INVESTOR PRESENTATION 29 August 2012
Financial Review 3
Project Pipeline 3 17
Future Outlook 20
Appendix
● Turkey Real Estate Economic Highlights 24
● Turkey Real Estate Market Review 30
● Financial Statements 42
● Listed REIC's 50
● Portfolio Review 54
FINANCIAL REVIEW TORUNLAR GROUP OF COMPANIES
1.3 billion TRY combined net sales revenues in 3 2011 100 % 1983 100 % 1986 The largest 95th industrial company in ISO (Istanbul Chamber of Industry) 500 with 825 million Construction management company TRY sales revenue and 1 billion TRY asset size in 2011 . Owns 50% of Adana Pakyag and 38.66% of Kutahya Sugar Refinery
100 % 1994 100 % 1994
Imports and exports paper products Wholesells and distributes food commodities
100 % 2003 100 % 2004 Processes tea
Provides mall management and administrative services
79 % 2008
The second largest public REIC with its unique diversified portfolio and 425 million TRY net sales in 2011 FINANCIAL REVIEW Shareholding Structure*
Other Mehmet TORUN 140.862 Torunlar Food 83.717.869 0,06% 16.169.736 37,37% 7,22%
Free Float Aziz TORUN 56,352,942 4.344.856 25% 1,94%
Mehmet TORUN 4.417.695 1,97% Aziz TORUN 83.788.309 Effective Free Float Treasury Shares 37,41% 31.147.378 273.295 13,91% 0,12%
*As of Jul 2, 2012
4 FINANCIAL REVIEW Key Achievements since IPO
IPO targets IPO to date Capex (mn TRY) 1,000 573 GLA (sqm) 500,000 230,815 NAV (mnTRY) 4,000 2,607 Dividend 50% 100% Projects NishIstanbul Completed (Nov 2010) Torium Shopping Mall Opened (Oct 2010) Bulvar Samsun Mall Opened (Jul 2012) 4Q 2012 Korupark Terrace Residences (%33 presold) 4Q 2013 Mall Of Istanbul (%55 presold) Torun Tower 4Q 2013 ASY Ex-Stadium 4Q 2014 Deepo Outlet Extension Pending Kemankeş Hotel Pending Acquisitions Paşabahçe Land Maltepe Land
5 FINANCIAL REVIEW REIT Benchmarks
Net Profit Margin EBIT Margin YTD Stock Performance * Net Profit / MCap 1H 2012 (%) (%) (%) (%)
Outperforming profitability and stock TORUNLAR GYO performance 126.3 73.5 47.1 7.8 against peers
VASTNED (NL) 47.0 87.0 (3.3) 5.4 CORIO (NL) 56.9 81.7 15.3 4.0 KLEPIERRE (F) 22.2 56.1 26.9 2.1 WESTFIELD (AU) 52.6 75.2 18.7 9.1 UNIBAIL-RODAMCO (F) 99.7 81.5 18.4 5.7
EMLAK KONUT 30.6 21.8 25.0 1.8 IS GYO 52.8 48.8 22.0 4.8 SAF GYO (221.4) (219.0) (38.3) NM AKMERKEZ GYO 75.6 70.5 20.8 3.7
*As of 31.07.2012 Source : EPRA 6 FINANCIAL REVIEW 1H 2012 Financial Performance ( million TL )
Portfolio Value 3,751.8 ( 3,335.8 ) 12%
FINAL+PRESALES 151.1 (214.2) 30%
PRESALES 74.3 ( 131.1 ) 43% EBITDA 56.7 ( 44.6 ) 27%
CAPEX 136.7 ( 58.2 ) 135%
EBITDA MARGIN 73.8 % ( 53.6 % ) 20pp
*Numbers in paranthesis denote 1H 2011 figures. 7 FINANCIAL REVIEW Financial Highlights
TRY (000) 1H 2012 1H 2011 Variance % Sales 76,795 83,142 -7.6 Residence 8,233 24,290 -66.1 Mall Rental 51,204 43,549 17.6 Other 17,358 15,303 13.4 Gross Profit 50,982 48,629 4.8 Gross Margin 66.4% 58.5% 7.9 p EBITDA 56,656 44,595 27.0 EBITDA Margin 73.8% 53.6% 20.1 p Net gain/(loss) from from fair value adjustments on 0 0 0.0 investment property
Net Financial Interest Income 7,671 -970 890.8 Forex Gain / Loss 38,661 -49,292 178.4 Net Profit 96,977 -6,563 1577.6
Total Assets 4,019,697 3,943,551 1.9 Total Equity 2,607,124 2,532,906 2.9 Financial Debt 1,023,879 1,100,516 -7.0 Net Debt 434,823 444,931 -2.3
8 FINANCIAL REVIEW Financial Highlights (million TRY)
PORTFOLIO VALUE ______
3.900,0 Torium Residence Korupark III 8,0 1H 2012 3.700,0 NishIstanbul 74,7 40,3 Torun Tower MOI 3.500,0 253,3 Korupark I-II 810,2 3.751,8 Torium Mall 3.300,0 35,6 AnkaMall 567,3 181,0 3.100,0 Netsel Marina Korupark Mall 3.335,8 37,7 2.900,0 600,2 Cash Bulvar Samsun 589,1 2.700,0 41,4 2.500,0 Deepo Antalya 232,4 1H 2011 1H 2012 Zafer Plaza Landbank Other 176,8 70,0 33,8 CAPEX______
160,0 1H 2012 140,0 Torun Tower Korupark 14,9 120,0 Residence
136,7 24,9 100,0 ASY Project 4,8 80,0 MOI 82,4 Boulevard 60,0 Samsun 6,0 40,0 58,2 AVM Renewal 20,0 1,1 Other 0,0 2,7 1H 2011 1H 2012 9 FINANCIAL REVIEW Financial Highlights (million TRY)
SALES______
90,0 80,0 1H 2012
70,0 83,1 76,8 60,0 Residence Other 8,2 50,0 17,4 40,0 30,0 20,0 Mall Rental 51,2 10,0 0,0 1H 2011 1H 2012 PRESALES______
300,0 1H 2012
250,0 Korupark III MOI Offices 200,0 262,3 (42 units) (36 units) 12,7 23,4 150,0 MOI Residences 100,0 (89 units) 38,2
50,0 74,3 43,5 0,7 0,0 2009 2010 2011 1H 2012 10 FINANCIAL REVIEW Financial Highlights (million TRY)
MALL REVENUES______
80,0 1H 2012 70,0 Zafer Plaza 6,5
60,0 68,1 Torium 24,6
50,0 58,8 Korupark 40,0 AVM 29,4 30,0 Deepo Antalya 20,0 7,7 1H 2011 1H 2012 MALL SALES TURNOVER & FOOTFALL______
Footfall 'million Mall Sales Turnover 'million TRY 21,0 500,0 19,0 450,0 17,0 19,3 400,0 15,0 18,4 445,1 350,0 13,0 400,5 300,0 11,0 250,0 9,0 200,0 7,0 5,0 150,0 1H 2011 1H 2012 1H 2011 1H 2012 11 FINANCIAL REVIEW Financial Highlights (million TRY)
EBITDA______
60,0 EBITDA Margin 55,0 80,0% 50,0 56,7 70,0% 45,0 60,0% 73,8% 40,0 50,0% 44,6 35,0 40,0% 53,6% 30,0 30,0% 20,0% 25,0 10,0% 20,0 0,0% 1H 2011 1H 2012 1H 2011 1H 2012 NET PROFIT______
120,0 Net Profit Margin 160% 80,0 97,0 120%
40,0 80% 126% 40% 0,0
0%
6,6 8% - -40% - -40,0 1H 2011 1H 2012 1H 2011 1H 2012 12 FINANCIAL REVIEW Project Monthly Pre-Sales (in Units)
600
540
500
400 379
300
218
200
149
101 100 60 51 38 40 41 31 29 18 17 19 14 8 13 0 2Q 2011 3Q 2011 4Q 2011 2011 1Q 2012 2Q 2012
* As of 30.06.2012 Korupark Terrace Residence Phase III MOI (Residence) MOl (Office) 13 FINANCIAL REVIEW Client centric account management pays off
Bursa Bursa Antalya Istanbul June 2012 Total Zafer Plaza Korupark Deepo Outlet Torium GLA ( m2 ) 23,448 71,267 18,069 95,280 208,064
