Presentation is loading. Please wait.

Presentation is loading. Please wait.

111 INVESTOR PRESENTATION November 2011. 222 3 Turkey Real Estate Economic Highlights 3 Turkey Real Estate Market Review 5 Business Review 23 Project.

Similar presentations

Presentation on theme: "111 INVESTOR PRESENTATION November 2011. 222 3 Turkey Real Estate Economic Highlights 3 Turkey Real Estate Market Review 5 Business Review 23 Project."— Presentation transcript:


2 222 3 Turkey Real Estate Economic Highlights 3 Turkey Real Estate Market Review 5 Business Review 23 Project Pipeline 40 Financial Review 43 Future Outlook 50 Appendix ● Portfolio Review 52 ● Financial Data 67 ● Listed REIC's 69

3 333 Turkey Real Estate Economic Highlights Source: Central Bank of Turkey Eurozone : 60% (2010) USA : 70% (2010)

4 4 Turkey Real Estate Economic Highlights Source: Central Bank of Turkey

5 555 3 Turkey Real Estate Economic Highlights Turkey Real Estate Market Review Business Review Project Pipeline Financial Review Future Outlook Appendix ● Portfolio Review ● Financial Data ● Listed REIC's

6 6 Turkey Residential Sales ( in units ) Source: Turkish Statistical Institute

7 7 Turkey Residential Permits (in units) Source: Turkish Statistical Institute

8 8 Residential Purchase Confidence Index Source: ING Mortgage Barometer (Compiled from 805 interviews in 14 cities)

9 9 Turkey New Residential Price Index 2011 Oct Index ValueChange M-o-M (%)Change Y-o-Y(%) Change Against January 2010(%) New Residential Price Index113.22.54%9.04%13.20% Source: REIDIN Turkey

10 10 Turkey New Residential Price Index by Sqm Source: REIDIN Turkey January 2010=100 beginning of the index

11 2Q 2011 1Q 2011 TotalLabourMaterialTotalLabourMaterial QoQ(%) 4,352,344,96 QoQ(%) 4,372,644,91 YtD(%) 8,915,0410,11 YoY(%) 12,766,4914,76 Yoy(%) 8,447,328,79 Change to the Average of 4 Quarters(%) 8,76,589,37 Change to the Average of 4 Quarters(%) 6,626,436,67 11 Turkey Construction Costs Source: Turkish Statistical Institute (2005=100)

12 12 Turkey Retail Market Source: Planet Retail CAGR: 7.8 %

13 13 Turkey Retail Market Source: TURKSTAT Source: DTZ Pamir & Soyuer

14 14 Shopping Mall Development End 2009Q3 2010End 2010Q3 2011 İstanbul Unit818593101 GLA (sq m)2,29 M2,43 M2,66 M2,99 M Rest of Turkey Unit155170171190 GLA (sq m)3,41 M3,84 M3,87 M4,39 M Turkey Unit236255264291 GLA (sq m)5,70 M6,27 M6,53 M7,38 M Source: Jones Lang LaSalle ActiveUnder Construction*Total İstanbul Unit10129130 GLA (sq m)2,99 M1,08 M4,07 M Rest of Turkey Unit19040230 GLA (sq m)4,39 M1,10 M5,49 M Turkey Unit29169360 GLA (sq m)7,38 M2,18 M9,5 M *As of end 2013 Source: Jones Lang LaSalle

15 15 Turkey Map of Shopping Malls Current Shopping Malls Shopping Malls under Construction and in Project Concentration of Shopping Malls by GLA LEGEND Source: EVA Real Estate Appraisal Consultancy Akademetre Research and Strategy Planning

16 16 CityEnd 2010Q3 2011End 2013 İstanbul210 sq m226 sq m282 sq m Ankara207 sq m225 sq m247 sq m Karabük65 sq m179 sq m166 sq m Bolu25 sq m148 sq m146 sq m Trabzon142 sq m143 sq m139 sq m Bursa134 sq m143 sq m139 sq m Tekirdağ139 sq m 132 sq m Denizli 119 sq m130 sq m142 sq m Turkey90 sq m100 sq m124 sq m Retail Density-GLA per 1,000 Capita, Turkey Source: Jones Lang LaSalle

17 17 Turkey’s Mall League Source: Akademetre Research and Eva Real Estate MallOpening DateGLALocationDeveloper 1Forum Istanbul2009180.000IstanbulMulti Turkmall 2Marmara Forum2011157.000IstanbulMulti Turkmall 3Cevahir2005110.000IstanbulCelebioglu 4Ankamall1999107.804AnkaraYeni Gimat 5Torium201095.280IstanbulTorunlar REIC 6Istinyepark200787.000IstanbulDogus, Orjin 7Antares200785.150AnkaraDolunay 8Anatolium201084.165BursaCorio 9Forum Ankara200880.000AnkaraMulti Development TR 10Kent Park200880.000AnkaraMega Turk Construction 11Panora200778.000AnkaraPolat Holding 12M1 Merkez Adana200075.700AdanaMetro 13Korupark200774.580BursaTorunlar REIC 14Cepa200772.000AnkaraCarrefour 15Forum Mersin200770.250MersinMulti Turkmall 16Anatolium Ankara201170.000IstanbulMaya 17M1 Meydan Umraniye200770.000IstanbulMetro 18212 Istanbul Power Outlet200969.000IstanbulEdip International Real Estate 19Ora Istanbul201165.000IstanbulMerkez Construction 20Forum Bornova200662.000IzmirMulti Development TR

