INVESTOR PRESENTATION May 2011
-
Upload
warren-roman -
Category
Documents
-
view
32 -
download
3
description
Transcript of INVESTOR PRESENTATION May 2011
11
INVESTOR PRESENTATION
May 2011
22
3Turkish economic outlook
Listed REIC's
Operational review
Financial review
Development review
Future outlook
Appendix (Portfolio review)
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 F 2012 F
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
T urkey EU27
-11,9 -12,0
-8,8
-5,5
-3,6 -2,9 -2,6
5,1
2,84,0 4,7
5,8 5,54,2 3,5
0,10,8 1,0 0,9
-1,6 -1,8
-5,4
-0,6-1,3
-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 F 2012 F
Budget balance Primary balance
Benchmark 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 F 2011 F
Benchmark bond yield
Source: EIU (February 2011)
55
Economic Highlights
Consumer loans and mortgage loans (bn TRY) Loan Growth (%)
Source: Turkish Statistical Institute(January 2011) Source: Turkish Statistical Institute (February 2011
Source: CentralBank ( February 2011)Source: Central Bank (February 2011)
80,4
134,4
127,3116,5
107,899,4
91,686,4
83,581,4
64,861,9
56,753,049,3
45,642,840,739,438,7
20
40
60
80
100
120
140
Jan.09 Apr.09 Jul.09 Oct.09 Jan.10 Apr.10 Jul.10 Oct.10 Jan.11 Apr.11
CONSUMER LOANS(BILLION TRY)
MORTGAGE LOANS(BILLION TRY)
REAL EFFECTIVE EXCHANGE RATE(CPI BASED) (2003=100)
115,14113,98113,66
117,17
122,67
127,53
125,72121,66
131,41
116,65
100
105
110
115
120
125
130
135
Jan.09 Apr.09 Jul.09 Oct.09 Jan.10 Apr.10 Jul.10 Oct.10 Jan.11 Apr.11
REAL EFFECTIVE EXCHANGE RATE(CPI BASED) (2003=100)
Real Effective Exchange Rate
41
28 30
7
3429
61
42
23
12
3842
0
10
20
30
40
50
60
70
2006 2007 2008 2009 2010 2011*
Total Loans Consumer Loans
Interest Rate on Mortgages(%)
50,0
40,4
27,8
17,7 18,2 18,3 18,615,6
11,1 9,7
0
10
20
30
40
50
2002 2003 2004 2005 2006 2007 2008 2009 2010 Mar./11
Interest Rate on Mortgages(%)
Mortgage Rates (%)
6
3
Listed REIC's
Operational review
Financial review
Development review
Future outlook
Appendix (Portfolio review)
Turkish economic outlook
7
TRYSATIŞ/SALES VAFÖK/EBITDA NET KAR/NET PROFIT
PORTFÖY DEĞERİ/PORTFOLIO VALUE
NET AKTİFLER/NET ASSETS
2010-3 2011-3 % 2010-3 2011-3 % 2010-3 2011-3 % 2010-3 2011-3 % 2010-3 2011-3 %TORUNLA
R 25.045.000 42.038.000 67,85 15.728.000 21.823.000 38,75 21.007.000 8.771.000 -58,25 2.655.996.970 3.222.121.000 21,3 1.943.574..780 2.541.071.000 30,7
AKFEN 4.241.876 5.812.725 37,03 2.813.123 49.665.231 1665,48 7.807.328 32.540.328 316,79 723.897.000 589.486.000 AKMERKE
Z 13.198.717 14.101.743 6,84 8.866.178 9.623.499 8,54 7.723.141 8.673.387 12,30 819.748.386 825.958.170 0,76 821.366.501 804.679.057 -2,03
ALARKO 2.430.444 10.057.787 313,83 593.747 757.122 27,52 263.800 2.401.456 810,33 257.378.000 268.650.571 4,38 255.492.608 265.049.905 3,74
ATAKULE 2.653.149 2.419.562 -8,80 1.316.844 848.856 -35,54 3.179.729 2.915.793 -8,30 190.931.162 211.676.492 10,87 189.930.525 210.198.438 10,67
AVRASYA 138.417.339 48.065.282 -65,28 9.144 -393.774 -4406,36 -144.962 -689.944 375,95 4.304.495 77.248.129 1694,59 3.287.186 30.291.579 821,50
DOĞUŞ 2.353.627 2.889.577 22,77 1.348.044 1.846.111 36,95 1.449.244 2.177.565 50,26 161.248.260 172.996.182 7,29 169.315.368 179.399.106 5,96
