INVESTOR PRESENTATION. August 2011

Transcription

1 INVESTOR PRESENTATION August

2 Turkish economic outlook Sectoral outlook 3 Listed REIC's Operational review Financial review Development review Future outlook Appendix (Portfolio review) 2

3 Turkey Economic Highlights USD billion 2010 a 2011 b 2012 b 2013 b 2014 b 2015 b GDP ,095.3 Growth (GDP, %) Private Consumption (%) Inflation (CPI, average, %) TL/USD (year-end) TL/USD (average) TL/EUR (average) Exports Imports C/A Balance (Ratio to GDP, %) Budget Balance (Ratio to GDP, %) a Actual b Economist Intelligence Unit estimates. Source: EIU ( ) 3

4 Turkey GDP vs. Construction Sector 20,0% 15,0% 10,0% 5,0%,0% -5,0% -10,0% -15,0% -20,0% 6,8% 4,9% 6,2% 5,3% 7,8% 9,4% 9,3% 8,4% 6,9% 4,7% ,1% ,4% ,7% % -17,4% 13,9% 14,1% 18,5% 5,7% ,1% -4,8% -16,1% 12,0% 8,3% 8,9% Q ,1% ,8% 11,0% Q Construction GDP GDP Construction 4

5 Consumer loans and mortgage loans (bn TRY) CONSUMER LOANS (BILLION TRY) MORTGAGE LOANS (BILLION TRY) Turkey Real Estate Economic Highlights 152,7 140,3 127,3 116,5 107,8 99,4 91,6 80,4 81,4 83,5 86,4 63,2 67,2 58, ,5 38,6 40,6 43,2 46,7 50,1 53,6 Jan.09 Apr.09 Jul.09 Oct.09 Jan.10 Apr.10 Jul.10 Oct.10 Jan.11 Apr.11 Jul Loan Growth % Total Loans Consumer Loans * Source: Turkish Statistical Institute *Deutsche Bank 5

6 Turkey Real Estate Economic Highlights Mortgage Loans/GDP % Mortgage Loans/GDP % 6,00 5,00 4,00 3,00 2,92 3,59 3,95 4,47 5, ,00 1,00,00 1,91 0,38 0,35 0, ,4 Interest Rate on Mortgages(%) Interest Rate on Mortgages(%) 30 27, ,7 18,2 18,3 18,6 15,6 11,1 11,7 0 Source: Turkish Statistical Institute 6

7 Turkish economic outlook Sectoral outlook 3 Listed REIC's Operational review Financial review Development review Future outlook Appendix (Portfolio review) 7

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) 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

9 Residential Market Outlook Turkey s yearly requirement for new dwellings is estimated at around units.* Residential market demand on the rise requires the construction of at least 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 9

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. 10

11 Turkey Residential Sales ( in units ) Source: Turkish Statistical Institute 11

12 Residential Projects in Supply Residential Supply (European side of Istanbul) Number of Projects Number of Residential Units 2007 and before (Jan-Jun) Total Residential Supply (Asian side of Istanbul) Number of Projects Number of Residential Units 2007 and before (Jan-Jun) Total Source: Epos Property Consulting and Valuation Inc. 12

13 Pre and Post-Crisis Price Variations Average selling prices/m 2 of newly launched projects on the European side of Istanbul (TRY/m 2 ) Location Variance (2011 vs. 2009) Bahcesehir % Beylikduzu/Esenyurt % Halkali % Average selling prices/m 2 of newly launched projects on the Asian side of Istanbul (TRY/m 2 ) Location Variance (2011 vs. 2009) Atasehir % Cekmekoy % Kartal/Maltepe % Pendik/Kurtkoy % Source: Epos Property Consulting and Valuation Inc. 13

14 Residential Purchase Confidence Index ,0 86,0 84,0 83,0 86, ,0 76,0 75,0 80,0 78,0 79,0 81,0 78, Source: ING Mortgage Barometer (Compiled from 805 interviews in 14 cities) 14

15 Turkey New Residential Price Index ,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, July Index Value Variance M-o-M (%) Variance Y-o-Y(%) Variance Against January 2010(%) New Residential Price Index % 7.29% 9.50% Source: REIDIN Turkey 15

16 Turkey New Residential Price Index by Sqm Flat Size 2011 July Index Value Variance M-o-M VarianceY-o-Y Variance Against January M % 8.22% 9.80% M % 4.51% 7.10% M % 9.71% 11.20% M % 5.59% 7.70% 151 M % 3.17% 4.60% January 2010=100 beginning of the index Source: REIDIN Turkey 16

17 Purchasing Power vs. Mortgage Rates Allowed maximum loan amount (TRY) Customer segment Average monthly household income (TRY) Maximum monthly installment 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 B C C *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. Source: Turkish Statistical Institute, TBB, DD Mortgage 17

18 Turkey Construction Costs 2Q Q 2011 Total Labour Material (2005=100) QoQ(%) 4,35 2,34 4,96 Total Labour Material YtD(%) QoQ(%) 8,91 5,04 10,11 4,37 2,64 4,91 YoY(%) Yoy(%) 12,76 6,49 14,76 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 Source: Turkish Statistical Institute 18

19 Retail Market Outlook 285 shopping malls, 7.1 million sqm GLA, 97 sqm per inhabitants.* 17 new malls opened and sqm added in H * 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 19

20 Turkey Retail Market Retail Sales(USD mn) Grocery retail sales(usd mn) Non-Grocery Retail Sales (USD mn) Source: Planet Retail 20

