

As of December 31, 2024 and 2023 there is no capitalized borrowing cost.

For the periods ended December 31, 2024 and 2023, depreciation expenses are included in general administrative expenses (Note 20b).

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

14. Provisions, commitments and contingencies

a) Provisions

As of December 31, 2024 and 2023, 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 December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Letter of guarantees taken - Turkish lira - US dollar	2.060.200 68.115.909	2.974.500 82.192.950
Total	70.176.109	85.167.450

As of December 31, 2024 and 2023, 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 December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023

A. Total amount of guarantees provided by the Company
on behalf of itself (*)	323.628.085	252.494.305
B. Total amount for guarantees provided on behalf of
subsidiaries accounted under full consolidation method (**)	2.636.155.912	3.374.826.280
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	2.959.783.997	3.627.320.585

^(*) As of December 31, 2024, 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 "sale-leaseback" and bank loans. As of December 31, 2023, 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 December 31, 2024 and December 31, 2023, 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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

15. Shareholders's equity

a) Paid-in capital

The details of paid-in capital as of December 31, 2024 and 2023 are as follows:

	December 31, 2024			December 31, 2023
Name of shareholder	Share (%)	Amount	Share (%)	Amount

Hasan Peker	31,26	781.406.458	39,17	262.364.967
Public shares	68,74	1.718.593.542	60,83	407.468.780

Total	100	2.500.000.000	100	669.833.747
Inflation adjustment to share capital		1.543.682.315		2.877.613.563
Total		4.043.682.315		3.547.447.310

As of December 31, 2024, the Company's share capital consists of 2.500.000.000 units of shares with the nominal value of Turkish lira 1 (December 31, 2023: 669.833.747 units of shares)

		December 31, 2024		December 31, 2023
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	42.166.667 220.198.300 407.468.780	42.166.667 220.198.300 407.468.780	A B B	Registered Bearer Bearer
Total	2.500.000.000	2.500.000.000	669.833.747	669.833.747

Shares are divided into groups A and B, and group A shares are privileged. The nominal amount of the privileged shares is amounting to 157.377.360 Turkish liras. Group A shares have the privilege to nominate candidates in the election of the members of the Board of Directors. If the Board of Directors consists of 5 members, 3 of them, in case of 6 or 7 members, 4 of them are selected by the General Assembly from among the candidates nominated by the group A shareholders.

The management control of the Company belongs to group A shareholders, and this control is achieved by owning the majority of the privileges granted to the shares.

The Issuance Certificate regarding the shares with a nominal value of TL 1.830.166.253,01 to be issued within the scope of increasing the Company's issued capital of TL 669.833.746,99 to TL 2.500.000.000, within the registered capital ceiling of TL 15.000.000.000, and the amendment to article 8 titled "Capital and Shares" in our Articles of Association were approved in the meeting of the Capital Markets Board dated November 28, 2024 and numbered 61/1749. The starting date of the right to receive bonus shares for the shares with a nominal value of TL 1.830.166.253,01 has been determined as December 9, 2024. The increased capital was registered by the Istanbul Trade Registry Directorate on December 17, 2024, and announced in the Turkish Trade Registry Gazette numbered 11230.

b) Treasury shares

It consists of the shares repurchased by the Company within the scope of liquidity provider transactions carried out within the framework of CMB legislation. The repurchased shares of the Company are traded at Borsa Istanbul at market prices on the date of the transaction; it is accounted for in the "Treasury shares" accounts, including the parts of the repurchased shares that exceed their nominal value.

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

15. Shareholders's equity (cont'd)

b) Treasury shares (cont'd)

In accordance with the decision of the board of directors dated March 12, 2024, the Company has initiated a program to buy back 25.000.000 shares with a nominal value of 25.000.000 Turkish liras between March 12, 2024 and March 11, 2025. The company has repurchased 25.000.000 shares as of the balance sheet date. On July 10, 2024, the Company sold all its treasury shares at an average price of 9.8260 Turkish liras. As of September 30, 2024, the Company has no treasury shares.

