Akfen Gayrimenkul Yatirim Ortakligi : 01.01.2023 - 31.03.2023First Quarterly Activity Report

CHAPTER 1 / Overview

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Financial Report l 2023 1.Quarter

AKFEN REIT

01	02	03

		Akfen REIT		Financial
Overview	4	Portfolio	15	Development	41
Overview of Akfen REIT	5	Portfolio Table	16	Summary Financial
Vision / Mission	6	Novotel and Ibis H.Istanbul	17	Information	42
Strategy	7	Ibis H. Istanbul Esenyurt	18	Investment Properties	43
Milestones	8	Novotel Istanbul Bosphorus	19	Portfolio Table	43
Developments in 2023 1.Q.	10	Ibis Hotel Tuzla	20	Rental Incomes	44
Developments after the 1st		Ibis Hotel Bursa	21	Total Financial Debt	45
Quarter of 2023	10	Ibis Hotel Alsancak	22	Related Party Balances	45
Organizational Structure	11	Ibis Hotel Eskisehir	23	Affiliate Acquisition	46
Shareholding Structure	12	Ibis Hotel Ankara Airport	24	Kira Gideri	46
Subsidiaries/Affiliates	13	Ibis Hotel Adana	25	Operational and
Operational Map	14	Novotel Trabzon	26	Financial Performance	47
		Novotel and Ibis Hotel Gaziantep 27	Accor Hotels
		Operational Data	48
		Novotel and Ibis Hotel Kayseri	28
		Share Performance	49
		Merit Park Hotel Kyrenia	29
		Portfolio Limitations	50
		Ibis Hotel Moscow	30
		Ibis Hotel Kaliningrad	31
		Ibis Hotel Yaroslavl	32
		Ibis Hotel Samara	33
		Samara Office	34
		Bodrum Loft	35
		Isparta Student Dormitory	36
		Kütahya Student Dormitory	37
		Söğütlüçeşme Project	38
		Yalıkavak Project	39
		Kıyıkışlacık Project	40

Financial Report l 2023 1.Quarter

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	0
CHAPTER 1 / Overview
	1	OVERVIEW
		Overview of Akfen REIT
		Vision / Mission
		Strategy
		Milestones
		Developments in 1st Quarter of 2023
		Developments after the 1st
		Quarter of 2023
		Organizational Structure
		Shareholding Structure
		Subsidiaries/Affiliates
		Operational Map
4	2Financial Report l 023 1.Quarter	AKFEN REIT

CHAPTER 1 / Overview

Overview of Akfen REIT

AKFEN REIT'S

INVESTMENT

PROPERTY PORTFOLIO VALUE IS 10.5 BILLION TL AS OF THE END OF THE 1ST QUARTER OF 2023

With the "Contemporary City Hotels" project that it pioneered in the sector, Akfen REIT has reached a portfolio of 21 hotels, 1 holiday village, 2 student housing and 1 office building in 14 years since 2007. Thus, Akfen REIT has become one of the main hotel investors in Turkey, primarily with its Accor expertise. The company, which started its operations in 1997 as Aksel Tourism Investments and Operations Inc. was transformed into a real estate investment trust in 2006.

Akfen REIT, which went public on 11 May 2011, continues to be traded on Borsa Istanbul Inc. (BIST) with the share code "AKFGY". The actual circulation rate by the end of 2022 is 44.55%. As of the end of the 1st quarter of 2023, the closing price of Akfen REIT shares was 3.49 TL (Closing market value: 4.53 billion TL/USD 234 million). Akfen REIT is currently traded on Stars Market, entered the BIST100 in 2022 and started to be among the 1st group companies of the CMB in 2023.

From Hotel Investments to a Diverse Portfolio

Akfen REIT has developed Novotel and Ibis Hotel branded hotel projects in Turkey and Russia, and has long-term leased 19 hotels, 15 in Turkey and 4 in Russia, to Accor Group, one of the world's largest hotel operators. Akfen REIT's portfolio also includes Merit Park Hotel in the Turkish Republic of Northern Cyprus (TRNC) and Bodrum Loft, a 5-star holiday village in Bodrum. As of 31.03.2023, the total number of rooms in 21 hotels owned by Akfen REIT is 3720.

Apart from its hotel portfolio Akfen REIT has an office building in Russia, two dormitory complex investments in Turkey consisting of 13 blocks, and three ongoing projects: commercial in İstanbul Söğütlüçeşme, villa in Bodrum Yalıkavak and touristic in Milas Kıyıkışlacık. Akfen REIT's total real estate portfolio value reached approximately 600 million Euros as of the end of the first quarter of 2023.

Strategic Partnerships and Long Term Leases

Akfen REIT, which became a strategic partner in 2005 with Accor, one of the world's leading hotel chains, obtains regular and predictable rental income through long-term rental agreements for the 19 hotels it owns in Turkey and Russia.

There is a minimum guarantee requirement for Akfen REIT's rental income in the agreements made with Accor regarding Akfen REIT's hotels. Rental income is determined as the higher of a certain ratio of turnover or adjusted gross profit of the hotel. This sharing, on the one hand, guarantees a minimum income and on the other hand, it has the potential to share the income increase that will be provided by the performance of the hotels. Akfen REIT's 5-star hotel in TRNC is operated by Merit Kıbrıs Tourism Ltd, a subsidiary of Net Holding Inc; Bodrum Loft holiday village is operated by Akfen Turizm; and dormitory complexes are operated by the General Directorate of Credits and Dormitories ("KYK").

Financial Report l 2023 1.Quarter

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