21 Shopping Mall Development End 2009 Q End 2010 Q Unit İstanbul GLA (sq m) 2,28 M 2,28 M 2,65 M 2,85 M Unit Rest of Turkey GLA (sq m) 3,41 M 3,50 M 3,87 M 3,93 M Unit 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 İstanbul GLA (sq m) 2,85 M 1,02 M 3,87 M Unit Rest of Turkey GLA (sq m) 3,93 M 1,27 M 5,20 M Unit Turkey GLA (sq m) 6,78 M 2,29 M 9,07 M *As of end 2013 Source: Jones Lang LaSalle 21

22 Turkey Map of Shopping Malls Concentration of Shopping Malls by GLA LEGEND Current Shopping Malls Shopping Malls under Construction and in Project Source: EVA Real Estate Appraisal Consultancy Akademetre Research and Strategy Planning 22

23 Retail Density-GLA per 1,000 Capita, Turkey City End 2010 Q 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 Source: Jones Lang LaSalle 23

24 Turkey s Mall League Mall Opening Date GLA Location Developer 1 Forum Istanbul Istanbul Multi Turkmall 2 Marmara Forum Istanbul Multi Turkmall 3 Cevahir Istanbul Celebioglu 4 Ankamall Ankara Yeni Gimat 5 Torium Istanbul Torunlar REIC 6 Istinyepark Istanbul Dogus, Orjin 7 Antares Ankara Dolunay 8 Anatolium Bursa Corio 9 Forum Ankara Ankara Multi Development TR 10 Kent Park Ankara Mega Turk Construction 11 Panora Ankara Polat Holding 12 M1 Merkez Adana Adana Metro 13 Korupark Bursa Torunlar REIC 14 Cepa Ankara Carrefour 15 Forum Mersin Mersin Multi Turkmall 16 Anatolium Ankara Istanbul Maya 17 M1 Meydan Umraniye Istanbul Metro Istanbul Power Outlet Istanbul Edip International Real Estate 19 Ora Istanbul Istanbul Merkez Construction 20 Forum Bornova Izmir Multi Development TR Source: Akademetre Research and Eva Real Estate 24

25 Turkey SHOPPING MALL Sales Turnover and Footfall SALES TURNOVER INDEX (GENERAL) SALES TURNOVER INDEX (GENERAL) FOOTFALL INDEX (GENERAL) 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) Source: Council of Shopping Centers- Turkey *January 2010= the beginning of index 25

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, Izmir Ankara PRIME RETAIL YIELDS- Jun 2011 HIGH STREET Current Last Last 10 Year SHOPS (Gross) Quarter Quarter Year High Low Istanbul Izmir Ankara SHOPPING Current Last Last 9 Year CENTRES (Net) Quarter Quarter Year High Low Istanbul Source: Cushman&Wakefield 26

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 ( sqm) in Maslak were acquired by Orta Real Estate (owned by Orjin Group) for $ 95 million.* 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 27

28 Office Market Overview Existing Grade A Office Stock Pipeline Projects Grade A Office Stock* Sub Market GLA (sq m) Europe CBD 1,1 million Sub Market GLA (sq m) Europe CBD 207,000 Non CBD 0,73 million Non CBD 185,000 Asia Total 0,80 million 2,6 million Asia 229,000 Total 621,000 Source: Jones Lang LaSalle *For completion by end 2013 Source: Jones Lang LaSalle 28

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 Esentepe- Gayrettepe Maslak Umraniye Izmir Ankara PRIME OFFICE YIELDS- Jun 2011 Prime Yield (%) Current Last Last 10 Year Quarter Quarter Year High Low Istanbul Levent Esentepe- Gayrettepe Maslak Umraniye Izmir Ankara Source: Cushman&Wakefield 29

30 Turkish economic outlook Sectoral outlook 3 Listed REIC's Operational review Financial review Development review Future outlook Appendix (Portfolio review) 30

31 REICs on the ISE (as of August 2, 2011) Listed REICs Free Float 3M avg. daily trading volume Current M.Cap (TRY mn) ( ) NAV (TRY mn) Prem/(Disc) to NAV Dividend Yield (2010) Dividend Yield (2011) Emlak Konut 25% ,200 5,764 9% - 2.6% Torunlar 25% 4.1 1,281 2,527-49% - 0.9% İş 48% ,405-45% 3.0% 2.8% Sinpaş 37% ,355-28% - 3.1% Kiler 35% % - - Akmerkez 2% % 4.6% - Akfen 29% % - - Reysaş 31% % - 0.6% Alarko 34% % - 0.7% Martı 48% % - 5.4% TSKB 29% % - - Atakule 16% % 2.2% 2.1% Yesil 14% % - - Doğuş 7% % - - Pera 61% % - - Vakıf 44% % - - Özderici 33% % - - Yapı Kredi Koray 44% % - - Sağlam 42% % - - Nurol 20% % - - Avrasya 18% % - - EGS 66% % - - İdealist 25% % - - TOTAL 26% ,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% % - 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% % 4% Nurol 49% 34% % - 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% 32

33 Competitors H Financial Highlights Emlak Konut REIC Summary Financials % Change (mn TL) 2Q10 2Q11 1H10 1H11 2Q11/2Q10 1H11/1H10 Net Sales ,0% -18,0% Gross Margin 61.2% 17.5% 65.6% 30.5% pp pp Operating Margin 54.8% 11.1% 60.5% 23.0% pp pp EBITDA Margin 55.1% 11.1% 60.6% 23.1% -44 pp pp Net Profit Margin 23.7% 15.3% 46.3% 28.3% -8.4 pp -18 pp Sinpas REIC (mn TL) Summary Financials % Change 2Q10 2Q11 1H10 1H11 2Q11/2Q10 1H11/1H10 Net Sales ,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 (mn TL) Summary Financials % Change 2Q10 2Q11 1H10 1H11 2Q11/2Q10 1H11/1H10 Net Sales ,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 pp 33

