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 backed by real estate, Real estate projects and Money&capital market instruments.

3 Mcap of the REIT Sector REITs ($ mn) Emlak Konut Torunlar 905 İş 458 Halk 426 Saf 382 Sinpaş ,9% 5,5% 5,1% 4,6% 4,3% 3,8% 23,5% Akmerkez 313 Other REITs TOTAL ,3% Emlak Konut Torunlar İş Halk Saf Sinpaş Akmerkez 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 51% 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 in any way be involved in construction of real estates and can not recruit personnel and equipment with this purpose. REITs properties must be valued by an independent appraisal company authorized by the CMB. REITs are exempt from corporate taxes and income taxes. Turkish REITs are not required to distribute profits.

7 IS REIT IS REAL ESTATE INVESTMENT TRUST COMPANY

8 ISGYO ISGYO was established in 1999, by the strategic partnership of Isbank. (Isbank is Turkey s biggest private bank established in 1924) In the same year, ISGYO completed its IPO and was listed in Istanbul Stock Exchange. As of IS GYO represents; 5,5 % of the sector with its $ 458 million Mcap. In terms of Mcap, ISGYO ranks the 3th biggest REIT in ISE. 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, Stable and strong rental income, Low debt ratio, Strong shareholder structure and Brand value as a symbol of trust differentiate ISGYO among its peers.

10 Shareholders Structure by Ownership 16% 42% 42% Isbank Free Float Isbank Group Companies According to the Central Registry Agency of Turkey(MKK), as of , the ratio of the shares in the free float is 49%. Based on this data, foreign holding ratio is 36 % of the free float.

11 ISGYO PORTFOLIO

12 Portfolio Breakdown Total Portfolio $ mn % Real Estate Investments % Money&Capital Market Instruments 38 4% Total Portfolio Value % Office Retail Hotel Projects Land Money&Capital Market Instruments 28% 6% 22% 4% 4% 36% *Projects include Tuzla Projects, Ege Perla Mixed Use Project and Mixed Use Project in Istanbul Finance Center. **Seven Seas Hotel and Kemer Imperial Hotel (total appraisal value $ 57 mn) were removed from the portfolio as of

13 Real Estate Portfolio Breakdown Real Estate Portfolio ($ mn) Office 392 Retail 299 Hotel 67 Projects 243 Land 41 Office TOTAL % 4% 38% Retail Hotel Projects 6% Land 29%

14 ISGYO- Properties Map

15 REAL ESTATE PORTFOLIO GENERATING RENTAL INCOME

16 OFFICE INVESTMENTS

17 Is Towers Is Towers (Tower II&III) A class office buildings located in the central business district of the city Location : Istanbul GLA : sqm Occupancy : 96% Completion Date : 2000

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

19 Maslak Office Building Maslak Building 12 storey office building located in the central business district of the city Location : Istanbul GLA : sqm Occupancy : 100% Acquisition Date : 2001

20 Ankara Ulus, Ankara Kızılay & Antalya Office Buildings Ankara Ulus Office Building Ankara Kizilay Office Building Antalya Office Building Location : Ankara GLA : sqm Occupancy : 100% Acquisition Date : 2004 Location : Ankara GLA : sqm Occupancy : 100% Acquisition Date : 2004 Location : Antalya GLA : sqm Occupancy : 100% Acquisition Date : 2004

21 Sirkeci & Gunesli Office Buildings Sirkeci Office Building Gunesli Office Building Location : Istanbul GLA : sqm Occupancy : 100% Acquisition Date : 2008 Location : Istanbul GLA : m2 Occupancy : 100% Acquisition Date : 2008

22 Office Lamartine Office Lamartine Completion Date:* 2Q 2013 Location : Taksim Square,Istanbul GLA: sqm Occupancy:** 40% *Ofiice Lamartine was developed by ISGYO. **40% of the total GLA has been leased to İsbank. The postponed leasing activities of the building, due to the pedestrian project of the Municipality, started as of 3Q2013.