Revenues (TRY) 6,450,000 29,355,000 7,679,000 24,569,000 68,053,000
LfL Revenues (% revenues) 53.57% 20.35% 10.97% 5.46% 15.72%
% LfL Footfall growth 3.2 6.8 0.4 6.6 4.7
Number of stores 115 187 93 215 610
Occupancy 100% 99% 99% 98% 99%
Fixed Rent (sqm/month) 32.99 $ 21.10 € 21.55 € 15.81 $ 17.93 €
Turnover rent (as % of fixed rent) 2.99 3.20 16.14 10.51 6.82
66% $ 12% $ 20% $ 73% $ 41% $ Breakdown of rental revenues 34% € 88% € 78% € 27% € 58% €
% of GLA 19% 27% 20% 28% 26%
% of Rental Revenue 24% 33% 22% 28% 29% Tenants Share of
International % of Retail Turnover 22% 33% 23% 43% 33%
14 FINANCIAL REVIEW Maturity of Financial Loans
120 TRY
Mil lion USD EUR 100 104 101
80 85 82 Financial loans: TRY 1.023 mn 68.1%USD, 27.9%€, 4%TRY
60 52
40 38 33 33 33
20 24 23 22 21 19 17 16 14
7 1 1 0 0 0 0 0 0 0 0 0 1 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 *The graph excludes TRY 590 mn of cash and cash deposits 15
Financial Review
Project Pipeline 3
Future Outlook
Appendix
● Turkey Real Estate Economic Highlights
● Turkey Real Estate Market Review
● Financial Statements
● Listed REIC's
● Portfolio Review
PROJECT PIPELINE Evolution of the Projects (m2) GLA+GSA (m2) 2011 2012 2013 2014 Retail 224,004 230,815 411,429 411,429 Residence 26,331 118,841 250,782 288,157 Office 2,150 2,531 68,764 107,764 Hotel 2,907 2,907 2,907 2,907 Marina 3,431 3,431 3,431 3,431 Other 4,140 4,870 7,285 13,964 Total 262,963 363,395 744,598 827,651 Land 158,026 230,323 230,323 230,323
1 billion TRY Capex* 2011 2014 Residence Residence 288.157 26.331 Office 35% 10% 2.150 1% Retail 411.429 Hotel 50% 2.907 Retail 1% 224.004 85% Marina 3.431 1% Office 107.764 13% Other Other Hotel Marina 4.140 13.964 2.907 17 * excl. Paşabahçe Ex-Tekel Factory Land 3.431 2% 2% 0% 0% PROJECT PIPELINE GLA+GSA Breakdown by City
2011 2014
Istanbul Istanbul 544.786 113.237 66% 44%
Antalya 18.069 7%
Bursa 109.379 Ankara Antalya 42% Samsun Mugla 16.019 Bursa Ankara 44.720 Samsun Mugla 0 3.431 6% 208.676 18.847 5% 7.191 3.431 0% 1% 25% 2% 1% 1%
CAGR : 47% 260,135 sqm 827,651 sqm
18
Business Review
Project Pipeline 3
Future Outlook
Appendix
● Turkey Real Estate Economic Highlights
● Turkey Real Estate Market Review
● Financial Statement
● Listed REIC's
● Portfolio Review
FUTURE OUTLOOK 1H 2012 Highlights
Cooling off in the economy and contraction in demand
Strong operational activity leading to resilient cash flow stream
High tenant retention, high footfall and solid consumer spending
Strengthening in liquidity against conservative financing
Focus on quality in portfolio (ASY and Paşabahçe to be included in 3Q 2012)
On track to achieve full year 2012 targets
Total sales revenues at TRY 76.8 m
Like-for-like net retail rental income up 17.6 % at TRY 51.2 m
EBITDA up 27% at TRY 56.6 m
Net profit TRY 0,43 per share (2011: TRY 0,79 per share)
NAV TRY 11,64 per share (Year end 2011: TRY 11,30 per share)
Leverage 25.5% 20 FUTURE OUTLOOK Sales & EBITDA Forecast (TRY ‘000)
1.500.000
1.200.000 1.134.295 855.314 900.000 837.298 656.530 600.000 336.657 319.942 285.209 267.159 254.139 248.979 300.000 232.928 162.909 161.064 156.632 110.787 105.952 91.969 53.899 47.626 45.363 42.857 42.153 37.758 33.182 32.240 17.965 7.421 3.822 0 2010 2011 2012 F 2013 F 2014 F 2015 F 2016 F
Sales Residence - Office Rental Other 500.000 90%
80% 400.072 400.000 77% 77% 70%
301.841 60% 300.000 245.377 260.500 50% 54% 50% 40% 200.000 24% 30% 134.932 35% 35% 100.000 82.218 20% 55.377 10%
0 0% 2010 2011 2012 F 2013 F 2014 F 2015 F 2016 F 21 EBITDA EBITDA Margin (%) FUTURE OUTLOOK Cash Flow Statement Forecast (TRY)
Cash Flow Statement (Forecast) 2012 2013 2014 2015 2016 CASH FLOW FROM OPERATIONS From Mall rentals 96,402,698 140,868,958 202,746,952 211,444,104 225,091,604 From Office rentals 0 0 29,567,348 31,971,569 33,970,634 From Residence Pre-Sales and Sales 235,086,582 480,482,025 149,556,244 846,339 0 Change in Trade Receiveables 82,516,184 118,884,124 143,954,543 142,081,115 75,870,590 Operational Expenses (-) 14,601,636 12,941,095 14,235,204 15,658,725 17,224,597 Net Cash Flow from Operations 399,403,828 727,294,012 511,589,883 370,684,403 317,708,231
CASH FLOW FROM INVESTING ACTIVITIES Construction Costs 438,116,624 498,539,396 102,561,491 2,532,603 0 Shopping Mall Renewal Costs 1,840,024 1,844,000 1,896,000 2,179,000 2,331,000 Net Cash Flow from Investing Activities -439,956,648 -500,383,396 -104,457,491 -4,711,603 -2,331,000
CASH FLOW FROM FINANCING ACTIVITIES Cash receipt from 456,536,746 146,468,662 31,715,704 56,036,877 68,764,828 Deposits 66,657,546 28,568,662 18,405,704 41,395,877 52,659,728 Dividends 11,000,000 12,100,000 13,310,000 14,641,000 16,105,100 Loans 378,879,200 105,800,000 0 0 0
Cash paid for 292,821,818 402,462,056 502,341,478 481,165,797 419,615,429 Repurchase of stock 1,156,000 0 0 0 0 Repayment of loans for investment 198,265,818 224,331,957 277,026,783 234,557,721 230,562,396 Paşabahçe Land 71,000,000 96,560,000 90,170,000 83,780,000 77,390,000 Dividends 22,400,000 81,570,099 135,144,695 162,828,077 111,663,033 Net Cash Flow from Financing Activities 163,714,928 -255,993,394 -470,625,774 -425,128,920 -350,850,601
Net Increase / Decrease in Cash 123,162,109 -29,082,778 -63,493,383 -59,156,120 -35,473,370 Cash at the beginning of the term 655,585,000 778,747,109 749,664,331 686,170,948 627,014,828 Cash at the end of the term 778,747,109 749,664,331 686,170,948 627,014,828 591,541,458 22
Business Review
Project Pipeline 3
Future Outlook
Appendix