34 Turkish economic outlook Sectoral outlook 3 Listed REIC's Operational review Financial review Development review Future outlook Appendix (Portfolio review) 34

35 Shareholding Structure June

36 Strategy highlights Strategy focus Primary focus on development of shopping malls Increased focus on mixed-use projects Creating life centres with extensive leisure and entertainment avenues 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 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 36

37 History of Torunlar REIC key milestones Construction for the company s needs and third party use (smallscale residential units) Active in the Turkish construction and real estate market since 1977 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 Foundation of Toray Construction Acquisition of the Netsel Marina in Marmaris Opening of one of the biggest shopping malls in Turkey, Korupark The residential compound at Korupark was Bursa s first gated community Delivery of Nish İstanbul residences and offices Opening of Zafer Plaza; the first shopping mall of Bursa Opening of the biggest outlet of Antalya, Deepo Outlet Conversion to Torunlar REIC Opening of the biggest mall in Turkey in 1999, Ankamall 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 Opening of Torium Shopping Mall, October 30th, 2010 Torium Shopping Mall is the 3 rd largest shopping mall in Istanbul 37

38 Key Investment Highlights Current Portfolio Breakdown 2nd largest listed retail property company in Turkey 19% 8% Land Included in ISE National XU 100, MSCI Turkey, EPRA indices Buildings GAV (Gross Asset Value): TRY 2.62 bn (2011/06) 11% 39% Projects Participations Portfolio value: TRY3.38 bn (2011/06) Revenues: TRY 83.1 mn (2011/06) 23% Money and Capital Market Instruments Market capitalisation: TRY1,4 bn(30/06/2011) 58% Composition of Real Estate Portfolio 1% 0% 0% 10% 3% 28% Land Completed units for sale Ongoing projects Shopping malls Marina Hotel Listed on 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 % free float Other 38

39 Shopping Mall Portfolio Zafer Plaza (SM) Korupark (SM) Ankamall+ Crowne Plaza (SM+Hotel) Deepo Outlet Centre (SM) Torium Istanbul (SM) Occupancy 99% Occupancy 97% Occupancy 100% Occupancy 100% Occupancy 99% Istanbul Black Sea Region (Karadeniz Bölgesi) Samsun Marmara Region (Marmara Bölgesi) Bursa Kutahya Ankara Eastern Analtolia Region (Doğu Anadolu Bölgesi) Izmir Aegean Region (Ege Region) Central Anatolia Region (Iç Anadolu Bölgesi) Mugla Antalya Mediterranean Region (Akdeniz Bölgesi) Torunlar REIC s presence Additional target cities Southeastern Anatolia Region (Güneydoğu Anadolu Bölgesi) Key portfolio information Number GLA(m²) Operational Shopping Malls 5 214,697 Pipeline Shopping Malls 2 181,116 Total Shopping Malls 7 395,913 39

40 Operational Assets Shopping Malls Zafer Plaza Korupark Deepo Outlet Torium Land Area (sqm) Land Cost (TRY) Land Price per sqm (TRY/sqm) - 126,34 116, ,78 Construction Area (sqm) Development Cost (TRY) Development Cost per sqm (TRY/sqm) GLA (sqm) * Rental Income-LTM June 2011 (TRY) * Total Revenue-LTM June 2011 (TRY) * EBITDA-LTM June 2011 (TRY) * *Adjusted as per Torunlar, 72,26% share 40

41 Completed Projects Asset Korupark Residences Phase I-II Torium Residence NishIstanbul Land Area (sqm) Land Cost (TRY) Land Price per sqm 126, ,66 Construction Area (sqm) Development Cost (TRY) Development Cost per sqm (TRY/sqm) Units GLA/GSA (sqm) * Total Revenue-2011 F (TRY) * * * Assuming the remaining units in inventory will be sold. 41

42 Ongoing Projects Asset Mall of Istanbul Korupark Residences Phase III Boulevard Samsun Land Area (sqm) Land Cost (TRY) Land Price per sqm (TRY/sqm) 1.437,99 86,66 - Construction Area (sqm) Development Cost (TRY) Development Cost per sqm (TRY/sqm) GLA/GSA (sqm) Rental Income-2011 F (TRY) Total Revenue-2011 F (TRY) Completion Date H Q Q

43 Upcoming Projects Asset Torun Tower Ali Sami Yen Project Deepo Extension Land Area (sqm) Land Cost (TRY) * Land Price per sqm (TRY/sqm) 3.110, ,47 435,29 Construction Area (sqm) Development Cost (TRY) * Development Cost per sqm (TRY/sqm) GLA/GSA (sqm) Rental Income-LTM June 2011 (TRY) Total Revenue-LTM June 2011 (TRY) ** - Net Operating Income-LTM June 2011 (TRY) *Unadjusted total cost of the project **Adjusted 65% share of Torunlar 43