23 RETAIL INVESTMENTS

24 Kanyon Shopping Center Kanyon Shopping Center Open air shopping center in the central business district. Part of Kanyon Complex which comprises also residential units and an office building. Location : Istanbul Total GLA : sqm Occupancy : 99% Completion Date : 2006 (*) ISGYO sold its 50% share in the residential part and the office building but still has 50% share in the shopping center part.

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

26 Real Hypermarket Building Mallmarine Hypermarket building located in one of the recently developed areas of the city surrounded by residentials. Location : Istanbul GLA : sqm Occupancy : 100% Completion Date : 2007 (*)Real Hypermarket Building was developed by ISGYO.

27 Marmara Park Shopping Center Project Galaxy Themed Shopping Center The opening ceremony of the shopping center was made on October 17, Location : Istanbul Developer : ECE&DWS Model : Build-Operate-Transfer (BOT) ISGYO has transferred the building rights of the land for 72 years. ECE&DWS is making the direct investment. Annual rental income*: $2,9 mn (fixed annual rent + Turnover rent (*) Rent collection will start at Q

28 HOTEL INVESTMENTS

29 Seven Seas Hotel Five-star seaside resort hotel in the famous touristic destination, Manavgat Location : Antalya GLA : sqm Acquisition Date : 2001 * After the completion of sale process of Seven Seas Hotel on , the Hotel has been removed from the portfolio.

30 Kemer Imperial Hotel Five-star seaside resort hotel in the famous touristic destination, Kemer, Antalya Location : Antalya GLA : sqm Acquisition Date : 2010 * After the completion of sale process of Kemer Imperial Hotel on , the Hotel has been removed from the portfolio.

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

32 LAND INVESTMENTS

33 ISGYO-Land Portfolio Land Portfolio: 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.

34 PIPELINE PROJECTS UNDER DEVELOPMENT

35 Pipeline Projects Under Development Projects Under Development $ Mn % Tuzla Technology&Operation Center $185 31% Tuzla Mixed Use Project $100 17% Çınarlı Bahçe Residential Project $65 11% Ege Perla Mixed Use Project $130 22% Istanbul Finance Center Project $110 19% Total $ %

36 Tuzla Projects

37 Tuzla Projects 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 Parcel no 1309 ; m 2 land purchased in October, 2009, Çınarlı Bahçe Residential Project

38 Tuzla Projects

39 Tuzla Projects Çınarlı Bahçe Tuzla Residential Project Tuzla Technology&Operation Center Project Total development cost of the projects(including land cost) : $350 mn Location : Tuzla Istanbul Tuzla is one of the developing transformation areas on the Asian side of Istanbul. Tuzla Mixed Use Project

40 Technology & Operation Center - Mixed Used Project

41 Tuzla Technology & Operation Center Project Location : Tuzla, Istanbul Land Area : sqm Acquisition Date : 2010 Cost of Land : $26,7 mn Investment Model: Turnkey Project A technology&operation center is being developed by ISGYO. It has been leased to Isbank for 25 years. Projections: (1) Cost of the project (inc. land): $185 mn GLA of the center: sqm Annual rental income: $19 mn Rental yield on cost: 10% (1) Estimated figures.

42 Tuzla Mixed Use Location : Tuzla, Istanbul Land Area : sqm Acquisition Date : 2010 Cost of Land : $14 mn A mixed use project comprising a commercial center, office units and a city hotel is being developed. Projections: (1) Cost of the project (inc. land): $100 mn Annual rental income: $8 mn (1) Estimated figures.

43 Çınarlı Bahçe Residential Project

44 Çınarlı Bahçe Residential Project Location : Tuzla, Istanbul Land Area : sqm Acquisition Date : 2009 Cost of Land : TRY 22,5 mn Estimated Completion Date: August 2013 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 % of the total number of units has been sold.