18 18 Source: Council of Shopping Centers- Turkey *January 2010= the beginning of index Turkey SHOPPING MALL Sales Turnover and Footfall

19 19 Turkey Shopping Mall Rental Yields- Sep 2011 PRIME RETAIL RENTS- Sep 2011 HIGH STREETUS$€ Compound (p.a) % growth SHOPS sq.m/mthsq.m/yrsq.ft/yr5yr1yr Istanbul2502502,23627915.815.819.0 Izmir70626784.94.54.5 Ankara85760957.26.3 PRIME RETAIL YIELDS- Sep 2011 HIGH STREETCurrentLast 10 Year SHOPS (Gross)Quarter YearHighLow Istanbul7.257.507.7514.507.25 Izmir10.50 10.7514.5010.50 Ankara10.50 10.7515.5010.50 SHOPPINGCurrentLast 9 Year CENTRES (Net)Quarter YearHighLow Istanbul8.008.258.759.757.00 Source: Cushman&Wakefield

20 20 Shopping Centre Rents & Yields Source: Cushman&Wakefield CountryPrime Rent (€/sq.m/year)Prime Yield (%) Short Term Yield Outlook Austria700 - 1,0206.10 - 6.75  Belgium800 - 1,4005.50 - 6.00  Czech Rep.800 - 1,1006.00 - 7.00  Denmark500 - 1,1505.75 - 6.25  Finland900 - 1,6005.00 - 6.25  France1,400 - 2,0004.75 - 5.75  Germany1,200 - 1,5604.95 - 5.80  Hungary600 - 1,0806.75 - 7.75  Ireland1,100 - 1,8007.50 - 8.00  Italy600 - 8006.25 - 7.25  Netherlands650 - 9006.25 - 7.00  Norway800 - 1,0506.00 - 6.75  Poland500 - 9506.25 - 7.25  Portugal700 - 9007.25 - 8.50  Romania300 - 6509.00 - 10.00  Russia750 - 2,2009.50 - 10.50  Slovakia650 - 8007.25 - 8.00  Spain700 - 9506.00 - 6.50  Sweden550 - 8005.50 - 6.00  Turkey600 - 9508.00 - 9.00  United Kingdom1,330 - 1,8505.50 - 6.50 

21 21 Sub MarketGLA (sq m) Europe CBD1,16 million Non CBD0,75 million Asia 0,88 million Total 2,79 million Existing Grade A Office Stock Q3 2011 Source: Jones Lang LaSalle Sub MarketGLA (sq m) Europe CBD295,000 Non CBD256,000 Asia 242,000 Total 793,000 Pipeline Projects Grade A Office Stock* *For completion by end 2013 Source: Jones Lang LaSalle Office Market Overview

22 22 Turkey Office Rental Yields- Sep 2011 PRIME OFFICE RENTS- Sep 2011 US$Prime Rent €US$Compound (p.a) % growth sq.m/mthsq.m/yrsq.ft/yr5yr1yr Istanbul Levent36.032240.114.90.0 Esentepe-Gayrettepe32.028635.735.716.416.410.3 Maslak24.021526.814.9-4.0 Umraniye20.017922.3n/a6.7 Izmir15.013413416.713.4-6.3 Ankara21.018823.411.8-4.5 PRIME OFFICE YIELDS- Sep 2011 Prime Yield (%) CurrentLast 10 Year Quarter YearHighLow Istanbul Levent8.00 8.1516.3016.307.50 Esentepe-Gayrettepe8.00 8.4016.3016.307.50 Maslak8.75 8.6016.307.75 Umraniye8.50 8.859.508.50 Izmir10.00 10.1517.009.00 Ankara10.00 10.2017.009.00 Source: Cushman&Wakefield

23 23 3 Turkey Real Estate Economic Highlights Turkey Real Estate Market Review Business Review Project Pipeline Financial Review Future Outlook Appendix ● Portfolio Review ● Financial Data ● Listed REIC's

24 24 Shareholding Structure

25 25 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 Strategy focus Primary focus on development of shopping malls Increased focus on mixed-use projects Creating ‘life centres’ with extensive leisure and entertainment avenues 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 Strategy highlights