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.

December 31, 2024, the total amount of legal reserves is 267.409.110 Turkish liras (December 31, 2023: 166.395.165 Turkish liras).

It was published in the Official Gazette dated 30 December 2023 and numbered 32415 (Second Extraordinary) pursuant to the Tax Procedure Law. According to the relevant Communiqué, the balance sheet dated December 31, 2024, 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 December 31, 2024. 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:

	December 31, 2024
	Inflation adjustment to		Restricted
	share capital	Share premium	reserves
According to TAS/ TFRS	1.543.682.315	22.742	267.409.110
According to Tax Procedure Law	1.749.353.973	23.353	239.357.635
Differences	205.671.658	611	(28.051.475)

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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.

	December 31, 2024	December 31, 2023
Profit for the year Weighted average number of ordinary shares with	105.822.505	1.555.627.141
nominal value	739.840.106	739.840.106
Earnings per share	,14	2,10

17. Taxation

Corporate tax

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.

The effective tax rate applied in the period ending on December 31, 2024 is 15.825% in Germany and 15% in Spain (December 31, 2023: 15.825% in Germany and 15% in Spain).

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

17. Taxation (cont'd)

Deferred tax

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. These differences consist of fair value differences related to investment properties and short-term financial investments.

		December 31, 2024		December 31, 2023
	Cumulative	Deferred tax	Cumulative	Deferred tax
	temporary	assets/	temporary	assets/
	differences	(liabilities)	differences	(liabilities)

Investment properties	2.294.042.927	(448.779.287)	1.665.553.461	(263.227.783)
Inventories	128.118.505	(38.435.552)	-	-
Financial investments	3.535.261	(559.455)	-	-
Lease liabilities	(348.316.917)	87.099.301	-	-
Advances given	(74.321.643)	22.296.493	-	-
Commercial paper	(61.962.350)	18.588.705	-	-
Bank loans	(26.102.387)	7.830.716	-	-
Liabilities from customer contracts	(14.764.479)	4.429.344	-	-
Retirement payment liability	(789.220)	236.766	-	-
Property, plant and equipment	(673.517)	202.055	-	-
Prepaid expenses	(187.892)	56.368	-	-
Unused vacation liability	(106.711)	32.013	-	-
Deferred tax asset/ (liability), net		(347.002.533)		(263.227.783)

Movement of deferred tax for the periods ended December 31, 2024 and 2023 are as follows:

	2024	2023
January 1 Deferred tax income recognized in statement of profit or loss Deferred tax income recognized directly in the equity Translation differences	(263.227.783) (165.027.333) 341.702 80.910.881	(148.738.721) (172.964.266) - 58.475.204
December 31	(347.002.533)	(263.227.783)

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

18. Related parties

a) Short-term trade receivables

The details of short-term trade receivables from related parties as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023

Peker Holding GMBH (*)	167.457.399	213.342.203
Peker Port GMBH	393.445	167.897
Pollux Construction GMBH	393.445	167.897
PekFor 95 GMBH	393.445	167.897
Peker Investment GMBH	393.445	167.897

Total	169.031.179	214.013.791

^(*) As of December 31, 2024, 146,582,550 Turkish lira of short-term trade receivables from Peker Holding GMBH consists of the sale of 9% of the shares of Nordstern Dusseldorf GMBH, operating in Germany, to Peker Holding GMBH on December 28, 2023.

b) Short-term other receivables

The details of short-term other receivables from related parties as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Hasan Peker Peker Investment GMBH Peker Holding GMBH	5.151.090 831.259 -	4.326.166 38.878 236.874
Total	5.982.349	4.601.918

c) Short-term prepaid expenses

The details of short-term prepaid expenses to related parties as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Marbella Lifestyle Investment SL (*) Pollux Construction GMBH	408.886.122 200.175.554	392.592.821 127.709.839
Total	609.061.676	520.302.660