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 % Torium Residence Istanbul % NishIstanbul Istanbul % Residence % Office % May 2006/Februa ry % June 2008/June % 0 July 2008/Octobe r % July 2008/October 2010 July 2008/October 2010 Ongoing Projects Location Saleable area (sq.m) Total # of units # of units presold ( ) GSA presold (sq.m) ( ) # 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 NA 35% 32% NA Residence NA 37% 36% NA Office NA 21% 15% NA April 2011/Q % April 2011/Q % April 2011/Q % Korupark Residences Phase III Bursa NA 23% 16% NA March 2011/ Q %

45 Footfall and Turnover (June 2011) YoY variance(%) Torunlar REIC* Turkey** Retail spending Footfall Occupancy ratio (%) *Like-for-Like, excluding Ankamall and newly opened Torium **Including new openings Source: Council of Shopping Centers Turkey 45

46 Resilient retail operations through active hands-on management June 2011 GLA ( m2 ) Revenues Bursa Zafer Plaza Bursa Korupark Antalya Deepo Outlet İstanbul Torium Total Revenues % growth 0* NA % Footfall growth Number of stores Occupancy (%) Turnover rent (as % of fixed rent) Breakdown of rental revenues 4.9 (3.0) 1.8 NA %USD 38% 87% 13%USD 80% 20%USD 70%USD 30% % 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 *Annual rental revenue is fixed at TRY 8.4 mn between , to set aside each year TRY 2.4 mn reserve to pay back the loan raised for the capex. 28% of GLA 28% of Rental Revenue 43% of Retail Turnover 26% of GLA 29% of Rental Revenue 33% of Retail Turnover 46

47 Shopping Centers by Value (TRY 000) 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 ,00% 6,19% 50,98% 6,57% Bursa Korupark ,90% 6,10% 42,28% 6,57% Ankara Ankamall ,90% 7,70% 43,50% 8,80% Antalya Deepo Outlet ,56% 6,09% 63,24% 6,25% İstanbul Torium ,33% 4,35% 9,21% 4,62% TOTAL ,50% 5,60% 35,90% 6,04% 47

48 Shopping Mall Tenants by Category 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 HOME READY WEAR DEPARTMENT STORE % % 10% % % 4% % % 47% % % 6% SERVICE % % 4% LEISURE/ GIFT/ SPECIAL % % 4% PERSONAL CARE+ACCESSORIES % % 7% CULTURE/ART/ENTERT AINMENT % % 2% TECHNOLOGY FOOD & DRINK TOTAL % % 4% % % 11% % % 100% ,9 48

49 Turkish economic outlook Sectoral outlook 3 Listed REIC's Operational review Financial review Development review Future outlook Appendix (Portfolio review) 49

50 H Activities of Torunlar REIC Korupark 3 rd 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. 50

51 Financial highlights TRY (000) Variance % Sales revenue Residences sold Rental revenue EBITDA EBITDA margin 23.8% 59.7% Dividend income Net gains from fair value adjustment Net profit EPS 1.16 TRY 3.04 TRY LfL rental revenue growth 33% Occupancy ratio 98% 98% 0,0 TRY (000) Variance % Total Assets Total Equity Net debt Portfolio value Market cap

52 Financial highlights TRY / /06 Variance % Sales revenue ,8% Residences sold ,5% Rental revenue ,8% EBITDA ,3% EBITDA margin 53,6% 58,0% -4,3 pp Dividend income ,9% Valuation gain from financial assets and liabilities ,0% Net profit ,4% EPS -TRY0,03 TRY0,84 LfL rental revenue growth 28,3% 18,4% Occupancy ratio 98% 98% 0,0% TRY / /12 Variance % Total Assets ,8% Total Equity ,8% Net debt ,0% Portfolio value ,2% Market cap ,5% 52

53 Breakdown of bank deposits Deposits $ TL Due date Bank Principal Garanti Principal Garanti Principal Garanti Principal Garanti Principal Akbank + Garanti Principal Garanti Principal July 2011 Isbank + Denizbank + TEB + Vakifbank +Finansbank Principal August 2011 Garanti + Denizbank Principal September 2011 Garanti + Denizbank Interest TOTAL

54 Breakdown of financial loans $ TL Due date Interest Rate Purpose and term Bank Garanti % Akbank ,95% Akbank Albaraka ,10% Denizbank % Garanti % Torun Tower (2+5) Garanti ,03% Ali Sami Yen (2+3) Garanti ,02% Garanti ,50% Isbank ,15% Isbank % Isbank ,60% Isbank ,60% Isbank ,55% Isbank ,60% Isbank ,60% Isbank ,50% Torium (1+3) Isbank M LIBOR+3,60% Mall of Istanbul (3+7) Isbank ,25% Akbank ,75% Akbank 191 Garanti Leasing % Denizbank ,25% Denizbank ,94% (EURIBOR+220) Korupark (10) Akbank % Akbank ,75% Akbank ,65% Isbank ,80% Isbank Deniz Leasing 66 Garanti Leasing TOTAL

55 Maturity of Financial Loans (TRY m) 500 Maturity of debt Maturity of debt Financial loans: TRY mn 64,9%USD, 33,5%, 1,6%TRY *The graph excludes TRY mm of cash and cash deposits as of June

56 Net Foreign Currency Position (.000) $ TL Equivalent TL Equivalent Variance % Donen varliklar/ Current assets ,5% Ticari alacaklar/ Trade receivables ,0% Parasal finansal varliklar/ Monetary financial assets ,6% Diger/ Other Toplam varlilklar/ Total assets ,5% Kisa vadeli yukumlulukler/ Current liabilities ,9% Ticari borclar/ Trade payables ,3% Iliskili taraflara borclar/ Payables to related parties Finansal yukumlulukler/ Financial liabilities ,1% Diger kisa vadeli yukumlulukler/ Other current liabilities Uzun vadeli yukumlulukler/ Non-current liabilities ,6% Finansal yukumlulukler/ Financial liabilities ,6% Toplam yukumlulukler/ Total liabilities ,2% Net yabanci para (yukumluluk) pozisyonu/ Net foreign currency asset (liability) ,9% 56

