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

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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:

1 111 INVESTOR PRESENTATION November 2011

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 Index %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 Q 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 2010Q İstanbul Unit GLA (sq m)2,29 M2,43 M2,66 M2,99 M Rest of Turkey Unit GLA (sq m)3,41 M3,84 M3,87 M4,39 M Turkey Unit GLA (sq m)5,70 M6,27 M6,53 M7,38 M Source: Jones Lang LaSalle ActiveUnder Construction*Total İstanbul Unit GLA (sq m)2,99 M1,08 M4,07 M Rest of Turkey Unit GLA (sq m)4,39 M1,10 M5,49 M Turkey Unit 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 Istanbul IstanbulMulti Turkmall 2Marmara Forum IstanbulMulti Turkmall 3Cevahir IstanbulCelebioglu 4Ankamall AnkaraYeni Gimat 5Torium IstanbulTorunlar REIC 6Istinyepark IstanbulDogus, Orjin 7Antares AnkaraDolunay 8Anatolium BursaCorio 9Forum Ankara AnkaraMulti Development TR 10Kent Park AnkaraMega Turk Construction 11Panora AnkaraPolat Holding 12M1 Merkez Adana AdanaMetro 13Korupark BursaTorunlar REIC 14Cepa AnkaraCarrefour 15Forum Mersin MersinMulti Turkmall 16Anatolium Ankara IstanbulMaya 17M1 Meydan Umraniye IstanbulMetro Istanbul Power Outlet IstanbulEdip International Real Estate 19Ora Istanbul IstanbulMerkez Construction 20Forum Bornova IzmirMulti 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 Istanbul , Izmir Ankara PRIME RETAIL YIELDS- Sep 2011 HIGH STREETCurrentLast 10 Year SHOPS (Gross)Quarter YearHighLow Istanbul Izmir Ankara SHOPPINGCurrentLast 9 Year CENTRES (Net)Quarter YearHighLow Istanbul Source: Cushman&Wakefield

20 20 Shopping Centre Rents & Yields Source: Cushman&Wakefield CountryPrime Rent (€/sq.m/year)Prime Yield (%) Short Term Yield Outlook Austria ,  Belgium ,  Czech Rep ,  Denmark ,  Finland ,  France1, ,  Germany1, ,  Hungary ,  Ireland1, ,  Italy  Netherlands  Norway ,  Poland  Portugal  Romania  Russia ,  Slovakia  Spain  Sweden  Turkey  United Kingdom1, , 

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 Q 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 Levent Esentepe-Gayrettepe Maslak Umraniye n/a6.7 Izmir Ankara PRIME OFFICE YIELDS- Sep 2011 Prime Yield (%) CurrentLast 10 Year Quarter YearHighLow Istanbul Levent Esentepe-Gayrettepe Maslak Umraniye Izmir Ankara 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 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 % 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) Land Cost (TRY) Land Price per sqm (TRY/sqm) -126,34116, ,78 Construction Area (sqm) Development Cost (TRY) Development Cost per sqm (TRY/sqm) GLA (sqm) * Rental Income-LTM Sept 2011 (TRY) * Total Revenue-LTM Sept 2011 (TRY) * EBITDA-LTM Sept 2011 (TRY) * *Adjusted as per Torunlar, 72,26% share

30 Asset Korupark Residences Phase I-II Torium ResidenceNishIstanbul 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-Forecast (TRY) * * Completed Projects * Assuming the remaining units in inventory will be sold.

31 AssetMall of Istanbul Korupark Residences Phase III Boulevard Samsun Land Area (sqm) Land Cost (TRY) Land Price per sqm (TRY/sqm)1.437,9986,66- Construction Area (sqm) Development Cost (TRY) Development Cost per sqm (TRY/sqm) GLA/GSA (sqm) Rental Income- Forecast (TRY) Total Revenue- Forecast (TRY) Completion DateH2 2013Q1 2013Q Ongoing Projects

32 AssetTorun TowerAli Sami Yen ProjectDeepo Extension Land Area (sqm) Land Cost (TRY) * Land Price per sqm (TRY/sqm) 3.110, ,47435,29 Construction Area (sqm) Development Cost (TRY) * Development Cost per sqm (TRY/sqm) GLA/GSA (sqm) Rental Income-Forecast (TRY) Total Revenue-Forecast (TRY) ** - Net Operating Income-Forecast (TRY) Upcoming Projects *Unadjusted total cost of the project **Adjusted 65% share of Torunlar