^(*) 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, 2023: 8.500.00 euros)

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

18. Related parties (cont'd)

d) Long-term prepaid expenses

The details of long-term prepaid expenses to related parties as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Marbella Lifestyle Investment SL	-	18.811.982
Total	-	18.811.982

e) Short-term trade payables

The details of short-term trade payables to related parties as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023

Peker Port GMBH	3.527.318	-
Peker Management GMBH	2.713.158	1.387.097
Pollux Construction GMBH	437.949	-
Peker Holding A.Ş.	57.790	31.704

Total	6.736.215	1.418.801

f) Short-term other payables

The details of short-term other payables to related parties as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023

Hasan Peker	156.000.250	-
Peker Holding A.Ş.	73.202.221	2.355.735
Peker Management GMBH	555.565	-

Total	229.758.036	2.355.735

g) Long-term other payables

The details of long-term other payables to related parties as of December 31, 2024 and 2023 are as follows:

	December 31, 2024	December 31, 2023
Peker Holding A.Ş. Peker Holding Ltd.	343.706.522 1.392.713	294.939.310 1.675.297
Total	345.099.235	296.614.607

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

18. Related parties (cont'd)

i) Benefits of the key management

The key management of the Group consists of the Board of Directors, General Manager and Directors. For the period ended December 31, 2024 and 2023, the total compensation consisting of short term benefits such as salaries and rental of car.

	January 1 - December 31, 2024	January 1 - December 31, 2023
Benefits of the key management	24.546.478	34.198.674
Total	24.546.478	34.198.674

19. Sales and cost of sales

For the periods ended December 31, 2024 and 2023, the details of sales and cost of sales are as follows:

	January 1 -	January 1 -
	December 31, 2024	December 31, 2023

Domestic sales (*)	14.428.532	1.161.484.335
Export sales (**)	-	77.981.516
Rent income	126.964.264	54.701.139

Net sales	141.392.796	1.294.166.990

Cost of domestic sales (-) (Note 9-12)	(19.310.438)	(1.318.124.962)
Cost of export sales (-) (Note 9-12)	-	(71.023.942)
Other (-)	(6.178.165)	(2.872.135)

Cost of sales (-)	(25.488.603)	(1.392.021.039)

Gross profit/ (loss)	115.904.193	(97.854.049)

(*) For the period ended December 31, 2024, sales consist of sales of workplace in Ataköy NEF 22. For the period ended December 31, 2023, 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 December 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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

20. Marketing and general administrative expenses

a) Marketing expenses

For the periods ended December 31, 2024 and 2023, the details of marketing expenses are as follows:

	January 1 - December 31, 2024	January 1 - December 31, 2023
Sponsorship expenses	13.193.994	-
Total	13.193.994	-

b) General administrative expenses

For the periods ended December 31, 2024 and 2023, the details of general administrative expenses are as follows:

	January 1 -	January 1 -
	December 31, 2024	December 31, 2023

Personnel expenses	49.962.735	58.896.738
Consultancy expenses	32.743.012	29.964.933
Taxes, duties and other charges	30.843.925	13.535.739
Rent expenses	19.726.599	15.282.604
Amortization and depreciation expenses (Note 13)	18.930.233	13.946.429
Insurance expenses	7.429.602	4.091.655
Travel and accommodation expenses	6.790.396	5.608.015
Maintenance and repair expenses	3.231.179	2.984.783
Travel expenses	3.081.620	3.881.155
Outsourced benefits and services	2.383.217	7.134.021
Donations and grants (*)	128.395	6.289.470
Other (**)	17.988.126	11.555.085

Total	193.239.039	173.170.627

(*) For the period ended December 31, 2023, donations and grants mainly consist of donations related to Kahramanmaraş-centered earthquake on February 6, 2023.

(**) For the period ended December 31, 2024, other expenses mainly consist of capital market transaction expenses.