57 Abridged Income Statement (000 TL) 1H11 % 1H10 % YoY Satışlar/Sales ,0% ,0% 66,8% Konut/Residence ,5% ,7% 11,5% AVM kira/ Mall rental ,0% ,0% 110,8% Diğer/Other ,5% ,3% 90,6% Brüt kar/gross profit ,5% ,8% 43,9% Faaliyet karı /Operating profit ,7% ,2% -72,6% VFOK/EBIT ,5% ,6% 54,9% VAFOK/EBITDA ,6% ,0% 54,3% Vergi öncesi kar/profit before tax ,8% ,6% -103,8% Net kar/net profit ,9% ,7% -104,4% 57

58 Income Statement (000 TL) 2Q11 2Q10 YoY 1Q11 QoQ 1H11 1H10 YoY Satışlar/Sales ,7% ,2% ,8% Konut/Residence ,4% ,8% ,5% AVM kira/ Mall rental ,5% ,5% % Diğer/Other ,4% ,5% ,6% SMM/Cost of sales ,9% ,3% ,9% Brüt kar/gross profit ,7% ,1% ,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 ,2% ,4% ,4% Diğer gelir(gider)/other income(expenses) ,4% ,9% ,0% Yatirim amacli gayrimenkuller deger artislari (azalislari)/ Net gain (loss) fair value adjustments on investment property ,0% ,0% Faaliyet karı /Operating profit ,8% ,3% ,6% Gayrimenkul deger artisi haric faaliyet kari / Operating profit excluding fair value adjustment ,3% ,3% ,4% İştiraklerden alınan temettü/share of profit of associates (recurring) ,2% ,5% ,9% VFOK/EBIT ,5% ,1% ,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 ,7% 81-45,7% ,5% VAFOK/EBITDA ,2% ,2% ,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 (nonrecurring) ,3% ,2% ,9% Net faiz geliri(gideri)/net financial interest income(expense) ,8% ,3% ,8% Net diğer finansal gelir (gider)/other net financial income (expense) ,5% ,0% ,7% Kur farkı geliri (gideri)/forex gain (loss) ,8% ,8% ,1% Vergi öncesi kar/profit before tax ,7% ,8% ,8% Vergi gideri/corporate tax ,4% ,5% ,5% Net kar/net profit ,1% ,8% ,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 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 58

59 Abridged Balance Sheet (000 TL) 2011/06 % 2010/12 % Fark/Variance % DÖNEN VARLIKLAR/CURRENT ASSETS ,2% ,0% 40,1% DURAN VARLIKLAR/NON-CURRENT ASSETS ,8% ,0% 1,9% TOPLAM VARLIKLAR/TOTAL ASSETS ,0% ,0% 8,8% KISA VADELİ YÜKÜMLÜLÜKLER/CURRENT LIABILITIES ,1% ,8% 48,7% UZUN VADELİ YÜKÜMLÜLÜKLER/NON- CURRENT LIABILITIES ,5% ,2% 29,4% ÖZKAYNAKLAR/ TOTAL EQUITY ,4% ,9% -0,8% TOPLAM KAYNAKLAR/TOTAL LIABILITIES AND EQUITY ,0% ,0% 8,8% 59

60 Balance Sheet (000 TL) 2011/ /12 Fark/Variance % NAKİT VE NAKİT BENZERİ/CASH AND CASH EQUIVALENTS ,5% FINANSAL YATIRIMLAR/FINANCIAL INVESTMENTS TİCARİ ALACAKLAR/TRADE RECEIVABLES ,0% STOKLAR/INVENTORY ,6% DİĞER DÖNEN VARLIKLAR/OTHER CURRENT ASSETS ,2% DÖNEN VARLIKLAR/CURRENT ASSETS ,1% FINANSAL YATIRIMLAR/FINANCIAL INVESTMENTS ,0% TİCARİ ALACAKLAR/TRADE RECEIVABLES ,3% ÖZKAYNAK YÖNTEMİ İLE DEĞ.YAT./INVEST.IN ASSOCIATES ,8% YATIRIM AMAÇLI GAYRIMENKULLER/INVESTMENT PROPERTY ,8% MADDİ DURAN VARLIKLAR/TANGIBLE FIXED PROPERTY ,7% MADDİ OLMAYAN DURAN VARLIKLAR/INTANGIBLE FIXED ASSETS ,3% STOKLAR/INVENTORY DİĞER DURAN VARLIKLAR/OTHER NON-CURRENT ASSETS ,6% DURAN VARLIKLAR/NON-CURRENT ASSETS ,9% TOPLAM VARLIKLAR/TOTAL ASSETS ,8% FİNANSAL BORÇLAR/FINANCIAL LIABILITIES ,2% FİNANSAL KİRALAMA BORÇLARI/FINANCE LEASE LIABILITIES ,0% DİĞER FİNANSAL YÜKÜMLÜLÜKLER/OTHER FINANCIAL LIABILITIES ,5% TİCARİ BORÇLAR/TRADE PAYABLES ,6% DÖNEM KARI VERGİ YÜKÜMLÜLÜĞÜ/TAX PAYABLES DİĞER YÜKÜMLÜLÜKLER/OTHER CURRENT LIABILITIES ,5% KISA VADELİ YÜKÜMLÜLÜKLER/CURRENT LIABILITIES ,7% FİNANSAL BORÇLAR/FINANCIAL LIABILITIES ,6% ÇALIŞANLARA SAĞLANAN FAYDALARA İLİŞKİN KARŞILIKLAR/PROVISION FOR EMPLOYMENT TERMINATION BENEFITS ,1% DİĞER YÜKÜMLÜLÜKLER/OTHER NON-CURRENT LIABILITIES UZUN VADELİ YÜKÜMLÜLÜKLER/NON-CURRENT LIABILITIES ,4% ÖDENMİŞ SERMAYE/SHARE CAPITAL ,0% HİSSE SENEDİ İHRAÇ PRİMLERİ/SHARE PREMIUM ,0% YASAL YEDEKLER/LEGAL RESERVES ,8% GEÇMİŞ YIL KARLARI/RETAINED EARNINGS ,3% NET DÖNEM KARI/NET PROFIT ,1% ÖZKAYNAKLAR/ TOTAL EQUITY ,8% TOPLAM KAYNAKLAR/TOTAL LIABILITIES AND EQUITY ,8% 60