EGS 21.016 112.961 437,50 21.077 171.927 715,71 20.528 170.773 731,90 38.925.089 40.503.628 4,06 20.603.006 18.977.220 -7,89
EMLAK 214.380.000 171.129.000 -20,17 177.666.000 59.138.000 -66,71 150.417.000 73.234.000 -51,31 7.281.157.575 5.655.659.556
İDEALİST 396.040 -69.835 -1.351 -98,07 -65.165 1.786 -102,74 9.700.000 11.550.620 19,08 9.770 11.957 22,38
KİLER 28.034.081 53.045.734 89,22 3.797.227 15.976.281 320,74 736.352 11.679.869 1486,18 1.039.906.607 754.210.121
İŞ 23.546.331 26.836.080 13,97 16.318.467 17.566.804 7,65 10.825.461 9.787.515 -9,59 1.281.939.734 1.491.649.308 16,36 1.241.082.359 1.392.820.873 12,23
MARTI 185.009.000 202.571.553 9,49 167.253.987 216503164 29,45
NUROL 1.524.282 1.160.708 -23,85 569.771 456.857 -19,82 -171.281 122.265 -171,38 59.600.455 59.597.205
ÖZDERİCİ 969.694 37.163 -96,17 -67.726 -194.055 186,53 80.706 184.128 128,15 22.269.000 91.881.000 312,60 17.549.000 101.131.000 476,28
PERA 243.967 -314.482 -414.500 31,80 -334.516 -1.091.984 226,44 128.758.280 191.792.190 48,96 100.364.300 140.608.570 40,10
REYSAŞ 4.338.543 3.169.870 -7.063 1.198.647 -17070,79 289.453.129 324.298.424
SAĞLAM 2.107.160 1.831.702 -13,07 1.364.696 2.828.001 107,23 -106.564 2.290.369 -2249,29 120.119.463 104.444.103 -13,05 71.621.251 75.531.743 5,46
SİNPAŞ 28.305.332 73.532.281 159,78 -7.192.312 12.864.338 -278,86 -4.574.167 11.757.823 -357,05 1.421.219.196 1.669.946.009 17,50 1.098.673.738 1.229.285.416 11,89
TSKB 3.675.478 3.576.199 -2,70 422.784 1.487.503 251,84 2.248.977 -4.368.381 -294,24 279.003.950 309.758.440 11,02 166.381.700 216.565.358 30,16
VAKIF 1.014.496 1.554.630 53,24 641.547 820.693 27,92 1.227.685 780.595 -36,42 101.451.107 114.910.133 13,27 102.171.457 112.197.361 9,81
YEŞİL 753.814 6.299.894 735,74 -514.540 339.328 -165,95 -484.620 85.137 -117,57 16.374.107 456.756.736 2689,51 21.487.812 187.810.342 774,03
YK KORAY 3.636.851 3.116.335 -14,31 -989.158 -998.968 0,99 -1.170.589 -1.528.660 30,59 111.578.213 110.875.107 -0,63 110.339.337 89.237.664 -19,12
TOTAL 496.308.687472.595.913 -4,78222.328.59
6197.380.77
3 -11,22199.928.02
4161.093.46
7 -19,427.805.954.41
218.969.304.13
7 143,016.500.504.68
515.194.621.05
9 133,74
88
MCAP & NAV of the REIC Sector
NAV ($ mn)
%
MCAP ($ mn)
%REIT's 31.03.2011 31.03.2011
Emlak Konut 2.361 30,7 4.424 52,2
Torunlar 1.632 21,2 998 11,8
İş 900 11,7 509 6,0
Sinpaş 839 10,9 659 7,8
Akmerkez 520 6,8 701 8,3
Reysaş 209 2,7 134 1,6
Alarko 171 2,2 114 1,3
Martı 140 1,8 80 0,9
TSKB 140 1,8 89 1,1
Atakule 136 1,8 70 0,8
Y&Y 121 1,6 222 2,6
Doğuş 116 1,5 117 1,4
Vakıf 72 0,9 44 0,5
Pera 91 1,2 59 0,7
Özderici 65 0,8 78 0,9
Yapı Kredi Koray 58 0,8 58 0,7
Sağlam 49 0,6 32 0,4
Nurol 38 0,5 32 0,4
Avrasya 20 0,3 24 0,3
EGS 12 0,2 11 0,1
İdealist 8 0,1 16 0,2
TOTAL 7.698 100,0 8.471 100,0
99
Relative post-IPO performance of Torunlar REIC’s share
10
Turkish economic outlook
Listed REIC's
Operational review
Financial review
Development review
Future outlook
Appendix (Portfolio review)
11
March 2011
Aziz TORUN38%
Free Float25%
Mehm et TORUN37%
Mahm ut KARABIYIK
0%
Ali COŞKUN0%
Torun Pazarlam a A.Ş.