26 26 History of Torunlar REIC– Key Milestones 199619992004200520072008200920101977 Construction for the company’s needs and third party use (small- scale residential units) Active in the Turkish construction and real estate market since 1977 Foundation of Toray Construction Acquisition of the Netsel Marina in Marmaris 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 Delivery of Nish İstanbul residences and offices Opening of one of the biggest shopping malls in Turkey, Korupark The residential compound at Korupark was Bursa’s first gated community Opening of the biggest mall in Turkey in 1999, Ankamall Opening of Zafer Plaza; the first shopping mall of Bursa Opening of the biggest outlet of Antalya, Deepo Outlet Opening of Torium Shopping Mall, October 30th, 2010 Torium Shopping Mall is the 3 rd largest shopping mall in Istanbul 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 Conversion to Torunlar REIC

27 27 Key Investment Highlights 2nd largest listed retail property company in Turkey Included in ISE National XU 100, MSCI Turkey, EPRA indices Diversified investment portfolio Portfolio ‘primarily’retail (57% shopping centres) in 5 cities Resilient operations: 98% occupancy rate (2011/09) Healthy financial structure with leverage at 28.8 % Stable shareholder structure with 25.16 % free float

28 28 Key portfolio information NumberGLA(m²) Operational Shopping Malls 5214,697 Pipeline Shopping Malls 2181,116 Total Shopping Malls 7395,913 Zafer Plaza (SM) Occupancy 99% Korupark (SM) Occupancy 97% Deepo Outlet Centre (SM) Ankamall+ Crowne Plaza (SM+Hotel) Occupancy 100% Torium Istanbul (SM) Occupancy 99% Shopping Mall Portfolio

29 29 Operational Assets Shopping MallsZafer PlazaKoruparkDeepo OutletTorium Land Area (sqm) 9.62253.18666.00544.571 Land Cost (TRY) -6.719.6817.700.00054.857.072 Land Price per sqm (TRY/sqm) -126,34116,661.230,78 Construction Area (sqm) 57.112169.00037.500259.754 Development Cost (TRY) 18.448.37577.315.71810.149.518221.069.212 Development Cost per sqm (TRY/sqm) 323457271851 GLA (sqm) 16.944*71.26718.06995.280 Rental Income-LTM Sept 2011 (TRY) 12.120.273*36.462.26612.354.25823.199.437 Total Revenue-LTM Sept 2011 (TRY) 14.836.188*46.451.40416.451.70023.199.437 EBITDA-LTM Sept 2011 (TRY) 10.720.629*35.380.09111.452.48320.394.046 *Adjusted as per Torunlar, 72,26% share

30 Asset Korupark Residences Phase I-II Torium ResidenceNishIstanbul Land Area (sqm) 47.434-32.889 Land Cost (TRY) 5.993.043-60.570.467 Land Price per sqm 126,34-1.841,66 Construction Area (sqm) 221.97914.952135.291 Development Cost (TRY) 124.194.88812.083.839118.309.589 Development Cost per sqm (TRY/sqm) 559808874 Units 74680700 GLA/GSA (sqm) 110.4145.318*81.066 Total Revenue-Forecast (TRY) 224.913.318*9.040.600*120.000.000 30 Completed Projects * Assuming the remaining units in inventory will be sold.

31 AssetMall of Istanbul Korupark Residences Phase III Boulevard Samsun Land Area (sqm)122.86035.77317.400 Land Cost (TRY)176.671.9633.100.000- Land Price per sqm (TRY/sqm)1.437,9986,66- Construction Area (sqm)656.000166.40238.334 Development Cost (TRY)498.820.834134.787.17234.485.443 Development Cost per sqm (TRY/sqm)760810900 GLA/GSA (sqm)281.000102.26015.900 Rental Income- Forecast (TRY)65.214.396-6.884.199 Total Revenue- Forecast (TRY)583.714.396220.686.900- Completion DateH2 2013Q1 2013Q2 2012 31 Ongoing Projects

32 AssetTorun TowerAli Sami Yen ProjectDeepo Extension Land Area (sqm) 14.99234.64021.595 Land Cost (TRY) 46.637.080475.000.000*9.400.000 Land Price per sqm (TRY/sqm) 3.110,8013.712,47435,29 Construction Area (sqm) 91.940271.27238.869 Development Cost (TRY) 106.445.963311.237.664*36.640.200 Development Cost per sqm (TRY/sqm) 1.1581.147943 GLA/GSA (sqm) 47.175190.18326.651 Rental Income-Forecast (TRY) 30.395.354-15.842.207 Total Revenue-Forecast (TRY) 30.395.354** - Net Operating Income-Forecast (TRY) 27.768.208-- 32 Upcoming Projects *Unadjusted total cost of the project **Adjusted 65% share of Torunlar

