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

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; 4,1 % of the sector with its $ 374 million Mcap. In terms of Mcap, ISGYO ranks the 7th 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, Almost half of the rental income in hard currency, Low debt ratio, Strong shareholder structure and Brand value as a symbol of trust differentiate ISGYO among its peers.

10 Shareholders Structure by Ownership According to the Central Registry Agency of Turkey(MKK), as of , the ratio of the shares in the free float is 44%. Based on this data, foreign holding ratio is 45 % of the free float.

11 ISGYO PORTFOLIO

12 Portfolio Breakdown Total Portfolio $ mn % Real Estate Investments % Money&Capital Market Instruments 22 2% Total Portfolio Value % * Projects include Tuzla Projects, Ege Perla Mixed Use Project, IFC Mixed Use Project, Kartal Mixed Use Project and Topkapı Residential Project.

13 Real Estate Portfolio Breakdown Real Estate Portfolio ($ mn) Office 388 Projects 363 Retail 275 Hotel 9 Residential 8 Land 11 TOTAL 1.054

14 Appraisal Value of the Real Estate Portfolio Property Name Appraisal Value ($ mn) % Real Estate Projects 363,2 34,4% Is Towers II&III 227,4 21,6% Kanyon Shopping Center 166,7 15,8% Ankara Is Tower 45,7 4,3% Marmara Park Shopping Center 44,1 4,2% Real Hypermarket Building 36,3 3,4% Maslak Building 33,2 3,1% Kule Carsi Shopping Center 23,7 2,2% Gunesli Office Building 19,6 1,9% Office Lamartine 18,7 1,8% Sirkeci Office Building 14,6 1,4% Ankara-Ulus Office Building 11,6 1,1% Lands 11,2 1,1% Ankara-Kızılay Office Building 11,1 1,1% Kapadokya Lodge Hotel 8,7 0,8% Çınarlı Bahçe Residentials 7,7 0,7% Antalya Office Building 6,7 0,6% Mallmarine Shopping Center 4,2 0,4% Total % Total Property Value : $ mn (March 31,2014 1$=TRY 2,1898)

15 Rental Income Property Name Annual Rent $ mn (without VAT) % Is Towers II & III 15,0 29,4% Kanyon Shopping Center 11,4 22,4% Marmara Park Shopping Center 5,0 9,8% Ankara İş Kulesi 4,0 7,8% Gunesli Office Building 2,6 5,1% Real Hypermarket Building 2,5 4,9% Maslak Office Building 1,9 3,8% Ankara- Ulus Office Building 1,7 3,3% Kule Carsi Shopping Center 1,5 2,9% Sirkeci Office Building 1,5 3,0% Ankara-Kızılay Office Building 1,4 2,7% Antalya Office Building 0,8 1,6% Kapadokya Lodge Hotel 0,7 1,4% Office Lamartine 0,5 1,0% Mallmarine Shopping Center 0,3 0,6% Total % Total Annual Rent Including VAT : $ 60 mn (March 31, $ = TRY 2,1898) *The currency breakdown of the lease agreements; 39% $, 7% Euro and 54% TL.

16 ISGYO- Properties Map

17 REAL ESTATE PORTFOLIO GENERATING RENTAL INCOME

18 OFFICE INVESTMENTS

19 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 : 92% Completion Date : 2000

20 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

21 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

22 Other Office Buildings Ankara Ulus Office Building Location : Ankara GLA : sqm Occupancy : 100% Ankara Kizilay Office Building Location : Ankara GLA : sqm Occupancy : 100% Antalya Office Building Location : Antalya Occupancy : 100% Sirkeci Office Building Location : Istanbul GLA : sqm Occupancy : 100% Gunesli Office Building Location : Istanbul GLA : m2 Occupancy : 100%

23 Taksim Office Lamartine Taksim Office Lamartine Completion Date: 2Q 2013 Location : Taksim Square,Istanbul GLA: sqm Occupancy:* 40% *40% of the total GLA has been leased to Isbank.

24 RETAIL INVESTMENTS

25 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 : 100% 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.

26 Kule Carsi Shopping Center The shopping center, located in the central business district of the city, under Is Towers. Location : Istanbul GLA : sqm Occupancy : 96% Completion Date : 2000

27 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.

28 Marmara Park Shopping Center Location : Istanbul-Esenyurt Investment model : Built-Operate- Transfer(BOT) Developer : ECE&DWS* The building rights of the project land has been transferred to ECE&DWS for 72 years. (in June 2009) At the end of this period, the shopping center will be transferred to ISGYO. (*) DWS is an integral part of the Asset Management division of Deutsche Bank. Opening Date : Oct. 2012

29 HOTEL INVESTMENTS

30 Kapadokya Lodge Hotel Four-star hotel in the famous touristic destination, Kapadokya Location : Nevsehir GLA : sqm Occupancy : 100% Acquisition Date : 2010

31 REAL ESTATE PROJECTS

32 Projects Under Development Pipeline Projects Technology&Operation Center Project İstanbul Finance Center Project Tuzla Mixed Use Project Kartal Mixed Use Project Ege Perla Mixed Use Project Topkapı Residential Project Completed Project Çınarlı Bahçe Residential Project

33 Projects Under Development

34 Projects Under Development Projects Under Development $ Mn % Tuzla Technology&Operation Center $256 49% Tuzla Mixed Use Project $95 18% Ege Perla Mixed Use Project $168 32% Total $519

35 Tuzla Projects

36 Tuzla Projects Acquisition Date Project Name Status Completion Date Parcel no 1 Dec Technology and Operation Center Project Under development 3Q 2015 Parcel no 2 Dec Tuzla Mixed Use Project Under development 3Q 2015

37 Tuzla Projects

38 Tuzla Projects Total development cost of the projects(including land cost) : $351 mn Location : Tuzla Istanbul Tuzla Technology&Operation Center Project Tuzla is one of the developing transformation areas on the Asian side of Istanbul. Tuzla Mixed Use Project

39 Technology & Operation Center - Mixed Used Project

40 Tuzla Technology & Operation Center Project Location : Tuzla, Istanbul Land Area : sqm Acquisition Date : 2010 Cost of Land : $26,8 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): $256 mn (2) GLA of the center: sqm Annual rental income: $23 mn (1) Estimated figures. (2) Including $32,5 mn credit cost.

