11 2010 ANNUAL EVALUATION MEETING 07 April 2011. 22 3 Turkish economic outlook Listed REIC's...

11

2010 ANNUAL EVALUATION

MEETING

07 April 2011

22

3Turkish economic outlook

Listed REIC's

Operational review

Financial review

Development review

Future outlook

Appendix

33

Turkey both an anchor emerging economy and a CIVETS country

>In the developed economies, final demand is unlikely to demonstrate a strong recovery in the near future. The world needs anchor countries growing at a dynamic pace. These countries should have the following characteristics:

1.Young population to support growth and spending

2.Low debt burden to feed credit channels

3.Diversified economy to generate employment opportunities and long term growth

4.Capital accumulation to finance high savings or growth

>Turkey meets with the first three out of these four criteria

Turkey has a young population: in 2025 what % of the population will be older than 60 ?

Source: United Nations

44

Turkey

29,7%

18,4%

9,3%10,5% 10,5%

8,7%10,4%

6,3% 6,4% 5,5% 5,0%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Turkey

Real GDP Growth Fiscal Balances as % of GDP

Consumer Price Inflation Interest Rates

Economic Highlights

Source: EIU (February 2011)

Source: EIU (December 2010)

Source: Turkish Statistical Institute - Central Bank of Turkey (Feb. 2011)Source: Deutsche Bank

6,25,3

9,48,4

6,9

4,7

0,9

-4,8

8,9

5,2 5,1 5,4 5,3 5,4

1,2 1,32,3

1,6

3,1 2,9

0,7

-4,2

1,9 1,6 1,6 1,7 1,8 1,9

-6

-4

-2

0

2

4

6

8

10

12

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Turkey EU27

-11,9 -12,0

-8,8

-5,4

-1,3-0,6

-1,6 -1,8

-5,5

-3,6-2,9 -2,6

5,1

2,84,0

4,75,8 5,5

4,23,5

0,10,8 1,0 0,9

-14,0

-12,0

-10,0

-8,0

-6,0

-4,0

-2,0

0,0

2,0

4,0

6,0

8,0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Budget balance Primary balance

Benchm ark bond yield

16,2%

9,0%

7,1%

9,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

18,0%

2008 2009 2010 2011

Benchm ark bond yield

Source: EIU (February 2011)

55

Economic Highlights

80

90

100

110

120

130

140

Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11

6%

8%

10%

12%

14%

16%

18%

Unemployment Rate Industrial Production Index

50

55

60

65

70

75

80

85

90

95

100

J an-08 Apr-08 J ul-08 Oct-08 J an-09 Apr-09 J ul-09 Oct-09 J an-10 Apr-10 J ul-10 Oct-10 J an-11

1.1

1.3

1.5

1.7

1.9

2.1

2.3

J an-08 Apr-08 J ul-08 Oct-08 J an-09 Apr-09 J ul-09 Oct-09 J an-10 Apr-10 J ul-10 Oct-10 J an-11

USD/TRY €/TRY

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

70,000

75,000

-75%

-65%

-55%

-45%

-35%

-25%

-15%

-5%

5%

15%

25%

35%

ISE National Index % Change from January 2008 (TRY) % Change from January 2008 (EUR)

Industrial Production and Unemployment Consumer Confidence

ISE National 100 Index Exchange Rate

Source: Turkish Statistical Institute(January 2011) Source: Turkish Statistical Institute (February 2011

Source: CentralBank ( February 2011)Source: Central Bank (February 2011)

