AKFEN REIT IN BRIEF
AKFEN GYO'S INVESTMENT PROPERTY PORTFOLIO VALUE APPROACHED TL 17 BILLION BY THE END OF 2023
The company, which started its operations in 1997 as Aksel Turizm Yatırımları ve İşletmecilik A.Ş., was converted into a real estate investment trust in 2006. In 2007, Akfen REIT started the "Contemporary City Hotels" project, which it pioneered in the sector, and reached a portfolio of 19 hotels, 1 holiday village, 2 dormitory complexes, 1 office building and 1 factory investment in 16 years.
Following the public offering process in 2011, Akfen REIT shares started to be traded on Borsa Istanbul on 11 May 2011. With a free float of 44.49%, Akfen REIT's closing share price in 2023 was TL 1.97 (Closing market capitalization: TL 7.68 billion/236 million Euro). Akfen REIT is currently traded on the Stars Market and has started to be among the BIST All 100, BIST Sustainability and CMB's 1st group companies throughout 2023.
From Hotel Investments to Portfolio Diversification
Akfen REIT has developed Novotel and Ibis Hotel branded hotel projects in Turkey and Russia and leased a total of 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 Bodrum Loft, a 5-star holiday village in Bodrum. As of 31.12.2023, the total number of rooms in 19 hotels owned by Akfen REIT is 3,342. In addition to its hotel portfolio, Akfen REIT has an office building in Russia, 2 dormitory complexes consisting of 13 blocks in total, 1 factory investment in Turkey and 3 ongoing projects in Istanbul Söğütlüçeşme, Bodrum Yalıkavak villa and Milas Kıyıkışlacık touristic project. Akfen REIT's total portfolio value reached approximately EUR 572 million as of the end of 2023. (On 17 January 2024, all shares of Akfen GT A.Ş., which owns Merit Park hotel, were sold and Cyprus Kyrenia Merit Park portfolio worth approximately EUR 68 million was exited from the portfolio).
Strategic Partnerships and Long Term Leases
Akfen REIT, which became a strategic partner with Accor, one of the world's leading hotel chains, in 2005, has signed long-term lease agreements for 19 hotels in Turkey and Russia, generating regular and predictable rental income.
In the contracts signed with Accor for Akfen REIT's hotels, there is a minimum guarantee condition for Akfen REIT's rental income. Rental income is determined as the higher of a certain percentage of turnover or adjusted hotel gross profit. This sharing; on the one hand, has a minimum income guarantee and on the other hand, has the potential to share the income increase to be provided by the performance of the hotels.
Akfen REIT's Bodrum Loft holiday village is operated by Akfen Tourism and the dormitory complexes are operated by the Credit Dormitories Institution.