33 33 Project Deliveries & Pre-Sales Completed Projects 30.09.2011LocationSaleable area (sq.m)Total # of units# of units delivereddelivery ratiostart/ completion Torunlar REIC's revenue share Torunlar REIC sales revenue Korupark I-IIBursa110.41474667891% May 2006/February 2008100%198.331.000 Torium ResidenceIstanbul5.3188000% June 2008/June 2011100%0 NishIstanbulIstanbul70.129648 100% July 2008/October 201060%127.003.000 Residence 53.204585 100% July 2008/October 2010 Office 16.92563 100% July 2008/October 2010 Ongoing Projects 21.11.2011Location Saleable area (sq.m) Total # of units # of units presold GSA presold (sq.m) # of units delivered presold ratio (in units) presold ratio (in sq.m) delivery ratio start/ completion Torunlar REIC's revenue share Presale Cash In (TRY) Mall of IstanbulIstanbul146.0001.18657261.573NA48%42%NA April 2011/Q4 2013100%203.917.040 Residence 116.8821.07153554.762NA50%47%NA April 2011/Q4 2013100%172.009.000 Office 30.000115376.811NA32%23%NA April 2011/Q4 2013100%31.908.040 Korupark Residences Phase IIIBursa116.15168020425.460NA30%22%NA March 2011/ Q1 2013100%45.761.296


35 35 Resilient retail operations through active hands-on management Sept 2011 Bursa Zafer Plaza Bursa Korupark Antalya Deepo Outlet Istanbul ToriumTotal GLA ( m2 )23.44871.26718.06995.280201.584 Revenues (TRY) 6.312.00037.826.00011.155.00035.781.00091.074.000 LfL Revenues % growth 0*31.525.1NA25.7 % LfL Footfall growth6.0(0.5)2.2NA2.8 Number of stores12718281180570 Occupancy (%)99971009998 Turnover rent (as % of fixed rent) 3.53.616.213.48.6 Breakdown of rental revenues 62%USD 38%€ 87%€ 13%USD 80%€ 20%USD 70%USD 30%€ 61%€ 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 28% of GLA 28% of Rental Revenue 43% of Retail Turnover 26% of GLA 29% of Rental Revenue 33% of Retail Turnover *Annual rental revenue is fixed at TRY 8.4 mn between 2008-2012, to set aside each year TRY 2.4 mn reserve to pay back the loan raised for the capex.

36 36 Shopping Mall LfL Performance

37 37 Shopping Mall LfL Performance

38 38 Shopping Centers by Value (TRY 000) Appraisal value 30-09-11 Nr of contracts Rental Yield on Cost LTM Sept 2011 Rental Yield on Appraisal Value LTM Sept 2011 Rental Yield on Cost (2011 F) Rental Yield on Appraisal Value (2011 F) Bursa Zafer Plaza143.15612748,04%6,19% 48,56%6,26% Bursa Korupark540.51018247,09%6,55% 43,75%6,80% Antalya Deepo Outlet 180.4928164,16%6,35% 65,45%6,47% İstanbul Torium549.8761809,44%4,95% 9,44%4,95% TOTAL1.414.03457021,72% 5,86% 20,71%6,00%

39 39 Shopping Mall Tenants by Category GLA GLA Breakdown SALES/SQM/ MONTH FIXED RENT/SQM/ MONTHRENT/SALES Breakdown of Rental Revenue Monthly Footfall Average Spending Per Month SQMTRY ANCHOR38.87220%295134%7% HOME5.1853%3246019%4% READY WEAR84.89845%4374410%50% DEPARTMENT STORE10.5506%301227%3% SERVICE3.3132%2545321%2% LEISURE/ GIFT/ SPECIAL3.8982%3305517%3% PERSONAL CARE+ACCESSORIES 5.6833%8029111%7% CULTURE/ART/ENTERTAINMENT 19.04110%691116%3% TECHNOLOGY6.7784%5026513%6% FOOD & DRINK12.2326%4836914%11% TOTAL190.451100%3693911%100%3.197.23722,2

40 40 3 Turkey Real Estate Economic Highlights Turkey Real Estate Market Review Business Review Project Pipeline Financial Review Future Outlook Appendix ● Portfolio Review ● Financial Data ● Listed REIC's

41 41 Evolution of the Projects (m2) GLA+GSA (m2)20102011201220132014 Retail214.697 246.943381.943395.813 Residence31.081 249.906305.884 Office2.964 3.34578.105131.876 Hotel2.907 Marina2.984 Other15.599 18.014 Total 270.232 302.859733.859857.478 Land56.893

42 42  Istanbul grasps a larger share by 2014, overtaking Bursa. GLA Breakdown by City

43 43 3 Turkey Real Estate Economic Highlights Turkey Real Estate Market Review Business Review Project Pipeline Financial Review Future Outlook Appendix ● Portfolio Review ● Financial Data ● Listed REIC's