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

21. Other income and expenses from operating activities

a) Other income from operating activities

For the periods ended December 31, 2024 and 2023, the details of other income from operating activities are as follows:

	January 1 -	January 1 -
	December 31, 2024	December 31, 2023

Fair value differences of investment properties (Note
12)	790.481.219	1.095.330.491
Foreign exchange gains	472.195.602	728.806.410
Taxes, duties and other charges refunds	3.886.563	4.962.171
Provision no longer required (Note 9)	1.705.650	41.532.087
Late interest income (*)	-	31.779.351
Other	5.832.785	5.914.577

Total	1.274.101.819	1.908.325.087

(*) For the period ended December 31, 2023, 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 December 31, 2024 and 2023, the details of other expenses from operating activities are as follows:

	January 1 - December 31, 2024	January 1 - December 31, 2023
Foreign exchange loss Fair value differences of investment properties (Note	289.853.634	137.283.325
12)	27.664.599	14.138.928
Provision for impairment on inventories (Note 9)	20.482.007	40.191.064
Taxes, duties and other charges	2.714.382	1.714.257
Insurance compensation expenses	303.754	-
Other	618.758	1.161.574

Total	341.637.134	194.489.148

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

22. Income and expenses from investing activities

a) Income from investing activities

For the periods ended December 31, 2024 and 2023, the details of income from investing activities are as follows:

	January 1 -	January 1 -
	December 31, 2024	December 31, 2023

Profit from sales of funds (Note 5a)	36.197.524	129.627
Profit from sales of stocks (Note 5a)	25.992.492	-
Fair value gain of foreign funds (Note 5a)	3.535.261	-
Interest income from funds	72.527	-
Fair value gain of stocks (Note 5a)	21.645	403.829
Profit from sales of subsidiaries	-	755.535.124

Total	65.819.449	756.068.580

b) Expense from investing activities

For the periods ended December 31, 2024 and 2023, the details of expense from investing activities are as follows:

	January 1 - December 31, 2024	January 1 - December 31, 2023
Loss from sales of funds (Note 5a) Fair value loss of stocks (Note 5a) Loss from sales of property plant and equipment	26.924.930 11.524.466 1.059.661	- 328.871 -
Total	39.509.057	328.871

23. Income and expenses from financing activities

a) Income from financing activities

For the periods ended December 31, 2024 and 2023, the details of income from financing activities are as follows:

	January 1 - December 31, 2024	January 1 - December 31, 2023
Interest income from time deposits Late interest income Interest income from group companies Other	3.708.788 - 2.666 213.090	3.480.506 2.302.811 251.231 3.218.580
Total	3.924.544	9.253.128

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

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

b) Expense from financing activities

For the periods ended December 31, 2024 and 2023, the details of expense from financing activities are as follows:

	January 1 -	January 1 -
	December 31, 2024	December 31, 2023

Interest and comission expenses related to loans	174.981.577	74.702.038
Interest expenses related to commerical papers (Note
6)	118.349.277	-
Late interest expenses	93.055.410	81.111.217
Interest and comission expenses related to lease
liabilities (Note 6)	36.978.649	7.168.784
Interest expenses related to lease liabilities (Note 6)	35.666.296	53.040.561
Interest expense related to group companies	3.327.391	2.073.050
Bank comission expenses	1.845.438	2.084.757
Taxes, duties and other charges	850.519	93.598
Interest expenses related to retirement payment liability	109.600	231.382
Other	553.333	2.222.976
Total	465.717.490	222.728.363

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:

	December 31, 2024	December 31, 2023

Financial liabilities	3.330.246.942	3.633.699.964
Less: Cash and cash equivalents	(53.900.159)	(83.881.089)