6

3

Listed REIC's

Operational review

Financial review

Development review

Future outlook

Appendix

Turkish economic outlook

77

MCAP & NAV of the REIC Sector

REIT'sNAV ($ mn) 31.12.2010

%

MCAP ($ mn)31.12.2010

%

Emlak Konut 3.750,80 41,7 3201,8 44,0

Torunlar 1.620,70 18,0 912,8 12,6

İş 907,8 10,1 512,3 7,0

Sinpaş 793,8 8,8 672,7 9,3

Akmerkez 514,3 5,7 731,1 10,1

Reysaş 189,8 2,1 105,6 1,5

Alarko 170,5 1,9 114,7 1,6

Martı 149,9 1,7 74,7 1,0

Tskb 142,9 1,6 91,2 1,3

Atakule 135,7 1,5 73,4 1,0

Y&Y 120,7 1,3 333,1 4,6

Doğuş Ge 114,5 1,3 104,3 1,4

Vakıf 70,8 0,8 45,7 0,6

Pera 66,0 0,7 44,1 0,6

Özderici 65,3 0,7 74,4 1,0

Yapı Kredi Koray 58,4 0,6 51 0,7

Sağlam 47,5 0,5 32,2 0,4

Nurol 38,8 0,4 26,2 0,4

Avrasya 17,7 0,2 41,8 0,6

Egs 12,1 0,1 10,7 0,1

İdealist 7,7 0,1 17,5 0,2

TOTAL 8.995,70 100,0 7.271,10 100,0

88

Relative post-IPO performance of Torunlar REIC’s share

9

Operational review

3

Listed REIC's

Financial review

Development review

Future outlook

Appendix


1010

Strategy highlights

Development portfolio

Successful track record of liaising with local municipalities in contributing to and working on urban transformation projects

Leverage the development platform for performing value-addingtasks such as land development, funding and identify potential growth areas of development

Opportunistic development of other asset classes

Leverage track-record of JV developmentAccess to attractive development opportunitiesDiversification of risk

Strategy focus

Primary focus on development of shopping mallsIncreased focus on mixed-use

projects

Creating ‘life centres’ with extensive leisure and entertainment avenues

Focus investments in urban centres with limited supply Developing residential

neighbourhoods in cities with good connectivity to metro etc.

Opportunistic investments in non shopping mall related projects

Asset management

Active asset management targeting occupancy optimisation and rent increase

Active refurbishment and extensions in-line with increased demand and evolving consumers and market trends

Tenant rationalisation opportunitiesEnsure appropriate shop and tenant mix Leveraging Torunlar Group’s reputation

and network of contacts to attract known Turkish/international tenants

1111

Hotel 2,10%

Marina 1,10%

Others 2,80%

Office 9,90%

Residential 7,90%

Shopping malls; 76,30%

2nd largest listed retail property company in Turkey

•Portfolio value: TRY3.1 bn (2010)

•Gross rental income: TRY 58.5 m(2010)

•Market capitalisation: TRY1,5 bn(31/03/2011)

•Listed on 21.10.2010 on Istanbul Stock Exchange

Diversified investment portfolio

•5 cities, Istanbul added in October 2010

•Portfolio ‘primarily’retail (76% shopping centres)

•Resilient operations: 98% occupancy rate (2010)

Financial strength

•Healthy financial structure with leverage at 24.4 %

•Stable shareholder structure with 25.16 % free float

Key investment highlights

GAV Breakdown (2010)

Total GAV:TRY 2.7 bn (USD 1.7 bn)

12

Breakdown of Portfolio Value

2010/12

Land31%

Building40%

Project1%

Participations13%

Money and Capital Market Instruments

15%

Land Building Project Participations Money and Capital Market Instruments

PORTFOLİO VALUE

3.1 bilion TRY

13

Shopping Mall Portfolio

Istanbul

Ankara

Antalya

Izmir

Bursa

Mugla

Samsun

Mediterranean Region(Akdeniz Bölgesi)

Southeastern Anatolia Region(Güneydoğu Anadolu Bölgesi)

Eastern Analtolia Region(Doğu Anadolu Bölgesi)

Black Sea Region(Karadeniz Bölgesi)

Aegean Region(Ege Region)

Central Anatolia Region(Iç Anadolu Bölgesi)

Kutahya

Key portfolio informationKey portfolio information

Torunlar REIC’s presence

Additional target cities

Marmara Region(Marmara Bölgesi)

Number GLA(m²)Operational Shopping Malls 5 214,697

Pipeline Shopping Malls 2 181,116

Total Shopping Malls 7 395,913

Zafer Plaza (SM)Zafer Plaza (SM)

