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INVESTOR PRESENTATION
August 2011
2 2 2
3
Turkish economic outlook
Listed REIC's
Operational review
Financial review
Development review
Future outlook
Appendix (Portfolio review)
Sectoral outlook
USD billion 2010a 2011b 2012b 2013b 2014b 2015b
GDP 735.3 746.0 806.6 892.8 999.5 1,095.3
Growth (GDP, %) 8.9 6.0 4.5 5.3 5.5 5.4
Private Consumption (%) 6.6 7.0 6.0 5.1 5.3 5.1
Inflation (CPI, average, %) 8.6 6.0 5.9 5.9 4.8 4.0
TL/USD (year-end) 1.54 1.66 1.66 1.66 1.64 1.64
TL/USD (average) 1.50 1.61 1.66 1.67 1.65 1.64
TL/EUR (average) 1.99 2.26 2.26 2.14 2.02 2.09
Exports 121.0 134.5 137.1 145.1 157.9 174.7
Imports -177.3 -210.4 -214.2 -218.2 -230.8 -250.6
C/A Balance (Ratio to GDP, %) -6.5 -8.8 -8.0 -6.5 -5.7 -5.2
Budget Balance (Ratio to GDP, %) -3.6 -1.5 -1.2 -1.4 -1.5 -1.2
a Actual b Economist Intelligence Unit estimates.
3
Turkey Economic Highlights
Source: EIU (01.08.2011)
4
GDPConstruction
-20,0%
-15,0%
-10,0%
-5,0%
,0%
5,0%
10,0%
15,0%
20,0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q12010
2010 Q12011
-3,4%
6,8%
-5,7%
6,2% 5,3%
9,4% 8,4%
6,9% 4,7%
-0.7% -4,8%
12,0%
8,9% 11,0%
-3,1%
4,9%
-17,4%
13,9%
7,8%
14,1%
9,3%
18,5%
5,7%
-8,1%
-16,1%
8,3%
17,1% 14,8%
GDP Construction
Turkey GDP vs. Construction Sector
5
Turkey Real Estate Economic Highlights
80,4 81,4 83,5 86,4 91,6 99,4
107,8 116,5
127,3 140,3
152,7
37 37,5 38,6 40,6 43,2 46,7 50,1 53,6 58,5 63,2 67,2
20
40
60
80
100
120
140
160
Jan.09 Apr.09 Jul.09 Oct.09 Jan.10 Apr.10 Jul.10 Oct.10 Jan.11 Apr.11 Jul.11
CONSUMER LOANS(BILLION TRY)MORTGAGE LOANS (BILLIONTRY)
Consumer loans and mortgage
loans (bn TRY)
41
28 30
7
34 29
61
42
23
12
38 42
0
10
20
30
40
50
60
70
2006 2007 2008 2009 2010 2011*
Loan Growth %
Total Loans
Consumer Loans
Source: Turkish Statistical Institute *Deutsche Bank
6 6 6
Turkey Real Estate Economic Highlights
0,38 0,35 0,63
1,91
2,92 3,59
3,95 4,47
5,18 5.60
,00
1,00
2,00
3,00
4,00
5,00
6,00
2002 2003 2004 2005 2006 2007 2008 2009 2010 05.08.2011
Mortgage Loans/GDP % Mortgage Loans/GDP %
50.0
40,4
27,8
17,7 18,2 18,3 18,6 15,6
11,1 11,7
0
10
20
30
40
50
Interest Rate on Mortgages(%) Interest Rate on Mortgages(%)
Source: Turkish Statistical Institute
7 7 7
3
Turkish economic outlook
Listed REIC's
Operational review
Financial review
Development review
Future outlook
Appendix (Portfolio review)
Sectoral outlook
8
International Position of Turkish Real Estate Market
Criteria Ranking
Market Maturity 18
Transparency
Semi-transparent (31)
Global Position of Istanbul 27
Housing Demand Medium
Potential Customer Profile Middle-income
Developing New Middle-Class Size Medium
Premium Residential Market Steady growth
Mortgage Financing Yes- developing
Real Estate Investment of Foreigners (Jan-Jun 2011) 1.242 million $
Principle of Reciprocity for Foreigners Yes
Growth in Retail Spending Medium-high
Global Retail Development Index 18
Office Market Steady growth Source: JLL Real Estate Market Index 2010
9
Residential Market Outlook
Turkey’s yearly requirement for new dwellings is estimated at around 600.000 units.*
Residential market demand on the rise requires the construction of at least 400.000 units each year.
10 million families live in their own houses and 3.6 million in rented accommodation.
Land in short supply accounts for 30-40% of total construction costs.
Many residential projects are constructed beyond city centers.
There are about 20 million registered and unregistered residential units with 14.6 million having construction permits and only 8.3 million having occupancy permits.
Housing supply increased in Q1 2011, while the initiation of new construction is weak.
*Source: GYODER
10
Residential Market Outlook
Strong demand in spite of the June election period, crisis expectations and seasonal slow-down.
Residential buyers brought forward their buying decisions due to election.
Rising construction material costs still have not yet been passed on to selling prices.
The project developers offer significantly favorable customer-based payment schedules due to stiff competition.
An indispensable price adjustment is on the cards in near term.
Mixed-use projects are highly on demand in the largest cities in particular.
11
Turkey Residential Sales ( in units )
Source: Turkish Statistical Institute
12
Residential Projects in Supply
Residential Supply (European side of Istanbul) Number of Projects Number of Residential Units
2007 and before 243 144.227
2008 60 20.761
2009 42 17.486
2010 66 30.966
2011 (Jan-Jun) 24 29.000
Total 435 242.440
Residential Supply (Asian side of Istanbul) Number of Projects Number of Residential Units
2007 and before 242 76.962
2008 26 8.656
2009 31 11.318
2010 36 10.062
2011 (Jan-Jun) 14 2.800
Total 339 109.798
Source: Epos Property Consulting and Valuation Inc.
13
Pre and Post-Crisis Price Variations
Average selling prices/m2 of newly launched projects on the European side of Istanbul (TRY/m2)
Location 2007 2009 2011 Variance (2011 vs. 2009)
Bahcesehir 2.440 2.000 2.424 21%
Beylikduzu/Esenyurt 1.631 1.866 2.100 13%
Halkali 1.947 2.242 2.700 20%
Average selling prices/m2 of newly launched projects on the Asian side of Istanbul (TRY/m2)
Location 2007 2009 2011 Variance (2011 vs. 2009)
Atasehir 2.846 2.965 4.000 35%
Cekmekoy 2.159 2.254 2.500 11%
Kartal/Maltepe - 2.400 2.900 21%
Pendik/Kurtkoy 1.550 2.000 2.300 15%
Source: Epos Property Consulting and Valuation Inc.
14
Residential Purchase Confidence Index
Source: ING Mortgage Barometer (Compiled from 805 interviews in 14 cities)
75,0 76,0
75,0
80,0
78,0 79,0
84,0
81,0
86,0
84,0 83,0
86,0
78,0
68
70
72
74
76
78
80
82
84
86
88
15
Turkey New Residential Price Index
2011 July Index Value
Variance M-o-M (%) Variance Y-o-Y(%) Variance Against January 2010(%)
New Residential Price Index 109.5 1.20% 7.29% 9.50%
Source: REIDIN Turkey
100,0 100,3 100,5 100,8 101,1 101,7 102,1 102,5 103,0
103,8 104,8 105,3
106,3 106,5 106,7 107,3 107,7 108,2
109,5
94
96
98
100
102
104
106
108
110
112
16 16
Turkey New Residential Price Index by Sqm
Source: REIDIN Turkey
January 2010=100 beginning of the index
Flat Size 2011 July Index Value Variance M-o-M VarianceY-o-Y Variance Against January 2010
51-75 M2 109.8 0.37% 8.22% 9.80%
76-100 M2 107.1 1.13% 4.51% 7.10%
101-125 M2 111.2 1.65% 9.71% 11.20%
126-150 M2 107.7 0.65% 5.59% 7.70%
151 M2 + 104.6 1.16% 3.17% 4.60%
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Purchasing Power vs. Mortgage Rates
Customer segment
Average monthly household income (TRY)
Maximum monthly installment amount (TRY)
Allowed maximum loan amount (TRY)
Monthly Interest Rate 1,53% (20% Compound)
Monthly Interest Rate 1,17% (15% Compound)
Monthly Interest Rate 0,95% (12% Compound)
Monthly Interest Rate 0,80% (10% Compound)
Monthly Interest
Rate 0,64% (8%
Compound)
Monthly Interest
Rate 0,41% (5%
Compound)
A 22.000 8.800 540.000 660.000 760.000 840.000 937.000 1.120.000
B 13.000 5.200 320.000 390.000 450.000 495.000 553.000 662.000
C+ 3.200 1.280 78.000 96.000 110.000 122.000 136.000 163.000
C 1.300 520 32.000 39.000 45.000 50.000 55.000 66.000
Source: Turkish Statistical Institute, TBB, DD Mortgage
*Per capita income in 2010 is TRY 1.250/month. *Ratio of regular payments including loan installment to monthly household income is assumed to be 40% with 180 months of loan maturity.
