2023
ANNUAL REPORT
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HALK GAYRIMENKUL YATIRIM ORTAKLIGI A.Ş.
01.01.2023 - 31.12.2023 ANNUAL REPORT
TABLE OF CONTENTS
CHAIRMAN'S ASSESSMENT
GENERAL MANAGER'S ASSESSMENT
I- COMPANY PROFILE
- About the Company
- Board of Directors & Senior Management
- Capital and Shareholding Structure of the Company
II- EVALUATION OF THE PERIOD JANUARY 01, 2023 - DECEMBER 31, 2023
- Important Communiqué Publications and Amendments
- Economic and Sectoral Developments
- Financial Performance & 2023 Assessment
III- JANUARY 01, 2023 - DECEMBER 31, 2023 COMPANY ACTIVITIES
- Portfolio Related Studies
- Studies on Financial Structure
- General Assembly, Capital Increase and Articles of Association
- Compliance with Corporate Governance Principles
- Compliance with Sustainability Principles
- Transactions with Related Parties (Commitment Report)
IV- INFORMATION ON ASSETS AND RIGHTS IN THE PORTFOLIO
- Real Estate Table
- Information on Leased Properties
- Company Subsidiaries and Affiliates & Joint Operations
- Money and Capital Market Instruments
- Completed Projects
- Ongoing Projects
- Information on Portfolio Restrictions
V- SHARE PERFORMANCE
VI- RISK MANAGEMENT POLICIES AND INTERNAL CONTROL MECHANISM
VII- SERVICE COMPANIES
VIII- OTHER TOPICS
IX- SIGNIFICANT CHANGES OCCURRED AFTER THE ACCOUNTING PERIOD
Annex 1: Summaries of Current Appraisal Reports Regarding Real Estates
Annex 2: Corporate Governance Principles Compliance Report
This report is prepared in accordance with the Capital Markets Board Communiqués Serial II No:14-1,Serial III No:48-1 and Serial II No: 17-1 and the Communiqué dated August
28, 2012.
Prepared within the framework of the Regulation texts.
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HALK GAYRIMENKUL YATIRIM ORTAKLIGI A.Ş.
01.01.2023 - 31.12.2023 ANNUAL REPORT
CHAIRMAN'S ASSESSMENT
Dear Business Partners,
The year 2023, which is of historical importance for our country as it is the 100th anniversary of the founding of our Republic, has been a year in which the spirit of national unity, solidarity and solidarity was felt intensely. In addition, the tightening economic policies implemented due to the pressure of the inflationary environment at the global level, which affected the entire world economy, especially the economies of developed countries, had a great impact on the construction and real estate sector. Despite these negative effects, investing in real estate, and especially owning a home, is still the most reliable investment instrument in terms of guaranteeing a secure future.
The real estate sector, with its constantly evolving and changing dynamics, is a sector that faces new opportunities every day, touches people by its very nature and needs to be managed with a human- centered approach in every field.
In order for this approach to be applied in the real estate sector, it is important that buildings are designed and constructed with a human-oriented perspective, aiming to improve the quality of life, offering safe solutions, and leaving a livable environment for future generations in accordance with the principles of sustainability.
As Halk REIT, we completed this period, which was quite challenging, with successful results. In the journey we started in 2010 with TL 477 million in equity, we increased the asset size by 15% to 28 billion TL and shareholders' equity by 14.3% to TL 20 billion, by the end of 2023. While maintaining the strong balance sheet structure, we continue to develop projects that will create value with the principle of sustainable growth and profitability.
The company takes firm steps towards becoming one of the leading brands in the real estate sector with the trust it gives to its investors and stakeholders, its sensitivity to people and the environment and its sustainability approach, while contributing to the national economy in every project it realizes.
In this context, we once again proved our innovative and sustainability approach with the "Halk Office Towers" in the Istanbul Finance Center, which is an important indicator of Türkiye's vision in the field of global finance, Evora Izmir, which adds a different breath to Izmir, Dilovası Modern Industrial Estate, which brings a different vision to the industry and industrialists, and Paye Sakarya, a conceptual living project in Sakarya.
I would like to take this opportunity to express our gratitude to all the stakeholders for their trust and support, and to congratulate the Halk REIT employees, who are one of the most important actors in all these achievements.
Sincerely yours,
Ergin KAYA
Chairman
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HALK GAYRIMENKUL YATIRIM ORTAKLIGI A.Ş.