0,03%
Y.Em re TORUN0,03%
Shareholding Structure
12
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
Strategy highlights
13
History of Torunlar REIC–key milestones
1996 1999 2004 2005 2007 2008 2009 20101977
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
14
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: TRY3.2 bn (2011/03)
•Gross rental income: TRY 42.0 m(2011/03)
•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 (2011/03)
•Financial strength
•Healthy financial structure with leverage at 25.4 %
•Stable shareholder structure with 25.16 % free float
Key investment highlights
15
2011/03
Land10%
Building40%
Project22%
Participations12%
Money and Capital Market Instruments
16%
Land Building Project Participations Money and Capital Market Instruments
Breakdown of Portfolio Value
16
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 99%
Korupark (SM)Korupark (SM)
Occupancy 97%
Deepo Outlet Centre (SM)
Deepo Outlet Centre (SM)
Ankamall+ Crowne Plaza (SM+Hotel)
Ankamall+ Crowne Plaza (SM+Hotel)
Occupancy 100% Occupancy 100%
Torium Istanbul (SM)Torium Istanbul (SM)
Occupancy 99%
Shopping Mall Portfolio
17
2011 April Index Variance (m-o-m) Variance (Y-o-Y)
Turkey Composite 95,4 +0,19% +3,76%
Adana 110,6 +0,80% +7,16%
Ankara 93,4 +0,46% +4,78%
Antalya 82,2 -0,51% -2,61%
Bursa 90,5 -0,33% -0,66%
İstanbul 95,2 +0,23% +5,19%
İzmir 97,6 +0,09% -0,19%
Kocaeli 108,3 -0,46% +2,34%
TURKEY RESIDENTIAL PRICES
Source: Reidin Turkey June: 2007=100 beginning of the index
18
SALES TURNOVER INDEX (GENERAL)
10092 91 93
101 102 10196
108114 113
122112 108
103
0
20
40
60
80
100
120
140
Jan-10 Feb-10 Mar.10 Apr-10 May.10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar.11
SALES TURNOVER INDEX (GENERAL)
Source: Council of Shopping Centers- Turkey
FOOTFALL INDEX (GENERAL)
10093 93 89 93 89 92 92
99 98 101 97 99 97 95
0
20
40
60
80
100
Jan-10 Feb-10 Mar.10 Apr-10 May.10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar.11
FOOTFALL INDEX (GENERAL)
*January 2010 beginning of the index
TURKEY SHOPPING MALL SALES TURNOVER AND FOOTFALL
19
Footfall and turnover(March 2011)
YoY variance(%) Torunlar REIC Turkey
Retail spending* 10.8* 14.8
Footfall* 0 1.7
Occupancy ratio (%) 98 90
Source: Council of Shopping Centers Turkey*Deepo and newly opened Torium excluded
2020
Resilient retail operations through active hands-on management.
March 2011
Bursa
Zafer Plaza
Bursa Korupark Antalya Deepo Outlet
İstanbul Torium
GLA ( m2 ) (1)
16.968 71.267 18.069 95.280
Revenues (1)
2.100.000 11.870.000 3.273.000 11.847.000
Revenues
% growth 0 36.9 18.7 NA
% Footfall growth
3.8 (4.9) 1.5 NA
Number of stores
125 181 81 180
Occupancy (%)
99 97 100 99
Turnover rent (as % of fixed rent) 2.8 4.2 17.2 13.8
Breakdown of rental
revenues
64%USD
36%€
86%€
14%USD
82%€
18%USD
72%USD
28%€
(1)72,26% share. Receives rental income.