Net financial debt	3.276.346.783	3.549.818.875

Total equity	3.385.063.599	4.676.398.806

Net financial debt/ Total equity ratio	0,97	0,76

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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
December 31, 2024	Trade receivables	Trade receivables	Bank deposits	Financial investments
Maximum net credit risk as of balance sheet date (A+B+C+D+E) (*)	474.198.796	19.338.016	53.893.208	47.214.950
- The part of maximum risk under guarantee with collateral	-	-	-	-
A. Net book value of financial assets that are neither overdue nor impaired	474.198.796	19.338.016	53.893.208	47.214.950
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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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, 2023	receivables	receivables	deposits	investments
Maximum net credit risk as of balance sheet date (A+B+C+D+E) (*)	1.233.304.820	11.573.603	83.875.964	134.459.984
- The part of maximum risk under guarantee with collateral	-	-	-	-
A. Net book value of financial assets that are neither overdue nor impaired	1.233.304.820	11.573.603	83.875.964	134.459.984
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 December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024 and 2023 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
December 31, 2024	Carrying value	(I+II+III)	months (I)	months (II)	years (III)	years (IV)
Non derivative financial liabilities
Bank loans	2.452.681.905	2.530.221.127	270.617.350	634.892.439	1.624.711.338	-
Commercial paper	502.054.600	539.164.384	427.082.192	112.082.192	-	-
Lease liabilities	375.510.437	788.900.367	13.342.758	33.188.656	88.880.695	653.488.258
Trade payables	137.852.602	137.852.602	112.753.947	25.098.655	-	-
Other payables	581.200.287	581.200.287	6.343.016	229.758.036	345.099.235	-
Total liabilities	4.049.299.831	4.577.338.767	830.139.263	1.035.019.978	2.058.691.268	653.488.258
		Total cash outflow
		according to contract	Less than 3	3-12	1-5	More than 5
December 31, 2023	Carrying value	(I+II+III)	months (I)	months (II)	years (III)	years (IV)
Non derivative financial

liabilities
Bank loans	3.096.360.915	3.127.265.446	31.894.784	195.847.496	2.899.523.166	-
Lease liabilities	537.339.049	1.210.049.257	16.563.640	54.477.154	152.033.432	986.975.031
Trade payables	174.375.835	174.375.835	146.445.480	27.930.355	-	-
Other payables	343.595.719	343.595.719	44.625.377	2.355.735	296.614.607	-
Total liabilities	4.151.671.518	4.855.286.257	239.529.281	280.610.740	3.348.171.205	986.975.031

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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 December 31, 2024 and 2023 interest rate table of financial instruments is as follow:

	December 31, 2024	December 31, 2023
Fixed interest rate financial assets Time deposits (Note 4)	1.811.147	798.684
Fixed interest rate financial liabilities
Bank loans (Note 6)	2.405.166.160	2.945.082.256
Commercial paper (Note 6)	394.153.864	-
Lease liabilities (Note 6)	375.510.437	537.339.049
Floating interest rate financial liabilities
Bank loans (Note 6)	47.515.745	151.278.659
Commercial paper (Note 6)	107.900.736	-

b.4) Foreign currency risk

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

As of December 31, 2024 and 2023 details of foreign currency positions of assets and liabilities of the Group are as follows:

	Current 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. Current liabilities (8+9)	(4.578.817)	-	(124.618)	-
11. Other payables	(927.316.769)	-	(25.237.985)	-
12. Non-current liabilities (11)	(927.316.769)	-	(25.237.985)	-
13. Total liabilities (10+12)	(931.895.586)	-	(25.362.603)	-
14. Net foreign currency (liability)/ asset (7+13)	1.310.326.640	26.930	34.355.667	1.063.310

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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, 2023
Foreign exchange position	TL equivalent	USD	EUR	GBP
1. Monetary financial assets	1.580.383	5.503	16.197	10.816
2. Trade receivables	1.208.680.038	-	24.500.000	1.044.177
3. Other receivables	99.791	-	-	1.846
4. Current assets (1+2+3)	1.210.360.212	5.503	24.516.197	1.056.839
5. Other receivables	1.717.811.184	-	36.525.896	-
6. Non-current assets (5)	1.717.811.184	-	36.525.896	-
7. Total assets (4+6)	2.928.171.396	5.503	61.042.093	1.056.839
8. Trade payables	(446.691)	-	(9.498)	-
9. Other payables	(1.167.016.606)	-	(24.814.326)	-
10. Current liabilities (8+9)	(1.167.463.297)	-	(24.823.824)	-
11. Total liabilities (10)	(1.167.463.297)	-	(24.823.824)	-
12. Net foreign currency (liability)/ asset (7+11)	1.760.708.099	5.503	36.218.269	1.056.839