01.01.2023 - 31.12.2023 ANNUAL REPORT
GENERAL MANAGER'S ASSESSMENT
Dear Stakeholders,
The year 2023 has witnessed many important developments all over the world.
In 2023, we experienced one of the greatest sorrows in the history of our country. We once again remember with mercy all our citizens who lost their lives due to the earthquakes that took place in our Southeastern provinces on February 6, and we deeply share the pain of those left behind.
At the same time, we experienced the pride and joy of celebrating together the 100th anniversary of our Republic, which was founded under the leadership of the Great Leader Gazi Mustafa Kemal Atatürk and will exist forever. In the second century of our Republic, we are working non-stop to rise above the level of contemporary civilizations in line with the goal shown by Atatürk, and we continue to serve with the same determination with our love and commitment to our country.
With its productive economy, Türkiye is increasing its competitiveness in the international arena and gaining the confidence of investors. In addition to Istanbul, which is one of the most important centers of the financial world, our developing cities and areas with high economic potential in various regions of Türkiye continue to attract the attention of international investors. In this context, Türkiye's rich cultural heritage, natural beauties and historical texture, as well as the urbanization process supported by innovative and sustainable projects, are attracting international attention. Infrastructure works integrated with advanced technology, environmentally friendly practices and increasing social living spaces further reveal Türkiye's potential.
Despite the uncertainties in the global economy, we firmly believe that our country will offer a safe investment environment with its stable growth model and will continue its development with the vision projects realized in line with the Twelfth Development Plan prepared with the vision of a strong and prosperous Türkiye and the decisive and rapid steps taken by our new economic administration, especially monetary and fiscal policies.
As Halk REIT, we strengthened our business model with our management quality and expert staff in order to realize our sustainable growth target and successfully manage all kinds of fluctuations while leaving behind a year dominated by challenging global conditions. We completed this period, which was also quite challenging for the sector, with successful results. The company announced a net profit of TL 2.58 billion at the end of the year and reached TL 28 billion in assets with TL 20 billion in shareholders' equity, thanks to the contribution of regular rental income, residential and real estate sales throughout the year and the increase in the value of investment properties.
Within the scope of the 2-year lease agreement we signed with the main shareholder Halkbank for Block A in the 46 and 34-storey Halk Office Towers, which we built in the Istanbul Finance Center, the most important project of our country and the Company, which demonstrates the talents and potential of Turkish engineering, we started to generate rental income as of April 2023.
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HALK GAYRIMENKUL YATIRIM ORTAKLIGI A.Ş.
01.01.2023 - 31.12.2023 ANNUAL REPORT
The construction and sales activities of Evora Izmir, which is designed with an innovative architectural style in accordance with the urban life of Izmir, continue. Dilovası Modern Industrial Site, which is in the portfolio of our subsidiary Halk Yapı Projeleri Gelistirme A.Ş., will turn into a center of attraction that will meet the regional needs of our industrialists and support the export capacity of our enterprises. In Adapazarı, we have reached our targeted construction and sales levels in the Paye Sakarya projects, the best concept living project in Sakarya with its horizontal architecture and large landscaping areas, where work has started on an area of 60 decares.
On the one hand, we contribute to the national economy and fulfill our responsibilities to our investors; on the other hand, we demonstrate our sensitivity to the environment, energy efficiency and sustainability in line with "Türkiye's green development revolution" by realizing Leed certified pioneering projects.
With our expertise, experience and know-how, we prioritize developing environmentally friendly projects with the responsibility of leaving a better world to future generations.
We are confident that by maintaining our balanced and stable growth strategy, we will raise the bar higher and higher in the sector. We will continue to evaluate new investment opportunities all around Türkiye, which we believe will add value to our country, with the understanding of "investing in the future".
I would like to express my gratitude to the founder and main shareholder Halkbank, to all my colleagues, business partners, shareholders and stakeholders who have contributed so much.
Sincerely yours,
Erdal BEKİN
General Manager and Board Member
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HALK GAYRIMENKUL YATIRIM ORTAKLIGI A.Ş.
01.01.2023 - 31.12.2023 ANNUAL REPORT
COMPANY PROFILE
1- About the Company
Established in 2010 as a subsidiary of Türkiye Halk Bankası A.Ş. with a total capital of TL 477 million, of which TL 466 million is in kind, Halk Gayrimenkul Yatırım Ortaklığı A.Ş. (Halk REIT) is a company that invests in real estate, real estate projects, real estate based rights and capital market instruments.