Occupancy 98%

Korupark (SM)Korupark (SM)

Occupancy 96%

Deepo Outlet Centre (SM)

Deepo Outlet Centre (SM)

Ankamall+ Crowne Plaza (SM+Hotel)

Ankamall+ Crowne Plaza (SM+Hotel)

Occupancy 100% Occupancy 99%

Torium Istanbul (SM)Torium Istanbul (SM)

Occupancy 99%

14

Footfall and turnoverTorunlar REIC performed stable and strong in 2010’

YoY variance(%) Torunlar REIC Turkey

Retail spending* 15.5* 15

Footfall* 3.6** (3)

Occupancy ratio (%) 98 90

Source: Council of Shopping Centers Turkey*Korupark, Deepo, Ankamall figures declared by the tenants.Zafer Plaza and Torium are excluded.

**Newly opened Torium excluded

1515

Resilient retail operations through active hands-on management.

Bursa

Zafer Plaza

Bursa Korupark

Ankara Ankamall

Antalya Deepo Outlet

İstanbul Torium

GLA ( m2 ) (1)

16.968 71.267

(2)

13.112 18.069 95.280

Revenues (1)

8.400.000 39.822.000

NA 13.656.000 NA

Revenues

% growth0 38.8 NA 30.7 NA

% Footfall growth2.43 9.8 2.5 (0.61) NA

Number of stores125 178 315 82 180

Occupancy (%)98.15 96.35 100.00 99.57 99

Turnover rent (as % of fixed rent) 4.9 7.1 NA 26.6 NA

(1)72,26% share. Receives rental income.

(2) 14,83% share. Receives dividend income

1616

Shopping centers by value

(TRY 000) 31-12-10 30-06-10 Nr of contracts

Bursa Zafer Plaza

143.156 141.978 125

Bursa Korupark

540.510 533.591 178

Ankara Ankamall

138.274 138.274 315

Antalya Deepo Outlet

204.321 204.321 82

İstanbul Torium

549.876 211.969 180

TOTAL

1.576.137 1.230.133 880

17

Financial review

3

Listed REIC's

Operational review

Development review

Future outlook

Appendix


1818

Financial highlights 2010

TRY (000) 2010 2009 Variance %

Sales revenue 232.928 120.158 93,9

Residences sold 160.585 65.380 145,6

Rental revenue 58.584 39.859 47,0

EBITDA 55.377 71.700 -22,8

EBITDA margin 23.8% 59.7% -35,9

Dividend income 4.745 4.536 4,6

Net gains from fair value adjustment 166.660 488.159 -65,8

Net profit 214.245 535.641 -59,4

LfL rental revenue growth 33% -3.4%

Occupancy ratio 98% 98% 0,0

Total Assets 3.203.839 2.509.787 27,7

Total Equity 2.369.083 1.805.168 31,2

Net debt -344.619 -547.895 -37,1

Portfolio value (31.12.2010) 3.130.000 2.603.000 20,2

Market cap (31.03.2011) 1.500.000

EPS 1.16 TRY 3,04 TRY -68,0

1919

Maturity of Financial Loans (TRY m)

•The graph excludes TRY 468.1 m of cash and cash deposits at year end 2010.

314

96

142

231

0

50

100

150

200

250

300

350

2011 2012 2013 2014

Maturity of debt

2020

Income statementIncome statement

Sales revenue 43,109 134,794 120.158 232,928% growth - 212.7% (10.9%) 93,9%Residences sold - 68,639 65.380 160,585Rental revenue 22,949 41,299 39.859 58,584Other 20,16 24,856 14.919 13,759Cost of sales -25,041 -68,218 -45.183 -152,910Gross profit/loss 18,068 66,576 74.975 80,018Operating expenses -12,497 -7,666 -8.014 -29,040Other income (expenses) 448,776 126,331 488,167 166.131Net gains from fair value adj. On ınv. Properties 449,514 126,504 488.159 166.660Operating profit / loss 454,347 185,241 555,128 217.109Opersting profit / loss exculuding fair value gains 4,833 58,737 66.969 50,449share of profit of associates (recurring) 3,356 3,64 4.536 4.745EBIT 8,189 62,377 71.505 55,193