41 Tuzla Mixed Use Location : Tuzla, Istanbul Land Area : sqm Acquisition Date : 2010 Cost of Land : $12,8 mn A mixed use project comprising office units and a commercial area is being developed. Projections: (1) Cost of the project (inc. land): $95 mn Annual rental income: $8 mn (1) Estimated figures.

42 Technology & Operation Center - Mixed Used Project

43 Ege Perla Mixed Use Project

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

45 Ege Perla Mixed Use Project

46 Ege Perla Mixed Use Project Estimated project development cost (including land) : $168 million Project type : Mixed use project comprising residentials & home-office units and a shopping center

47 Ege Perla Mixed Use Project Projections (1) : Shopping Center: Leasable area : sqm Rental income : $9,2 mn Residentials&Home Offices: Total saleable area (2) : sqm Total net profit for the unit sales (3) : $15 mn (1) The estimated figures. (2) The presales activity started on November (3) In return for the land, 50% of the net profit from the unit sales will be transferred to Isbank.

48 Ege Perla Mixed Use Project

49 Ege Perla Mixed Use Project

50 Ege Perla Mixed Use Project

51 Pipeline Projects

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

53 IFC Project Location : Atasehir, Istanbul Project type : A mixed use project comprising offices and commercial area. Estimated project development cost (including land) : $110 mn

54 IFC Project

55 IFC Project

56 Kartal Mixed Use Project

57 Kartal Mixed Use Project Location : Kartal, Istanbul Acquisition Date : June, 2008 Investment Model: Revenue sharing model. In return for the project land, revenues of the project will be shared with the ex-land owner. Project Type : Mixed use project Total Estimated Development Cost: $280 mn

58 Topkapı Residential Project

59 Topkapı Residential Project Location : Topkapı, Istanbul Acquisition Date : December, 2013 Total Development Cost* : $460 mn *Total figures. ISGYO has 75% share in the project. Investment Model: A joint venture between İş GYO and NEF with 75% and 25% shares respectively.

60 Completed Projects

61 Çınarlı Bahçe Location : Tuzla, Istanbul Land Area : sqm Acquisition Date : 2009 Completion Date: August 2013 Cost of Land : TL 22,5 mn Cost of the project (inc. land): TL 120 mn Saleable area for residential: sqm Number of units : 476 Number of units sold : 431* *As of

62 Çınarlı Bahçe

63 Dividend Payout

64 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.

65 FINANCIALS

66 Growth of the Real Estate Portfolio Aggregate value of the real estate portfolio of ISGYO increased 108 % within five years.

67 Balance Sheet TL, mn % Change ASSETS 1.666, ,7-0,2% Current Assets 185,1 233,0-20,6% Long-term Assets 1.481, ,7 3,2% LIABILITIES 1.666, ,7-0,2% Short-term Liabilities 149,3 162,0-7,9% Long-term Liabilities 373,9 350,6 6,6% Shareholders' Equity 1.142, ,1-1,1% Of the total Liabilities (Short&Long Term); the amount regarding the bank loans constitutes the 72%, the amount regarding advances received from presales of Ege Perla Mixed Use Project constitutes the 19%, the amount regarding the purchase of Kartal Land (TRY 36 mn), constitutes the 7%.

68 Income Statement TL, mn Jan.-Mar Jan.-Mar Sales Revenue 31,3 30,3 Cost of Sales -7,7-9,7 Gross Profit/Loss 23,6 20,6 General Administrative Expenses -4,0-3,1 Other Operating Income 14,1 2,3 Other Operating Expense -12,9-1,3 Operating Profit/Loss 20,8 18,5 Share of Profit of Equity- Accounted Investees 0,2 0,2 Operating Profit Before Finance Expense 21,1 18,7 Finance Expense -2,8-2,0 Profit Before Tax 18,3 16,7 Tax Expense - - Net Profit for the Period 18,3 16,7

69 Income Statement Financials (TL, mn) Sales Revenue 31,3 30,3 Cost of Sales -7,7-9,7 Gross Profit/Losses 23,6 20,6 Operating Expenses -4,0-3,1 Other Operating Income 14,1 2,3 Other Operating Expense -12,9-1,3 EBIT 20,8 18,5 EBITDA 25,3 24,8 Net Period Income 18,3 16,7 Gross Margin 76% 68% EBIT Margin 67% 61% EBITDA Margin 81% 82% Net Margin 58% 55%

70 STOCK PERFORMANCE

71 Trade Volume ISGYO Average Daily Trade Volume Price change in TL terms 2013 $ 1,6 mn 1% 2014 $ 0,7 mn -3%

72 Stock Price vs. Index Performance % change ISGYO REIT Index ISE % -26% -13% % 12% 3%

73 Investor Relations Investor Relations Ayşegül Şahin Kocameşe Head Investor Relations & Risk Management and Internal Control Phone : aysegul.sahin@isgyo.com.tr Mine Kurt Yıldırım Assistant Manager Investor Relations and Corporate Compliance 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

74 END Architect of Change