2Q 2011
1Q 2011
Total Labour Material (2005=100)
QoQ(%) 4,35 2,34 4,96 Total Labour Material
YtD(%)
8,91 5,04 10,11
QoQ(%)
4,37 2,64 4,91
YoY(%)
12,76 6,49 14,76
Yoy(%)
8,44 7,32 8,79
Variance to the Average of 4 Quarters(%)
8,7 6,58 9,37
Variance to the Average of 4 Quarters(%)
6,62 6,43 6,67
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Turkey Construction Costs
Source: Turkish Statistical Institute
19
Retail Market Outlook
285 shopping malls, 7.1 million sqm GLA, 97 sqm per 1.000 inhabitants.*
17 new malls opened and 585.000 sqm added in H1 2011.*
48% of new openings in Ankara and Istanbul.
41% of GLA and 100 shopping malls in Istanbul with the rest in Anatolia.
48 cities out of 81 accommodate shopping malls.
Rental growth in shopping centers and high streets predicted in H2.
Further yield compression expected for shopping centers.
Substantial new provision of retail space likely to be opened in H2.
Occupier demand expected to remain robust.
Bomonti Park in Istanbul acquired for € 5.2 million and half of Yapi Kredi Bank premises in Istiklal Avenue for € 29.5 million by VastNed.**
*Source: Council of Shopping Centers- Turkey ** Source: CBRE
20
285.
475 34
0.04
0
355.
034
389.
015
422.
503
456.
719
492.
520
531.
322
185.
210
217.
663
225.
316
244.
725
263.
685
282.
904
302.
863
324.
337
100.
265
122.
376
129.
718
144.
290
158.
817
173.
815
189.
657
206.
985
000
100.000
200.000
300.000
400.000
500.000
600.000
2009 2010 2011 2012 2013 2014 2015 2016
Retail Sales(USD mn)
Grocery retail sales(USD mn)
Non-Grocery Retail Sales (USD mn)
Turkey Retail Market
Source: Planet Retail
21 21 21
Shopping Mall Development
End 2009 Q1 2010 End 2010 Q1 2011
Unit 81 81 92 96
İstanbul GLA (sq m) 2,28 M 2,28 M 2,65 M 2,85 M
Unit 155 157 171 174
Rest of Turkey GLA (sq m) 3,41 M 3,50 M 3,87 M 3,93 M
Unit 236 238 263 270
Turkey GLA (sq m) 5,69 M 5,78 M 6,52 M 6,78 M
Source: Jones Lang LaSalle
Active Under Construction* Total
Unit 96 28 124
İstanbul GLA (sq m) 2,85 M 1,02 M 3,87 M
Unit 174 46 220
Rest of Turkey GLA (sq m) 3,93 M 1,27 M 5,20 M
Unit 270 74 344
Turkey GLA (sq m) 6,78 M 2,29 M 9,07 M
*As of end 2013
Source: Jones Lang LaSalle
22
Turkey Map of Shopping Malls
Current Shopping Malls
Shopping Malls under Construction and in Project
Concentration of Shopping Malls by GLA
LEGEND
Source: EVA Real Estate Appraisal Consultancy Akademetre Research and Strategy Planning
23 23 23
City End 2010 Q1 2011 End 2013
İstanbul 200 sq m 215 sq m 280 sq m
Ankara 202 sq m 202 sq m 239 sq m
Denizli 118 sq m 154 sq m 166 sq m
Bursa 130 sq m 130 sq m 135 sq m
Tekirdağ 139 sq m 139 sq m 132 sq m
İzmir 112 sq m 118 sq m 130 sq m
Eskişehir 116 sq m 116 sq m 111 sq m
Adana 59 sq m 59 sq m 86 sq m
Turkey 88 sq m 92 sq m 118 sq m
Retail Density-GLA per 1,000 Capita, Turkey
Source: Jones Lang LaSalle
24
Turkey’s Mall League
Source: Akademetre Research and Eva Real Estate
Mall Opening Date GLA Location Developer
1 Forum Istanbul 2009 180.000 Istanbul Multi Turkmall
2 Marmara Forum 2011 157.000 Istanbul Multi Turkmall
3 Cevahir 2005 110.000 Istanbul Celebioglu
4 Ankamall 1999 107.804 Ankara Yeni Gimat
5 Torium 2010 95.280 Istanbul Torunlar REIC
6 Istinyepark 2007 87.000 Istanbul Dogus, Orjin
7 Antares 2007 85.150 Ankara Dolunay
8 Anatolium 2010 84.165 Bursa Corio
9 Forum Ankara 2008 80.000 Ankara Multi Development TR
10 Kent Park 2008 80.000 Ankara Mega Turk Construction
11 Panora 2007 78.000 Ankara Polat Holding
12 M1 Merkez Adana 2000 75.700 Adana Metro
13 Korupark 2007 74.580 Bursa Torunlar REIC
14 Cepa 2007 72.000 Ankara Carrefour
15 Forum Mersin 2007 70.250 Mersin Multi Turkmall
16 Anatolium Ankara 2011 70.000 Istanbul Maya
17 M1 Meydan Umraniye 2007 70.000 Istanbul Metro
18 212 Istanbul Power Outlet 2009 69.000 Istanbul Edip International Real Estate
19 Ora Istanbul 2011 65.000 Istanbul Merkez Construction
20 Forum Bornova 2006 62.000 Izmir Multi Development TR
25 25 Source: Council of Shopping Centers- Turkey
*January 2010= the beginning of index
Turkey SHOPPING MALL Sales Turnover and Footfall
100 92 91 93
101 102 101 96 108 114 113
122 112 108 103 108 115 119
0
20
40
60
80
100
120
140
SALES TURNOVER INDEX (GENERAL)
SALES TURNOVER INDEX (GENERAL)
100
93 93
89
93
89
92 92
99 98
101
97 99
97 95
97
100
97
828486889092949698
100102
Jan.2010 Feb.2010 Mar.2010 Apr.2010 May.2010 Jun.2010 Jul.2010 Aug.2010 Sep.2010 Oct.2010 Nov.2010 Dec.2010 Jan.2011 Feb.2011 Mar.2011 Apr.2011 May.2011 Jun.2011
FOOTFALL INDEX (GENERAL)
FOOTFALL INDEX (GENERAL)
26
Turkey Shopping Mall Rental Yields- June 2011
PRIME RETAIL RENTS- Jun 2011
HIGH STREET US$ € US$ Compound (p.a) % growth
SHOPS sq.m/mth sq.m/yr sq.ft/yr 5yr 1yr
Istanbul 230 1,904 256 13.9 15.0
Izmir 70 579 78 4.9 9.4
Ankara 85 703 95 7.2 13.3
PRIME RETAIL YIELDS- Jun 2011
HIGH STREET Current Last Last 10 Year
SHOPS (Gross) Quarter Quarter Year High Low
Istanbul 7.50 7.50 8.00 14.50 7.50
Izmir 10.50 10.75 11.00 14.50 10.50
Ankara 10.50 10.50 11.00 15.50 10.50
SHOPPING Current Last Last 9 Year
CENTRES (Net) Quarter Quarter Year High Low
Istanbul 8.00 8.25 9.00 14.50 7.00
Source: Cushman&Wakefield
27
Office Market Outlook
Levent-Maslak Area still sees healthy levels of demand.
Increasing demand against limited Class-A stock pushes rents up.
Investor, both domestic and foreign competing for limited space will compress prime yields.
Supply increases as new space is delivered and older space released as occupiers upgrade.
Demand increases with the economy and establishment of the financial center.