%margin 19.0% 46.3% 59.5%% 23,7%EBIT' 8,556 62,712 71.700 55,377%growth - 633.0% 14.3% (22.8%)% margin 19.8% 46.5% 59.7% 23.8%Share of profit of associates 58,846 11,788 2.704 9.980Net financial interest income (exp) -8,511 -27,366 -25.433 -20.975Net other financial income income (exp) 15,247 -103,802 -1.294 1,098Valuation gains from financial assets and liab. 13,607 -103,434 -2.251 3.562

Profit before Tax 523,285 69,501 535,641 215.519

Tax expenses -143 - -1,274Net profit excluding fair value adj. Gains 60,021 46,431 49.733 44.023

Net profit 523,142 69,501 535,641 214,245

2

1

3

4

5

Rental revenues relate to the rental income from operating shopping malls.

Other revenue consists of electricity sales income, excavation site rent income, construction site rent income and sales of other services and goods.

Other income/expenses is mainjy driven by the net gains from fair value adjustments on investment property.

Financial income includes gains and loss of financial instruments as well as the sale of share of profits from associates.

Note: Sales are accounted when properties are physically transferred to buyers1 EBIT includes operating profit and share of profits from associates excluding any effect of fair value changes2 EBITDA = EBIT + Depreciation expenses ³ Excludes fair value gains/losses from “Investment Properties” and financial instruments

('000 TL)2007 2008 2009 2010

21

3

4

5

Share of profits of associates are minority stakes in assets held by Torunlar REIC. The latter in counterparty receives dividends from those assets. The split is into ‘dividends from associates’ which are considered as recurring item and the gain in fair value adj. of Investment Properties’ are considered non recurring.

4

2121

Balance sheet (‘000 TL)Balance sheet (‘000 TL)

1

2

1

Inventories consist of construction cost of housing units (completed and in progress) as well as the cost of land used for these residential projects. In addition lands for future development of residential projects are also included in this line-item

1

Investment properties are properties held for long-term rental yields and/or for capital appreciation. This also includes landbank on which asset to be held for long term usage is planned.

2

(‘000 TL) 2007 2008 2009 2010Total assetsCurrent assets 220,490 208,846 250,631 579.781Cash and cash equivalents 137,441 80,168 72,639 438.644Inventories 62,315 72,626 101,648 51.769Other current assets 20,734 56,052 76,344 89.368Non-current assets 1,461,352 1,719,189 2,259,156 2,624.058Investment in associates 100,986 112,774 115,478 125,458Investment property 1,308,832 1,557,584 2,096,430 2,388,865Property, plant and equipment 1,831 629 407 1,115Inventories 13,09 – –Other non-current assets 36,613 47,702 46,841 108.620Total assets 1,681,842 1,928,035 2,509,787 3,203.839Total liabilities and eqityCurrent liabilities 379,303 292,672 241,733 282.544Financial Liabilities 315,507 272,17 157,676 231,141 Bank borrowings 240,839 266,637 155,694 231,141Due to related parties 74,668 5,533 1,982Other current liabilities 63,796 20,502 84,057 51.403Non-current liabilities 158,975 349,062 462,886 552,212Financial Liabilities 137,236 333,170 462,881 552,122Other non-current liabilities 21,739 15,892 5 90Total equity 1,143,564 1,286,301 1,805,168 2,369.083Total liabilities and equity 1,681,842 1,928,035 2,509,787 3,203.839

Net debt / AssetsNet debt / Assets

Net debt / EBITDANet debt / EBITDA Interest coverage ratio

Interest coverage ratio

27.2% 21.8%

10.7%

2008 2009 2010

8.4x7.6x

6.2x

2008 2009 2010

2.3x2.8x

2.6x

2008 2009 2010

*EBITDA Net interest expense

2222

Financing ratios‘Strong financing ratios’

31-12-10 31-12-09

Leverage ( financial loans as% of total assets) 24.4 24.7

Average interest (year) (%) 5.22 5.35

Average maturity (year) 5

Interest cover ratio 2.6 2.8

% loans with a fixed interest rate 66,2 46,1

Headcount 34 14

23

Total revenues are boosted +93% by the residential sales of Nishistanbul project and rental revenues of Torium shopping mall opened in end-October.