● Turkey Real Estate Economic Highlights
● Turkey Real Estate Market Review
● Financial Statements
● Listed REIC's
● Portfolio Review
23 TURKEY REAL ESTATE ECONOMIC HIGHLIGHTS Turkey Economic Highlights
USD billion 2010a 2011a 2012b 2013b 2014b 2015b 2016b
GDP 730.6 772.5 780.7 889.9 1012.2 1120.7 1236.3
Growth (GDP, %) 9.3 8.6 3.2 4.1 5.2 5.1 5.2
Private Consumption (%) 6.7 7.7 1.6 2.9 3.6 3.5 3.7
Inflation (CPI, average, %) 8.6 6.5 8.9 7.5 6.9 5.4 4.1
TL/USD (year-end) 1.54 1.89 1.84 1.84 1.84 1.83 1.83
TL/USD (average) 1.50 1.67 1.82 1.84 1.84 1.83 1.83
TL/EUR (average) 1.99 2.33 2.32 2.32 2.30 2.27 2.31
Exports 120.9 143.4 152.4 159.0 169.5 180.7 196.3
Imports -177.3 -232.9 -230.4 -236.2 -250.4 -268.2 -295.6
C/A Balance (Ratio to GDP, %) -6.4 -10.0 -8.2 -7.4 -7.0 -6.9 -7.4
Budget Balance (Ratio to GDP, %) -3.7 -1.3 -2.0 -1.8 -2.1 -1.8 -1.8 a Actual b Economist Intelligence Unit estimates. Source; Economist Intelligence Unit 24 TURKEY REAL ESTATE ECONOMIC HIGHLIGHTS Company Economic Forecast
2012 2011 Base Case Best Case Worst Case
Real Growth (GDP, %) 8.50 4.00 6.00 2.00
Inflation (CPI, %) 10.45 7.00 4.50 8.50
Inflation (PPI, %) 11.09 6.00 4.80 7.30
TL/USD (year-end) 1.92 1.80 1.60 2.00
TL/EUR (year-end) 2.47 2.25 2.16 2.70
USD / EUR (year-end) 1.29 1.25 1.35 1.35
CBT weekly repo rate ( % ) 5.75 5.75 6.00
CBT overnight repo rate ( % ) 12.50 10.00 12.50
Mortgage loan average monthly interest rate (year-end, % ) 1.20 1.00
Mortgage loan growth ( % ) 21.40 15.00
Construction sector growth rate ( % ) 11.20 5.00 6.00
Residential construction permits (growth, % ) -30.00 5.00 10.00
at par with at par with Residential prices and rents growth (%) inflation inflation
Commercial real estate investment growth ( % ) 10.00 8.00 10.00
25 TURKEY REAL ESTATE ECONOMIC HIGHLIGHTS Turkey GDP vs. Construction Sector
20,0% 18,5% 13,9% 15,0% 14,1% 17,1% 15,3% 10,0% 9,3% 6,8%4,9% 7,8%9,4% 6,2% 8,4% 11,9% 11,2% 5,0% 5,3% 6,9% 5,7% 9,2% 4,7% 8,5% ,0% 2,8% 3,2% -5,0% -3,1% -3,4% -5,7% GDP -10,0% -0.7% -4,8% -15,0% -8,1% -17,4% -20,0% 1999 2000 -16,1% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2011 1Q 2012 1Q
Source: Turkish Statistical Institute GDP Construction
26 TURKEY REAL ESTATE ECONOMIC HIGHLIGHTS Turkey Real Estate Economic Highlights 180 48,00%
47,01% 46,98% 47,01% 160 47,00% 46,44% 46,20% 46,23% 46,23% 171,35 45,93% 46,60% 165,74 140 45,80% 162,09 46,00% 157,04 45,43% 45,83% 150,86
120 45,00% 136,23 124,94 100 44,22% 44,00%
113,64 43,43% 42,92% 105,63
80 96,72 43,00% 72,52 90,58 70,40 69,56 68,20 42,32% 66,71 85,49 83,36 82,63 61,89 81,04 80,80 42,48% 77,31 60 57,26 42,00% 52,05 49,22 45,46 42,55 39,70 38,54 37,95 37,45 37,35 40 36,34 41,00%
20 40,00%
0 39,00% 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 27 Source: Central Bank of Turkey Consumer Loans Mortgage Loans Mortgage / Consumer Loans (%) TURKEY REAL ESTATE ECONOMIC HIGHLIGHTS Turkey Real Estate Economic Highlights 6,00 25,00%
5,00 20,67%
5,210 20,00% 18,61%
18,17% 4,822
17,47% 4,633 4,00 16,19%
3,761 14,40% 15,00% 3,00 12,93% 13,16% 12,48% 12,52% 12,06% 11,68% 2,909 2,851 2,822
2,00 11,49% 9,86% 2,354 11,05% 10,00% 10,47% 2,117 9,53% 1,610
1,00 1,487 1,365 1,186 1,165 5,00% 0,839
0,00 0,507 0,093 - -
-1,00 0,00% 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 28 Source: Central Bank of Turkey Mortgage Loans Interest Rate on Mortgages (%)
Business Review
Project Pipeline
Future Outlook
Appendix
● Turkey Real Estate Economic Highlights
● Turkey Real Estate Market Review
● Financial Statements
● Listed REIC's
● Portfolio Review
29 TURKEY REAL ESTATE MARKET REVİEW Turkey Residential Sales ( in units )
200.000 194.743
150.000
113.088 116.229 118.867 112.168 109.333 111.913 107.308 108.861 106.035 101.754 97.517 100.000 96.092 92.516 90.270 91.071 85.857 83.697 56.909
50.000 34.042 29.411 28.346 26.091 25.254 24.360 24.249 23.783 23.757 23.040 22.896 22.767 22.434 22.343 22.003 21.690 21.485 21.386 20.922 20.778 18.994 18.768 18.756 18.494 18.026 17.857 16.720 16.348 16.320 15.977 15.976 15.814 15.705 14.306 13.867
0 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012
Source: Turkish Statistical Institute TURKEY ISTANBUL ANKARA 30 TURKEY REAL ESTATE MARKET REVİEW Turkey Residential Permits (in units)
449.120 450.000
400.000
350.000
300.000
250.000 216.258
200.000 175.728 175.053 173.122 165.743 160.135 148.951 148.346 144.948 143.194
150.000 135.571 131.015 128.519 128.172 121.403 120.846 119.822 118.754 116.684 113.994 113.802 111.150 109.488 108.967 106.487 101.900 92.818 91.639 91.463 89.948 89.925 87.620
100.000 86.564
50.000
0 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Source: Turkish Statistical Institute Construction Permit Building Occupancy Permit 31 TURKEY REAL ESTATE MARKET REVİEW Residential Purchase Confidence Index 100,0 15,0
98,0 14,0
96,0 13,0
94,0 12,0
92,0 11,0
10,6 10,5 10,6 10,6 90,0 10,4 10,3 10,3 10,0 10,1 9,9 9,8 9,8 9,8 9,7 88,0 9,6 9,5 9,6 9,0 9,3 9,2 9,0 8,9 8,9 86,0 8,6 8,0 8,2 7,9 84,0 7,5 7,0
82,0 6,0
80,0 5,0
32 TURKSTAT Consumer Confidence Index CBT Consumer Residential Buying Behavior Index TURKEY REAL ESTATE MARKET REVİEW Turkey New Residential Price Index
125,0 123,8 122,2 121,1
120,0 116,9 117,9 115,0 112,1 115,3
112,7 110,0 107,4 110,5 105,8
105,0 103,4 103,8 106,6
103,6
100,0 101,6 99,5 97,8 95,0
90,0 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012
Jan 2010 = 100 CBRT Turkey House Price Index TURKSTAT Construction Cost Index 33 TURKEY REAL ESTATE MARKET REVİEW Turkey Retail Market
Retail Sales (TRY mn) 900.000
800.000
700.000
