VAKFN Analysis: 5 Surprising Truths Behind the Numbers
Introduction: The Story Behind the Shiny Returns
Vakıf Finansal Kiralama (VAKFN) has drawn investor attention by delivering an impressive 81.47% annual return over the past year. On the surface, everything seems to be going well — yet the financial reality behind this bright performance may not be as simple as it appears.
When we look deeper into the numbers, does this rosy picture still hold up? What critical details hidden in VAKFN’s financial reports could surprise investors?
1. Declining Profitability Despite 81% Annual Return
The 81.47% yearly return of VAKFN’s stock is undoubtedly an impressive achievement for many investors. However, there’s a striking contradiction: as of September 30, 2025, the company’s net profit for the first nine months had fallen by 35.22% compared to the same period in 2024.
In numbers: net profit declined from ₺1,360,232,000 in 2024 to ₺881,195,000 in 2025.
This discrepancy suggests that the market may be pricing not the company’s current profitability, but rather its forward-looking strategic moves—such as the radical portfolio shift discussed in Section 4. Investors might be interpreting the short-term profit drop as the cost of repositioning toward more profitable, long-term growth areas.
2. No Cash Dividends Since 1999: A Growth-Focused Strategy
VAKFN last distributed a cash dividend in 1999. This clearly shows the company’s preference for retaining earnings to finance growth rather than sharing profits with shareholders in cash.
In fact, the entire ₺1,652,235,000 net profit from 2024 was not distributed: ₺1.5 billion was converted into bonus shares, and the remainder was allocated to reserves.
While this approach appeals to long-term growth-oriented investors, it may disappoint those seeking regular cash flow. This sentiment is even reflected in the General Assembly minutes, where a shareholder openly questioned this policy:
“Shareholder Fuat Kaymakçı asked why no cash dividends were distributed despite both paid and bonus capital increases.”
This comment directly highlights the company’s strategy of favoring internal reinvestment over cash payouts — using almost 90% of its profit to increase capital instead of rewarding shareholders directly.
3. Expanding Balance Sheet, Shrinking Business Volume
On paper, the company’s financial structure continues to strengthen. Paid-in capital rose from ₺3.5 billion to ₺5 billion, while total assets grew 14.3% and equity 15.3% compared to year-end.
Yet, there’s a striking contrast: the company’s new transaction volume, its main business indicator, fell by 31.6% in USD terms, dropping from USD 361.7 million in 2024 to USD 247.3 million in 2025.
At first glance, this might signal a slowdown. However, as the next section explains, this decline is not accidental — it reflects a deliberate and radical portfolio optimization strategy.
4. Winds of Radical Change in the Leasing Portfolio
The drop in transaction volume doesn’t point to stagnation, but to a strategic portfolio shift. When we look at business volume by asset category in the activity report, it becomes clear that the company is exiting certain sectors and pivoting toward others:
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Growing segments: “Road Vehicles” leasing increased by 95.7%, and “Ships & Marine Vehicles” leasing skyrocketed by 283.2% (from USD 1.56 million to USD 5.99 million).
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Shrinking segments: In contrast, “Construction Machinery” dropped 71.9%, “Real Estate” 59.0%, and “Plastic Processing Machinery” 98.5% (from USD 3.42 million to just USD 51,000).
These figures show that VAKFN is not contracting overall but strategically reallocating its focus — moving away from traditional industries toward more dynamic sectors, possibly in response to shifting economic conditions in Turkey.
5. Investor Dissatisfaction Reflected in General Assembly Minutes
A rare element in corporate reporting, VAKFN’s General Assembly minutes openly capture investor sentiment and criticism toward management.
Shareholder Fuat Kaymakçı criticized the former CEO for focusing too heavily on profitability rather than share performance and for repeated capital increases — a sign of dissatisfaction among individual investors.
Conversely, Murat Çiftci, another shareholder, expressed approval of the management change and the newly announced €250 million defense industry financing package, reflecting diverging investor expectations.
These insights provide valuable clues about the company’s investor relations and its approach to managing shareholder expectations.
Conclusion: Uncertainties and Future Outlook
VAKFN presents several key contradictions — declining profitability despite high stock returns, and balance sheet growth alongside falling transaction volume.
While aggressively reinvesting its profits to fuel expansion, the company is also performing a surgical reshaping of its leasing portfolio. VAKFN is deliberately pulling back from traditional construction and industrial sectors, reallocating risk toward freight and transportation, which it perceives as more dynamic.
This raises a critical question:
Will VAKFN’s radical portfolio restructuring and profit-retention strategy deliver long-term rewards for investors — or are the shrinking transaction volumes an early sign of potential risks ahead?