EBITDA is 22.8% lower due to one-off IPO, consultancy and donation to Bursa Metropolitan Municipality as well as increasing real estate taxes and advertising expenses.

Net gain from fair value adjustment is 65.8% lower, driven by the significant contribution of Mall of İstanbul land and Torium land in 2009. This item accounts for 77.7% of net profit in 2010 vs 91% in 2009.

Despite the contribution of deposit interest income and declining interest expense, the bottom level is 60% less than in 2009.

2010 Financial Commentary

24

Development review

3

Listed REIC's

Operational review

Financial review

Future outlook

Appendix


25

Evolution of the Projects (m2)

GLA+GSA (m2) 2010 2011 2012 2013 2014

Retail 214.697 214.697 246.943 381.943 395.813

Residence 31.081 31.081 31.081 249.906 305.884

Office 2.964 2.964 3.345 78.105 131.876

Hotel 2.907 2.907 2.907 2.907 2.907

Marina 2.984 2.984 2.984 2.984 2.984

Other 15.599 15.599 15.599 18.014 18.014

Total

270.232 270.232 302.859 733.859 857.478

Land 56.893 56.893 56.893 56.893 56.893

2626

BURSA22%

ANTALYA5%

ANKARA2%

ISTANBUL70%

MUĞLA0%

SAMSUN1%

BURSA ANTALYA ANKARA ISTANBUL MUĞLA SAMSUN

20142010

BURSA46%

ANTALYA7%

ANKARA6%

ISTANBUL40%

MUĞLA1%

BURSA ANTALYA ANKARA ISTANBUL MUĞLA

Istanbul grasps a larger share by 2014, overtaking Bursa.

GLA Breakdown by City

2727

3

Listed REIC's

Operational review

Financial review

Development review

Appendix

Future outlook


2828

Future Outlook

The company will capitalise on its expertise to further extract operational efficiency from its shopping malls under its management.

All the projects in the pipeline will start this year and be completed by 2013-2014.

Total sales in 2011 are expected to reach TRY 150 million with 40% derived from residential sales.

No new opening or delivery will take place in 2011. The major part of sales revenue will come from shopping malls including Torium which will operate full year.

As EBITDA of shopping malls is at around 80%, company EBITDA is expected to be higher than in 2010 at TRY 90 million.

For the upcoming years, 10% annual LFL growth is forecast in rental revenues.

The company will chase further acquisition opportunities with its favorable cash position.

2929

3

Listed REIC's

Operational review

Financial review

Development review


Appendix

Future outlook

3131

Zafer Plaza Shopping Mall

Ownership Torunlar REIC (72.26%)

Operational date 1999

Leasable are (m²) 23,449 (REIC share 16,944)

Occupancy (m²) (as of date) 98% (as of December 2010)

Number of stores 125

Anchor tenants 4% anchors (30% of GLA): Migros, YKM, Bimeks and Boyner

Appraisal value TL143.2mm (US$92.6mm)¹

Average lease term as of Dec-2010 2.0 years

Average NOI (per TL/m²/month) TL38.4

Leasehold / Freehold status Freehold

Rental income (Dec 2010) TL10.8mm

•The Property is located at the most central part of the city•Close to the metro station, on major public transportation routes and at the junction of intercity roads•The property includes a movie theater with six screens and an amusement park for children and teenagers•In 2000, Zafer Plaza was selected "The Best Shopping Centre" by the AMDP, Shopping Centres and Retail Centres Council•Majority of rents (80%) are USD denominated