Akbank’s three ex-operation buildings (48.000 sqm) in Maslak were acquired by Orta Real Estate (owned by Orjin Group) for $ 95 million.*
1.500 sqm in the Akkom Plaza in Umraniye rented at $19/ sqm/ month.**
915 sqm in the Is Towers in Levent rented at $30/ sqm/ month.**
3000 sqm in the Akkom Plaza in Umraniye rented at $19/ sqm/ month.**
*Source: Cushman & Wakefield **Source: CBRE
28 28 28
Sub Market GLA (sq m)
Europe CBD 1,1 million
Non CBD 0,73 million
Asia 0,80 million
Total 2,6 million
Existing Grade A Office Stock
Source: Jones Lang LaSalle
Sub Market GLA (sq m)
Europe CBD 207,000
Non CBD 185,000
Asia 229,000
Total 621,000
Pipeline Projects Grade A Office Stock*
*For completion by end 2013
Source: Jones Lang LaSalle
Office Market Overview
29
Turkey Office Rental Yields- June 2011 PRIME OFFICE RENTS- Jun 2011
US$ Prime Rent € US$ Compound (p.a) % growth sq.m/mth sq.m/yr sq.ft/yr 5yr 1yr
Istanbul Levent 36.0 298 40.1 14.9 0.0 Esentepe-Gayrettepe 31.0 257 34.6 15.6 6.9 Maslak 24.0 199 26.8 14.9 -4.0 Umraniye 20.0 166 22.3 6.7
Izmir 15.0 124 16.7 13.4 -6.3 Ankara 21.0 174 23.4 11.8 -4.5
PRIME OFFICE YIELDS- Jun 2011 Prime Yield (%)
Current Last Last 10 Year Quarter Quarter Year High Low
Istanbul Levent 8.00 8.00 8.25 18.00 7.50 Esentepe-Gayrettepe 8.00 8.25 8.50 18.00 7.50 Maslak 8.75 8.50 8.75 16.30 7.75 Umraniye 8.50 8.75 9.00 9.50 8.50
Izmir 10.00 10.00 10.25 22.00 9.00 Ankara 10.00 10.00 10.25 21.00 9.00
Source: Cushman&Wakefield
30 30 30
3
Turkish economic outlook
Listed REIC's
Operational review
Financial review
Development review
Future outlook
Appendix (Portfolio review)
Sectoral outlook
31 31 31
REICs on the ISE (as of August 2, 2011)
Listed REICs Free Float 3M avg. daily
trading volume Current M.Cap
(TRY mn) (30.06.2011)
NAV (TRY mn) Prem/(Disc) to
NAV Dividend Yield
(2010) Dividend Yield
(2011) Emlak Konut 25% 76.2 6,200 5,764 9% - 2.6%
Torunlar 25% 4.1 1,281 2,527 -49% - 0.9% İş 48% 2.7 768 1,405 -45% 3.0% 2.8%
Sinpaş 37% 10.8 975 1,355 -28% - 3.1% Kiler 35% 4.9 326 934 -65% - -
Akmerkez 2% 1.0 803 806 0% 4.6% - Akfen 29% 2.0 296 739 -60% - -
Reysaş 31% 1.8 192 334 -43% - 0.6% Alarko 34% 3.0 213 273 -22% - 0.7% Martı 48% 1.7 102 222 -54% - 5.4% TSKB 29% 0.7 113 210 -47% - -
Atakule 16% 0.3 104 212 -51% 2.2% 2.1% Yesil 14% 1.5 270 184 47% - -
Doğuş 7% 0.5 154 181 -15% - - Pera 61% 1.2 73 165 -56% - - Vakıf 44% 2.4 72 135 -47% - -
Özderici 33% 0.5 109 101 8% - -
Yapı Kredi Koray 44% 1.4 102 87 16% - -
Sağlam 42% 3.8 82 76 9% - - Nurol 20% 0.9 80 57 41% - -
Avrasya 18% 1.4 104 80 29% - - EGS 66% 0.0 17 20 -16% - -
İdealist 25% 1.3 80 12 575% - - TOTAL 26% 124 12,517 15,788 -21%
exc. EKGYO 26% 48 6,317 10,114 -38% - -
32
Portfolio Structures of REICs (as of June 2011)
Listed REICs Land Buildings Ongoing projects Rights over real
estate assets Marketable securities Participations
Emlak Konut 52% 4% 32% - 12% - Torunlar 8% 39% 23% - 19% 11%
İş 12% 83% - - 6% 0% Sinpaş 33% 21% 37% - 2% 7% Kiler 6% 85% 3% - 6% 0%
Akmerkez - 91% - - 9% - Akfen - 45% 3% 2% 6% 44%
Reysaş 16% 74% 8% - 0% 1% Alarko 16% 16% 6% 20% 41% 0% Martı 16% - 21% 63% - 0% TSKB 4% 90% - - 6% 0%
Atakule 0% 60% 0% - 39% - Yesil 30% - 70% - 0% -
Doğuş - 89% - - 11% - Pera - 82% 10% 2% 4% 2% Vakıf 77% 12% - 2% 9% -
Özderici - 3% 79% - 18% - Yapı Kredi Koray 8% 25% 20% - 0% 47%
Sağlam - 68% - - 28% 4% Nurol 49% 34% - - 17% -
Avrasya 16% 83% - - 2% - EGS 2% - 98% - 0% 0%
İdealist - 95% - - 5% - TOTAL 27% 34% 22% 1% 11% 5%
exc. EKGYO 13% 51% 17% 2% 11% 8%
33
Competitors H1 2011 Financial Highlights
Emlak Konut REIC Summary Financials % Change
(mn TL) 2Q10 2Q11 1H10 1H11 2Q11/2Q10 1H11/1H10
Net Sales 225 191 440 362 -15,0% -18,0%
Gross Margin 61.2% 17.5% 65.6% 30.5% -43.7 pp -35.2 pp
Operating Margin 54.8% 11.1% 60.5% 23.0% -43.8 pp -37.5 pp
EBITDA Margin 55.1% 11.1% 60.6% 23.1% -44 pp -37.5 pp
Net Profit Margin 23.7% 15.3% 46.3% 28.3% -8.4 pp -18 pp
Sinpas REIC Summary Financials % Change (mn TL) 2Q10 2Q11 1H10 1H11 2Q11/2Q10 1H11/1H10
Net Sales 66 322 94 395 387,0% 319,0%
Gross Margin 37.6% 35.2% 27.9% 34.2% -2.3 pp 6.3 pp
Operating Margin 19.9% 28.9% 5.0% 26.0% 9 pp 21.1 pp
EBITDA Margin 21.5% 29.2% 7.2% 26.7% 7.7 pp 19.4 pp
Net Profit Margin 22.9% 33.4% 11.2% 30.2% 10.5 pp 18.9 pp
IS REIC Summary Financials % Change (mn TL) 2Q10 2Q11 1H10 1H11 2Q11/2Q10 1H11/1H10
Net Sales 23 28 47 54 18,0% 16,0%
Gross Margin 46.3% 47.5% 49.6% 49.4% 1.2 pp -0.2 pp
Operating Margin 40.0% 39.6% 41.9% 40.9% -0.4 pp -1 pp
EBITDA Margin 65.4% 62.5% 67.5% 64.0% -2.9 pp -3.5 pp
Net Profit Margin 49.0% 35.1% 47.5% 35.8% -14 pp -11.7 pp
34 34 34
3
Turkish economic outlook
Listed REIC's
Operational review
Financial review
Development review
Future outlook
Appendix (Portfolio review)
Sectoral outlook
35 35
Shareholding Structure
June 2011
36 36
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-adding tasks such as land development, funding and identify potential growth areas of development
Opportunistic development of other asset classes
Leverage track-record of JV development Access to attractive development opportunities Diversification of risk
Strategy focus
Primary focus on development of shopping malls Increased 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 opportunities Ensure appropriate shop and tenant mix Leveraging Torunlar Group’s reputation
and network of contacts to attract known Turkish/international tenants
Strategy highlights
37 37
History of Torunlar REIC–key milestones
1996 1999 2004 2005 2007 2008 2009 2010 1977
Construction for the company’s needs and third party use (small-scale residential units) Active in the Turkish
construction and real estate market since 1977
Foundation of Toray Construction
Acquisition of the Netsel Marina in Marmaris
Torunlar bought the land to be used for Torun Tower
Delivery of Korupark Residences phases I&II
Torunlar REIC became a listed company as of October 21st, 2010, emerging as one of the biggest listed Turkish real estate companies
Delivery of Nish İstanbul residences and offices
Opening of one of the biggest shopping malls in Turkey, Korupark
The residential compound at Korupark was Bursa’s first gated community
Opening of the biggest mall in Turkey in 1999, Ankamall
Opening of Zafer Plaza; the first shopping mall of Bursa
Opening of the biggest outlet of Antalya, Deepo Outlet
Opening of Torium Shopping Mall, October 30th, 2010
Torium Shopping Mall is the 3rd largest shopping mall in Istanbul
Torunlar bought the land for the Mall of Istanbul project, which will be one of Turkey’s largest mixed use projects including a shopping mall, residences, offices and a hotel
Conversion to Torunlar REIC
38 38
Key Investment Highlights
8%
39%
23%
11%
19%
Current Portfolio Breakdown
Land
Buildings
Projects
Participations
Money and CapitalMarket Instruments
10% 3%
28%
58%
1% 0% 0%
Composition of Real Estate Portfolio
Land
Completed units forsale
Ongoing projects
Shopping malls
Marina
Hotel
Other
•2nd largest listed retail property company in Turkey
• Included in ISE National XU 100, MSCI Turkey, EPRA indices
•GAV (Gross Asset Value): TRY 2.62 bn (2011/06)
•Portfolio value: TRY3.38 bn (2011/06)
•Revenues: TRY 83.1 mn (2011/06) •Market capitalisation: TRY1,4 bn(30/06/2011)
•Listed on 21.10.2010 on Istanbul Stock Exchange
•Diversified investment portfolio
•5 cities, Istanbul added in October 2010
•Portfolio ‘primarily’retail (58% shopping centres)
•Resilient operations: 98% occupancy rate (2011/06) •Healthy financial structure with leverage at 26.7 %
•Stable shareholder structure with 25.16 % free float
39 39
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 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)
Occupancy 99%
Korupark (SM)
Occupancy 97%
Deepo Outlet Centre (SM)
Ankamall+ Crowne Plaza (SM+Hotel)
Occupancy 100% Occupancy 100%
Torium Istanbul (SM)
Occupancy 99%
Shopping Mall Portfolio
40
Operational Assets
Shopping Malls Zafer Plaza Korupark Deepo Outlet Torium
Land Area (sqm) 9.622 53.186 66.005 44.571
Land Cost (TRY) - 6.719.681 7.700.000 54.857.072
Land Price per sqm (TRY/sqm) - 126,34 116,66 1.230,78
Construction Area (sqm) 57.112 169.000 37.500 259.754
Development Cost (TRY) 18.448.375 77.315.718 10.149.518 221.069.212
Development Cost per sqm (TRY/sqm) 323 457 271 851
GLA (sqm) 16.944* 71.267 18.069 95.280
Rental Income-LTM June 2011 (TRY) 11.883.287* 37.233.592 13.060.492 19.295.014
Total Revenue-LTM June 2011 (TRY) 14.307.660* 37.233.592 16.246.583 19.295.014
EBITDA-LTM June 2011 (TRY) 8.854.893* 32.979.860 10.987.793 15.947.169
*Adjusted as per Torunlar, 72,26% share
Asset Korupark Residences Phase I-II Torium Residence NishIstanbul
Land Area (sqm) 47.434 - 32.889
Land Cost (TRY) 5.993.043 - 60.570.467
Land Price per sqm 126,34 - 1.841,66
Construction Area (sqm) 221.979 14.952 135.291
Development Cost (TRY) 124.194.888 12.083.839 118.309.589
Development Cost per sqm (TRY/sqm) 559 808 874
Units 746 80 700
GLA/GSA (sqm) 110.414 5.318* 81.066
Total Revenue-2011 F (TRY) 224.913.318* 17.000.000* 120.000.000
41
Completed Projects
* Assuming the remaining units in inventory will be sold.
