INVESTOR PRESENTATION INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION INVESTOR PRESENTATION

2 REIT Sector Real Estate Investment Trusts(REITs) are portfolio management companies that invest in; Real estate, Rights and capital market instruments, Real estate projects and Money&capital market instruments. As of ; There are 24 REITs listed in Istanbul Stock Exchange (ISE) and Mcap of the sector is $ million.

3 Mcap of the REIT Sector REITs ($ mn) Emlak Konut 3.271,48 Saf 680,12 Torunlar 679,75 Akmerkez 544,38 Sinpaş 456,88 İş 402,73 Other REITs 1.755,0 TOTAL 7.790,34 9% 9% 7% 6% 5% 23% 41% Emlak Konut Saf Torunlar Akmerkez Sinpaş İş Other REITs

4 REGULATION HIGHLIGHTS

5 Regulation Highlights REITs are subject to REIT s communiqué issued by Capital Markets Board (CMB) of Turkey. REITs have to offer their shares to the public equal to at least 25% of their issued capital. REITs have to invest at least 50% of their total asset value into real estate, rights and projects backed by real estate. The remainder of REITs portfolio may be invested into money&capital market instruments such as; T-bills, G-bonds, reverse repo, bank deposits Equity participation Mutual funds Limitations on the type of investments that can be made: Investments in; foreign real estate, companies established abroad (operating only in real estate sector) or foreign securities : 49% Lands on which no real estate project has been developed within five years: 20%

6 Regulation Highlights REITs can not engage in construction work on their properties. REITs properties must be valued by an independent appraisal company authorized by the CMB. REITs are obliged to hold diversified portfolios. REITs are exempt from corporate taxes and income taxes. Unlike US REITs, Turkish REITs are not required to distribute profits. According to the Corporate Governance Principles, a third (1/3) of the Board of Directors must be independent members.

7 IS REIT IS REAL ESTATE INVESTMENT TRUST COMPANY

8 ISGYO ISGYO was established in 1999, by the strategic partnership of Isbank. In the same year, ISGYO completed its IPO and was listed in Istanbul Stock Exchange. ISGYO s leasable portfolio consists of office, retail and tourism properties with approximately sqm GLA. As of , IS GYO represents; 5% of the sector with its $ 403 million Mcap. Our Mission is to create desirable spaces for contemporary people and contemporary cities. To maximize the collective value of our portfolio for our shareholders through stable growth and high profitability by utilizing our investments and resources effectively..

9 Why ISGYO? The most diversified and well-qualified real estate portfolio, Financially strong and qualified tenant mix, Steady and stable rental income, Rental contracts dominated by hard currency, Strong cash position, Low debt ratio, Strong shareholder structure and Brand value as a symbol of trust differentiate ISGYO among its peer.

10 Shareholders Structure by Ownership 16% 42% 42% Isbank Free Float Others According to the Central Registry Agency of Turkey(MKK), as of , the ratio of the shares in the free float is 49%. Based on these data, foreign holding ratio is 38% of the free float.

11 ISGYO PORTFOLIO ISGYO PORTFOLIO

12 Portfolio Breakdown Office Retail Hotel 8% 12% 9% 7% Projects 25% Land 39% Money&Capital Market Instruments * Projects include Tuzla Projects, Taksim Office and İzmir Mixed Use Project.

13 Real Estate Portfolio ($ mn) Office 382,5 Retail 249,7 Hotel 78,2 Projects 122,0 Land 86,2 13% 9% 42% TOTAL 918,6 Office 8% Retail Hotel 27% Projects Land

14 Money&Capital Market Instruments Time Deposits (Foreign Currency) ($ mn) Time Deposits (Foreign Currency) 33,7 Time Deposits (Local Currency) 21,2 G-bonds & Corporate Bonds 5,6 Others 4,9 TOTAL 65,4 Time Deposits (Local Currency) G-bonds & Corporate Bonds Others 32% 9% 8% 52%

15 PORTFOLIO REAL ESTATE PORTFOLIO GENERATING RENTAL INCOME

16 ISGYO- Portfolio

17 OFFICE INVESTMENTS

18 ISGYO - Portfolio Is Towers (Tower II&III) Is Towers (Tower II&III) A class office buildings located in the central business district of the city GLA : sqm Completion Date : 2000 Occupancy : 100% Location : Istanbul

19 ISGYO - Portfolio Ankara Is Towers Ankara Is Tower Office building composed of 3 blocks and 29 storeys in the most important location of Ankara, Ataturk Boulevard GLA : sqm Acquisition Date : 1999 Occupancy : 100% Location : Ankara