The Company observes the regulations of the Capital Markets Board and the relevant legislation in its activities, portfolio investment and management policies and limitations.
Center Address | Barbaros Mah. Begonya Sok. WBC İş Merkezi No: 2h |
Ataşehir / ISTANBUL | |
Telephone Number | 216 600 10 00 |
Fax Number | 216 594 53 72 |
Internet Address | www.halkgyo.com.tr |
KEP Address | halkgyo@hs02.kep.tr |
Trade Registry No. | Istanbul / 751122 |
Mersis No: | 0456046607600015 |
VISION
Protects the rights of its stakeholders by creating a transparent management structure,
To be one of the leading institutions in the REIT sector, always preferred by investors...
MISSION
Creating continuous added value for all stakeholders, Contributing to the development of
the REIT sector
and global
to become a respected institution of scale...
STRATEGY
Developing the real estate portfolio with an emphasis on commercial properties that can generate high rental income,
To offer high returns to its shareholders through an equity-weighted financing model...
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HALK GAYRIMENKUL YATIRIM ORTAKLIGI A.Ş.
01.01.2023 - 31.12.2023 ANNUAL REPORT
Short History
2010-2011 October 2010 Organization
April 2011
Beyoğlu building's portfolio participation, development and sale in September 2011 with a profit of 18.5 million TL
September 2011
Addition of Bakırköy land to the portfolio
December 2011
Purchase of the Halkbank Finance Tower building in the project phase
Reception of
- Making a net profit of 30 million TL in the first fiscal year (2011) with the contribution of real estate sales to profitability...
2012 January 2012
Addition of Eskişehir land to the portfolio
February 2012
Tender of Bakirköy land with a minimum net guaranteed income of TL 90.5 million
April 2012
The signing of the 10-year lease agreement for the Levent hotel building with Dedeman Group
September 2012
Addition of Kocaeli Şekerpınar land to the portfolio
September 2012 Moving the General Directorate of the Company to the Şerifali region
2013 January 2013
Start of Levent Hotel project
January 2013
Start of excavation and shoring works of IUFM project tendered to Akdeniz Insaat by Emlak Konut REIT in November 2012
February 2013
Completion of the public offering and TL 250 million in proceeds from the public offering
April 2013
Commencement of Eskişehir Panorama Plus residential project
August 2013
Obtaining the building permit license of Şekerpınar Bankacılık Merkezi and starting its construction
December 2013
The sale of the Karsiyaka building with a value of TL 18 million and a profit of approximately TL 9 million from the sales process
2014 January 2014
Starting title deed transfer procedures to buyers in Referans Bakırköy project
March 2014
Obtaining the construction license for Halk Ofis Şekerpınar
September 2014
Establishing an joint venture with Vakıf REIT to develop a residential project in Sancaktepe, Istanbul
October 2014
Purchase of land for 110 million TL in the name of joint venture within the scope of the planned residential project
December 2014
EIA decision for IFC Halk Office Towers project
2015
March 2015
Conversion of the Salıpazarı Building into a hotel project and lease for 20 years
June 2015
Obtaining construction permits for IUFM Halk Office Towers project
July 2015
Levent Hotel project completion and handover to the Dedeman Group, the hotel started to serve
September 2015 Commencement of title deed transfer procedures to buyers in the Panorama Plus project
November 2015
Commencement of construction and sales of Bizimtepe Aydos Residential Project realized in partnership with Vakıf
REIT
December 2015
Lease of Şekerpınar
Banking Center to
Halkbank
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HALK GAYRIMENKUL YATIRIM ORTAKLIGI A.Ş.
