Financial Position

TOKI is one of the public organizations with exclusive responsibilities with respect to housing and settlement issues in Turkey due to its mission. In this respect, the Administration is not in a competitive environment.

In virtue of its legal status as a public agency, TOKI has no share capital, it cannot be declared bankrupt and its assets are immune from attachment.

TOKI prepares corporate annual reports (income statements and balance sheets) by finalizing the legal ledgers it keeps "on balance sheet basis".

TOKI takes over lands with and/or without a price from the Treasury, public entities and government agencies and municipalities.

The size of TOKI's land portfolio (square meter area of the land under stock records) amounts to 209.240.318 m², by August 2019. The total size of the real estate under the possession of the Administration along with the area sold by TOKİ or area with project implementations thereon is 302.813.028 m2.
(The calculation takes as a basis land appraisal, acquisition value and real estate value statement. These data are subject to amendments due to the investment program of the Administration.)

All of TOKI's accounts are audited and discharged by the Court of Auditors, in the name of Grand National Assembly of Turkey and these are being discussed in the Grand National Assembly's PEO Commissions. (Due to the Turkish Law No.6085, dated 03/12/2010; the High Auditing Council has been assigned to the Court of Auditors with all of its duties)

The receivables portfolio of the Administration consists of the receivables from the sales of the social welfare housing projects, land sales, Administration's share from the receivables from the Revenue Sharing Projects and the receivables from the housing loans.

Other income, including items such as budget appropriation and levies on Turkish citizens travelling abroad, has reduced as a share of total revenue due to cuts in those items and increases in the housing units sold.

Credit lines are also kept available for TOKI with banks (either public or private) for funding needs that may arise in case of a possible liquidity problem. Borrowing can be made when necessary.

TOKI's expenditure is mainly directed toward developing land plots and constructing housing units.

Due to the financial analysis of TOKI's balance sheet and income statement; depending on the well-administered operational risks together with implementing right strategic financial policies, it is seen that long-term financial predictions are positive and the balance of indebtedness is well- managed.

In line with the development of the regulatory environment, TOKI has options for alternative funding mechanisms, including debt issuance through tailored financial vehicles. In the past, the Administration had contributed to the work for the regulation on the issuance of asset-backed debt securities of Capital Markets Board of Turkey using its expertise drawn from its asset pool.