20 ISGYO - Portfolio Maslak OB Maslak Building 12 storey office building located in the central business district of the city GLA : sqm Acquisition Date : 2001 Occupancy : 100% Location : Istanbul

21 ISGYO - Portfolio Ankara Ulus OB Ankara-Ulus Office Building Located in the commercially developed city center GLA : sqm Acquisition Date : 2004 Occupancy : 100% Location : Ankara

22 ISGYO - Portfolio Ankara Kızılay OB Ankara-Kızılay Office Building 13 storey building located in the commercially developed city center GLA : sqm Acquisition Date : 2004 Occupancy : 100% Location : Ankara

23 ISGYO - Portfolio Antalya OB Antalya Office Building 7 storey building in the central location with commercial potential GLA : sqm Acquisition Date : 2004 Occupancy : 100% Location : Antalya

24 ISGYO - Portfolio Sirkeci OB Sirkeci Office Building 6 storey office building located in one of the most active commercial district of the city GLA : sqm Acquisition Date : 2008 Occupancy : 100% Location : Istanbul

25 ISGYO - Portfolio Güneşli OB Gunesli Office Building 5 storey office building located in the new development area of the city with high commercial potential GLA : m 2 Acquisition Date : 2008 Occupancy : 100% Location : Istanbul

26 RETAIL INVESTMENTS

27 ISGYO - Portfolio Kanyon Kanyon Shopping Center An open air shopping center in the central business district (comprises 152 independent units) A part of Kanyon Complex which comprises also residential units and an office building. Location : Istanbul Total GLA : sqm Occupancy : 99% Annual Income : $10,4 mn Completion Date : 2006 Development Cost : $69 mn Accumulated rent as of December 31, 2011 : $ 66,6 mn (*) ISGYO sold its 50% share in the residential part and the office building but still has 50% share in the shopping center part.

28 ISGYO - Portfolio Kule Çarşı Kule Carsi Shopping Center The shopping center under Is Towers (comprises 48 independent units) GLA : sqm Completion Date : 2000 Occupancy : 100% Location : Istanbul

29 ISGYO - Portfolio Mallmarine Mallmarine Shopping Center Located in one of the most important touristic destinations of Turkey, Marmaris (comprises 30 independent units) GLA : sqm Acquisition Date : 2001 Occupancy : 40% Location : Mugla

30 ISGYO - Portfolio Real Hypermarket Mallmarine Real Hypermarket Building Hypermarket building located in one of the recently developed areas of the city surrounded by residentials. (*)Real Hypermarket Building was totally developed by ISGYO. GLA : sqm Completion Date : 2007 Occupancy : 100% Location : Istanbul (1) Minimum contractual rent: 1,58 mn from Real Hypermarket + rental income from small shops inside Hypermarket.

31 Marmara Park Shopping Center Project Marmara Park Location : Istanbul-Esenyurt parcel no 110* Investment model : Built-Operate- Transfer(BOT) Project developer : ECE&DWS Scope of the project : The building rights of the project has been transferred to ECE&DWS for 72 years. At the end of this period, the shopping center will be transferred to ISGYO. (*) Parcel no 110; sqm land (out of sqm land purchased in 2001) + the land of demolished Tatilya Theme Park + the additional land (with area of sqm) purchased in 2006 for this project.

32 Marmara Park Shopping Center Project Marmara Park Date of the transfer of the building rights : June, 2009 Initial payment for the transfer of the building rights : $ 13 million Agreed annual rent for the first decade : $ 2,9 million (fixed annual rent + turnover rent) Fixed annual rent : $ 2,5 million (It will be subject to increase for each decade and reach up to $7 mn at the end of the 60th year) Turnover rent : 33% of the annual turnover rent (minimum $ 0,4 million) Galaxy Themed Shopping Center Development Value: 220 mn Development Period: March /2013 Total GLA: sqm 250 stores, 40 restaurant&cafes, 11 movie theater, Recreational center, space park and aerospace museum

33 HOTEL INVESTMENTS

34 ISGYO - Portfolio Seven Seas Hotel Seven Seas Hotel Five-star seaside resort hotel in the famous touristic destination, Manavgat GLA : sqm Acquisition Date : 2001 Location : Antalya

35 ISGYO - Portfolio Kemer Imperial Hotel Kemer Imperial Hotel Five-star seaside resort hotel in the famous touristic destination, Kemer, Antalya GLA : sqm Acquisition Date : 2010 Location : Antalya

36 ISGYO - Portfolio Lykia Lodge Kapadokya Lykia Lodge Kapadokya Hotel Four-star hotel in the famous touristic destination, Kapadokya GLA : sqm Acquisition Date : 2010 Location : Nevsehir

37 Hotel Project in Russia Kartal Project Location : Russia Type : City Hotel A partnership agreement has been signed with KAYI Holding A.Ş. in order to invest in real estate projects in Russia.

