Dear Shareholders,

Since the 2008 financial crisis, the world economy had a large-scale recovery for the first time in 2017. In spite of the geopolitical risks in the Middle East and Pacific regions, with regards to global economy, 2017 was a better year than expected. An overall recovery resulting from both the developed and developing countries was realized for the world economy.

While the global economy showed a growth of approximately 3 %, developed countries achieved a growth of 2,3 %, and the developing countries of 4,3 %. As the American economy grew 2,3 %, China grew 6,8 %, the Euro region that for years showed a very low growth performance achieved 2,4 % and Japan grew 1,7 %.

The growth performance of the world economy is expected to continue similarly in 2018. The increase in consumer confidence all over the world will continue to support growth. The rate of unemployment in the US is approaching the employment level as the increase in inflation continues. In parallel to the strong progress in economy, FED, the US Federal Reserve is expected to continue to increase interest rates. On the other hand, in line with the enactment of the tax package, a large part of the funds kept abroad by American companies are expected to return to the country. Under such circumstances, the borrowing possibilities of developing countries from international money markets will decrease and the increase in borrowing costs will be inevitable.

Turkish economy, in line with the world economy, performed above expectations in 2017 and grew about 7 %. While the rate of budget deficit to GNP was realized as 1,5 %, the rate of unemployment continues to be around 10,3 %. The rate of the current accounts deficit, which emerged as a result of the high rate of growth to GNP has risen to 5,5 %. The negative effect of the rise in exchange rates on inflation developed in 2017 and the inflation reached 11,92 % in TÜFE.

Prioritization of structural reforms, initially education and law, is essential to increase Turkey’s international competitive power. If structural reforms are concentrated on, Turkish economy will continue its high performance in 2018 and later. Turkish economy is expected to grow 5 % in 2018.

The construction sector has always been one of the leading sectors of the Turkish economy due to the range of sectors it influences and the high rate of employment potential. In 2017, with the effect of the reduction in VAT rates, housing sales increased around 5 % and reached 1,4 million sales. In line with the increase in housing sales, the increase in real estate property stocks has continued and reached an important amount.

Our company has sold all housing present in its stocks in 2017 and has continued to work on developing new projects. In addition to this, it has continued to achieve rental income from highly prestigious real estate that we added to our portfolio in previous years.

We thank all our employees for their devoted work and you, our valuable Partners who always gave us full support.

We greet your valuable Committee respectfully with these feelings and thoughts and wish for a successful year.

Board of Directors