Message from the General Manager

Dear Stakeholders,

We have passed through a tough year for both the global economy and, the Turkish economy. We have felt the impacts of the contraction on volatility and liquidity conditions experienced in the global markets also in the Turkish economy. In spite of these tough market conditions, Doğuş REIT has achieved to grow and diversify its portfolio of real estate properties in line with its targets.

In December 2018, we purchased D-Office Maslak office building with a useable area of 40.438 m² located in Maslak, one of the most important business and trade centers of Istanbul, and, the Gym Center with a rentable area of 6,745 m² consisting of the independent sections no. 16 and 17 located in Doğuş Center Etiler complex within our portfolio. D-Office Maslak real estate has been fully leased to Doğuş Holding and, the Gym Center is being operated by D-Gym, one of the most prestigious gym centers in Istanbul.

On the other hand, we have completed the sales procedures for Antalya 2000 Plaza, which we had decided to sell strategically, in June 2018, in spite of all tough market conditions.

In spite of the liquidity contradiction and, decreased opportunities for loans as experienced in the global financial markets, we have financed the sales procedures for 2 real estate properties in December with the loan of 100 million Euro amounts with a repayment period of 6 years made available by Credit Europe Bank N.V. headquartered in the Netherlands. This long term finance obtained on the last days of the year is the result of the confidence of the international financing institutions both on our country’s economy and our company.

In the light of all these developments, the price of the portfolio of investment real estate properties of Doğuş REIT consisting of Doğuş Center Maslak, D-Office Maslak, Doğuş Center Etiler-Office Building, Doğuş Center Etiler- Gym Center, Gebze Center Shopping Center, Gebze Center Hotel and Gebze Center Automotive Showroom and Service has reached an amount of TL 1.77 billion as of the end of 2018.

The rental incomes obtained from the real estate properties in 2018 were TL 98.6 million, which results in the net profit of TL 3.9 million.

We at Doğuş REIT will maintain our strong investment portfolio and, continue our efforts intended to provide the highest level of added values for our country, shareholders and stakeholders in the upcoming years, as we have always done so far.

I would like to express my thanks to our main shareholder Doğuş Holding that has provided full support for us during 2018, our investors who have put their trust on us, the Doğuş REIT team and all the stakeholders.

Yours respectfully,

Çağan Erkan
General Manager