61 Cash Flow Statement (000 TL) H H Nakit ve nakit benzeri degerlerin donem basi bakiyesi/ Cash and cash equivalents at the beginning of the year Nakit ve kredili mevduat hesaplari kur farki (zarari)/ Exchange losses on cash and blocked deposits Bloke mevduat/ Blocked deposits Isletme faaliyetlerinde elde edilen (kullanilan) net nakit/ Net cash generated (used) in operating activities Yatirim faaliyetlerinde kullanilan net nakit/ Net cash used in investing activities Finansal faaliyetlerden elde edilen (kullanilan) net nakit/ Net cash generated (used in) from financing activities Nakit ve nakit benzeri degerlerdeki net (azalis) artis/ Net (decrease) increase in cash and cash equivalents Nakit ve nakit benzeri degerlerin donem sonu bakiyesi/ Cash and cash equivalents at the end of the period

62 Funding Summary 2011/ /12 Variance Total net debt (000 TL) Average loan term (years) Average overall interest rate Leverage (financial loans as % of total assets) Net debt to equity ratio Net debt/assets (%) Equity to assets ratio Loan to property value ratio (LTV) Interest coverage ratio (times) Net debt/ebitda (times) % loans with a fixed interest rate ,0% 5 5 5,1% 5,2% -0,1 pp 26,7% 24,4% 2,3 pp -11,7% -14,5% 2,8 pp -7,9% -10,8% 2,8 pp 67,4% 73,9% -6,5 pp 35,4% 30,5% 4,9 pp 22,5 2,6 19,8 3,1 6,2-3,1 58,4% 66,2% -7,8 pp 62

63 Turkish economic outlook Sectoral outlook 3 Listed REIC's Operational review Financial review Development review Future outlook Appendix (Portfolio review) 63

64 Evolution of the Projects (m2) GLA+GSA (m2) Retail Residence Office Hotel Marina Other Total Land

65 GLA Breakdown by City Istanbul grasps a larger share by 2014, overtaking Bursa. 65

66 Turkish economic outlook Sectoral outlook 3 Listed REIC's Operational review Financial review Development review Future outlook Appendix (Portfolio review) 66

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 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. 67

68 Sales & EBITDA Forecast TRY , , , , , , , , , ,0, Satışlar/Sales Konut-Ofis/ Residence-Office Kira/ Rental Diger/ Other TRY , , , , , ,0 55,377 24% % % % % 90% 80% 70% 60% 50% 40% 30% 20% 10% VAFOK/EBITDA VAFOK marjı/ebitda margin (%), % 68

69 Turkish economic outlook Sectoral outlook 3 Listed REIC's Operational review Financial review Development review Future outlook Appendix (Portfolio review) 69

70 70

71 Zafer Plaza Shopping Mall Ownership Torunlar REIC (72.26%) Operational Date 1999 Leasable area (m2) 23,449 (REIC share 16,944) 99% (as of June 2011) Occupancy (%) as of date Number of stores 127 Anchor tenants Appraisal value 4% anchors (30% of GLA): Migros, YKM, Bimeks and Boyner TL143.2mm (US$92.6mm) Average lease term as of Jun-2011 Average LTM NOI (per TL/m2/month) 1.5 years TL43.5 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 2% 11% 5% 3% Tenants-Breakdown of GLA 8% 8% 17% 7% 4% 36% ANCHOR HOME READY WEAR DEPARTMENT STORE SERVICE LEISURE/ GIFT/ SPECIAL PERSONAL CARE+ACCESSORIES CULTURE/ART/ENTERTAINMENT TECHNOLOGY FOOD & DRINK Leasehold/Freehold status Rental income (June 2011). Last 12 months 1% 4% Tenants-Breakdown of Income ANCHOR 10% 9% 11% 8% 8% 2% 5% 44% HOME READY WEAR DEPARTMENT STORE SERVICE LEISURE/ GIFT/ SPECIAL PERSONAL CARE+ACCESSORIES CULTURE/ART/ENTERTAINMENT TECHNOLOGY FOOD & DRINK Freehold TL11.9mm 71