600.000
412.638
500.000 377.019
344.631
315.491
400.000 288.910 263.274
300.000 234.150
205.214
200.000
406.889 377.698 350.771 326.196
100.000 303.457 281.192 255.412 229.244
0 2010 2011 2012 2013 2014 2015 2016 2017
Source: Planet Retail Grocery Retail Sales (TRY mn) Non-Grocery Retail Sales (TRY mn) 34 TURKEY REAL ESTATE MARKET REVİEW Turkey Retail Market
Household Expenditure Retail centre supply (by type, 2011) (supply breakdown by city) Miscellaneous Goods and Education Services Other 2,0% 4,3% Food, beverage 16% Health and tobacco 1,9% 24,9% Trabzon 2% Housing Konya 25,8% 2% Mersin Istanbul 2% 40% Gaziantep 2% Denizli 2% Kocaeli 2% Furnishing, household Adana equipment 3% 6,4% Antalya 3%
Restaurant and hotels Izmir 5,7% 5% Clothing and Bursa footwear Transportation 6% Recreation and 5,2% Ankara and culture 15% communication 35 Source: DTZ Pamir & Soyuer Source: TURKSTAT 2,7% 21,3% TURKEY REAL ESTATE MARKET REVİEW Shopping Mall Development
Under
End 2010 End 2011 1H 2012 Construction* End 2013
Unit 92 104 107 28 135 İstanbul GLA (sq m) 2.65 M 3.08 M 3.18 M 1.00 M 4.18 M
Unit 171 198 208 25 233 Turk ey
GLA (sq m) 3.87 M 4.55 M 4.82 M 0.90 M 5.72 M Rest of Rest
Unit 263 302 315 53 368
Turk ey GLA (sq m) 6.52 M 7.63 M 8.00 M 1.90 M 9.90 M
Source: Jones Lang LaSalle 36 TURKEY REAL ESTATE MARKET REVİEW Retail Density-GLA per 1,000 Capita, Turkey
City End 2010 End 2011 1H 2012 End 2013
İstanbul 210 m2 226 m2 233 m2 308 m2
Ankara 207 m2 230 m2 230 m2 264 m2
Karabük 65 m2 186 m2 186 m2 181 m2
Bolu 25 m2 145 m2 145 m2 141 m2
Trabzon 142 m2 145 m2 145 m2 141 m2
Bursa 134 m2 140 m2 140 m2 145 m2
Denizli 119 m2 134 m2 128 m2 140 m2
Tu r k ey 90 m2 102 m2 104 m2 129 m2
Source: Jones Lang LaSalle 37 TURKEY REAL ESTATE MARKET REVİEW Turkey’s Mall League
Mall Opening Date GLA Location Developer 1 Forum Istanbul 2009 178,834 Istanbul Multi Turkmall 2 Marmara Forum 2011 137,500 Istanbul Multi Turkmall 3 Cevahir 2005 110,000 Istanbul Kuwait Investment Authority 4 Ankamall 1999 107,804 Ankara Migros 5 Torium 2010 95,280 Istanbul Torunlar REIC 6 Istinyepark 2007 88,490 Istanbul Dogus, Orjin 7 Anatolium 2010 84,165 Bursa Corio 8 Antares 2007 84,000 Ankara Dolunay 9 Panora 2007 82,591 Ankara Polat Holding 10 Forum Ankara 2008 80,000 Ankara Multi Development TR 11 Kent Park 2008 79,478 Ankara Mega Turk Construction 12 M1 Merkez Adana 2000 76,500 Adana Metro 13 Korupark 2007 74,580 Bursa Torunlar REIC 14 Cepa 2007 73,242 Ankara Carrefour 15 Forum Mersin 2007 71,125 Mersin Multi Turkmall 16 Anatolium Ankara 2011 70,000 Istanbul Corio 17 M1 Meydan Umraniye 2007 70,000 Istanbul Metro 18 Optimum Outlet 2011 69,000 Adana Ronesans REIC 19 212 Istanbul Power Outlet 2009 68,000 Istanbul Edip International Real Estate 20 Via/Port Outlet Shopping 2008 66,000 Istanbul Bayraktar Grup
*Source: Akademetre Research and Eva Real Estate 38 TURKEY REAL ESTATE MARKET REVİEW Turkey SHOPPING MALL Sales Turnover and Footfall
150 25,00 Sales Turnover Index (General)* Footfall Index (General)* Interest Rate on Cash Loans (%) 143 140 140 136 20,12 20,00 132 130 17,94 129 130 17,31
123 123 121 15,00 119 120 115 112 12,93 112 110 110 108 108 106 106 10,00 104 103 102 102 101 100 100 99 100 98 98 97 97 97 96 96 95 95 95 5,00
90
80 0,00 Jan.11 Feb.11 Mar.11 Apr.11 May.11 Jun.11 Jul.11 Aug.11 Sep.11 Oct.11 Nov.11 Dec.11 Jan.12 Feb.12 Mar.12 Apr.12 May.12 Jun.12
Source: Council of Shopping Centers - Turkey * January 2010 = The beginning of index Central Bank of TURKEY 39 TURKEY REAL ESTATE MARKET REVİEW Istanbul Office Market Overview
Grade A Office Stock
Existing Projects GLA Pipeline Projects GLA 1H 2012 Sub Market (sq m) (sq m) **
CBD 1,170,000 281,000 Europe Non CBD 810,000 253,000
Asia 960,000 276,000
Total 2,940,000 810,000
**For completion by end 2013 Source: Jones Lang LaSalle
40
Business Review
Project Pipeline 3
Future Outlook
Appendix
● Turkey Real Estate Economic Highlights
● Turkey Real Estate Market Review
● Financial Statements
● Listed REIC's
● Portfolio Review
FINANCIAL STATEMENT Income Statement
mn TL 2Q 2012 2Q 2011 YoY 1Q 2012 QnQ
Satışlar/Sales 37,093 41,104 -9.8% 39,702 -6.6%
Konut/Residence 1,795 11,372 -84.2% 6,438 -72.1%
AVM kira/ Mall rental 26,558 22,273 19.2% 24,646 7.8%
Diğer/Other 8,740 7,459 17.2% 8,618 1.4%
SMM/Cost of sales 11,579 17,942 -35.5% 14,234 -18.7%
Konut/Residence 1,047 7,385 -85.8% 3,457 -69.7%
AVM kira/ Mall rental 1,904 1,389 37.1% 1,892 0.6%
Diğer/Other 8,628 9,168 -5.9% 8,885 -2.9%
Brüt kar/Gross profit 25,514 23,162 10.2% 25,468 0.2%
Brüt marj/Gross margin 68.8% 56.3% 12.43 pp 64.1% 4.64 pp
Faaliyet giderleri/Opex -4,231 -7,817 -45.9% -2,974 42.3%
Genel yönetim giderler/General&admin exp -3,339 -4,070 -18.0% -1,888 76.9%
Paz satış giderleri/Mrkt and selling exp -892 -3,747 -76.2% -1,086 -17.9%
Diğer gelir(gider)/Other income(expenses) -142 886 -116.0% -1 14100.0%
Yatirim amacli gayrimenkuller deger artislari (azalislari)/ Net gain (loss) fair 0 0 0.0% 0 0.0% value adjustments on investment property
Faaliyet karı /Operating profit 21,141 16,231 30.3% 22,493 -6.0%
Gayrimenkul deger artisi haric faaliyet kari / Operating profit excluding fair 21,141 16,231 30.3% 22,493 -6.0% value adjustment
İştiraklerden alınan temettü/Share of profit of associates (recurring) 9,381 4,189 123.9% 3,453 171.7%
VFOK/EBIT * 30,522 20,420 49.5% 25,946 17.6%
VFOK marjı /EBIT margin (%) 82.3% 49.7% 32.61 pp 65.4% 16.93 pp
Amortisman/Depreciation 112 44 154.5% 76 47.4%
VAFOK/EBITDA * 30,634 20,464 49.7% 26,022 17.7%
VAFOK marjı/EBITDA margin (%) 82.6% 49.8% 32.80 pp 65.5% 17.04 pp