Breakdown–incomeBreakdown–income

Fashion 43%

Food café 8%

Service 7%

Footwear 5%Home 5%

Health beauty 5%

Jewellery 5%Kiosk 3%

Restaurant 2%Leisure goods 1%

Dept & Anchor 15%

Breakdown–tenants (GLA)Breakdown–tenants (GLA)

Fashion 37%

Dept & Anchor 33%

Health beauty 7%

Food café 6%

Restaurant 2%

Service 5%

Home 5%Footwear 3%

Jewellery 3%

Leisure goods 1%Kiosk 0.5%

3232

Korupark shopping mallKorupark shopping mall

•The Property is located at the most central part of the city•Close to the metro station, on major public transportation routes and at the junction of intercity roads•The property includes a movie theater with six screens and an amusement park for children and teenagers•In 2000, Zafer Plaza was selected "The Best Shopping Centre" by the AMDP, Shopping Centres and Retail Centres Council•Majority of rents (80%) are USD denominated

Ownership Torunlar REIC (100%)

Operational date H2 2007

Leasable are (m²) 71,267

Occupancy (m²) (as of date) 96% (as of December 2010)


Anchor tenants (39% of GLA): Tesco, Koçtaş, Beymen, C&A, Boyner and Electro World


Average lease term as of Dec-2010 2.7 years

Average NOI (per TL/m²/month) TL34.4


Rental income (Dec 2010) TL36.8mm

Breakdown–tenants (Income)Breakdown–tenants (Income)

Fashion 41%

Dept & Anchor 14%

Health beauty 4%

Food 8%

Restaurant 4%

Service 7%

Home 5%Footwear 7%

Storages 1%

Leisure goods 4%Kiosk 2%

Jewellery 4%


Fashion 26%

Dept & Anchor 44%

Health beauty 2%

Food 3%

Restaurant 2%

Service 4%

Home 3%Footwear 4%

Jewellery 1%

Leisure goods 9%

Kiosk 0.5%

Storages 2%

Torunlar REIC's porfolio overview

3434

Korupark Residences Phase IIIKorupark Residences Phase III

•The property, adjacent parcel to Korupark phase I & II, is a luxurious housing settlement that includes residences and office units

•For Korupark Residences Phase III, sales will be denominated in Turkish Lira

OwnershipOwnership

Estimated start of construction

Estimated start of construction

Estimated date of completion

Estimated date of completion

Estimated operational dateEstimated operational date

Estimated investment Estimated investment

Appraisal value Appraisal value

Leasehold / Freehold statusLeasehold / Freehold status

Number of residential units/GSA

Number of residential units/GSA

2011

Torunlar REIC (100%)

Freehold

2012

2012-2013

TL87.3mm (US$56.5mm)

TL50.4mm (US$32.6mm)¹

643 units / 120.000 m2 resi, 9.659 m2 office

Under project developmentCurrent statusCurrent status

Map of Korupark Map of Korupark

Korupark Shopping Mall

Korupark Residences Phase III

Korupark Residences Phase I & II

•Note: Exchange rate US$/TL=1.5460 as of December 31, 2010¹ Prime appraisal report (based on the CMB standards as of December 31, 2010)

Korupark Residences Phase I & IIKorupark Residences Phase III

3535

Antalya Deepo outlet mall–AntalyaAntalya Deepo outlet mall–Antalya Antalya Deepo is the biggest outlet in the Mediterranean region. The property is located close to the Antalya Airport The mall attracts annual foot traffic of c.5 mm For Antalya Deepo, majority of rents are denominated in EURO Zoning of this region is expected to be approved in 2011. Deepo Antalya is not directly held by Torunlar REIC, but is instead

held by a subsidiary which is 100% owned by Torunlar REIC

October 24, 2004Operational date

Torunlar REIC (100%)Ownership

99% (as of Dec 2010)Occupancy (%) (as of date)

90Number of stores

LCW, Ayakkabı Dünyası, Mudo City, Collezione, Sarar, Aydınlı GroupAnchor tenants

TL180.5mm (US$116.7mm)¹Appraisal value

TL48.2Average NOI (per TL/m²/month)