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 Ownership Torunlar REIC (100%) Operational Date H Leasable area (m2) 71,267 97% (as of June2011) Occupancy (%) as of date 182 Number of stores Anchor tenants Appraisal value Average lease term as of Jun-2011 Average LTM NOI (per TL/m2/month) Leasehold/Freehold status Rental income (June 2011). Last 12 months (39% of GLA): Tesco, Koçtaş, Beymen, C&A, Boyner and Electro World TL540.5mm (US$349.6mm) 2.2 years TL38.5 Freehold TL37.2mm Tenants-Breakdown of GLA Tenants-Breakdown of Income 3% 2% 2% 1% 5% 9% 11% 34% 29% 3% ANCHOR HOME READY WEAR DEPARTMENT STORE SERVICE LEISURE/ GIFT/ SPECIAL PERSONAL CARE+ACCESSORIES CULTURE/ART/ENTERTAINMENT TECHNOLOGY FOOD & DRINK 6% 4% 4% 6% 2% 2% 9% 15% 45% 5% ANCHOR HOME READY WEAR DEPARTMENT STORE SERVICE LEISURE/ GIFT/ SPECIAL PERSONAL CARE+ACCESSORIES CULTURE/ART/ENTERTAINMENT TECHNOLOGY FOOD & DRINK 72

73 Korupark Residences Phase I & II 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 Leasehold/ Freehold status TL50.1mm (US$32.4mm) Freehold 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 ( sq.m), six blocks Inventory as of June 30 th,2011: 19 units (3.326 sq.m) Phase II: 403 units ( sq.m), seven blocks Inventory as of June 30 th, 2011: 55 units ( sq.m) For Korupark residences I/II, sales are Turkish Lira denominated and currently 2200 TL/ sq.m 73

74 Korupark Residences Phase III Ownership Torunlar REIC (100%) Estimated start of construction May 2011 Estimated operational date Q Estimated investment TL87.3mm (US$56.5mm) Appraisal value TL50.4mm (US$32.6mm) Leasehold / Freehold status Freehold The property, adjacent parcel to Korupark phase I & II, is a luxurious housing settlement. For Korupark Residences Phase III, sales are denominated in Turkish Lira and 1960 TL/sq.m 153 units ( m2) were presold as of August 1 st Number of residential units/gsa Current status 680 units / m2 residence Under construction Map of Korupark Korupark Residences Phase III Korupark Residences Phase I & II Korupark Residences Phase I & II Korupark Residences Phase III Korupark Shopping Mall Note: Exchange rate US$/TL= as of December 31, 2010 ¹ Prime appraisal report (based on the CMB standards as of December 31, 2010) 74

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 1% 1% 4% 2% For Antalya Deepo, majority of rents (80%) are denominated in EURO Zoning of this region is expected to be approved in 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 1% 10% 0% 1% 9% ANCHOR HOME READY WEAR DEPARTMENT STORE SERVICE LEISURE/ GIFT/ SPECIAL PERSONAL CARE+ACCESSORIES CULTURE/ART/ENTERTAINMENT TECHNOLOGY FOOD & DRINK 70% Antalya Deepo extension project Tenants-Breakdown of Income 1% 4% 3% 2% 1% 2% 13% 0% 2% 69% 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 October 24, 2004 Leasable area (m 2 ) 18, % (as of June 2011) Occupancy (%) as of date 81 Number of stores LCW, Ayakkabı Dünyası, Mudo City, Collezione, Sarar, Aydınlı Group Anchor tenants TL180.5mm (US$116.7mm) Appraisal value 2.5 years Average lease term as of June 2011 TL50.6 Average LTM NOI (per TL/m 2 /month) Leasehold/Freehold status Freehold Rental income (June 2011), last 12 TL13.1mm months Ownership Torunlar REIC + Hastalya Estimated start of construction January 2012 Estimated date of completion December 2012 Estimated operational date December 2012 Leasable area (m 2 ) 26,651 Estimated investment Leasehold / Freehold status Current status TL31.2mm (US$20.2mm) Partially freehold, partially leasehold from Hastalya Under zoning process 75

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, 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. Yeni Gimat in which Torunlar REIC Ownership holds (14.83%) Operational Date Leasable area (m2) 88,421 3 (REIC s share 13,112) 100% (as of December 2010) Occupancy (%) as of date 315 Number of stores 280 Number of rooms Migros, Koçtaş, Tepe Home, Electro World, Boyner, Mudo City, Marks&Spencer, LCW Anchor tenants TL72.2mm Rental revenue (2010) TL54.8mm NOI (2010) Appraisal value (REIC share) TL138.2mm (US$89.3mm) Freehold Leasehold/ Freehold status Dividends - Torunlar REIC share (TLmm) ,9 2,1 2,4 2,7 4,

77 Netsel Marina-Marmaris Ownership Torunlar REIC (44.6%) Operational Date 1989 Land 37,478 m yachts Capacity 5,996 (REIC s share 2,674) Leasable area (m 2 ) 68.7% (as of December 2010) Mall occupancy (%) as of date 75 Number of stores Migros, Lacoste, Sisley, Tommy Hilfiger Tenants 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 The marina is operated by Setur, a subsidiary of Koc Holding. 66 cruisers with guests visited the marina in people are estimated to visit the mall on a daily basis from May to October in Mall rental revenue (2010) TL1.2mm Total rental revenue (2010) TL13.1mm TL30.7mm (US$19.8mm) Appraisal value (REIC share) Leasehold / Freehold status Leasehold Dividends - Torunlar REIC share (TLmm) 2,5 2,2 2,1 2,3 2 1,5 1,5 1,5 1 0,