2121
Shopping centers by value
(TRY 000) 31-03-11 Nr of contracts
Bursa Zafer Plaza
143.156 125
Bursa Korupark
540.510 181
Ankara Ankamall
138.274 315
Antalya Deepo Outlet
180.492 81
İstanbul Torium
549.876 180
TOTAL
1.552.308 882
22
Financial review
3
Listed REIC's
Operational review
Development review
Future outlook
Appendix (Portfolio review)
Turkish economic outlook
2323
Financial highlights
TRY (000) 2011/03 2010/03 Variance %
Sales revenue 42.038 25.045 67.8
Residences sold 12.869 10.786 19.3
Rental revenue 24.711 12.223 102.1
EBITDA 24.131 17.791 35.6
EBITDA margin 57.4% 71% -19.1
Dividend income 2.308 2.063 11.8
Valuation gain from financial assets and liabilities -15.085 6.716 -324.6
Net profit 8.771 21.007 -58.2
EPS 0.04 TRY 0.11 TRY -63.6
LfL rental revenue growth 27.4%
Occupancy ratio 98% 98% 0,0
TRY (000) 2011/03 2010/12 Variance %
Total Assets 3.250.496 3.203.839 1.4
Total Equity 2.377.854 2.369.083 0.3
Net debt -498.440 -344.599 44.6
Portfolio value 3.222.000 3.130.000 2.9
Market cap 1.532.160 1.420.160 7.8
2424
Maturity of Financial Loans (TRY m)
*The graph excludes TRY 516.4 m of cash and cash deposits and long-term financial investments as of March 2011.
357
108102
258
0
50
100
150
200
250
300
350
400
2011 2012 2013 2014+
Maturity of debt
63%USD, 35%€, 2%TRY
2525
Income statementIncome statement
2
1
3
4
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.
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
21
3
4
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.
(000 TL) 2011/03 2010/03Fark/Variance
%Satışlar/Sales 42.038 25.045 67,85 Konut/Residence 12.869 10.786 19,31 AVM kira/ Mall rental 24.711 12.223 102,17 Diğer/Other 4.458 2.036 118,96SMM/Cost of sales 16.571 7.713 114,85Brüt kar/Gross profit 25.467 17.332 46,94Brüt marj/Gross margin 60,6 69,2 -8,62Faaliyet giderleri/Opex -4.062 -1.533 164,97Diğer gelir(gider)/Other income(expenses) 337 -98 -443,88Faaliyet karı /Operating profit 21.742 15.701 38,48
İştiraklerden alınan temettü/Share of profit of associates (recurring) 2.308 2.063 11,88VFOK/EBIT 24.050 17.764 35,39VFOK marjı /EBIT margin (%) 57,2 70,9 -13,72Amortisman/Depreciation 81 27 200,00VAFOK/EBITDA 24.131 17.791 35,64VAFOK marjı/EBITDA margin (%) 57,4 71,0 -19,19İştiraklerden gelir (gider)/share of profits (non-recurring) 874 -64 -1465,63
Net faiz geliri(gideri)/Net financial interest income(expense) -1.952 -3.530 -44,70
Net diğer finansal gelir (gider)/Other net financial income (expense) 1.329 121 998,35
Kur farkı geliri (gideri)/Valuation gain from financial assets and liabilities -15.085 6.716 -324,61Vergi öncesi kar/Profit before tax 9.216 21.007 -56,13Vergi gideri/Corporate tax -445 0 Net kar/net profit 8.771 21.007 -58,25Net kar marjı/Net profit margin (%) 20,9 83,9 -63,01
3
2626
Balance sheet (‘000 TL)Balance sheet (‘000 TL)
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)2011/03 2010/12
Fark/Variance %