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 December 31, 2024 and 2023, 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	December 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)

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 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	December 31, 2023
	Profit/ (loss)
	Appreciation of foreign Depreciation of foreign
	currency	currency
US dollar against Turkish lira by 10%
1- US dollar denominated net assets/ (liabilities)	23.389	(23.389)
2- Hedged amount against US dollar risk (-)	-	-
3- Net effect of USD (1+2)	23.389	(23.389)
EUR against Turkish lira by 10%
4- EUR denominated net assets/ (liabilities)	170.334.356	(170.334.356)
5- Hedged amount against EUR risk (-)	-	-
6- Net effect of EUR (4+5)	170.334.356	(170.334.356)
GBP against Turkish lira by 10%
7- GBP denominated net assets/ (liabilities)	5.713.065	(5.713.065)
8- Hedged amount against GBP risk (-)	-	-
9- Net effect of GBP (7+8)	5.713.065	(5.713.065)
Total (3+6+9)	176.070.810	(176.070.810)

25. Subsequent events

On January 8, 2025, the Company issued a commerical paper with the ISIN code TRFPEGY72515, a simple interest rate of 54,00% per year, a compound interest rate of 61,41%, a nominal amount of 513.000.000 Turkish liras, a maturity date of July 7, 2025, without coupon payments, to a qualified investor through sales.

The commercial paper issued by the Company on September 18, 2024 with the ISIN code TRFPEGY12511, a simple interest rate of 59.00% per year, a compound interest rate of 70,71%, a nominal amount of 315.000.000 Turkish liras, was redeemed on January 28, 2025.

The Company made a coupon interest payment of 13.864.400 Turkish liras on January 30, 2025 for the commercial paper issued on November 1, 2024 with the ISIN code TRFPEGY42518, BIST TL REF + 5% interest rate, 100.000.000 Turkish lira nominal amount, with coupon interest payments every 3 months.

The plan amendment prepared for the Erft Loft project, a project of the Company's subsidiary Blue Stone Investment GMBH in the city of Grevenbroich in the North Rhine-Westphalia region of Germany, was approved and finalized by the relevant municipal council. The projected revenue within the scope of the project, which includes 90 apartments, 1 commercial unit and parking areas within a construction area of 12.400 m² , is 55.000.000 euros.

Construction permits for the projects initiated with the modular system on two plots of land in Benalmadena/ Malaga and Mijas/ Malaga regions of Spain, which are affiliated with Peker GYO Spain SL, have been obtained and the construction processes have been completed simultaneously. It is anticipated that the construction period will be shortened thanks to the modular system and the return on equity will be significantly increased with the construction time saved. The real estates in question have been offered for sale for 1.575.000 euros and 1.295.000 euros, respectively, and bids are being collected for the relevant real estate.

The Company has applied to the CMB to increase its issued capital of 2.500.000.000 Turkish liras by 2.500.000.000 Turkish liras in cash, to 5.000.000.000 Turkish liras, based on the decision of the board of directors dated January 16, 2025.

On January 31, 2025, the Company sold the independent section numbered C4/D3 located in Sultan Makamı Residences for 89.463.500 Turkish liras in cash, including VAT.

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

(Amounts expressed in Turkish lira ("TL") in terms of purchasing power of the TL at December 31, 2024 unless otherwise indicated.)

25. Subsequent events (cont'd)

On February 11, 2025, the Company issued a commercial paper with the ISIN code TRFPEGY82514, with an annual interest rate of 52,00% simple, 58,82% compound, a nominal amount of 150.000.000 Turkish liras, with a maturity date of August 11, 2025 and a coupon payment at the end of the maturity, to a qualified investor.