78 Mall of Istanbul Istanbul Ownership Torunlar REIC (100%) Start of construction March 2011 Estimated date of completion H Estimated operational date Q Estimated investment c.tl500.0mm (US$323mm) Mall of Istanbul is a mixed-use project with a large shopping mall development along with residential, office units It is expected to be one of the largest mixed-use projects in Turkey Planned to be built with m² GLA enriched with 16,000 m² kids entertainment, 7,200 m² snowpark, cinema complex and conference / performance hall¹ Mall of Istanbul is well connected to the city centre through the D100 and TEM highway. In addition, the site is located within 5km of the airport For the Mall of İstanbul,retail units will be rented for 26$/m2 and residential and office units will be sold for 3500TL/m2 on the average. Presales commenced on and 407 units ( m2) were presold for 2984TL/m2 out of 524 and 24 office units (4500 m2) out 75 for 4200TL/m2 until On , the company signed USD 250 million loan agreement with Is Bank of Turkey for a term of 10 years with 3 years grace period. Number of residences / GSA-GLA Appraisal value Leasehold / Freehold status Current status Breakdown Area (GLA/GSA) Retail Residential Office 41% m2 GLA mall, m2 GSA residence, m2 GSA office TL637.1mm (US$411.5mm) 11% Freehold Under construction 48% 78

79 Torium Shopping Mall Istanbul Ownership Torunlar REIC (100%) Start of construction H Date of completion October 30 th, 2010 Operational date October 30 th, 2010 Number of stores 180 Investment cost TL207.2mm Appraisal value* TL549.8mm (US$355.1mm) Torium is a mixed-use project of retail and residential use and the 5 th 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 Leasehold / Freehold status GLA / GSA Rental income 2011 F Tenants-Breakdown of GLA 3% 7% 21% 13% 3% 2% 3% 2% 12% 36% ANCHOR HOME READY WEAR DEPARTMENT STORE SERVICE LEISURE/ GIFT/ SPECIAL PERSONAL CARE+ACCESSORIES CULTURE/ART/ENTERTAINMENT TECHNOLOGY FOOD & DRINK Freehold 95,280 m2 GLA retail 5,318 m2 GSA residential TL35mm Tenants-Breakdown of Income 4% 5% 14% 4% 7% 3% 7% ANCHOR HOME READY WEAR DEPARTMENT STORE SERVICE LEISURE/ GIFT/ SPECIAL PERSONAL CARE+ACCESSORIES CULTURE/ART/ENTERTAINMENT TECHNOLOGY FOOD & DRINK 13% 4% 44% 79

80 Boulevard Samsun Shopping Mall Ownership Torunlar REIC (40%) Leasehold / Freehold status Leasehold Current status Under construction Land: 17,400 m 2 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 /sq.m/month and office units for 13 /sq.m/month. Area breakdown Completion date Capex Appraisal value Total construction area: 37,500 m 2 Gross Leasable Area Mall: 14,700 m 2 Office: 1,200 m 2 Construction permit : Sept Start of construction: Nov End of construction: Q TL 27.3mm (US$17.6mm) TL10.9mm (US$7mm)* TL14.8mm (US$9.5mm) 60% of the retail area has already been leased as of May *Torunlar REIC 40% share. 80

81 Torun Tower Istanbul Ownership Torunlar REIC (100%) Estimated start of construction September 2011 Estimated date of completion Q Estimated operational date Q Estimated investment c.tl128.3mm (US$83mm) Appraisal value GLA Leasehold/ Freehold status Current status TL237.7mm (US$153.8mm) Freehold Under project development Office: 44760m2 Breakdown Area (GLA) Other 5% The property is located at the city centre in one of the most expensive commercial districts of Istanbul It also has a subway connection 40 floor high-rise tower is planned The building is planned to be a landmark for the city with very modern architecture and construction technology The Property is planned as a mixed-use project with office and retail units and will be leased. For Torun Tower, office units will be leased for 35$/sqm/month, retail units for 47$/sqm/month. Office 95% GLA Office: m 2 Other: 2.415m 2 81

82 NishIstanbul Mixed-use Project Istanbul Ownership Torunlar REIC (60%) Start of construction H Date of completion November 2010 Operational date November 2010 Number of residences / Sellable area (m 2 ) 585 / 53,204 Number of offices / Sellable area (m 2 ) 63/ 16,925 Number of retail units / Leasable area (m 2 ) 52 / 10,937 Appraisal value Leasehold/Freehold status TL33.3mm (US$22.4mm) Freehold Located on the west-side of Istanbul in Yenibosna, 1.5 km away from Istanbul Atatürk Airport Three residential blocks, one office block and retail units As of June 2011, the project partnership was terminated. 3 residential units (291 m2) will be kept, 5 office (1340 m2) units will be sold for 5000TL/m2. 20 stores (3425 m2) will be leased for 25$/m2/month. Torunlar REIC has 8 more offices (2160 m2) and a 1080 m2 spa in its portfolio. 82

83 Mecidiyeköy (Ex-Ali Sami Yen Stadium) Mixed-use Project Istanbul Ownership Torunlar REIC (65%), Ascioglu (30%), Kapicioglu (5%) Estimated start of construction Q Estimated date of completion H Estimated operational date H Estimated investment c.tl311mm (US$201.3mm) / TL202mm (US$130mm)* Land acquired Land area (m 2 ) Sellable area (m 2 ) Revenue Share (45%) 34,640 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 TL300mm (US$195mm) / TL195mm Appraisal value (US$125mm)* Leasehold / Freehold status Revenue Share P O R T F O L I O O V E R V I E W Current status 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. * Torunlar REIC s share Under project development 83