NAKİT VE NAKİT BENZERİ/CASH AND CASH EQUIVALENTS 93.446 438.664 -78,70FINANSAL YATIRIMLAR/FINANCIAL INVESTMENTS 235.694 0 ,TİCARİ ALACAKLAR/TRADE RECEIVABLES 25.572 49.706 -48,55STOKLAR/INVENTORY 47.947 51.769 -7,38DİĞER DÖNEN VARLIKLAR/OTHER CURRENT ASSETS 33.713 39.642 -14,96DÖNEN VARLIKLAR/CURRENT ASSETS 436.372 579.781 -24,74FİNANSAL YATIRIMLAR/FINANCIAL INVESTMENTS 187.300 29.459 535,80TİCARİ ALACAKLAR/TRADE RECEIVABLES 4.565 4.729 -3,47ÖZKAYNAK YÖNTEMİ İLE DEĞ.YAT./INVEST.IN ASSOCIATES 126.332 125.458 0,70YATIRIM AMAÇLI GAYRIMENKULLER/INVESTMENT PROPERTY 2.416.077 2.388.865 1,14MADDİ DURAN VARLIKLAR/TANGIBLE FIXED PROPERTY 1.932 1.115 73,27MADDİ OLMAYAN DURAN VARLIKLAR/INTANGIBLE FIXED ASSETS 73 82 -10,98DİĞER DURAN VARLIKLAR/OTHER NON-CURRENT ASSETS 77.845 74.350 4,70DURAN VARLIKLAR/NON-CURRENT ASSETS 2.814.124 2.624.058 7,24TOPLAM VARLIKLAR/TOTAL ASSETS 3.250.496 3.203.839 1,46 ,FİNANSAL BORÇLAR/FINANCIAL LIABILITIES 258.814 231.141 11,97FİNANSAL KİRALAMA BORÇLARI/FINANCE LEASE LIABILITIES 12 20 -40,00DİĞER FİNANSAL YÜKÜMLÜLÜKLER/OTHER FINANCIAL LIABILITIES 2.544 3.877 -34,38TİCARİ BORÇLAR/TRADE PAYABLES 29.471 34.536 -14,67DÖNEM KARI VERGİ YÜKÜMLÜLÜĞÜ/TAX PAYABLES 445 0 ,DİĞER YÜKÜMLÜLÜKLER/OTHER CURRENT LIABILITIES 10.561 12.970 -18,57KISA VADELİ YÜKÜMLÜLÜKLER/CURRENT LIABILITIES 301.847 282.544 6,83FİNANSAL BORÇLAR/FINANCIAL LIABILITIES 568.766 552.122 3,01ÇALIŞANLARA SAĞLANAN FAYDALARA İLİŞKİN KARŞILIKLAR/PROVISION FOR EMPLOYMENT TERMINATION BENEFITS 90 90 0,00DİĞER YÜKÜMLÜLÜKLER/OTHER NON-CURRENT LIABILITIES 1.939 0 ,UZUN VADELİ YÜKÜMLÜLÜKLER/NON-CURRENT LIABILITIES 570.795 552.212 3,37ÖDENMİŞ SERMAYE/SHARE CAPITAL 224.000 224.000 0,00HİSSE SENEDİ İHRAÇ PRİMLERİ/SHARE PREMIUM 301.770 301.770 0,00KARDAN AYRILMIŞ KISITLANMIŞ YEDEKLER/RESTRICTED RESERVES 3.741 3.127 19,64GEÇMİŞ YIL KARLARI/RETAINED EARNINGS 1.839.572 1.625.941 13,14NET DÖNEM KARI/NET PROFIT 8.771 214.245 -95,91ÖZKAYNAKLAR/ TOTAL EQUITY 2.377.854 2.369.083 0,37TOPLAM KAYNAKLAR/TOTAL LIABILITIES AND EQUITY 3.250.496 3.203.839 1,46
1
2
2727
Financing ratios‘Strong financing ratios’
31-03-11 31-12-10
Leverage ( financial loans as% of total assets) 25.4 24.4
Average interest (year) (%) 5.10 5.22
Average maturity (year) 5 5
Interest coverage ratio (times)
(EBITDA/net interest expense)
12.3 2.6
Net debt/Assets (%) 15.3 10.7
Net debt/EBITDA (times) 5.1 6.2
28
Development review
3
Listed REIC's
Operational review
Financial review
Future outlook
Appendix (Portfolio review)
Turkish economic outlook
29
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
3030
BURSA22%
ANTALYA5%
ANKARA2%
ISTANBUL70%
MUĞLA0%
SAMSUN1%
BURSA ANTALYA ANKARA ISTANBUL MUĞLA SAMSUN
20142010
BURSA46%
ANTALYA7%
ANKARA6%
ISTANBUL40%
MUĞLA1%
BURSA ANTALYA ANKARA ISTANBUL MUĞLA
İstanbul grasps a larger share by 2014, overtaking Bursa.
GLA Breakdown by City
3131
3
Listed REIC's
Operational review
Financial review
Development review
Appendix (Portfolio review)
Future outlook
Turkish economic outlook
3232
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.