44 44 TRY (000)20102009 Change % Sales revenue232.928120.15893.9 Residences sold160.58565.380145.6 Rental revenue58.58439.85947.0 EBITDA55.37771.700-22.8 EBITDA margin23.8%59.7%-35.9 Dividend income4.7454.5364.6 Net gain/(loss) from from fair value adjustments on investment property166.660488.159-65.8 Net profit214.245535.641-59.4 EPS1.16 TRY3.04 TRY-68.0 LfL rental revenue growth33% Occupancy ratio98% 0,0 Total Assets3.203.8392.509.78727.7 Total Equity2.369.0831.805.16831.2 Net debt-344.619-547.89537.1 Portfolio value3.130.0002.603.00020.2 Market cap1.420.160 Financial highlights

45 45 Financial highlights TRY 0002011/092010/09 Change % Sales revenue121.248150.868-19,6% Residences sold28.815103.485-72,2% Rental revenue79.64138.584106,4% EBITDA66.43847.45040,0% EBITDA margin54,8%31,5%23,3 pp Dividend income6.4974.74437,0% Net gain/(loss) from fair value adjustments on investment property 0114.740 Forex gain/loss-127.85732.353NM Net profit-47.849181.539NM EPS-0,21 TRY0,81 TRYNM LfL rental revenue growth25,8%22,3%3.5pp Occupancy ratio98% 0,0% TRY 0002011/092010/12 Change % Total Assets3.608.7773.203.83912,6% Total Equity2.308.5812.369.083-2,6% Net debt-358.788-344.5994,1% Portfolio value3.454.5723.130.00010,4% Market cap1.135.6801.420.160-20,0%

46 46 Maturity of Financial Loans (TRY m) *The graph excludes TRY 680.1 mn of cash and cash deposits as of Sept 2011. 66,6%USD, 32,2%€, 1,2%TRY Financial loans: TRY 1.038 mn

47 47 Net Foreign Currency Position 30.09.201131.12.2010 (.000)€$ TL Equivalent Change % Current assets21.002107.839251.831219.90214,5% Trade receivables150951.626-94,2% Monetary financial assets3.97109.990218.276-95,4% Financial investments14.791103.330227.8850 Other2.2394.45913.8610 Total assets21.002107.839251.831219.90214,5% Current liabilities-25.236-134.707-312.061-218.98842,5% Trade payables-2.210-10.671-25.251-6.968262,4% Financial liabilities-22.888-123.542-285.551-212.02034,7% Other current liabilities-138-494-1.2590 Non-current liabilities-110.300-251.933-742.374-552.12234,5% Financial liabilities-110.300-251.933-742.374-552.12234,5% Total liabilities-135.536-386.640-1.054.435-771.11036,7% Net foreign currency asset (liability)-114.534-278.801-802.604-551.20845,6%

48 48 Abridged Income Statement (000 TRY) 9M11 % 9M10 % YoY Sales121.248100,0%150.868100,0%-19,6 Residence28.81523,8%103.48568,6%-72,2 Mall rental79.64165,7%38.58425,6%106,4 Other12.79210,6%8.7995,8%45,4 Gross profit73.26160,4%54.84936,4%33,6 Operating profit59.75049,3%157.164104,2%-62,0 EBIT66.24754,6%47.16831,3%40,4 EBITDA66.43854,8%47.45031,5%40,0 Profit before tax -46,458-38.3%182,372120.9%-125.5 Net profit-47.849-39,5%181.539120,3%-126,4

49 49 Funding Summary 2011/09 2010/12 Change Total net debt (000 TRY)-358.788-344.5994,1% Average loan term (years)55 Average overall interest rate5,01%5,22%-0,2 pp Leverage (financial loans as % of total assets)28,8%24,4%4,4 pp Net debt to equity ratio-15,5%-14,5%1,0 pp Net debt/Assets (%)-9,9%-10,8%-0,9 pp Equity to assets ratio64,0%73,9%-9,9 pp Loan to property value ratio (LTV)-13,2%-13,4%0,2 pp Interest coverage ratio (times)5,9-2,6NM Net debt/EBITDA (times)4,16,2-2,2

50 50 3 Turkey Real Estate Economic Highlights Turkey Real Estate Market Review Business Review Project Pipeline Financial Review Future Outlook Appendix ● Portfolio Review ● Financial Data ● Listed REIC's

51 51 2012 Outlook On the back of its strong financial position, the company will support residential demand for Mall of Istanbul and Korupark Residences with an attractive payment schedule in spite of increasing banking loan rates. The company will gradually increase the frozen rents/sqm in € and US$ in Torium, Korupark and Zafer Plaza due to abrupt TRY devaluation in September 2011. The company will start the construction and pre-sales of Mecidiyekoy Project in early 2012, while Torun Tower and Mall of Istanbul will be under way. Korupark Terrace Residences (3rd phase) are expected to be completed in December 2012. Samsun Bulvar Shopping Mall will come on stream in May 2012. The major part of sales revenue will come from shopping malls. 10 % annual LFL growth is forecast in rental revenues. The company will seek for further land acquisition and tender opportunities with its favorable cash position.