İştiraklerden gelir (gider)/share of profits (non-recurring) -5,943 -3,123 90.3% -343 1632.7%
Net faiz geliri(gideri)/Net financial interest income(expense) 1,467 982 49.4% 6,204 -76.4%
Net diğer finansal gelir (gider)/Other net financial income (expense) 284 1,019 -72.1% 1,267 -77.6%
Kur farkı geliri (gideri)/Forex gain (loss) 4,967 -34,207 -114.5% 33,694 -85.3%
Vergi öncesi kar/Profit before tax 31,297 -14,909 -309.9% 66,768 -53.1%
Vergi gideri/Corporate tax -556 -425 30.82% -532 4.51%
Net kar/net profit 30,741 -15,334 -300.48% 66,236 -53.59%
Net kar marjı/Net profit margin (%) 82.9% -37.3% 120.18 pp 166.8% -83.96 pp 42 FINANCIAL STATEMENT Income Statement
mn TL 1H 2012 1H 2011 YoY Satışlar/Sales 76,795 83,142 -7.6% Konut/Residence 8,233 24,290 -66.1% AVM kira/ Mall rental 51,204 43,549 17.6% Diğer/Other 17,358 15,303 13.4% SMM/Cost of sales 25,813 34,513 -25.2% Konut/Residence 4,504 14,028 -67.9% AVM kira/ Mall rental 3,796 2,628 44.4% Diğer/Other 17,513 17,857 -1.9% Brüt kar/Gross profit 50,982 48,629 4.8% Brüt marj/Gross margin 66.4% 58.5% 7.90 pp Faaliyet giderleri/Opex -7,205 -11,879 -39.3% Genel yönetim giderler/General&admin exp -5,227 -7,419 -29.5% Paz satış giderleri/Mrkt and selling exp -1,978 -4,460 -55.7% Diğer gelir(gider)/Other income(expenses) -143 1,223 -111.7%
Yatirim amacli gayrimenkuller deger artislari (azalislari)/ Net gain (loss) fair value adjustments 0 0 0.0% on investment property
Faaliyet karı /Operating profit 43,634 37,973 14.9%
Gayrimenkul deger artisi haric faaliyet kari / Operating profit excluding fair value adjustment 43,634 37,973 14.9%
İştiraklerden alınan temettü/Share of profit of associates (recurring) 12,834 6,497 97.5% VFOK/EBIT * 56,468 44,470 27.0% VFOK marjı /EBIT margin (%) 73.5% 53.5% 20.04 pp Amortisman/Depreciation 188 125 50.4% VAFOK/EBITDA * 56,656 44,595 27.0% VAFOK marjı/EBITDA margin (%) 73.8% 53.6% 20.14 pp İştiraklerden gelir (gider)/share of profits (non-recurring) -6,286 -2,249 179.5% Net faiz geliri(gideri)/Net financial interest income(expense) 7,671 -970 -890.8% Net diğer finansal gelir (gider)/Other net financial income (expense) 1,551 2,348 -33.9% Kur farkı geliri (gideri)/Forex gain (loss) 38,661 -49,292 -178.4% Vergi öncesi kar/Profit before tax 98,065 -5,693 -1822.6% Vergi gideri/Corporate tax -1,088 -870 25.06% Net kar/net profit 96,977 -6,563 -1577.63% Net kar marjı/Net profit margin (%) 126.3% -7.9% 134.17 pp
43 FINANCIAL REVIEW Income Statement
‘000 TL 2011 2010 YoY Sales 162,909 232,928 -30.1% Residence 37,758 161,064 -76.6% Mall rental 91,969 53,899 70.0% Other 33,182 17,965 84.7% Cost of sales 62,754 152,910 -59.0% Residence 20,231 122,099 -83.4% Mall rental 41,350 19,496 112.1% Other 1,173 11,315 -89.6% Gross profit 100,155 80,018 25.2% Gross margin 61.5% 34.4% 27.13 pp Opex -24,515 -29,040 -15.6% General&admin exp -13,777 -23,498 -41.4% Mrkt and selling exp -10,738 -5,542 93.8% Other income(expenses) -5,586 -529 956.0% Net gain (loss) fair value adjustments on investment property 182,534 166,660 9.5% Operating profit 252,588 217,109 16.3% Operating profit excluding fair value adjustment 70,054 50,449 38.9% Share of profit of associates (recurring) 6,496 4,745 36.9% EBIT * 81,927 55,194 48.4% EBIT margin (%) 50.3% 23.7% 26.59 pp Depreciation 291 184 58.2% EBITDA * 82,218 55,378 48.5% EBITDA margin (%) 50.5% 23.8% 26.69 pp Share of profits (non-recurring) 38,731 9,980 288.1% Net financial interest income(expense) 1,334 -20,975 -106.4% Other net financial income (expense) 2,378 1,098 116.6% Forex gain (loss) -122,414 3,562 -3536.7% Profit before tax 179,113 215,519 -16.9% Corporate tax -1,801 -1,274 41.37% Net profit 177,312 214,245 -17.24% Net profit margin (%) 108.8% 92.0% 16.86 pp * 2011 yılı stok değer düşüş karşılığı 5.377 faaliyet dışı gider olduğundan VFÖK (EBIT) ve VAFÖK (EBITDA) rakamlarına eklenmiştir. 44 FINANCIAL STATEMENT Balance Sheet
(000 TRY) 2012/06 2011/12 Variance % Cash and Cash Equivalents 436,494 597,388 -26.9 Financial Investments 152,562 58,197 162.1 Trade Receivables 69,120 71,081 -2.8 Inventory 125,238 100,805 24.2 Advances Given 20,238 9,742 107.7 Other Current Assets 2,766 4,058 -31.8 CURRENT ASSETS 806,418 841,271 -4.1 Financial Investments 0 0 0.0 Trade Receivables 52,409 60,079 -12.8 Invest.In Associates 157,903 164,189 -3.8 Investment Property 2,518,866 2,457,490 2.5 Tangible Fixed Property 1,416 874 62.0 Intangible Fixed Assets 154 86 79.1 Inventory 312,979 262,406 19.3 Advances Given 108,063 108,063 0.0 Other Non-current Assets 61,489 49,093 25.3 NON-CURRENT ASSETS 3,213,279 3,102,280 3.6 TOTAL ASSETS 4,019,697 3,943,551 1.9 Financial Liabilities 258,267 289,143 -10.7 Finance Lease Liabilities 0 0 0.0 Other Financial Liabilities 0 1,313 -100.0 Trade Payables 39,736 38,864 2.2 Tax Payables 555 409 Advances Received 66,591 52,383 27.1 Other Current Liabilities 9,141 6,282 45.5 CURRENT LIABILITIES 374,290 388,394 -3.6 Financial Liabilities 765,612 811,373 -5.6 Provision For Employment Termination Benefits 117 93 25.8 Advances Received 272,554 210,785 29.3 NON-CURRENT LIABILITIES 1,038,283 1,022,251 1.6 Share Capital 224,000 224,000 0.0 Share Premium 301,770 301,770 0.0 Legal Reserves 5,240 3,947 32.8 Treasury Shares -1,195 -836 42.9 Retained Earnings 1,980,332 1,826,713 8.4 Net Profit 96,977 177,312 -45.3 TOTAL EQUITY 2,607,124 2,532,906 2.9 TOTAL LIABILITIES AND EQUITY 4,019,697 3,943,551 1.9 45 FINANCIAL STATEMENT Cash Flow Statement
(000 TRY) 1H 2012 2011 2010 2009 2008
Cash and cash equivalents at the beginning of 597,388 438,664 72,639 80,168 137,441 the year