01.01.2023 - 31.12.2023 ANNUAL REPORT
2016 April 2016
Addition of Erzurum land to the portfolio and establishment of an joint venture with Er Konut A.Ş. to develop a residential project
May 2016
Starting the construction and sales of the Şehristan Konutları project jointly realized with Er Konut A.Ş
June 2016
Initiation of the tender process for the selection of the main contractor for the IUFM Halk Office Towers project
November 2016
For the Caddebostan Building, which has entered the urban transformation process
a selection of the contractor company
December 2016
Initiating the lease/sale process for Halk Ofis Şekerpınar
December 2016
Completion of main contractor selection process of IUFM Halk Office Towers project, signing of the contract with YDA Insaat Sanayi ve Ticaret A.Ş. and commencement of project construction
2017 January 2017
Obtaining the renovation license for the Salıpazarı Hotel Project
May 2017
Selection of a consultant firm for the marketing process of Halk Ofis Şekerpınar building
July 2017
The company is in the category of "investable"
as it has been graded as the Long Term National Grade; Determination of (TR) AA-, Short-Term National Grade (TR) A1+
August 2017
Establishment of an joint venture with Teknik Yapı for Evora İzmir Project
October 2017
First issue of 100 million TL financing bond
November 2017
The company's inclusion in the BIST Dividend Index with 9.24 corporate management notes
December 2017
Realization of "Türkiye's first REIT Sukuk issuance"
2018 March 2018
Signing a contract with Buga Otis Asansör Sanayi ve Ticaret A.Ş. within the scope of vertical transportation works (elevator and escalator) service procurement of IUFM Halk Office Towers project
June 2018
Opening of the Salıpazarı Hotel Building
July 2018 Confirmation of the company's Long-Term National Grade (TR) AA-, Short-Term National Grade (TR) A1+ by being graded in the category of "investable"
September 2018
Obtaining the building license for the first 451 independent units of the Evora Izmir project and the start of pre-sales
September 2018
Obtaining the building license for 321 more independent sections of the Evora Izmir project
November 2018 Increasing the Corporate Governance Rating of the company, which is determined as 9.24, to 9.27 with the review
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HALK GAYRIMENKUL YATIRIM ORTAKLIGI A.Ş.
01.01.2023 - 31.12.2023 ANNUAL REPORT
2019 February 2019
Lease of Bahçelievler 2 Building in the portfolio to Ipekyol Giyim A.Ş.
July 2019
Confirmation of the company's Long-Term National Grade (TR) AA-, Short-Term National Grade (TR) A1+ by being graded in the category of "investable"
September 2019
Signing a contract for the transfer of Şehristan Konutları Project and the purchase of land for 29 million TL in return
November 2019 Increasing the Corporate Governance Rating of the company, which is determined as 9.27, to 9.31 with the review
2020 July 2020
Confirmation of the company's Long-Term National Grade (TR) AA-, Short-Term National Grade (TR) A1+ by being graded in the category of "investable"
October 2020
Leasing of the Beyoğlu Building in the portfolio to Taksim Yatirim Gayrimenkul A.Ş.
November 2020 Updating the Corporate Governance Rating of the company, which is determined as 9.31, to 9.29
December 2020
Establishment of a company with share capital of 15.000.000.-TL with the title Halk Yapı Projeleri Gelistirme A.Ş. to operate in the field of real estate development
December 2020
Sale of the Nisantasi Building in the company's portfolio to the company's subsidiary Halk Yapı Gelistirme A.Ş.
2021 February 2021
Determination of the Corporate Governance Rating of the company as 9.22
February 2021
The signing of revenue sharing agreement for "Dilovası Industrial Project" between Halk Yapı Projeleri Geliştirme A.Ş., which is 100% subsidiary of the company, and Marmara Metal Mamulleri Ticaret A.Ş.
April 2021
By rating the company in the category of "investable"; Determination of the Long-Term National Grade as "AA+ (Trk)/Stable" and the Short- Term National Grade as "A-1+ (Trk)/Stable"
October 2021
Establishment of the
Sustainability Committee of
the Company
December 2021
The company has signed a "Cooperation Protocol" with a minimum revenue of 30 million TL for the "Adapazarı Project"
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HALK GAYRIMENKUL YATIRIM ORTAKLIGI A.Ş.
01.01.2023 - 31.12.2023 ANNUAL REPORT
2022 April 2022
The Company was rated in the "investment grade" category; Long Term National Rating was determined as "AA+ (Trk)/Stable" and Short Term National Rating was determined as "J1+ (Trk)/Stable" in the "investment grade" category
Inclusion of Antalya lands in the portfolio
2023 April 2023
Start generating rental income from the building IFC Halk
Office Towers A Block
May 2023
Sale of Şekerpınar Block B building
June 2023
Sale of Gayrettepe Building
May 2022 | December 2023 |
Inclusion of Gayrettepe Building in | Lease of Ataşehir Finance |
the portfolio | Tower building as a technopark |
June 2022 | |
Lease of IFC Halk Office Towers | |
Block A Building to the main | |
shareholder T. Halk Bankası A.Ş. | |
November 2022 | |
Launch and pre-sales of the | |
Dilovası Modern Industrial Site | |
project |
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