Asset Mall of Istanbul Korupark Residences Phase III Boulevard Samsun
Land Area (sqm) 122.860 35.773 17.400
Land Cost (TRY) 176.671.963 3.100.000 -
Land Price per sqm (TRY/sqm) 1.437,99 86,66 -
Construction Area (sqm) 656.000 166.402 38.334
Development Cost (TRY) 498.820.834 134.787.172 34.485.443
Development Cost per sqm (TRY/sqm) 760 810 900
GLA/GSA (sqm) 281.000 116.151 15.900
Rental Income-2011 F (TRY) 65.214.396 - 6.884.199
Total Revenue-2011 F (TRY) 583.714.396 220.686.900 -
Completion Date H2 2013 Q1 2013 Q2 2012
42
Ongoing Projects
Asset Torun Tower Ali Sami Yen Project Deepo Extension
Land Area (sqm) 14.992 34.640 21.595
Land Cost (TRY) 46.637.080 475.000.000* 9.400.000
Land Price per sqm (TRY/sqm) 3.110,80 13.712,47 435,29
Construction Area (sqm) 91.940 271.272 38.869
Development Cost (TRY) 106.445.963 311.237.664* 36.640.200
Development Cost per sqm (TRY/sqm) 1.158 1.147 943
GLA/GSA (sqm) 47.175 190.183 26.651
Rental Income-LTM June 2011 (TRY) 30.395.354 - 15.842.207
Total Revenue-LTM June 2011 (TRY) 30.395.354 1.025.211.825** -
Net Operating Income-LTM June 2011 (TRY) 27.768.208 - -
43
Upcoming Projects
*Unadjusted total cost of the project **Adjusted 65% share of Torunlar
44
Project Deliveries & Pre-Sales Completed Projects
Location Saleable area (sq.m)
Total # of units # of units delivered delivery ratio start/
completion Torunlar REIC's revenue share
Torunlar REIC sales
revenue
Korupark I-II Bursa 110.414 746 676 91%
May 2006/Februa
ry 2008 100% 195.551.000
Torium Residence Istanbul 5.318 80 0 0%
June 2008/June
2011 100% 0
NishIstanbul Istanbul 70.129 648 648 100%
July 2008/Octobe
r 2010 60% 119.444.000
Residence 53.204 585 585 100%
July 2008/October
2010
Office 16.925 63 63 100%
July 2008/October
2010
Ongoing Projects
Location Saleable area (sq.m)
Total # of units
# of units presold
(03.08.2011)
GSA presold (sq.m)
(03.08.2011)
# of units delivered
presold ratio (unit)
presold ratio
(sq.m)
delivery ratio
start/ completion
Torunlar REIC's
revenue share
Presale Cash In
(TRY 000)
Mall of Istanbul Istanbul 146.000 1.215 431 46.156 NA 35% 32% NA April 2011/Q4
2013 100% 143.342
Residence 116.000 1.100 407 41.656 NA 37% 36% NA April 2011/Q4
2013 100% 124.342
Office 30.000 115 24 4.500 NA 21% 15% NA April 2011/Q4
2013 100% 19.000
Korupark Residences Phase III Bursa 116.151 680 153 19.052 NA 23% 16% NA
March 2011/ Q1 2013 100% 31.622
45 45
Footfall and Turnover (June 2011)
YoY variance(%) Torunlar REIC* Turkey**
Retail spending 12.0 15.0
Footfall 1.3 4.0
Occupancy ratio (%) 98 90
Source: Council of Shopping Centers Turkey *Like-for-Like, excluding Ankamall and newly opened Torium **Including new openings
46 46 46
Resilient retail operations through active hands-on management
June 2011 Bursa Zafer Plaza Bursa Korupark
Antalya Deepo Outlet İstanbul Torium Total
GLA ( m2 ) 23.448
71.267
18.069
95.280 201.584
Revenues 4.200.000
24.392.000
6.920.000
23.298.000 58.810.000
Revenues % growth
0*
35.7
25.9
NA 112.5
% Footfall growth 4.9
(3.0)
1.8
NA
1.3
Number of stores 127
182
81
180
570
Occupancy (%) 99
97
100
99
98
Turnover rent (as % of fixed rent)
3.5 3.7 18.6 13.4 8.6
Breakdown of rental revenues
62%USD 38%€
87%€ 13%USD
80%€ 20%USD
70%USD 30%€
61%€ 39%USD
Share of International Tenants
19% of GLA 24% of Rental
Revenue 22% of Retail
Turnover
27% of GLA 33% of Rental
Revenue 33% of Retail Turnover
20% of GLA 22% of Rental
Revenue 23% of Retail
Turnover
28% of GLA 28% of Rental
Revenue 43% of Retail
Turnover
26% of GLA 29% of Rental
Revenue 33% of Retail
Turnover *Annual rental revenue is fixed at TRY 8.4 mn between 2008-2012, to set aside each year TRY 2.4 mn reserve to pay back the loan raised for the capex.
47 47 47
Shopping Centers by Value
(TRY 000) 30-06-11 Nr of contracts Rental Yield on
Cost LTM June 2011
Rental Yield on Appraisal Value LTM June 2011
Rental Yield on Cost (2011 F)
Rental Yield on Appraisal Value
(2011 F)
Bursa Zafer Plaza 143.156 127 48,00% 6,19% 50,98% 6,57%
Bursa Korupark 540.510 182 43,90% 6,10% 42,28% 6,57%
Ankara Ankamall 138.274 315 37,90% 7,70% 43,50% 8,80%
Antalya Deepo Outlet
180.492 81 61,56% 6,09% 63,24% 6,25%
İstanbul Torium 549.876 180 9,33% 4,35% 9,21% 4,62%
TOTAL 1.552.308 882 33,50% 5,60% 35,90% 6,04%
GLA GLA Breakdown
Sales Density (Sales/Sqm/Mo
nth)
FIXED RENT/SQM/M
ONTH
Occupancy Cost Ratio
(Rent/Sales)
Breakdown of Rental Revenue
Monthly Footfall
Average Spending Per
Month
SQM TRY TRY TRY
ANCHOR 38.872 20% 312 20 6% 10%
HOME 5.661 3% 269 56 21% 4%
READY WEAR 74.437 38% 485 47 10% 47%
DEPARTMENT STORE 22.069 11% 297 20 7% 6%
SERVICE 4.653 2% 214 63 29% 4%
LEISURE/ GIFT/ SPECIAL 4.735 2% 348 57 16% 4%
PERSONAL CARE+ACCESSORIES 5.357 3% 838 92 11% 7%
CULTURE/ART/ENTERTAINMENT 19.531 10% 42 9 21% 2%
TECHNOLOGY 5.948 3% 652 54 8% 4%
FOOD & DRINK 12.408 6% 380 67 18% 11%
TOTAL 193.862 100% 357 38 11% 100% 3.018.012 22,9
48
Shopping Mall Tenants by Category
49 49 49
3
Turkish economic outlook
Listed REIC's
Operational review
Financial review
Development review
Future outlook
Appendix (Portfolio review)
Sectoral outlook
50
H1 2011 Activities of Torunlar REIC
Korupark 3rd Phase Terrace Residences were put up for sale in mid-March.
Torunlar REIC signed a loan agreement for 10 year due USD 250 million with Is Bank of Turkey for Mall of Istanbul Project on 31 May.
Mall of Istanbul The Residence started to be sold on 23 April with the Office on 27 June.
Highly Commended Project Award to Mall of Istanbul in the Future Projects Category by Retail and Leisure Magazine in London on 13 June.
Torunlar REIC earned Jury Special Award in the “Investor of the Year” category among Ekovitrin 2011 Stars of the Year on 30 June.
ECE European Prime Shopping Centre Funds offered USD 525 million to buy 100% of Torunlar REIC’s 14.83% owned Ankamall and Crowne Plaza Hotel on July 15.
Torium became the first mall awarded with LEED green building certificate on 27 July.