45 Çınarlı Bahçe Residential Project

46 Çınarlı Bahçe Residential Project

47 Ege Perla Mixed Use Project

48 Ege Perla Mixed Use Project in İzmir

49 Ege Perla Mixed Use Project Location : Konak, Izmir Land Area : sqm Acquisition Date : 2010

50 Ege Perla Mixed Use Project

51 Ege Perla Mixed Use Project Estimated project development cost (including land) : $130 million Project type : Mixed use project comprising residentials & home-office units and a shopping center

52 Ege Perla Mixed Use Project Projections (1) : Shopping Center: Leasable area for the shopping center : sqm Rental income of the shopping center : $8 million Residentials&Home Offices: Total saleable area: sqm Total net profit for the unit sales (2) : $30 million Net profit from residential units (3) : $20 million Net profit from home office units : $10 million (1) The estimated figures. (2) The presales activity started on As of , 48% of the total number of units has been sold. (3) ISGYO purchased the project land from İsbank. In return for the land, 50% of the net profit from the residential sales will be transferred to Isbank.

53 Ege Perla Mixed Use Project

54 Ege Perla Mixed Use Project

55 Mixed Use Project in Istanbul International Financial Center (IFC Project)

56 IFC Project Location : Atasehir, Istanbul Land Area : sqm Project type : A mixed use project comprising offices and commercial area. Estimated project development cost (including land) : $110 million Estimated saleable/leasable area : sqm

57 IFC Project

58 IFC Project

59 Landbank Investments

60 Kartal Land 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.

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

62 Company Figures&Facts

63 Appraisal Value of the Real Estate Portfolio Property Name Appraisal Value ($ mn) % Projects 243,3 23,3% Is Towers II&III 232,2 22,3% Kanyon Shopping Center 179,8 17,3% Ankara Is Tower 50,9 4,9% Marmara Park Shopping Center 47,8 4,6% Real Hypermarket Building 41,0 3,9% Lands 40,9 3,9% Seven Seas Hotel 34,1 3,3% Maslak Building 27,0 2,6% Kule Carsi Shopping Center 25,0 2,4% Kemer Imperial Hotel 22,8 2,2% Gunesli Office Building 21,3 2,0% Sirkeci Office Building 15,6 1,5% Office Lamartine 13,7 1,3% Ankara-Ulus Office Building 12,9 1,2% Ankara-Kızılay Office Building 11,3 1,1% Lykia Lodge Kapadokya Hotel 9,7 0,9% Antalya Office Building 7,1 0,7% Mallmarine Shopping Center 5,5 0,5% Total 1.041,8 100% Total Property Value : $ mn (June 30, 2013) 1$=TRY 1,9248 *As of , Seven Seas Hotel and Kemer Imperial Hotel have been removed from the portfolio.

64 Breakdown of the Real Estate Portfolio in terms of Type and Region Real Estate Portfolio in terms of Type Real Estate Portfolio in terms of Region Hotel 6% Projects 23% Land 4% Retail 29% Office 38% Izmir 3% Nevsehir 1% Mugla 1% Antalya 6% Ankara 7% Istanbul 82%

65 Rental Income Property Name Annual Rent $ mn (without VAT) % Is Towers II & III 16,3 27,1% Kanyon Shopping Center 12,9 21,6% Marmara Park Shopping Center 5,0 8,3% Ankara İş Kulesi 4,3 7,1% Seven Seas Hotel 2,7 4,6% Gunesli Office Building 2,6 4,3% Real Hypermarket Building 2,3 3,9% Kemer Imperial Hotel 2,3 3,8% Kule Carsi Shopping Center 2,1 3,5% Maslak Office Building 2,1 3,4% Ankara-Ulus Office Building 1,8 3,0% Ankara-Kızılay Office Building 1,5 2,6% Sirkeci Office Building 1,5 2,5% Lykia Lodge Kapadokya Hotel 0,9 1,5% Antalya Office Building 0,8 1,4% Office Lamartine 0,6 0,9% Mallmarine Shopping Center 0,2 0,4% Total 60,0 100% Total Annual Rent Including VAT : $ 60 mn (June 30, $ = TRY 1,9248) *As of , Seven Seas Hotel and Kemer Imperial Hotel have been removed from the portfolio.