Exchange losses on cash and blocked deposits -1,819 3,187 320 -211 4,154
Blocked deposits 0 0 -121,447 0 0
Net cash generated (used) in operating 22,574 121,271 32,380 63,287 -30,371 activities
Net cash used in investing activities -15,889 -101,257 -122,002 -58,490 -70,920
Net cash generated (used in) from financing -165,760 135,523 455,327 -12,115 39,864 activities
Net (decrease) increase in cash and cash -159,075 155,537 365,705 -7,318 -61,427 equivalents
Cash and cash equivalents at the end of the 436,494 597,388 317,217 72,639 80,168 period
46 FINANCIAL STATEMENT Net Foreign Currency Position
TL Equivalent (000) € $ Variance % 31.06.2012 30.12.2011 Current assets 10,715 70,856 152,369 223,130 -31.7 Trade receivables 0 0 0 0 0.0 Monetary financial assets 10,590 69,463 149,568 210,456 -28.9 Other 125 1,393 2,801 12,674 -77.9 Total assets 10,715 70,856 152,369 223,130 -31.7 Current liabilities -23,597 -92,085 -220,026 -256,557 14.2 Trade payables -424 -503 -1,875 -5,438 65.5 Financial liabilities -22,861 -91,542 -217,364 -251,112 13.4 Other current liabilities -312 -40 -787 -7 -11142.9 Non-current liabilities -102,926 -295,321 -767,576 -826,481 7.1 Trade payables 0 -85 -153 0 0.0 Financial liabilities -102,926 -294,236 -765,615 -811,370 5.6 Derivative Liabilities (net) 0 -1,000 -1,808 -15,111 88.0 Total liabilities -126,523 -387,406 -987,602 -1,083,038 8.8 Net foreign currency asset (liability) -115,808 -316,550 -835,233 -859,908 2.9 47 FINANCIAL STATEMENT Funding Summary
2012/06 2011/12 Variance
Total net debt (000 TRY) -434,823 -444,931 -2.27%
Average loan term (years) 5 5
Average overall interest rate* 4.84% 5.07% -0.23 pp
Leverage (financial loans as % of total assets) 25.5% 27.9% -2.44 pp
Net debt to equity ratio -16.7% -17.6% 0.89 pp
Net debt/Assets (%) -10.8% -11.3% 0.47 pp
Equity to assets ratio 64.9% 64.2% 0.63 pp
Loan to property value ratio (LTV) -14.0% -14.9% 0.95 pp
Interest coverage ratio (times) 7.4 61.6 NM
Net debt/EBITDA (times) 3.84 5.4 NM
* Excl. TRY Loans
48
Business Review
Project Pipeline 3
Future Outlook
Appendix
● Turkey Real Estate Economic Highlights
● Turkey Real Estate Market Review
● Financial Statements
● Listed REIC's
● Portfolio Review
LISTED REIC’s REICs on the ISE (as of Aug 24, 2012)
3M avg. daily Current M.Cap Dividend Yield Dividend Yield Dividend Yield Listed REITs Free Float trading volume (TRY mn) (2010) (2011) (2012) 1 EMLAK KONUT GMYO 25% 57.293 6,225 - 2.6% 2.0% 2 TORUNLAR GMYO 14% 2.009 1,310 - 0.9% 1.9% 3 İŞ GMYO 48% 2.180 738 3.0% 2.8% 4.0% 4 SİNPAŞ GMYO 37% 6.444 768 - 3.1% 4.3% 5 AKMERKEZ GMYO 2% 0.323 714 4.6% - 4.7% 6 SAF GMYO 35% 1.808 718 - - 16.5% 7 ÖZAK GMYO 3% 0.503 364 - 8 VAKIF GMYO 15% 1.225 361 - - - 9 AKFEN GMYO 29% 0.972 311 - - - 10 NUROL GMYO 20% 4.870 250 - - - 11 KİLER GMYO 35% 1.173 231 - - - 12 YEŞİL GMYO 24% 2.417 176 - - - 13 ALARKO GMYO 34% 0.984 175 - 0.7% 1.7% 14 REYSAŞ GMYO 31% 0.207 144 - 0.6% - 15 DOĞUŞ GMYO 7% 0.137 130 - - - 16 TSKB GMYO 29% 0.592 117 - - - 17 ATAKULE GMYO 16% 0.211 97 2.2% 2.1% - 18 ÖZDERİCİ GMYO 33% 0.101 79 - - - 19 MARTI GMYO 48% 0.590 63 - 5.4% 0.9% 20 YAPI KREDİ KORAY GMYO 44% 0.683 54 - - - 21 PERA GMYO 51% 0.240 51 - - - 22 AVRASYA GMYO 72% 2.771 47 - - - 23 İDEALİST GMYO 25% 0.273 29 - - - 24 EGS GMYO 66% 0.011 12 - - - TOTAL 25% 88.016 13,163 exc. EKGYO 25% 30.723 6,938 - - -
Source: Istanbul Stock Exchange 50 LISTED REIC’s TORUNLAR REIC PERFORMANCE
140
130 133,70
120 115,03 112,18 108,93 110
101,26 99,89 101,13 105,25 100 94,65 93,19 98,30 88,61 88,78 90 91,80 83,48 86,66 79,69 80
75,95 70 72,77
60 56,05
50 IPO Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug date 2010 2010 2010 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2012 2012 2012 2012 2012 2012 2012 2012
MSCI WORLD / REIT's Index XU100 (ISE100 NATIONAL INDEX) XGMYO (ISE REIC INDEX) TRGYO (TORUNLAR REIC) 51 LISTED REIC’s TORUNLAR REIC PERFORMANCE
190
170,90 170 157,62
148,26 150
132,16 127,65 129,07 130 133,70 125,90
110 101,26101,77 98,93 111,08 101,13 98,67 105,25 98,59 93,43 96,46 93,05 94,65 90 87,13 90,95 83,48 85,31 86,66 79,69 80,56 73,99 72,77 70 77,75 75,95 71,05 73,35 56,05
50 54,26 IPO Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug date 2010 2010 2010 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2012 2012 2012 2012 2012 2012 2012 2012
ISGYO EKGYO XGMYO (ISE REIC INDEX) TRGYO (TORUNLAR REIC) SNGYO 52
Business Review
Project Pipeline 3
Future Outlook
Appendix
● Turkey Real Estate Economic Highlights
● Turkey Real Estate Market Review
● Financial Statements
● Listed REIC's
● Portfolio Review
APPENDIX Project Locations
ISTANBUL SAMSUN ANKARA • Torium Shopping Mall Paşabahçe Ex-TEKEL Land • NishIstanbul Mixed-Use Project Maltepe Land • Boulevard • Ankamall Shopping Mall • Mall of Istanbul Kemankeş Land Samsun • Torun Tower Kayabaşı Land Shopping Mall • Crowne Plaza Hotel • Mecidiyeköy Ex-Stadium Mixed-Use Project 3
BURSA ANTALYA • Zafer Plaza Shopping Mall • Deepo Outlet Mall • Korupark Shopping Mall MUĞLA • Korupark Residences Phase I-II • Deepo Outlet Extension Project • Korupark Residences Phase III • Netsel Marina
APPENDIX Project Locations
3 APPENDIX Zafer Plaza Shopping Mall
Ownership Torunlar REIC (72.26%) Operational Date 1999 Leasable area (m2) 23,449 (REIC share 16,944) Occupancy (%) as of date 99% (as of Dec 2011) Number of stores 127 8% anchors and Dpt. Stores (23% of GLA): Anchor tenants Migros, M&S, YKM, Teknosa and Boyner Appraisal value (Dec. 2011) TRY 176.8mm (US$ 93mm)