3333
3
Listed REIC's
Operational review
Financial review
Development review
Turkish economic outlook
Appendix (Portfolio review)
Future outlook
3434
3535
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 March 2011)
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 Mar-2011 1.8 years
Average LTM NOI (per TL/m²/month) TL42.6
Leasehold / Freehold status Freehold
Rental income (Mar 2011), last 12 months
TL11.6mm
•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 (64%) 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%
3636
Korupark shopping mallKorupark shopping mall
Ownership Torunlar REIC (100%)
Operational date H2 2007
Leasable are (m²) 71,267
Occupancy (m²) (as of date) 97% (as of March 2011)
Number of stores 181
Anchor tenants (39% of GLA): Tesco, Koçtaş, Beymen, C&A, Boyner and Electro World
Appraisal value TL540.5mm (US$349.6mm)¹
Average lease term as of Mar-2011 2.4 years
Average LTM NOI (per TL/m²/month) TL36.4
Leasehold / Freehold status FreeholdRental income (March 2011), last 12 months
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%
Breakdown–tenants (GLA)Breakdown–tenants (GLA)
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%
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 (86%) at the shopping mall are Euro denominated
37
Korupark Residences Phase I & IIKorupark 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, six blocks •Phase II: 403 units, seven blocks•For Korupark residences I/II, sales are Turkish Lira denominated
May, 2006
Torunlar REIC (100%)
TL50.1mm (US$32.4mm)¹,²
Freehold
Phase 1: January 2008/Phase 2: December
2008
February 2008
TL107.3mm (US$74mm)
Start of construction
Ownership
Appraisal value (remaining units)¹Leasehold / Freehold status
Date of completion
Operational date
Total investment
Units sold (%) 87% (as of March 2011)
3838
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$32.6mm)¹
680 units / 102.000 m2 residence
Under constructionCurrent statusCurrent status
Map of Korupark Map of Korupark
Korupark Shopping Mall
Korupark Residences Phase III
Korupark Residences Phase I & II
•Note: Exchange rate US$/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
3939
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 (82%) 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
100% (as of March 2011)Occupancy (%) (as of date)
81Number of stores
LCW, Ayakkabı Dünyası, Mudo City, Collezione, Sarar, Aydınlı GroupAnchor tenants
TL180.5mm (US$116.7mm)¹Appraisal value
TL49.8Average LTM NOI (per TL/m²/month)
FreeholdLeasehold / Freehold status
TL13.7mmRental income (Mar 2011), last 12 months
2.8 yearsAverage lease term as of March 2011
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
Breakdown–tenants (GLA)Breakdown–tenants (GLA)
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)
40
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 stores 318
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
Leasehold / Freehold status Freehold
Leasable area (m²) 88,421³ (REIC’s share 13,112)
Dividends - Torunlar REIC share (TLmm)²Dividends - Torunlar REIC share (TLmm)²
4141
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 İstanbul, rents will be denominated in USD. Sales will be denominated in Turkish Lira•Presales commenced on 23.04.2011 and 396 units were presold until 10.05.2011.
Ownership Torunlar REIC (100%)
Estimated start of construction H1 2011
Estimated date of completion H2 2013
Estimated operational date H1 2013
Estimated investment c.TL500.0mm (US$323mm)
Number of residences/ GSA-GLA 135.000 m2 GLA mall,
116.000 m2 GSA residence30.000 m2 GLA office
Appraisal value TL637.1mm (US$411.5mm)¹
Leasehold / Freehold status Freehold
Current status Under construction
4242
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 (72%) at the shopping mall are denominated in USD •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* TL549.8mm (US$355.1mm)¹
Leasehold / Freehold status Freehold
Date of completion October 30th, 2010
Operational date October 30th, 2010
Number of stores 180
GLA / GSA95.280 m2 GLA retail
5.318 m2 GSA resi
Rental income 2011 F TL 35 mm
4343
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 and will be leased.•For Torun Tower, leases will be denominated in USD
Breakdown–Area (GLA)Breakdown–Area (GLA)
Ownership Torunlar REIC (100%)
Appraisal value TL237.7mm (US$153.8mm)¹
Leasehold / Freehold status Freehold
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
4444
NishIstanbul mixed use project–IstanbulNishIstanbul 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 March 2011, 58 offices and 574 residences were delivered. Remaining 34 retail units will be leased
•For NishIstanbul, sales are denominated in Turkish Lira
Ownership Torunlar REIC (60%)
Appraisal value TL32.5mm (US$22.4mm)³
Leasehold / Freehold status Freehold
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
Start of construction H2 2008
Date of completion November 2010
Operational date August 2010
4545 P O
R T
F O
L I
O
O V
E R
V I
E W
Location Istanbul
OwnershipTorunlar REIC (65%), Ascioglu (30%), Kapıcıoğlu (5%)
Land area (m²) 34.640
Land acquired Revenue 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
Format Mixed–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 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 mixed-use project–Istanbul
4646
4747
4848
4949
5050
5151
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”.
5252
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”
5353
City Development
Further signs of recovery in sentiment
Istanbul, with strong underlying
fundamentals, again, stands out
followed by London and Munich
5454
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