52 52 3 Turkey Real Estate Economic Highlights Turkey Real Estate Market Review Business Review Project Pipeline Financial Review Future Outlook Appendix ● Portfolio Review ● Financial Data ● Listed REIC's

53 53

54 54 Zafer Plaza Shopping Mall 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 OwnershipTorunlar REIC (72.26%) Operational Date1999 Leasable area (m2)23,449 (REIC share 16,944) Occupancy (%) as of date99% (as of Sep 2011) Number of stores127 Anchor tenants 4% anchors (30% of GLA): Migros, YKM, Bimeks and Boyner Appraisal valueTL143.2mm (US$92.6mm) Average lease term as of Sep-20111.2 years Average LTM NOI (per TL/m2/month)TL43.5 Leasehold/Freehold statusFreehold Rental income (Sept 2011). Last 12 months TL12.1mm

55 55 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 OwnershipTorunlar REIC (100%) Operational Date H2 2007 Leasable area (m2)71,267 Occupancy (%) as of date97% (as of Sep 2011) Number of stores182 Anchor tenants (39% of GLA): Tesco, Koçtaş, Beymen, C&A, Boyner and Electro World Appraisal valueTL540.5mm (US$349.6mm) Average lease term as of Sep-20111.9 years Average LTM NOI (per TL/m2/month) TL41.3 Leasehold/Freehold statusFreehold Rental income (Sep 2011). Last 12 months TL36.4mm

56 56 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 For Antalya Deepo, majority of rents (80%) are denominated in EURO Zoning of this region is expected to be approved in early 2012. Deepo Antalya is not directly held by Torunlar REIC, but is instead held by a subsidiary which is 100% owned by Torunlar REIC Antalya Deepo extension project OwnershipTorunlar REIC + Hastalya Estimated start of constructionJanuary 2012 Estimated date of completionDecember 2012 Estimated operational dateDecember 2012 Leasable area (m 2 )26,651 Estimated investmentTL31.2mm (US$20.2mm) Leasehold / Freehold status Partially freehold, partially leasehold from Hastalya Current status Under zoning process OwnershipTorunlar REIC (100%) Operational DateOctober 24, 2004 Leasable area (m 2 )18,069 Occupancy (%) as of date100% (as of Sep 2011) Number of stores81 Anchor tenants LCW, Ayakkabı Dünyası, Mudo City, Collezione, Sarar, Aydınlı Group Appraisal valueTL180.5mm (US$116.7mm) Average lease term as of Sep 20112.2 years Average LTM NOI (per TL/m 2 /month)TL52.8 Leasehold/Freehold statusFreehold Rental income (Sep 2011), last 12 months TL12.3 mm

57 57 Torium Shopping Mall–Istanbul 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 1.700TL/m2 starting from November 2011. OwnershipTorunlar REIC (100%) Start of constructionH2 2008 Date of completionOctober 30 th, 2010 Operational dateOctober 30 th, 2010 Number of stores180 Investment costTL207.2mm Appraisal value*TL549.8mm (US$355.1mm) Leasehold / Freehold statusFreehold GLA / GSA 95,280 m2 GLA retail 5,318 m2 GSA residential Rental income 2011 FTL32mm

58 58 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 fourth 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 Sep 30, 2011. 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. Dividends - Torunlar REIC share (TLmm) Ownership Yeni Gimat in which Torunlar REIC holds (14.83%) Operational Date1999 1 Leasable area (m2)88,421 3 (REIC’s share 13,112) Occupancy (%) as of date100% (as of December 2010) Number of stores315 Number of rooms280 Anchor tenants Migros, Koçtaş, Tepe Home, Electro World, Boyner, Mudo City, Marks&Spencer, LCW Rental revenue (2010)TL72.2mm NOI (2010)TL54.8mm Appraisal value (REIC share)TL138.2mm (US$89.3mm) Leasehold/ Freehold statusFreehold

59 59 Boulevard Samsun Shopping Mall 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 19.25€/sq.m/month and office units for 13€/sq.m/month. 64% of the retail area has already been leased as of Sept 2011. OwnershipTorunlar REIC (40%) Leasehold / Freehold status Leasehold Current status Under construction Area breakdown Land: 17,400 m 2 Total construction area: 37,500 m 2 Gross Leasable Area Mall: 14,700 m 2 Office: 1,200 m 2 Completion date Construction permit : Sept. 2010 Start of construction: Nov. 2010 End of construction: Q1 2012 CapexTL 27.3mm (US$17.6mm) TL10.9mm (US$7mm)* Appraisal valueTL14.8mm (US$9.5mm) *Torunlar REIC 40% share.