38 LANDS LAND INVESTMENTS

39 ISGYO-Portfolio-Land Investments Project Lands: Tuzla Land Parcel no 1; sqm land on which Tuzla Technology&Operation Center Project will be developed. Tuzla Land Parcel no 2: sqm land on which Tuzla Mixed Use Project will be developed. Çınarlı Bahçe Tuzla Project Land ; sqm land on which Çınarlı Bahçe Tuzla Residential Project is being developed. Taksim Land; 579 sqm land on which Taksim Office Project is being developed. Izmir Land; sqm land on which İzmir Mixed Use Project will be developed. Other Lands: Esenyurt-parcel no 110 ; sqm land on which Marmara Park Shopping Center Project is being developed. Kartal Land ; sqm landbank investment for potential projects. Uskudar Land ; sqm land on which Altunizade Project is planned to be developed. Levent Land ; sqm land, in front of Is Towers.

40 PROJECTS PIPELINE PROJECTS

41 Tuzla Projects

42 Tuzla Projects Tuzla Projects PARCEL NO 1 Technology&Operation Center Project PARCEL NO 2 Mixed Use Project EX-TUZLA LAND Residential Project Parcel no 1; m 2 land purchased in December, 2010, Technology&Operation Center Project Parcel no 2; m 2 land purchased in December, 2010, Mixed Use Project Ex-Tuzla Land ; m 2 land purchased in October, 2009, Residential Project

43 Tuzla Projects Tuzla Projects

44 Tuzla Projects Çınarlı Bahçe Tuzla Residential Project Tuzla Technology&Operation Center Project Total development cost of the projects(including land cost) : $290 mn Location : Tuzla Istanbul Tuzla is one of the developing transformation areas on the Asian side of Istanbul. Tuzla Mixed Use Project

45 Technology&Operation Center - Mixed Use Project Operation Center&Mixed Used

46 Tuzla Technology&Operation Center Project Tuzla Operation Center Location : Tuzla, Istanbul Land Area : sqm Acquisition Date : 2010 Cost of Land : $26,7 mn Investment Model: Turnkey Project A technology&operation center will be developed by ISGYO. It has been leased to Isbank for 25 years. Projections: (1) Cost of the project (inc. land): $ mn GLA of the center: sqm Annual rental income: $16 mn Rental yield on cost: 10%-11% (1) Estimated figures.

47 Tuzla Mixed Use Project Tuzla Mixed Use Location : Tuzla, Istanbul Land Area : sqm Acquisition Date : 2010 Cost of Land : $14 mn A mixed use project comprising commercial center, office units and city hotel will be developed. Projections: (1) Cost of the project (inc. land): $71 mn Annual rental income: $8,1 mn Rental yield on cost: 11,5% (1) Estimated figures.

48 Tuzla Residential Çınarlı Bahce Tuzla Residential Project

49 Çınarlı Bahçe Tuzla Residential Project Tuzla Residential Location : Tuzla, Istanbul Land Area : sqm Acquisition Date : 2009 Cost of Land : TRY 22,5 mn Projections: (1) Cost of the project (inc. land): TRY 117 mn Saleable area for residential (2) : sqm Net profit for the residential sales: TRY 35 mn Net profit margin on cost: 30% (1) Estimated figures. (2) The presales started in October 2011 and as of , 77% of the total number of units has been sold.

50 Tuzla Residential Çınarlı Bahçe Tuzla Residential Project

51 Izmir Mixed Use Project

52 Izmir Mixed Use Project İzmir Mixed Use Project Location : Konak, Izmir Land Area : sqm Acquisition Date : 2010 Initial Payment for the Project Land : $12 mn

53 Izmir Mixed Use Project İzmir Mixed Use Project

54 Izmir Mixed Use Project İzmir Mixed Use Project Estimated project development cost (including land) : $125 million Project type : Mixed use project comprising residential units, home-office units and shopping center Current status : The period for taking the legal permissions continues.