66 Breakdown of the Rental Income in terms of Type and Region Rental Income in terms of Type Rental Income in terms of Region 1% 10% 0% 10% 13% 38% 53% 76% Office Retail Hotel Ankara Istanbul Mugla Antalya Nevsehir

67 Currency Breakdown of Rental Income 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; 31% $, 15% Euro and 54% TRY. (*) For turn-key projects and sell&lease back agreements, the maturity of the contracts may be longer than 10 years.

68 Dividend Payout

69 Dividend Payout Concerning the distribution of profits, REITs are subject to same regulations like all other companies listed in Istanbul Stock Exchange. In ISGYO s dividend policy dividend is determined as not less than 30% of the total distributable income. 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. TL, mn Period Income 48,8 54,9 53,1 60,3 60,9 67,0 65,4 Distributable Income 20,3 50,7 50,3 46,6 44,7 64,1 62,2 Dividend 16,5 22,5 22,5 22,5 22,5 30,0 60,0 Dividend/Dist. Income 81% 44% 45% 48% 50% 47% 97% Type of the Dividend Stock Cash Cash Cash Cash Cash Cash and Stock

70 FINANCIALS

71 Growth of the Real Estate Portfolio Real Estate Portfolio TL mn Aggregate value of the real estate portfolio of ISGYO increased 74% within five years.

72 Balance Sheet TL, mn % Change ASSETS 1.456, ,7 4,8% Current Assets 256,1 237,5 7,8% Long-term Assets 1.200, ,2 4,2% LIABILITIES 1.456, ,7 4,8% Short-term Liabilities 134,0 105,2 27,4% Long-term Liabilities 255,3 214,6 19,0% Shareholders' Equity 1.067, ,9-0,3% Of the total Liabilities (Short&Long Term); the amount regarding the bank loans constitutes the 37%, the amount regarding advances received from presales of the units in Çınarlı Bahçe Tuzla Residential Project & Ege Perla Mixed Use Project constitutes the 48%, the amount regarding the purchase of Kartal Land (TRY 36 mn), constitutes the 9%.

73 TL, mn Jan.-June 2013 Jan.-June 2012 Income Statement Sales Revenue 59,8 58,5 Cost of Sales -18,7-18,8 Gross Profit/Loss 41,1 39,7 General Administrative Expenses -5,5-4,1 Other Operating Income 14,5 10,5 Operating Profit/Loss 50,1 46,1 Share of Profit of Equity- Accounted Investees 0,3 0,2 Financial Expense -23,3-12,4 Profit Before Tax 27,1 33,9 Tax Expense - - Net Profit for the Period 27,1 33,9

74 Income Statement Financials (TL, mn) Sales Revenue 59,8 58,5 Cost of Sales -18,7-18,8 Gross Profit/Losses 41,1 39,7 Operating Expenses -5,5-4,1 Other Operating Income 14,5 10,5 EBIT 50,1 46,1 EBITDA 60,7 58,8 Net Period Income 27,1 33,9 Gross Margin 69% 68% EBIT Margin 84% 79% EBITDA Margin 102% 100% Net Margin 45% 58% *CMB changed the classification in income statement and therefore the calculation of gross profit and EBIT. The table above has been prepared in accordance with the new format disclosed by CMB and data regarding has been restated.

75 STOCK PERFORMANCE

76 Trade Volume Price-Trade Volume 1,70 1,60 1,50 1,40 1,30 1,20 1,10 1,00 0,90 0, (TL) Trade Volume (TL) Price ISGYO Average Daily Trade Volume Price change in TL terms 2012 $ 1,3 mn 56% 2013 $ 2,1 mn 1%

77 Stock Price vs. Index Performance BIST 100 & BIST REIT Index, ISGYO 1,70 1,60 1,50 1,40 1,30 1,20 1,10 1,00 0, BIST 100 BIST REIT ISGYO % change ISGYO REIT Index ISE % 38% 53% % -10% -2%

78 Investor Relations Investor Relations Ayşegül Şahin Kocameşe Head of Investor Relations & Risk Management and Internal Control Phone : aysegul.sahin@isgyo.com.tr Mine Kurt Investor Relations and Corporate Compliance Supervisor Phone : Extension:270 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

79 END Architect of Change