51
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
EPS 1.16 TRY 3.04 TRY -68.0
LfL rental revenue growth 33%
Occupancy ratio 98% 98% 0,0
TRY (000) 2010 2099 Variance %
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 3.130.000 2.603.000 20.2
Market cap 1.420.160
Financial highlights
52 52 52
Financial highlights
TRY 000 2011/06 2010/06 Variance %
Sales revenue 83.142 49.856 66,8%
Residences sold 23.710 21.271 11,5%
Rental revenue 51.519 24.435 110,8%
EBITDA 44.594 28.902 54,3%
EBITDA margin 53,6% 58,0% -4,3 pp
Dividend income 6.496 4.744 36,9%
Valuation gain from financial assets and liabilities 0 114.740 -100,0%
Net profit -6.563 147.903 -104,4%
EPS -TRY0,03 TRY0,84
LfL rental revenue growth 28,3% 18,4%
Occupancy ratio 98% 98% 0,0%
TRY 000 2011/06 2010/12 Variance %
Total Assets 3.484.288 3.203.839 8,8%
Total Equity 2.349.867 2.369.083 -0,8%
Net debt -275.815 -344.599 -20,0%
Portfolio value 3.386.290 3.130.000 8,2%
Market cap 1.384.320 1.420.160 -2,5%
53
Breakdown of bank deposits
Deposits $ € TL Due date Bank
Principal 29.000.000 02.09.2011 Garanti
Principal 100.000.000 25.02.2012 Garanti
Principal 169 01.07.2011 Garanti
Principal 316.901 01.07.2011 Garanti
Principal 5.900.000 25.07.2011 Akbank + Garanti
Principal 13.860.000 25.01.2012 Garanti
Principal 251.170.000 July 2011
Isbank + Denizbank + TEB + Vakifbank +Finansbank
Principal 112.000.000 August 2011 Garanti + Denizbank
Principal 12.000.000 September 2011 Garanti + Denizbank
Interest 2.021.493 833.999 9.970.000
TOTAL 131.021.662 20.910.900 385.140.000
54
Breakdown of financial loans $ € TL Due date Interest Rate Purpose and term Bank
432.000 01.07.2011 Garanti 4.650.000 01.07.2011 10% Akbank 9.250.000 09.12.2011 9,95% Akbank 49.000 10.10.2011 Albaraka
5.000.000 27.12.2011 3,10% Denizbank 5.000.000 05.10.2011 3% Garanti
100.000.000 24.02.2017 6% Torun Tower (2+5) Garanti 27.300.000 02.02.2016 4,03% Ali Sami Yen (2+3) Garanti 1.300.000 02.02.2016 4,02% Garanti 30.000.000 28.08.2011 3,50% Isbank 15.000.000 17.11.2011 4,15% Isbank 15.000.000 30.12.2011 4% Isbank 5.500.000 05.04.2012 3,60% Isbank 3.000.000 11.04.2012 3,60% Isbank 1.000.000 10.05.2012 3,55% Isbank 18.000.000 15.06.2012 3,60% Isbank 2.000.000 18.06.2012 3,60% Isbank 81.250.003 17.09.2014 6,50% Torium (1+3) Isbank
30.000.000 01.06.2021 6M LIBOR+3,60% Mall of Istanbul (3+7) Isbank 15.000.000 20.09.2011 3,25% Akbank 5.000.000 14.05.2012 3,75% Akbank
191 Garanti Leasing 1.000.000 27.12.2011 3% Denizbank 2.000.000 31.01.2012 3,25% Denizbank 122.600.000 24.01.2018 4,94% (EURIBOR+220) Korupark (10) Akbank 1.000.000 14.05.2012 4% Akbank 2.000.000 14.05.2012 3,75% Akbank 2.000.000 26.04.2012 3,65% Isbank 1.000.000 15.06.2012 3,80% Isbank
2.077 Deniz Leasing
66 Garanti Leasing
TOTAL 359.350.194 131.602.143 14.381.000
55 55 55
Maturity of Financial Loans (TRY m)
*The graph excludes TRY 654.5 mm of cash and cash deposits as of June 2011.
64,9%USD, 33,5%€, 1,6%TRY
285
98 115
431
0
50
100
150
200
250
300
350
400
450
500
2011 2012 2013 2014+
Maturity of debt
Maturity of debt
Financial loans: TRY 930.3 mn
56
Net Foreign Currency Position
30.06. 2011 31.12.2010
(.000) € $ TL
Equivalent TL
Equivalent Variance %
Donen varliklar/ Current assets 16.673 60.308 137.483 219.902 -37,5%
Ticari alacaklar/ Trade receivables 0 0 0 1.626 -100,0% Parasal finansal varliklar/ Monetary financial assets 14.839 47.445 112.205 218.276 -48,6%
Diger/ Other 1.834 12.863 25.278 0
Toplam varlilklar/ Total assets 16.673 60.308 137.483 219.902 -37,5%
Kisa vadeli yukumlulukler/ Current liabilities -25.409 -301.830 -551.734 -218.988 151,9%
Ticari borclar/ Trade payables -1.707 -476 -4.786 -6.968 -31,3% Iliskili taraflara borclar/ Payables to related parties 0 -10.420 -16.987 0
Finansal yukumlulukler/ Financial liabilities -22.069 -280.500 -509.116 -212.020 140,1% Diger kisa vadeli yukumlulukler/ Other current liabilities -1.633 -10.434 -20.845 0 Uzun vadeli yukumlulukler/ Non-current liabilities -110.700 -198.184 -583.135 -552.122 5,6%
Finansal yukumlulukler/ Financial liabilities -110.700 -198.184 -583.135 -552.122 5,6%
Toplam yukumlulukler/ Total liabilities -136.109 -500.014 -1.134.869 -771.110 47,2% Net yabanci para (yukumluluk) pozisyonu/ Net foreign currency asset (liability) -119.436 -439.706 -997.386 -551.208 80,9%
57
Abridged Income Statement
(000 TL) 1H11 % 1H10 % YoY
Satışlar/Sales 83.142 100,0% 49.856 100,0% 66,8%
Konut/Residence 23.710 28,5% 21.271 42,7% 11,5%
AVM kira/ Mall rental 51.519 62,0% 24.435 49,0% 110,8%
Diğer/Other 7.913 9,5% 4.150 8,3% 90,6%
Brüt kar/Gross profit 48.629 58,5% 33.795 67,8% 43,9%
Faaliyet karı /Operating profit 37.973 45,7% 138.710 278,2% -72,6%
VFOK/EBIT 44.469 53,5% 28.714 57,6% 54,9%
VAFOK/EBITDA 44.594 53,6% 28.902 58,0% 54,3%
Vergi öncesi kar/Profit before tax -5.693 -6,8% 148.372 297,6% -103,8%
Net kar/net profit -6.563 -7,9% 147.903 296,7% -104,4%
58 58 58
Income Statement
Note: Sales are accounted when properties are physically transferred to buyers 1 EBIT includes operating profit and share of profits from associates excluding any effect of fair value changes 2 EBITDA = EBIT + Depreciation expenses ³ Excludes fair value gains/losses from “Investment Properties” and financial instruments
(000 TL) 2Q11 2Q10 YoY 1Q11 QoQ 1H11 1H10 YoY Satışlar/Sales 41.104 24.811 65,7% 42.038 -2,2% 83.142 49.856 66,8% Konut/Residence 10.841 10.485 3,4% 12.869 -15,8% 23.710 21.271 11,5% AVM kira/ Mall rental 26.808 12.212 119,5% 24.711 8,5% 51.519 24.435 110.8% Diğer/Other 3.455 2.114 63,4% 4.458 -22,5% 7.913 4.150 90,6% SMM/Cost of sales 17.942 8.348 114,9% 16.571 8,3% 34.513 16.061 114,9% Brüt kar/Gross profit 23.162 16.463 40,7% 25.467 -9,1% 48.629 33.795 43,9% Brüt marj/Gross margin 56,3% 66,4% -10,1 pp 60,6% -4,2 pp 58,5% 67,8% -9,3 pp Faaliyet giderleri/Opex -7.817 -7.645 2,2% -4.062 92,4% -11.879 -9.178 29,4%
Diğer gelir(gider)/Other income(expenses) 886 -549 -261,4% 337 162,9% 1.223 -647 -289,0%
Yatirim amacli gayrimenkuller deger artislari (azalislari)/ Net gain (loss) fair value adjustments on investment property 0 114.740 -100,0% 0 0 114.740 -100,0% Faaliyet karı /Operating profit 16.231 123.009 -86,8% 21.742 -25,3% 37.973 138.710 -72,6%
Gayrimenkul deger artisi haric faaliyet kari / Operating profit excluding fair value adjustment 16.231 8.269 96,3% 21.742 -25,3% 37.973 23.970 58,4%