55 Izmir Mixed Use Project İzmir Mixed Use Project Projections: Saleable area for residential : sqm (1) Leasable area for shopping center : sqm (1) Net profit for the residential sales : $26 million (2) Rental income of the shopping center : $8 million (2) (1) The estimated figures. The residential area may be in the form of home and home-office. (2) The net profit of the residential sales will be shared with Isbank on 50:50 basis. The rental income of the shopping center will totally belong to ISGYO.

56 Izmir Mixed Use Project İzmir Pictures

57 Taksim Office Project

58 Taksim Office Project Taksim Projects Location : Beyoglu, Istanbul Land Area : 579 sqm Acquisition Date : August, 2010 ISGYO is developing A Class office project. Estimated figures according to the current zoning status; GLA: sqm Cost of the Project: $12,9 mn ( inc.land cost) Rental Income: $1,13 mn

59 Landbank Investment

60 Altunizade Residential Project Location : Uskudar, Istanbul Land Area : sqm Acquisition Date : 2006 Land value : $27 mn(*) Financing : 50:50 cost&revenue sharing model with the project partner Current status : The period for taking the legalpermissions continues. (*) ISGYO purchased the half of the land and paid $13,5 mn.

61 Kartal Land Kartal Project Location : Kartal, Istanbul Land Area : sqm Acquisition Date : June, 2008 A mixed use project is planned to be developed. The project land is next to Urban Regeneration Project of the Kartal Municipality.

62 Company Figures&Facts

63 Appraisal Value of the Real Estate Portfolio Appraisal Value Property Name ($ mn) % Is Towers II & III 229,2 24,9% Kanyon Shopping Center 177,7 19,3% Lands 163,5 17,8% Ankara Is Tower 54,7 6,0% Parcel no 110(Marmara Park) 44,7 4,9% Real Hypermarket Building 40,9 4,5% Seven Seas Hotel 42,8 4,7% Maslak Building 27,6 3,0% Kule Carsi Shopping Center 24,7 2,7% Kemer Imperial Hotel 25,1 2,7% Gunesli Office Building 22,0 2,4% Sirkeci Office Building 15,6 1,7% Ankara-Ulus Office Building 13,7 1,5% Ankara-Kızılay Office Building 12,0 1,3% Lykia Lodge Kapadokya Hotel 10,3 1,1% Antalya Office Building 7,7 0,8% Mallmarine Shopping Center 6,4 0,7% Total 918,6 100% Total Property Value : $ 918,6 mn (March 31, 2012) 1$=TRY 1,7729 The portfolio was lately appraised in December, Appraisal Values

64 Breakdown of the Real Estate Portfolio in terms of Type and Region Breakdown of Portfolio Real Estate Portfolio in terms of Type Real Estate Portfolio in terms of Region Land 9% Projects 13% Hotel 8% Office 42% Izmir 3% Nevsehir 1% Istanbul 78% Retail 27% Mugla 1% Antalya 8% Ankara 9%

65 Annual Rent $ mn Property Name (without VAT) % Is Towers II & III 17,1 29,6% Kanyon Shopping Center 10,4 18,0% Parcel no 110 (Marmarapark) * 5,0 8,6% Ankara Is Tower 4,4 7,6% Seven Seas Hotel 2,8 4,9% Gunesli Office Building 2,5 4,4% Real Hypermarket Building 2,4 4,2% Kemer Imperial Hotel 2,3 4,0% Maslak Building 2,1 3,6% Kule Carsi Shopping Center 2,0 3,5% Ankara-Ulus Office Building 1,8 3,1% Ankara-Kızılay Office Building 1,6 2,7% Sirkeci Office Building 1,4 2,5% Lykia Lodge Kapadokya Hotel 0,9 1,6% Antalya Office Building 0,8 1,4% Mallmarine Shopping Center 0,2 0,4% Total 57,8 100% Total Annual Rent Including VAT : $ 68,2 mn (March 31, $ = TRY 1,7729) (*) Income accrual regarding the transfer of the building rights. Rental Income Rental Income

66 Breakdown of the Rental Income in terms of Type and Region Rental Income in terms of Type 9% 10% Rental Income in terms of Region 2% 0% 10% 13% 26% 55% 74% Office Retail Hotel Land Ankara Istanbul Mugla Antalya Nevsehir

67 Lease Agreements Lease Agreements The rents in the leasing agreements are set parallel to the appraisal rents which are determined by independent appraisal companies authorized by the CMB. Average duration of the lease agreements; 5 years. (*) The currency breakdown of the lease agreements; 48% $, 16% Euro and 36% TRY. (*) For turn-key projects and sell&lease back agreements, the maturity of the contracts may be longer than 15 years.

