Distinguished Shareholders,

Having outbroken in 2020, the COVID-19 pandemic, which had a significant impact on social and economic life, has continued its effect also in 2021. On the other hand, it also started to gradually lose momentum together with the development of vaccines and successful vaccination programs despite the differences across the countries. In spite of the resurgence of the outbreak from time to time with the impact of different variants, the economies started to reopen starting from the second half of the year, and the economic and social life started to turn back to normal.

The global economy also underwent a growth period as the economic life turned back to normal. Together with the increase in demand during this period and the impact of the problems encountered in supply processes, we have witnessed the inflation, which has been off the agenda for a long time, returning to occupy a place in the global economy agenda. This made it necessary for the central banks, which have followed an expansionary monetary policy for a long time, reassess their policy. We have witnessed interest rate increases in some countries towards the end of 2021. In 2022, while we will witness interest rate increases by central banks of developed countries in particular, we will also face decrease in asset purchases and the implementation of balance sheet reduction policies. We can expect a decrease in growth rates and an increasing difficulty in accessing affordable funding sources, which will be caused by the tight monetary policy starting to be followed after a long time.

We have witnessed a significant revival in economic activities in 2021 also in our country compared to 2020. We have recorded a strong real growth rate of 7.4%, 22% and 7.4% in the first, second and third quarter, respectively. Despite some supply-related problems in the last quarter, the economic activities seem to have significantly maintained strength and the growth seems to have continued. The latest data reveal a real growth rate of nearly 10% for the entire 2021. The unexpected reduction of policy interest rate in a vibrant economy environment has caused a significant upward movement in exchange rates in the last quarter of the year. Dollarization has been observed in economy to a large extent. This has caused a significant increase in inflation also with the impact of the increase in commodity and energy prices. While the annual consumer inflation rate has been recorded as 36.6%, the producer inflation rate has reached 79.89%. The inflation is expected to remain high at least for some time more also in 2022 despite the measures tried to be taken.

2021 has been a successful year for our Company thanks to its strong asset and cash position. The rental income we derive from our assets has significantly increased together with the impact of the economic revival in the tourism sector in particular. We expect this trend to continue also in 2022. We have added a tourism facility in Bodrum to our portfolio in the last quarter in line with our long-term targets. Together with the completion of necessary development and improvement investments, this facility will be a significant and regular source of income for us. We will see its impact in future years. As always, we will continue our efforts to make the best use of our assets and strengthen our asset portfolio by means of searching for suitable opportunities also in 2022.

Our Company has successfully completed 2021 despite the fast-changing conditions and the ongoing impact of the pandemic. We would like to extend our gratitude to all of our employees who contributed to this result with full devotion and creative efforts, as well as our distinguished shareholders who always provided us with full support.

With these thoughts in mind, we would like to extend our kind regards to all of you, and wish you all a healthy and peaceful year.

Board of Directors