FreeholdLeasehold / Freehold status

TL13.3mmRental income (Dec 2010)

3.1 yearsAverage lease term as of Dec-2010

18,069 Leasable area (m²)

Antalya Deepo extension projectAntalya Deepo extension project

Torunlar REIC + Hastalya Ownership

Partially freehold, partially leasehold from Hastalya

Leasehold / Freehold status

March 2012Estimated date of completion

March 2012Estimated operational date

TL31.2mm (US$20.2mm) Estimated investment

Under zoning processCurrent status

July 2011Estimated start of construction

Breakdown–incomeBreakdown–income


Source: Company as of Dec 31, 2010

Fashion 70%

Restaurants 5%

Food 4%

Home 3%

Service 2%

Jewellery 2%

Leisure goods 1%

Heath Beauty 1%

ATM & Kiosks 1%

Footwear & Access. 11%

Fashion 62%

Food 8%

Restaurants 6%

Home 3%

Service 3%

Jewellery 3%

ATM & Kiosks 2%

Heath Beauty 1%

Leisure goods 1%

Footwear & Access. 10%

26,651Leasable area (m²)

Torunlar REIC's porfolio overview (cont'd)

36

Ankamall shopping mall + Crowne Plaza hotel–Ankara Ankamall shopping mall + Crowne Plaza hotel–Ankara

•Ankamall is located in Yenimahalle, in the centre of Ankara. The shopping mall is considered to be the largest in Ankara and third largest in Turkey

•Ankamall is owned by Yeni Gimat which was formed as a cooperative with over 1000 investors, and in which Torunlar REIC currently has 14.83% stake, making it the largest shareholder as of December 31, 2010

•The property includes the Crowne Plaza Hotel which is a 21–storey building with 263 rooms•For Ankamall, the rents in Phase 1 are denominated in Turkish Lira, while the rents in Phase 2 are denominated

in USD

Operational date 1999¹

OwnershipYeni Gimat in which Torunlar

REIC holds (14.83%)

Occupancy (%) (as of date) 100% (as of December 2010)


Number of rooms 263

Anchor tenantsMigros, Koçtaş, Tepe Home, Electro World, Boyner, Mudo City, Marks&Spencer, LCW

Appraisal value (REIC share) TL137.9m (US$89.2mm)³


Leasable area (m²) 88,421³ (REIC’s share 13,112)

Dividends - Torunlar REIC share (TLmm)²Dividends - Torunlar REIC share (TLmm)²

3737

Retail48%

Residential41%

Office11%

Retail

Residential

Office

Breakdown–Area¹ (GLA/GSA)Breakdown–Area¹ (GLA/GSA)

Mall of Istanbul–IstanbulMall of Istanbul–Istanbul

•Mall of Istanbul is a mixed-use project with a large shopping mall development along with residential, office units•It is expected to be one of the largest mixed-use projects in Turkey •Planned to be built with 135.000 m² GLA enriched with 16,000 m² kids entertainment, 7,200 m² snowpark, cinema complex and conference / performance hall¹•Mall of Istanbul is well connected to the city centre through the D100 and TEM highway. In addition, the site is located within 5km of the airport •For the Mall of Istanbul, rents will be denominated in USD. Sales will be denominated in Turkish Lira


Estimated start of construction H1 2011

Estimated date of completion H2 2013

Estimated operational date H1 2013

Estimated investment c.TL479.3mm (US$310mm)

Number of residences/ GSA-GLA1.200 units/ 135.000 m2 GLA ret,

116.000 m2 GSA residence30.000 m2 GLA office



Current status Under project development

3838

Torunlar REIC’s portfolio overview (cont’d)

Torium Istanbul shopping mall–IstanbulTorium Istanbul shopping mall–Istanbul

•Torium is a mixed-use project of retail and residential use•It is located at the centre of high density residential settlements along one of the two major highways of Istanbul •The shopping mall provides a broad range of leisure and entertainment facilities•Majority of rents at the shopping mall are denominated in EUR •Residential sales are expected to be

denominated in Turkish Lira

GLA split¹ (‘000m²)GLA split¹ (‘000m²) GLA/GSA split¹ (‘000m²)GLA/GSA split¹ (‘000m²)Café/ Rest.