60 60 Korupark Residences Phase I & II 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 (57.119 sq.m), six blocks Inventory as of Sept 30 th,2011: 18 units (3.088 sq.m) Phase II: 403 units (66.721 sq.m), seven blocks Inventory as of Sept 30 th, 2011: 50 units (10.737 sq.m) For Korupark residences I/II, sales are Turkish Lira denominated and currently 2200 TL/ sq.m OwnershipTorunlar REIC (100%) Start of constructionMay, 2006 Date of completion Phase 1: January 2008/ Phase 2: December 2008 Operational dateFebruary 2008 Total investmentTL 107.3mm (US$74mm) Units sold (%) 91% (as of Sep 2011) Appraisal value (remaining units)¹ TL50.1mm (US$32.4mm) Leasehold/ Freehold statusFreehold

61 61 Korupark Residences Phase III The property, adjacent parcel to Korupark phase I & II, is a luxurious housing settlement. For Korupark Residences Phase III, sales are denominated in Turkish Lira and 2.111TL/sq.m 203 units (25.299 m2) were presold as of November 13th 2011. Map of Korupark Korupark Shopping Mall Korupark Residences Phase III Korupark Residences Phase I & II Note: Exchange rate US$/TL=1.5460 as of December 31, 2010 ¹ Prime appraisal report (based on the CMB standards as of December 31, 2010) Korupark Residences Phase I & II Korupark Residences Phase III OwnershipTorunlar REIC (100%) Estimated start of constructionMay 2011 Estimated operational dateQ1 2013 Estimated investmentTL87.3mm (US$56.5mm) Appraisal valueTL50.4mm (US$32.6mm) Leasehold / Freehold statusFreehold Number of residential units/GSA680 units / 102.260 m2 residence Current statusUnder construction

62 62 Breakdown–Area (GLA/GSA) Mall of Istanbul–Istanbul 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 135.000 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 23.04.2011 and 526 units (53.765m2) were presold for 3.130TL/m2 out of 1.071 and 38 office units (6.928m2) out 75 for 3.943TL/m2 until 13.11.2011. On 31.05.2011, the company signed USD 250 million loan agreement with Is Bank of Turkey for a term of 10 years with 3 years grace period. OwnershipTorunlar REIC (100%) Start of constructionMarch 2011 Estimated date of completionH2 2013 Estimated operational dateQ4 2013 Estimated investmentc.TL500.0mm (US$323mm) Number of residences / GSA-GLA 135.000 m2 GLA mall, 116.000 m2 GSA residence, 30.000 m2 GSA office Appraisal valueTL637.1mm (US$411.5mm) Leasehold / Freehold statusFreehold Current statusUnder construction

63 63 GLA Office:44760m2 Torun Tower–Istanbul The property is located at the city centre in one of the most expensive commercial districts of Istanbul with 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. Construction permit was awarded on 30.09.2011. For Torun Tower, office units will be leased for 35$/sqm/month, retail units for 47$/sqm/month. Breakdown–Area (GLA) GLA Office: 44.760m 2 Other: 2.415m 2 OwnershipTorunlar REIC (100%) Estimated start of constructionDecember 2011 Estimated date of completionQ4 2013 Estimated operational dateQ4 2013 Estimated investmentc.TL128.3mm (US$83mm) Appraisal valueTL237.7mm (US$153.8mm) Leasehold/ Freehold statusFreehold Current statusUnder project development

64 64 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. Mecidiyeköy (Ex-Ali Sami Yen Stadium) Mixed-use Project–Istanbul * Torunlar REIC’s share Ownership Torunlar REIC (65%), Ascioglu (30%), Kapicioglu (5%) Estimated start of constructionQ1 2012 Estimated date of completionH2 2014 Estimated operational dateH2 2014 Estimated investment c.TL311mm (US$201.3mm) / TL202mm (US$130mm)* Land acquiredRevenue Share (45%) Land area (m 2 )34,640 Sellable area (m 2 ) 86,120 m2 (55,978 m2)*residence, 82,725 m2 (53,771 m2)*office, 21,338 m2 (13,869 m2)* retail Number of residences593 Appraisal value TL300mm (US$195mm) / TL195mm (US$125mm)* Leasehold / Freehold statusRevenue Share Current statusUnder project development

65 65 Netsel Marina-Marmaris 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 2005. The marina is operated by Setur, a subsidiary of Koc Holding. 66 cruisers with 166.000 guests visited the marina in 2010. 2500-3000 people are estimated to visit the mall on a daily basis from May to October in 2010. Dividends - Torunlar REIC share (TLmm) OwnershipTorunlar REIC (44.6%) Operational Date1989 Land37,478 m 2 Capacity700 yachts Leasable area (m 2 )5,996 (REIC’s share 2,674) Mall Occupancy (%) as of date68.7% (as of December 2010) Number of stores75 Tenants Migros, Lacoste, Sisley, Tommy Hilfiger Mall rental revenue (2010)TL1.2mm Total rental revenue (2010)TL13.1mm Appraisal value (REIC share)TL30.7mm (US$19.8mm) Leasehold / Freehold statusLeasehold