İştiraklerden alınan temettü/Share of profit of associates (recurring) 4.188 2.681 56,2% 2.308 81,5% 6.496 4.744 36,9% VFOK/EBIT 20.419 10.950 86,5% 24.050 -15,1% 44.469 28.714 54,9% VFOK marjı /EBIT margin (%) 49,7% 44,1% 5,5 pp 57,2% -7,5 pp 53,5% 57,6% -4,1 pp Amortisman/Depreciation 44 161 -72,7% 81 -45,7% 125 188 -33,5% VAFOK/EBITDA 20.463 11.111 84,2% 24.131 -15,2% 44.594 28.902 54,3% VAFOK marjı/EBITDA margin (%) 49,8% 44,8% 5,0 pp 57,4% -7,6 pp 53,6% 58,0% -4,3 pp İştiraklerden gelir (gider)/share of profits (non-recurring) -3.122 6.331 -149,3% 874 -457,2% -2.248 6.267 -135,9% Net faiz geliri(gideri)/Net financial interest income(expense) -33 -20.669 -99,8% -1.952 -98,3% -1.985 -24.199 -91,8%
Net diğer finansal gelir (gider)/Other net financial income (expense) 2.034 -1.193 -270,5% 1.329 53,0% 3.363 -1.072 -413,7%
Kur farkı geliri (gideri)/Forex gain (loss) -34.207 17.206 -298,8% -15.085 126,8% -49.292 23.922 -306,1%
Vergi öncesi kar/Profit before tax -14.909 127.365 -111,7% 9.216 -261,8% -5.693 148.372 -103,8%
Vergi gideri/Corporate tax -425 -469 -9,4% -445 -4,5% -870 -469 85,5%
Net kar/net profit -15.334 126.896 -112,1% 8.771 -274,8% -6.563 147.903 -104,4%
Net kar marjı/Net profit margin (%) -37,3% 511,5% -548,8 pp 20,9% -58,2 pp -7,9% 296,7% -304,6 pp
59
Abridged Balance Sheet
(000 TL) 2011/06 % 2010/12 % Fark/Variance %
DÖNEN VARLIKLAR/CURRENT ASSETS 808.986 23,2% 577.444 18,0% 40,1%
DURAN VARLIKLAR/NON-CURRENT ASSETS 2.675.302 76,8% 2.626.395 82,0% 1,9%
TOPLAM VARLIKLAR/TOTAL ASSETS 3.484.288 100,0% 3.203.839 100,0% 8,8%
KISA VADELİ YÜKÜMLÜLÜKLER/CURRENT LIABILITIES 420.036 12,1% 282.544 8,8% 48,7%
UZUN VADELİ YÜKÜMLÜLÜKLER/NON-CURRENT LIABILITIES 714.385 20,5% 552.212 17,2% 29,4%
ÖZKAYNAKLAR/ TOTAL EQUITY 2.349.867 67,4% 2.369.083 73,9% -0,8%
TOPLAM KAYNAKLAR/TOTAL LIABILITIES AND EQUITY 3.484.288 100,0% 3.203.839 100,0% 8,8%
60
Balance Sheet (000 TL) 2011/06 2010/12 Fark/Variance %
NAKİT VE NAKİT BENZERİ/CASH AND CASH EQUIVALENTS 453.992 438.664 3,5% FINANSAL YATIRIMLAR/FINANCIAL INVESTMENTS 200.565 0 TİCARİ ALACAKLAR/TRADE RECEIVABLES 43.727 49.706 -12,0% STOKLAR/INVENTORY 43.623 47.716 -8,6% DİĞER DÖNEN VARLIKLAR/OTHER CURRENT ASSETS 67.079 41.358 62,2% DÖNEN VARLIKLAR/CURRENT ASSETS 808.986 577.444 40,1% FINANSAL YATIRIMLAR/FINANCIAL INVESTMENTS 0 29.459 -100,0% TİCARİ ALACAKLAR/TRADE RECEIVABLES 14.579 4.729 208,3% ÖZKAYNAK YÖNTEMİ İLE DEĞ.YAT./INVEST.IN ASSOCIATES 123.209 125.458 -1,8% YATIRIM AMAÇLI GAYRIMENKULLER/INVESTMENT PROPERTY 2.226.952 2.388.865 -6,8% MADDİ DURAN VARLIKLAR/TANGIBLE FIXED PROPERTY 4.368 1.115 291,7% MADDİ OLMAYAN DURAN VARLIKLAR/INTANGIBLE FIXED ASSETS 97 82 18,3% STOKLAR/INVENTORY 226.863 2.337 DİĞER DURAN VARLIKLAR/OTHER NON-CURRENT ASSETS 79.234 74.350 6,6% DURAN VARLIKLAR/NON-CURRENT ASSETS 2.675.302 2.626.395 1,9% TOPLAM VARLIKLAR/TOTAL ASSETS 3.484.288 3.203.839 8,8% FİNANSAL BORÇLAR/FINANCIAL LIABILITIES 347.237 231.141 50,2% FİNANSAL KİRALAMA BORÇLARI/FINANCE LEASE LIABILITIES 5 20 -75,0% DİĞER FİNANSAL YÜKÜMLÜLÜKLER/OTHER FINANCIAL LIABILITIES 2.308 3.877 -40,5% TİCARİ BORÇLAR/TRADE PAYABLES 56.835 34.536 64,6% DÖNEM KARI VERGİ YÜKÜMLÜLÜĞÜ/TAX PAYABLES 870 0 DİĞER YÜKÜMLÜLÜKLER/OTHER CURRENT LIABILITIES 12.781 12.970 -1,5% KISA VADELİ YÜKÜMLÜLÜKLER/CURRENT LIABILITIES 420.036 282.544 48,7% FİNANSAL BORÇLAR/FINANCIAL LIABILITIES 583.135 552.122 5,6% ÇALIŞANLARA SAĞLANAN FAYDALARA İLİŞKİN KARŞILIKLAR/PROVISION FOR EMPLOYMENT TERMINATION BENEFITS 127 90 41,1% DİĞER YÜKÜMLÜLÜKLER/OTHER NON-CURRENT LIABILITIES 131.123 0 UZUN VADELİ YÜKÜMLÜLÜKLER/NON-CURRENT LIABILITIES 714.385 552.212 29,4% ÖDENMİŞ SERMAYE/SHARE CAPITAL 224.000 224.000 0,0% HİSSE SENEDİ İHRAÇ PRİMLERİ/SHARE PREMIUM 301.770 301.770 0,0% YASAL YEDEKLER/LEGAL RESERVES 4.560 3.127 45,8% GEÇMİŞ YIL KARLARI/RETAINED EARNINGS 1.826.100 1.625.941 12,3% NET DÖNEM KARI/NET PROFIT -6.563 214.245 -103,1% ÖZKAYNAKLAR/ TOTAL EQUITY 2.349.867 2.369.083 -0,8% TOPLAM KAYNAKLAR/TOTAL LIABILITIES AND EQUITY 3.484.288 3.203.839 8,8%
61
Cash Flow Statement
(000 TL) H1 2011 H1 2010 2010 2009 2008
Nakit ve nakit benzeri degerlerin donem basi bakiyesi/ Cash and cash equivalents at the beginning of the year 438.664 72.639 72.639 80.168 137.441
Nakit ve kredili mevduat hesaplari kur farki (zarari)/ Exchange losses on cash and blocked deposits 13.751 160 320 -211 4.154
Bloke mevduat/ Blocked deposits 0 0 -121.447 0 0
Isletme faaliyetlerinde elde edilen (kullanilan) net nakit/ Net cash generated (used) in operating activities 146.301 91.210 32.380 63.287 -30.371
Yatirim faaliyetlerinde kullanilan net nakit/ Net cash used in investing activities -209.322 -46.253 -122.002 -58.490 -70.920
Finansal faaliyetlerden elde edilen (kullanilan) net nakit/ Net cash generated (used in) from financing activities 64.598 144.532 455.327 -12.115 39.864
Nakit ve nakit benzeri degerlerdeki net (azalis) artis/ Net (decrease) increase in cash and cash equivalents 1.577 189.489 365.705 -7.318 -61.427
Nakit ve nakit benzeri degerlerin donem sonu bakiyesi/ Cash and cash equivalents at the end of the period 453.992 262.288 317.217 72.639 80.168
62
Funding Summary
2011/06 2010/12 Variance
Total net debt (000 TL) -275.815 -344.599 -20,0%
Average loan term (years) 5 5
Average overall interest rate 5,1% 5,2% -0,1 pp
Leverage (financial loans as % of total assets) 26,7% 24,4% 2,3 pp
Net debt to equity ratio -11,7% -14,5% 2,8 pp
Net debt/Assets (%) -7,9% -10,8% 2,8 pp
Equity to assets ratio 67,4% 73,9% -6,5 pp
Loan to property value ratio (LTV) 35,4% 30,5% 4,9 pp
Interest coverage ratio (times) 22,5 2,6 19,8
Net debt/EBITDA (times) 3,1 6,2 -3,1
% loans with a fixed interest rate 58,4% 66,2% -7,8 pp
63 63 63
3
Turkish economic outlook
Listed REIC's
Operational review
Financial review
Development review
Future outlook
Appendix (Portfolio review)
Sectoral outlook
64 64
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
65 65 65
2014 2010
Istanbul grasps a larger share by 2014, overtaking Bursa.
GLA Breakdown by City
66 66 66
3
Turkish economic outlook
Listed REIC's
Operational review
Financial review
Development review
Future outlook
Appendix (Portfolio review)
Sectoral outlook
67 67 67
2011 Outlook
On the back of its strong financial position, the company will keep solid residential
demand for Mall of Istanbul and Korupark Residences with an attractive payment schedule at 0.79% monthly interest rate.