26. Fees for services received from independent auditor/ independent audit firms

The Group's statement regarding the fees for services provided by independent auditing firms, prepared in accordance with the Board Decision published in the Official Gazette on March 30, 2021 and based on the KGK letter dated August 19, 2021, is as follows:

	January 1 - December 31, 2024	January 1 - December 31, 2023
Audit fees	1.706.264	1.484.762
Total	1.706.264	1.484.762

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

For the period ended December 31, 2024, the details of net monetary position gains/(loses) are as follows:

	January 1 -
	December 31, 2024

Statement of financial position items
Subsidiaries	664.179.558
Advances given	89.123.464
Investment properties	153.516.758
Treasury shares	51.060.631
Inventories	24.464.637
Property, plant and equipment	12.386.368
Prepaid expenses	120.714
Gain/ (loss) arising from defined benefit plans	73.977
Share Premium	(2.097)
Contract liabilities	(15.121.815)
Restricted reserves	(18.059.392)
Paid-in capital	(296.804.571)
Retained earnings	(825.104.053)
Profit or Loss Statement Items
Revenue	(1.314.362)
Cost of sales	327.503
Marketing expenses	2.193.994
General administrative expenses	7.735.057
Other income from operating activities	(64.852.870)
Other expenses from operating activities	29.791.620
Income from investment activities	(10.333.885)
Expenses from investment activities	9.416.426
Finance income	(381.290)
Finance expenses	32.054.898
Net monetary position gains/(losses)	(155.528.730)

AI Terminal

PEKER GAYRİMENKUL YATIRIM ORTAKLIĞI A.Ş.

8857_rns_2025-02-12_67b2cd70-ff80-4b10-bb73-97fc4b5925da.pdf

Peker Gayrimenkul Yatırım Ortaklığı Anonim Şirketi and Its Subsidiaries

Consolidated Statements of Financial Position

Consolidated Statements of Financial Position

Consolidated Statements of Profit or Loss and Other Comprehensive Income For the Period Ended December 31, 2024, and 2023

Consolidated Statements of Changes in Shareholder' Equity

Consolidated Statements of Cash Flows

Notes to the Consolidated Financial Statements

1. Group's organisation and nature of operations

Notes to the Consolidated Financial Statements

As of and for the Period Ended December 31, 2024, and 2023

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

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

Peker GMBH

Blue Stone Investment GMBH

Nordstern Düsseldorf GMBH

Peker GYO Spain SL

Peker GYO Global GMBH

Notes to the Consolidated Financial Statements

2. Basis of presentation of the consolidated financial statements

2.1 Basis of presentation

Financial reporting in hyperinflationary economies

Notes to the Consolidated Financial Statements

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)

Notes to the Consolidated Financial Statements

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

2.1 Basis of presentation (cont'd)

Functional and reporting presentation currency

Going concern

Approval of the consolidated financial statements

Notes to the Consolidated Financial Statements

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

2.2 New and amended standards and interpretations

i) The new standards, amendments and interpretations which are effective as of January 1, 2024 are as follows:

ii) Standards issued but not yet effective and not early adopted

iii) The amendments which are effective immediately upon issuance

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

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

Notes to the Consolidated Financial Statements

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

2.4 Consolidatipn principles

Notes to the Consolidated Financial Statements

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

2.5 Summary of significant accounting policies

Financial instruments

Financial assets

Classification of financial assets

Notes to the Consolidated Financial Statements

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)

(i) Amortized cost and effective interest method

(ii) Financial assets at FVTPL

Equity instruments designated as at FVTOCI

Notes to the Consolidated Financial Statements

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)

Foreign exchange gains and losses

Impairment of financial assets

Notes to the Consolidated Financial Statements

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

Derecognition of financial assets

Financial liabilities

Notes to the Consolidated Financial Statements

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)

Derecognition of financial liabilities

Related parties