66 66 NishIstanbul Mixed-use Project–Istanbul 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 6 more offices (1620 m2) and a 1080 m2 spa in its portfolio. OwnershipTorunlar REIC (60%) Start of constructionH2 2008 Date of completionNovember 2010 Operational dateNovember 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 valueTL33.3mm (US$22.4mm) Leasehold/Freehold statusFreehold

67 67 3 Turkey Real Estate Economic Highlights Turkey Real Estate Market Review Business Review Project Pipeline Financial Review Future Outlook Appendix ● Portfolio Review ● Financial Data ● Listed REIC's

68 68 Income Statement 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 (000 TL)3Q113Q10YoY2Q111Q119M119M10YoY Sales38.106101.012-62,3%41.10442.038121.248150.868-19,6% Residence5.10582.214-93,8%10.84112.86928.815103.485-72,2% Mall rental28.12214.14998,8%26.80824.71179.64138.584106,4% Other4.8794.6494,9%3.4554.45812.792879945,4% Cost of sales13.47479.958-83,1%17.94216.57147.98796.019-50,0% Gross profit24.63221.05417,0%23.16225.46773.26154.84933,6% Gross margin64,6%20,8%43,8 pp56,3%60,6%60,4%36,4%24,0 pp Opex-3.744-3.04622,9%-7.817-4.062-15.623-12.22427,8% Other income(expenses)88944798,9%8863372.112-201-1150,7% Net gain (loss) fair value adjustments on investment property 00000114.740-100,0% Operating profit21.77718.45518,0%16.23121.74259.750157.164-62,0% Operating profit excluding fair value adjustment 21.77718.45518,0%16.23121.74259.75042.42440,8% Share of profit of associates (recurring)004.1882.3086.4974.74437,0% EBIT21.77718.45518,0%20.41924.05066.24747.16840,4% EBIT margin (%)57,1%18,3%38,8 pp49,7%57,2%54,6%31,3%23,3 pp Depreciation6694-29,8%4481191282-32,3% EBITDA21.84318.54917,8%20.46324.13166.43847.45040,0% EBITDA margin (%)57,3%18,4%38,9 pp49,8%57,4%54,8%31,5%23,3 pp share of profits (non-recurring)3.8052.59846,5%-3.1228741.5568.865-82,4% Net financial interest income(expense)12.171-7.056-272,5%-33-1.95211.201-20.306-155,2% Other net financial income (expense)47716-93,4%2.0341.3292.395-448-634,6% Forex gain (loss)-78.56519.289-507,3%-34.207-15.085-127.85732.353-495,2% Profit before tax-40.76534.002-219,9%-14.9099.216-46.458182.372-125,5% Corporate tax-521-36443,1%-425-445-1.391-83367,0% Net profit-41.28633.638-222,7%-15.3348.771-47.849181.539-126,4% Net profit margin (%)-108,3%33,3%NM-37,3%20,9%-39,5%120,3%NM

69 69 3 Turkey Real Estate Economic Highlights Turkey Real Estate Market Review Business Review Project Pipeline Financial Review Future Outlook Appendix ● Portfolio Review ● Financial Data ● Listed REIC's

70 70 Portfolio Structures of REICs (as of June 2011) Listed REICs LandBuildingsOngoing projects Rights over real estate assets Marketable securities Participations Emlak Konut52%4%32%-12%- Torunlar8%39%23%-19%11% İş12%83%--6%0% Sinpaş33%21%37%-2%7% Kiler6%85%3%-6%0% Akmerkez-91%--9%- Akfen-45%3%2%6%44% Reysaş16%74%8%-0%1% Alarko16% 6%20%41%0% Martı16%-21%63%-0% TSKB4%90%--6%0% Atakule0%60%0%-39%- Yesil30%-70%-0%- Doğuş-89%--11%- Pera-82%10%2%4%2% Vakıf77%12%-2%9%- Özderici-3%79%-18%- Yapı Kredi Koray8%25%20%-0%47% Sağlam-68%--28%4% Nurol49%34%--17%- Avrasya16%83%--2%- EGS2%-98%-0% İdealist-95%--5%- TOTAL27%34%22%1%11%5% exc. EKGYO13%51%17%2%11%8%

71 This presentation does contain forward-looking statements that reflect the Company management’s current views with respect to certain future events based on the base-case assumptions. Although it is believed that the expectations reflected in these statements are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Neither Torunlar REIC nor any of its directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation. 71 Disclaimer

72 Haluk YUKLER Investor Relations Director 72 Contacts Ismail KAZANC CFO TORUNLAR REIC (Real Estate Investment Company) Ruzgarlibahce Mah. Selvi Cikmazi No.4 34805 Kavacik, Istanbul, TURKEY Phone: +90-216-425 20 07 Fax: +90-216-425 03 12

Download ppt "111 INVESTOR PRESENTATION November 2011. 222 3 Turkey Real Estate Economic Highlights 3 Turkey Real Estate Market Review 5 Business Review 23 Project."

Similar presentations

Ads by Google