Average lease term as of Dec-2011 1.8 years
Average LTM NOI (per TL/m2/month) TRY 50.9 Leasehold/Freehold status Freehold Rental income (Dec 2011). Last 12 months TRY 12.7mm •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
Tenants - Breakdown of GLA Tenants - Breakdown of Income Food & Drink Anchor Anchor Technology 8% 7% Technology Food & Drink 2% 12% Home 11% 12% Home Culture/ Art/ 4% Culture/ Art/ 5% Entertainment Entertainment 2% Personel Care/ Ready Wear Personel Care/ 1% Accessories 40% Accessories Ready Wear 4% 8% 49% Leisure/ Gift/ Special Leisure/ Gift/ Service Department Special Department 2% Store Service 4% 3% Store 16% 4% 7%
56 APPENDIX Korupark Shopping Mall
Ownership Torunlar REIC (100%) Operational Date H2 2007 Leasable area (m2) 71,267 Occupancy (%) as of date 98% (as of Dec 2011) Number of stores 182 (34% of GLA): Tesco, Koçtaş, Beymen, Anchor tenants C&A, Boyner and Electro World Appraisal value (Dec 2011) TRY 600.2mm (US$ 315.9mm)
Average lease term as of Dec-2011 1.8 years
Average LTM NOI (per TL/m2/month) TRY 44.1 Leasehold/Freehold status Freehold Rental income (Dec 2011). Last 12 months TRY 38.6mm •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
Technology 1% Tenants - Breakdown of GLA Tenants - Breakdown of Income Food & Drink Culture/ Art/ Culture/ Art/ Technology Food & Drink Entertainment 6% 11% Anchor Entertainment 3% Anchor 9% 28% 3% Personel Care/ 15% Personel Care/ Accessories Accessories Home 3% 7% 5% Leisure/ Gift/ Special Leisure/ Gift/ Department Service 2% Home Special Ready Wear Service Store 3% Department4% 2% 48% 2% 5% Ready Wear Store 41% 2%
57 APPENDIX Deepo Outlet Mall–Antalya
Ownership Torunlar REIC (100%) Operational Date October 24, 2004 Leasable area (m2) 18,069 Occupancy (%) as of date 100% (as of Dec 2011) Number of stores 81 LCW, Ayakkabı Dünyası, Mudo City, Anchor tenants Collezione, Sarar, Aydınlı Group Appraisal value (Dec 2011) TRY 191.5mm (US$ 100.8mm)
Average lease term as of Dec-2011 2 years
Average LTM NOI (per TL/m2/month) TRY 51.1 Leasehold/Freehold status Freehold Rental income (Dec 2011). Last 12 months TRY 12.8mm •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 2012. •Deepo Antalya is not directly held by Torunlar REIC, but is instead held by a subsidiary which is 100% owned by Torunlar REIC Tenants - Breakdown of GLA Tenants - Breakdown of Income Culture/ Food & Technology Anchor Home Food & Antalya Deepo Extension Project Art/ Drink 0% Culture/ Art/ 2% 1% Entertainme Drink Anchor Entertainm 8% Technology Ownership Torunlar REIC + Hastalya 10% 0% ent nt 2% 6% Estimated start of construction 3Q 2012 7% Personel Home Estimated date of completion 1Q 2013 Care/ Pe rs onel 1% Estimated operational date 1Q 2013 Accessories Ca re/ 5% Accessories Leasable area (m2) 26,651 Leisure/ 6% Estimated investment TRY 37mm (US$19.5mm) Gift/ Special Le i sure/ Service Gi ft/ Special Partially freehold, partially 1% Ready Leasehold / Freehold status 0% Departmen Ready 1% Departmen Wear leasehold from Hastalya t Store Wear Service t Store 73% Current status Under zoning process 0% 78% 0% 0%
58 APPENDIX Torium Shopping Mall–Istanbul
Ownership Torunlar REIC (100%) Operational Date October 30th, 2010 Investment cost TL221mm Occupancy (%) as of Dec 2011 99% Number of stores 180 Migros, Elektroworld, C&A, H&M, M&S, Anchor tenants Teknosa, Tekzen, YKM, Zara Appraisal value (Dec 2011) TL567.3mm (US$298.6mm)
Average lease term as of Dec-2011 4 years
95,280 m2 GLA retail GLA / GSA 5,723 m2 GSA residential Leasehold/Freehold status Freehold Rental income 2011 TRY 31.5mm •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 •12 out of 53 residetial units were sold for 1.710 TL/sqm starting from December 2011 until 30.06.2012
Tenants - Breakdown of GLA Tenants - Breakdown of Income Food & Drink Technology Food & Drink 7% 14% Anchor 4% Anchor Technology 12% Culture/ Art/ Culture/ Art/ 21% 7% Entertainment Entertainment Home Personel Care/ 13% 4% 3% Accessories Home Personel Care/ 3% 2% Accessories Leisure/ Gift/ 7% Ready Wear Special Service Leisure/ Gift/ 45% Department Store Ready Wear Special 2% 2% 5% Service 42% Department Store 3% 2% 3%
59 APPENDIX Ankamall Shopping Mall + Crowne Plaza Hotel–Ankara
Yeni Gimat in which Torunlar REIC holds Ownership (14.83%) Operational Date 1999 Leasable area (m2) 88,421 (REIC’s share 13,112) Occupancy (%) as of date 100% (as of December 2010) Number of stores 315 Number of rooms 280 Migros, Koçtaş, Tepe Home, Electro Anchor tenants World, Boyner, Mudo City, Appraisal value (REIC share) (Dec 2011) TRY 181mm (US$95.3mm)
NOI TRY 62mm
Leasehold/Freehold status Freehold Rental income TRY 90.6mm •Ankamall is located in Yenimahalle, in the centre of Ankara. The shopping mall is considered to be the largest in Ankara and fourth largest Dividends - Torunlar REIC share (TRY mm) in Turkey 10 9 •Ankamall is owned by Yeni Gimat which was formed as a cooperative 9.3 with over 1000 investors, and in which Torunlar REIC currently has 8 14.83% stake, making it the largest shareholder as of Dec 31, 2011 7 6 •The property includes the Crowne Plaza Hotel which is a 21–storey 5 building with 280 rooms 4 4.2 •For Ankamall, the rents in Phase 1 are denominated in Turkish Lira, 3 while the rents in Phase 2 are denominated in USD 2 2.7 2.1 2.4 1 1.9 •ECE European Prime Shopping Centre Funds offered USD 525 million to 0 buy 100% of Torunlar REIC’s 14.83% owned Ankamall and Crowne Plaza 2007 2008 2009 2010 2011 2012 Hotel on July 15 and the deal is expected to be closed in early 3Q 2012.