68 Dividend Payout Dividend Payout Concerning the distribution of profits, REITs are subject to same regulations like all other companies listed in Istanbul Stock Exchange. In case, the ISE companies decide to distribute profits, the dividend can not be less than 20% of the total distributable income. In ISGYO s dividend policy dividend is determined as not less than 30% of the total distributable income. (Higher than the legal ratio, 20%) The dividend may be distributed in the form of cash and/or bonus shares. Up until now, ISGYO distributed higher than the ratio determined in the dividend policy. TRY, mn Period Income 34,1 48,8 54,9 53,1 60,3 60,9 67,0 Distributable Income 16,0 20,3 50,7 50,3 46,6 44,7 64,1 Dividend 16,0 16,5 22,5 22,5 22,5 22,5 30,0 Dividend/Dist. Income 100% 81% 44% 45% 48% 50% 47% Type of the Dividend Cash Stock Cash Cash Cash Cash Cash

69 FINANCIALS Financials

70 Growth of the Real Estate Portfolio Real Estate Portfolio TRY mn Aggregate value of the real estate portfolio of ISGYO increased 60% within five years.

71 Balance Sheet Balance Sheet TRY, mn % Change ASSETS 1.174, ,0 1,1% Current Assets 143,9 134,6 6,9% Long-term Assets 1.030, ,5 0,4% LIABILITIES 1.174, ,0 1,1% Short-term Liabilities 35,2 16,6 112,3% Long-term Liabilities 118,4 109,9 7,7% Shareholders' Equity 1.020, ,5-1,4% Of the total Liabilities (Short&Long Term); the amount regarding the long term bank loan, granted for the finance of lately purchased hotel investments, constitutes the 34%, the amount regarding the purchase of Kartal Land (TRY 36 mn), constitutes the 23%, the amount regarding advances received from presales of Çınarlı Bahçe Tuzla Residential Project constitutes the 21%.

72 TRY, mn Jan.-March 2012 Jan.-March 2011 Income Statement Income Statement Sales Revenue 31,7 26,8 Cost of Sales -13,8-13,1 Gross Profit/Loss 17,9 13,8 Operating Expenses -2,8-2,4 Other Income/Expense 0,2 0,0 Operating Profit/Loss 15,2 11,3 Financial Income/Expense 0,8-1,5 Profit Before Tax 16,0 9,8 Tax Expense 0,0 0,0 Net Profit for the Period 16,0 9,8

73 Income Statement Income Statement Financials (TRY, mn) Sales Revenue 31,7 26,8 Cost of Sales -13,8-13,1 Gross Profit/Losses 17,9 13,8 Operating Expenses -2,8-2,4 EBIT 15,0 11,3 EBITDA 21,5 17,6 Net Period Income 16,0 9,8 Gross Margin 56% 51% EBIT Margin 47% 42% EBITDA Margin 68% 66% Net Margin 50% 36%

74 STOCK PERFORMANCE Stock Performance

75 Trade Volume Price-Trade Volume Trade Volume ,60 1,50 1,40 1,30 1,20 1,10 1,00 0,90 0, (TRY) Trade Volume (TRY) Price ISGYO Average Daily Trade Volume Price change in TRY terms 2011 $ 2,2 mn -22% 2012 $ 1,5 mn 24%

76 Price-Index ISE 100 & ISE REIT Index, ISGYO Price-Index ,50 1,40 1,30 1,20 1,10 1,00 0, % change ISGYO REIT Index ISE % -17% -22% % 22% 21% ISE 100 ISE REIT ISGYO

77 Investor Relations Investor Relations Ayşegül Şahin Kocameşe Risk Management and Investor Relations Manager Phone : aysegul.sahin@isgyo.com.tr Mine Kurt Risk Management and Investor Relations Supervisor Phone : Extension:209 mine.kurt@isgyo.com.tr This presentation has been prepared in order to inform investors. Since the presentation has been prepared regarding the previous period, the data in it may not reflect the current situation. The estimations regarding projects are given in accordance with feasibility studies prepared on basis of certain assumptions and may be updated any time. ISGYO management and employees can not be held responsible for any damages or losses arising from the direct/indirect use of content in this presentation. For more information : investorrelations@isgyo.com.tr

78 END Architect of Change