5%

Anchor 25%

Entertainment 15%

MSU & small stores35%

Residential5%

Retail95%

Hypermarket 10%

Others4%

Electronic stores

4%

Start of construction H2 2008

Ownership Torunlar REIC

Appraisal value* TL556.9mm (US$360.3mm)¹


Date of completion October 30th, 2010

Operational date October 30th, 2010


GLA / GSA95.280 m2 GLA retail

5.318 m2 GSA resi

3939

Torunlar REIC’s portfolio overview (cont’d)

GLA

Office: 44760m2

Torun Tower–IstanbulTorun Tower–Istanbul

•The property is located at the city centre in one of the most expensive commercial districts of Istanbul•It also has a subway connection•40 floor high-rise tower is planned•The building is planned to be a landmark for the city with very modern architecture and construction technology•The Property is planned as a mixed-use project with office and retail units•For Torun Tower, leases will be denominated in USD

Breakdown–Area (GLA)Breakdown–Area (GLA)




Estimated start of construction 2011

Estimated date of completion 2013

Estimated operational date 2013

Estimated investment c.TL128.3mm (US$83mm)

Current Status Under project development

Office96%

Other 4%

GLA

Office: 44.760m2

Other: 2.415m2

4141

Location Istanbul

OwnershipTorunlar REIC (65%), Ascioglu

(30%), Kapıcıoğlu (5%)

Land area (m²) 34.640

Land acquiredRevenue Share (45%)

Sellable area (m²)1GSA 55.978 m2 resi, 53.771 m2 office GSA 13.870 m2 retail

Name of architect Emre Arolat Architects

Appraisal value TL505.4mm (US$326.9mm)¹*

Leasehold / Freehold status Revenue Share

Number of residences 593

Estimated start of construction H2 2011

FormatMixed–use project

Estimated date of completion H2 2014

Estimated operational date H2 2014

Estimated investment c.TL463.8mm (US$300mm) *

Current status Under project development

Mecidiyeköy is a mixed-use project with 1,200 unit residential complex, along with office and retail units.

Its’ location is in the city center, on the land where the ex-stadium of Galatasaray is located.

The project is planned on three high-rise blocks of 40 storey's each. Two of the blocks will be used as residential, one block will be developed as A- Class Office Tower.

For the Mecidiyeköy Project sales will be denominated in Turkish Lira.

P O

R T

F O

L I

O

O V

E R

V I

E W

Mecidiyeköy mixed-use project–Istanbul

1.Torunlar share

4747

Existing property performance

Munich once again holds the top spot

for performance of existing

investments, Istanbul following very

close. London and Paris also retain top

positions.

2010 was a year of stabilisation, both in

terms of valuation and the occupier side.

A clear focus on asset management to

maintain the value of existing assets.

Secondary property is a “ ticking time

bomb”.

4848

New property acquisitions

The answer is stock selection, not

markets or cities. All markets have

opportunities at the right price.

Istanbul ranked top spot.

“The biggest challenge is to find “good”

new investments, i.e. core assets in top

locations with strong tenants”

4949

City Development

Further signs of recovery in sentiment

Istanbul, with strong underlying

fundamentals, again, stands out

followed by London and Munich

5050

Torunlar REIC: COMPETITIVE ADVANTAGES

One of the leading real estate developers in Turkey

Well established performance track record of development and asset management

Excellent growth potential

Professional management team with long-term local experience and deal sourcing capability

Turkey has strong long term economic fundamentals supporting RE growth

Stable financial structure and flexible tax efficient REIC regime

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11 2010 ANNUAL EVALUATION MEETING 07 April 2011. 22 3 Turkish economic outlook Listed REIC's...

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