60 APPENDIX Boulevard Samsun Shopping Mall
Ownership Torunlar REIC (40%)
Operational Date 24.07.2012
14.943 m2 Leasable area (m2) (13.991m2 retail 952 m2 office)
Occupancy (%) as of date 92%
Number of stores 38
%43.2 of GLA ; Teknosa, Boyner, Koton, Anchor tenants Deichmann
Appraisal value (Dec 2011) TRY 41.4mm (US$ 23.1mm) •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 Average lease term (as of July 2012) 5 years •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. Average LTM NOI (per TL/m2/month) TRY28 (€12) (Forecast)
•Retail units will be leased for 21€/sq.m/month and office units for 12€/sq.m/month. Leasehold/Freehold status Leasehold
•92% of the retail area has already been leased as of March 2012. Rental income (Annual Forecast) TRY 8.6mm (€3.7mm)
61 APPENDIX Korupark Residences Phase I & II
Ownership Torunlar REIC (100%)
Leasehold/Freehold status Freehold
Start of construction May, 2006
Phase 1: January 2008/ Date of completion Phase 2: December 2008
Operational date February 2008 •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 Total investment TRY 123.3mm (US$85mm)
•The project is the first gated community in Bursa Units sold (%) 92% (as of Dec 2011) •Phase I&II: 746 units (123.840 sq.m), thirteen blocks Inventory as of June 30th, 2012: 55 units (11.232 sqm) Appraisal value (remaining units) TL35.6mm (US$18.7mm) (Dec 2011) •For Korupark residences I/II, sales are Turkish Lira denominated and currently 2.000 TL/ sq.m
62 APPENDIX Korupark Residences Phase III
Ownership Torunlar REIC (100%)
Estimated start of construction May 2011
Estimated operational date 4Q 2012
Estimated investment TRY 90mm (US$47.8mm)
Appraisal value TRY 74.7mm (US$39.3mm) (Dec 2011)
Leasehold / Freehold status Freehold
Number of residential units/GSA 680 units / 102.260 m2 residence Current status Under construction •The property, adjacent parcel to Korupark phase I & II, is a luxurious housing settlement. •For Korupark Residences Phase III, sales are denominated in Turkish Lira and 2.100TL/sq.m •Total 678 units (102,213sqm), 268 units (34.069 sqm) were presold as of June 30th 2012.
MAP OF KORUPARK
Korupark Residences Phase I & II
Korupark Residences Phase III
Korupark Shopping Mall
•Note: Exchange rate US$/TL=1.5460 as of December 31, 2010 ¹ Prime appraisal report (based on the CMB standards as of December 31, 2010)
63 APPENDIX Mall of Istanbul–Istanbul
Ownership Torunlar REIC (100%) Start of construction March 2011 Estimated date of completion H2 2013 Estimated operational date Q4 2013 Estimated investment c.TRY695mm (US$370mm) 153.963 m2 GLA mall, Number of residences / GSA-GLA 122.000 m2 GSA residence, 24.914 m2 GSA office
Appraisal value TRY 810.2mm (US$426.4mm) (Dec 2011)
Leasehold/Freehold status Freehold
Current status Under construction
•Mall of Istanbul is a mixed-use project with a large shopping mall Breakdown - Area (GLA/GSA) development along with residential, office units •It is expected to be one of the largest mixed-use projects in Turkey Office •Planned to be built with 153.963 m² GLA enriched with 11.558 m² kids 8% entertainment, 11.690 m² snowpark, cinema complex and conference / performance hall¹ Retail •Mall of Istanbul is well connected to the city centre through the D100 51% and TEM highway. In addition, the site is located within 5km of the •For the Mall of İstanbul,retail units will be rented for 28$/m2 and residential and office units will be sold for 3500TL/m2 on the average. •Presales commenced on 23.04.2011 and 632 units were presold for Residential 3.339 TL/m2 out of 1.114 and 76 office units out of 116 for 4.729 TL/m2 41% until 30.06.2012 •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.
64 APPENDIX Torun Tower–Istanbul
Ownership Torunlar REIC (100%) Estimated start of construction December 2011
Estimated date of completion Q4 2013
Estimated operational date Q4 2013
Estimated investment c.TRY 157.9mm (US$84mm)
Appraisal value TRY 253.3mm (US$133.3mm) (Dec 2011)
Leasehold/Freehold status Freehold
Current status Under construction
•The property is located at the city centre in one of the most expensive Breakdown - Area (GLA) commercial districts of Istanbul with a subway connection. Other 2,415 m2 •40 floor high-rise tower is planned 5%
•The building is planned to be a landmark for the city with very modern architecture and construction technology
•The Property is planned as a mixed-use project with office and retail units and will be leased.
Office •Construction started in December 2011. 44,760 m2 95% •For Torun Tower, office units will be leased for 35$/sqm/month, retail units for 47$/sqm/month.
65 APPENDIX Mecidiyeköy (Ex-Ali Sami Yen Stadium) Mixed-use Project–Istanbul
Torunlar REIC (65%), Torun Ownership Construction (30%), Kapicioglu (5%) Leasehold/Freehold status Revenue Share
Estimated start of construction Q4 2012
Estimated date of completion Q4 2014
Estimated operational date Q4 2014
c.TRY 355mm (US$189.1mm) / Estimated investment TRY 231mm (US$123mm)*
Land acquired Revenue Share (45%)
Land area (m2) 34,640 •Mecidiyeköy is a mixed-use project with unit residential complex, along with office and retail units. 57.500 sqm (37.375 sqm)*residence, Sellable area (m2) 60.000 sqm (39.000 sqm)*office, •Its location is in the city center, on the land where the ex-stadium of 10.275 sqm (6.679 sqm)* retail Galatasaray is located. Number of residences 593 •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- TRY 300mm (US$195mm) / Appraisal value Class Office Tower. All of them will be sold TRY 195mm (US$125mm)* (Dec 2010) •For the Mecidiyeköy Project sales will be denominated in Turkish Lira. Current status Under project development
* Torunlar REIC’s share
66 APPENDIX Netsel Marina-Marmaris
Ownership Torunlar REIC (44.6%) Operational Date 1989 Land 37,478 sqm Capacity 700 yachts Leasable area (m2) 7,692 (REIC’s share 3,431) Mall Occupancy (%) as of date 82% (as of December 2011) Number of stores 75 Migros, Lacoste, Sisley, Tommy Hilfiger, Anchor tenants Paul&Shark, Stefanel, Mudo Appraisal value (REIC share) TRY 37.7mm (US$19.8mm) Mall rental revenue TRY 2mm Total rental revenue TRY 15.9mm Leasehold/Freehold status Freehold
•Netsel is one of the largest marinas in Turkey by capacity Dividends - Torunlar REIC share (TRY mm) 4 •It is located in Marmaris on the Aegean coast. 3.5 •Torunlar purchased its stake for TL 14.9 mn in 2005. 3
•The marina is operated by Setur, a subsidiary of Koc Holding. 2 2.3 2.2 2.1 •66 cruisers with 166.000 guests visited the marina in 2010 1.5 1.5 1 •2500-3000 people are estimated to visit the mall on a daily basis.
0 2007 2008 2009 2010 2011 2012
67 APPENDIX NishIstanbul Mixed-use Project–Istanbul
Ownership Torunlar REIC (60%)
Leasehold/Freehold status Freehold
Start of construction H2 2008
Operational date November 2010
Number of residences / 585 /53,204 Sellable area (m2)
•Located on the west-side of Istanbul in Yenibosna, 1.5 km away from Istanbul Atatürk Airport Number of offices / 63/ 16,925 Sellable area (m2) •Three residential blocks, one office block and retail units
•The project partnership was terminated in June 2011. Number of retail units / 52 / 10,937 Leasable area (m2) •As of June 2012, 3 residential units (291 m2) will be kept, 8 office (2150 m2) units will be sold for 5.500 TRY/m2. 20 stores (3.773 m2) will be sold for 6.000-8.000 TRY/m2. Appraisal value (Dec 2011) TRY 40.3mm (US$21.2mm)
68 Contacts
Ismail KAZANC CFO [email protected]
Haluk YUKLER Investor Relations Director [email protected]
TORUNLAR REIC (Real Estate Investment Company) Ruzgarlibahce Mah. Selvi Cikmazi No.4 Kavacik 34805 Istanbul TURKEY Phone: +90-216-425 20 07 Fax: +90-216-425 03 12
69 Disclaimer
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.
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