Faced with the forex currency appreciation, the company will freeze the rents in € and
US$ at a certain exchange rate in Torium for 3 months, but will increase the turnover based portion of the rent.
On top of Korupark Terrace Residences and Mall of Istanbul, the company will start the construction of Torun Tower and Mecidiyekoy Project in the second half of the year.
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.
10% annual LFL growth is forecast in rental revenues.
The company will chase further land acquisition and tender opportunities with its favorable cash position.
68
Sales & EBITDA Forecast
232.
928
142.
795
150.
033
902.
914 1.
440.
342
160.
585
35.4
00
30.6
00
739.
187
1.18
6.50
2
58.5
84
94.6
98
106.
341
150.
242
239.
950
13.7
59
12.6
97
13.0
92
13.4
86
13.8
90
,0
150000,0
300000,0
450000,0
600000,0
750000,0
900000,0
1050000,0
1200000,0
1350000,0
1500000,0
2010 2011 2012 2013 2014
TRY
000 Satışlar/Sales
Konut-Ofis/ Residence-Office
Kira/ Rental
Diger/ Other
55,377 99.650 120.264
331.570
544.805
24%
70%
80%
37%
54%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
,0
100000,0
200000,0
300000,0
400000,0
500000,0
600000,0
2010 2011 2012 2013 2014
TRY
000 VAFOK/EBITDA
VAFOK marjı/EBITDAmargin (%)
69 69 69
3
Turkish economic outlook
Listed REIC's
Operational review
Financial review
Development review
Future outlook
Appendix (Portfolio review)
Sectoral outlook
70 70 70
71 71 71
Zafer Plaza 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 AMPD, Trade Council of Shopping Centres and Retailers •Majority of rents (62%) are USD denominated
7% 4%
36%
17%
8% 3% 5% 2% 11%
8%
Tenants-Breakdown of GLA ANCHOR
HOME
READY WEAR
DEPARTMENT STORE
SERVICE
LEISURE/ GIFT/ SPECIAL
PERSONAL CARE+ACCESSORIES
CULTURE/ART/ENTERTAINMENT
TECHNOLOGY
FOOD & DRINK
2% 5%
44%
8% 8% 4%
9% 1% 10%
11%
Tenants-Breakdown of Income ANCHOR
HOME
READY WEAR
DEPARTMENT STORE
SERVICE
LEISURE/ GIFT/ SPECIAL
PERSONAL CARE+ACCESSORIES
CULTURE/ART/ENTERTAINMENT
TECHNOLOGY
FOOD & DRINK
Ownership Torunlar REIC (72.26%) Operational Date 1999 Leasable area (m2) 23,449 (REIC share 16,944)
Occupancy (%) as of date 99% (as of June 2011)
Number of stores 127
Anchor tenants 4% anchors (30% of GLA): Migros, YKM, Bimeks
and Boyner
Appraisal value TL143.2mm (US$92.6mm)
Average lease term as of Jun-2011 1.5 years
Average LTM NOI (per TL/m2/month) TL43.5
Leasehold/Freehold status Freehold
Rental income (June 2011). Last 12 months TL11.9mm
72 72 72
Korupark Shopping Mall
Korupark is the largest shopping mall in Bursa and is located on the Mudanya Highway in the Nilüfer neighbourhood
The property has three retail floors and two carpark floors with a capacity for 2,500 cars underground and 500 above ground
The property includes a hypermarket (12,000m²), a do-it-yourself store (5,127m²), cinema complex (nine screens) and entertainment area (amusement park, children play centre) totalling 5,317m²
Most of the rents (87%) at the shopping mall are Euro denominated
29%
3% 34%
11%
2% 2%
3% 9%
1% 5%
Tenants-Breakdown of GLA
ANCHOR
HOME
READY WEAR
DEPARTMENT STORE
SERVICE
LEISURE/ GIFT/ SPECIAL
PERSONAL CARE+ACCESSORIES
CULTURE/ART/ENTERTAINMENT
TECHNOLOGY
FOOD & DRINK
15% 5%
45% 6%
4% 4%
6% 2% 2%
9%
Tenants-Breakdown of Income ANCHOR
HOME
READY WEAR
DEPARTMENT STORE
SERVICE
LEISURE/ GIFT/ SPECIAL
PERSONAL CARE+ACCESSORIES
CULTURE/ART/ENTERTAINMENT
TECHNOLOGY
FOOD & DRINK
Ownership Torunlar REIC (100%) Operational Date H2 2007 Leasable area (m2) 71,267
Occupancy (%) as of date 97% (as of June2011)
Number of stores 182
Anchor tenants (39% of GLA): Tesco, Koçtaş, Beymen, C&A,
Boyner and Electro World
Appraisal value TL540.5mm (US$349.6mm)
Average lease term as of Jun-2011 2.2 years
Average LTM NOI (per TL/m2/month)
TL38.5
Leasehold/Freehold status Freehold Rental income (June 2011). Last 12 months
TL37.2mm
73 73
Korupark Residences Phase I & II
•Located on the western side of Bursa (adjacent to Korupark Shopping Mall), the property is a residential settlement of luxurious units with sports and recreation facilities •The project is the first gated community in Bursa •Phase I: 343 units (57.119 sq.m), six blocks Inventory as of June 30th ,2011: 19 units (3.326 sq.m) •Phase II: 403 units (66.721 sq.m), seven blocks Inventory as of June 30th, 2011: 55 units (14.857 sq.m) •For Korupark residences I/II, sales are Turkish Lira denominated and currently 2200 TL/ sq.m
Ownership Torunlar REIC (100%)
Start of construction May, 2006
Date of completion Phase 1: January 2008/
Phase 2: December 2008
Operational date February 2008
Total investment TL 107.3mm (US$74mm)
Units sold (%) 90% (as of June 2011)
Appraisal value (remaining units)¹ TL50.1mm (US$32.4mm)
Leasehold/ Freehold status Freehold
74 74 74
Korupark Residences Phase III
•The property, adjacent parcel to Korupark phase I & II, is a luxurious housing settlement. •For Korupark Residences Phase III, sales are denominated in Turkish Lira and 1960 TL/sq.m
•153 units (19.052 m2) were presold as of August 1st 2011. Map of Korupark
Korupark Shopping Mall
Korupark Residences Phase III
Korupark Residences Phase I & II
•Note: Exchange rate US$/TL=1.5460 as of December 31, 2010 ¹ Prime appraisal report (based on the CMB standards as of December 31, 2010)
Korupark Residences Phase I & II Korupark Residences Phase III
Ownership Torunlar REIC (100%)
Estimated start of construction May 2011 Estimated operational date Q1 2013 Estimated investment TL87.3mm (US$56.5mm) Appraisal value TL50.4mm (US$32.6mm) Leasehold / Freehold status Freehold
Number of residential units/GSA 680 units / 102.000 m2 residence Current status Under construction
75 75 75
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 (80%) 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
Antalya Deepo extension project
0% 1%
70% 2% 1% 1% 4%
10% 1%
9%
Tenants-Breakdown of GLA
ANCHORHOMEREADY WEARDEPARTMENT STORESERVICELEISURE/ GIFT/ SPECIALPERSONAL CARE+ACCESSORIESCULTURE/ART/ENTERTAINMENTTECHNOLOGYFOOD & DRINK
0% 2%
69% 2%
2% 1% 4% 3%
1% 13%
Tenants-Breakdown of Income
ANCHOR
HOME
READY WEAR
DEPARTMENT STORE
SERVICE
LEISURE/ GIFT/ SPECIAL
PERSONAL CARE+ACCESSORIES
CULTURE/ART/ENTERTAINMENT
TECHNOLOGY
FOOD & DRINK
Ownership Torunlar REIC + Hastalya
Estimated start of construction January 2012 Estimated date of completion December 2012 Estimated operational date December 2012 Leasable area (m2) 26,651 Estimated investment TL31.2mm (US$20.2mm)
Leasehold / Freehold status
Partially freehold, partially leasehold from Hastalya
Current status Under zoning process
Ownership Torunlar REIC (100%) Operational Date October 24, 2004 Leasable area (m2) 18,069
Occupancy (%) as of date 100% (as of June 2011)
Number of stores 81
Anchor tenants
LCW, Ayakkabı Dünyası, Mudo City, Collezione, Sarar, Aydınlı Group
Appraisal value TL180.5mm (US$116.7mm)
Average lease term as of June 2011 2.5 years
Average LTM NOI (per TL/m2/month) TL50.6
Leasehold/Freehold status Freehold Rental income (June 2011), last 12 months
TL13.1mm
76 76
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 June 30, 2011. •The property includes the Crowne Plaza Hotel which is a 21–storey building with 280 rooms •For Ankamall, the rents in Phase 1 are denominated in Turkish Lira, while the rents in Phase 2 are denominated in USD • ECE European Prime Shopping Centre Funds offered USD 525 million to buy 100% of Torunlar REIC’s 14.83% owned Ankamall and Crowne Plaza Hotel on July 15.
Dividends - Torunlar REIC share (TLmm)
1,9 2,1 2,4 2,7
4,2
0
1
2
3
4
5
2007 2008 2009 2010 2011
Ownership Yeni Gimat in which Torunlar REIC
holds (14.83%) Operational Date 19991
Leasable area (m2) 88,4213 (REIC’s share 13,112)
Occupancy (%) as of date 100% (as of December 2010)
Number of stores 315
Number of rooms 280
Anchor tenants
Migros, Koçtaş, Tepe Home, Electro World, Boyner, Mudo City,
Marks&Spencer, LCW
Rental revenue (2010) TL72.2mm
NOI (2010) TL54.8mm
Appraisal value (REIC share) TL138.2mm (US$89.3mm)
Leasehold/ Freehold status Freehold
77
Netsel Marina-Marmaris
•Netsel is one of the largest marinas in Turkey by capacity. •It is located in Marmaris on the Aegean coast. •Torunlar purchased its stake for TL 14.9 mn in 2005. •The marina is operated by Setur, a subsidiary of Koc Holding. •66 cruisers with 166.000 guests visited the marina in 2010. •2500-3000 people are estimated to visit the mall on a daily basis from May to October in 2010.
Dividends - Torunlar REIC share (TLmm)
1,5 1,5
2,2 2,1 2,3
0
0,5
1
1,5
2
2,5
2007 2008 2009 2010 2011
Ownership Torunlar REIC (44.6%) Operational Date 1989 Land 37,478 m2
Capacity 700 yachts
Leasable area (m2) 5,996 (REIC’s share 2,674)
Mall occupancy (%) as of date 68.7% (as of December 2010)
Number of stores 75
Tenants
Migros, Lacoste, Sisley, Tommy Hilfiger
Mall rental revenue (2010) TL1.2mm Total rental revenue (2010) TL13.1mm
Appraisal value (REIC share) TL30.7mm (US$19.8mm)
Leasehold / Freehold status Leasehold
78 78 78
Breakdown–Area (GLA/GSA)
Mall of Istanbul–Istanbul
•Mall of Istanbul is a mixed-use project with a large shopping mall development along with residential, office units •It is expected to be one of the largest mixed-use projects in Turkey •Planned to be built with 135.000 m² GLA enriched with 16,000 m² kids entertainment, 7,200 m² snowpark, cinema complex and conference / performance hall¹ •Mall of Istanbul is well connected to the city centre through the D100 and TEM highway. In addition, the site is located within 5km of the airport •For the Mall of İstanbul,retail units will be rented for 26$/m2 and residential and office units will be sold for 3500TL/m2 on the average. •Presales commenced on 23.04.2011 and 407 units (41.656 m2) were presold for 2984TL/m2 out of 524 and 24 office units (4500 m2) out 75 for 4200TL/m2 until 01.08.2011. •On 31.05.2011, the company signed USD 250 million loan agreement with Is Bank of Turkey for a term of 10 years with 3 years grace period.
Ownership Torunlar REIC (100%)
Start of construction March 2011 Estimated date of completion H2 2013 Estimated operational date Q4 2013 Estimated investment c.TL500.0mm (US$323mm)
Number of residences / GSA-GLA
135.000 m2 GLA mall, 116.000 m2 GSA residence,
30.000 m2 GSA office Appraisal value TL637.1mm (US$411.5mm) Leasehold / Freehold status Freehold
Current status Under construction
48%
41%
11%
Retail
Residential
Office
79 79 79
Torium Shopping Mall–Istanbul
•Torium is a mixed-use project of retail and residential use and the 5th largest mall of Turkey. •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 (70%) at the shopping mall are denominated in USD •80 residential units will be sold for 3200TL/m2 starting from September 2011.
21%
3%
36% 12%
2% 3% 2%
13%
3% 7%
Tenants-Breakdown of GLA
ANCHORHOMEREADY WEARDEPARTMENT STORESERVICELEISURE/ GIFT/ SPECIALPERSONAL CARE+ACCESSORIESCULTURE/ART/ENTERTAINMENTTECHNOLOGYFOOD & DRINK
13% 4%
44%
7% 3%
4%
7%
4%
5% 14%
Tenants-Breakdown of Income
ANCHORHOMEREADY WEARDEPARTMENT STORESERVICELEISURE/ GIFT/ SPECIALPERSONAL CARE+ACCESSORIESCULTURE/ART/ENTERTAINMENTTECHNOLOGYFOOD & DRINK
Ownership Torunlar REIC (100%)
Start of construction H2 2008 Date of completion October 30th, 2010 Operational date October 30th, 2010 Number of stores 180 Investment cost TL207.2mm Appraisal value* TL549.8mm (US$355.1mm)
Leasehold / Freehold status Freehold GLA / GSA
95,280 m2 GLA retail 5,318 m2 GSA residential
Rental income 2011 F TL35mm
80
Boulevard Samsun Shopping Mall
•The property is located on the site of an ex-tobacco factory building at
the city center of Samsun on the Black Sea region in Northern Turkey.
•The land is leased for 30 years from Samsun Metropolitan Municipality.
•The project is a mixed-use project developed in conjunction with the shopping mall developer Turkmall.
•Retail units will be leased for 19.25€/sq.m/month and office units for 13€/sq.m/month.
•60% of the retail area has already been leased as of May 2011.
Ownership Torunlar REIC (40%)
Leasehold / Freehold status
Leasehold
Current status Under construction
Area breakdown
Land: 17,400 m2
Total construction area: 37,500 m2
Gross Leasable Area
Mall: 14,700 m2
Office: 1,200 m2
Completion date
Construction permit : Sept. 2010
Start of construction: Nov. 2010
End of construction: Q1 2012
Capex
TL 27.3mm (US$17.6mm) TL10.9mm (US$7mm)*
Appraisal value
TL14.8mm (US$9.5mm)
*Torunlar REIC 40% share.
81 81 81
GLA
Office: 44760m2
Torun Tower–Istanbul
•The property is located at the city centre in one of the most expensive commercial districts of Istanbul •It also has a subway connection •40 floor high-rise tower is planned •The building is planned to be a landmark for the city with very modern architecture and construction technology •The Property is planned as a mixed-use project with office and retail units and will be leased. •For Torun Tower, office units will be leased for 35$/sqm/month, retail units for 47$/sqm/month.
Breakdown–Area (GLA)
GLA
Office: 44.760m2
Other: 2.415m2
Office 95%
Other 5%
Ownership Torunlar REIC (100%)
Estimated start of construction September 2011 Estimated date of completion Q4 2013 Estimated operational date Q4 2013 Estimated investment c.TL128.3mm (US$83mm) Appraisal value TL237.7mm (US$153.8mm)
Leasehold/ Freehold status Freehold Current status Under project development
82 82 82
NishIstanbul Mixed-use Project–Istanbul
•Located on the west-side of Istanbul in Yenibosna, 1.5 km away from Istanbul Atatürk Airport
•Three residential blocks, one office block and retail units
•As of June 2011, the project partnership was terminated. 3 residential units (291 m2) will be kept, 5 office (1340 m2) units will be sold for 5000TL/m2. 20 stores (3425 m2) will be leased for 25$/m2/month. •Torunlar REIC has 8 more offices (2160 m2) and a 1080 m2 spa in its portfolio.
Ownership Torunlar REIC (60%)
Start of construction H2 2008
Date of completion November 2010
Operational date November 2010
Number of residences / Sellable area (m2) 585 / 53,204
Number of offices / Sellable area (m2) 63/ 16,925
Number of retail units / Leasable area (m2) 52 / 10,937
Appraisal value TL33.3mm (US$22.4mm)
Leasehold/Freehold status Freehold
83 83 83 P O
R T
F O
L I
O
O V
E R
V I
E W
Mecidiyeköy is a mixed-use project with 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. All of them will be sold.
For the Mecidiyeköy Project sales will be denominated in Turkish Lira.
Mecidiyeköy (Ex-Ali Sami Yen Stadium) Mixed-use Project–Istanbul
* Torunlar REIC’s share
Ownership Torunlar REIC (65%), Ascioglu
(30%), Kapicioglu (5%)
Estimated start of construction Q4 2011 Estimated date of completion H2 2014 Estimated operational date H2 2014
Estimated investment
c.TL311mm (US$201.3mm) / TL202mm (US$130mm)*
Land acquired Revenue Share (45%) Land area (m2) 34,640
Sellable area (m2)
86,120 m2 (55,978 m2)*residence, 82,725 m2 (53,771 m2)*office, 21,338 m2 (13,869 m2)* retail
Number of residences 593
Appraisal value TL300mm (US$195mm) / TL195mm
(US$125mm)*
Leasehold / Freehold status Revenue Share
Current status Under project development
84 84 84
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
1
2
3
4
5
6
This presentation does contain forward-looking statements that reflect the Company management’s current views with respect to certain future events based on the base-case assumptions. Although it is believed that the expectations reflected in these statements are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially.
Neither Torunlar REIC nor any of its directors, managers or
employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation.
85
Disclaimer
Haluk YUKLER Investor Relations Director [email protected]
86
Contacts
Ismail KAZANC CFO [email protected]
TORUNLAR REIC (Real Estate Investment Company) Ruzgarlibahce 95.Sokak No:634805 Kavacik, Istanbul, TURKEY
Phone: +90-216-425 20 07 Fax: +90-216-425 03 12