33 33 Project Deliveries & Pre-Sales Completed Projects LocationSaleable area (sq.m)Total # of units# of units delivereddelivery ratiostart/ completion Torunlar REIC's revenue share Torunlar REIC sales revenue Korupark I-IIBursa % May 2006/February % Torium ResidenceIstanbul % June 2008/June %0 NishIstanbulIstanbul % July 2008/October % Residence % July 2008/October 2010 Office % 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 (in units) presold ratio (in sq.m) delivery ratio start/ completion Torunlar REIC's revenue share Presale Cash In (TRY) Mall of IstanbulIstanbul NA48%42%NA April 2011/Q % Residence NA50%47%NA April 2011/Q % Office NA32%23%NA April 2011/Q % Korupark Residences Phase IIIBursa NA30%22%NA March 2011/ Q %

34 34 Project Monthly Pre-Sales (in Units) MALL OF İSTANBUL PRESALES 2011 MONTHRESIDENCEOFFICE APRIL2930 MAY760 JUNE1115 JULY125 AUGUST73 SEPTEMBER442 OCTOBER557 NOV 21st37375 DECEMBER00 TOTAL KORUPARK TERRACE APARTMENTS PRESALES 2011 MONTHPRESALES APRIL113 MAY27 JUNE9 JULY3 AUGUST4 SEPTEMBER24 OCTOBER22 NOV 21st2 DECEMBER0 TOTAL204

35 35 Resilient retail operations through active hands-on management Sept 2011 Bursa Zafer Plaza Bursa Korupark Antalya Deepo Outlet Istanbul ToriumTotal GLA ( m2 ) Revenues (TRY) LfL Revenues % growth 0* NA25.7 % LfL Footfall growth6.0(0.5)2.2NA2.8 Number of stores Occupancy (%) Turnover rent (as % of fixed rent) 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 , 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 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 Plaza ,04%6,19% 48,56%6,26% Bursa Korupark ,09%6,55% 43,75%6,80% Antalya Deepo Outlet ,16%6,35% 65,45%6,47% İstanbul Torium ,44%4,95% 9,44%4,95% TOTAL ,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 ANCHOR %295134%7% HOME5.1853% %4% READY WEAR % %50% DEPARTMENT STORE %301227%3% SERVICE3.3132% %2% LEISURE/ GIFT/ SPECIAL3.8982% %3% PERSONAL CARE+ACCESSORIES % %7% CULTURE/ART/ENTERTAINMENT %691116%3% TECHNOLOGY6.7784% %6% FOOD & DRINK % %11% TOTAL % %100% ,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) Retail Residence Office Hotel2.907 Marina2.984 Other Total 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) Change % Sales revenue Residences sold Rental revenue EBITDA EBITDA margin23.8%59.7%-35.9 Dividend income Net gain/(loss) from from fair value adjustments on investment property Net profit EPS1.16 TRY3.04 TRY-68.0 LfL rental revenue growth33% Occupancy ratio98% 0,0 Total Assets Total Equity Net debt Portfolio value Market cap Financial highlights

45 45 Financial highlights TRY /092010/09 Change % Sales revenue ,6% Residences sold ,2% Rental revenue ,4% EBITDA ,0% EBITDA margin54,8%31,5%23,3 pp Dividend income ,0% Net gain/(loss) from fair value adjustments on investment property Forex gain/loss NM Net profit NM EPS-0,21 TRY0,81 TRYNM LfL rental revenue growth25,8%22,3%3.5pp Occupancy ratio98% 0,0% TRY /092010/12 Change % Total Assets ,6% Total Equity ,6% Net debt ,1% Portfolio value ,4% Market cap ,0%

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

47 47 Net Foreign Currency Position (.000)€$ TL Equivalent Change % Current assets ,5% Trade receivables ,2% Monetary financial assets ,4% Financial investments Other Total assets ,5% Current liabilities ,5% Trade payables ,4% Financial liabilities ,7% Other current liabilities Non-current liabilities ,5% Financial liabilities ,5% Total liabilities ,7% Net foreign currency asset (liability) ,6%

48 48 Abridged Income Statement (000 TRY) 9M11 % 9M10 % YoY Sales ,0% ,0%-19,6 Residence ,8% ,6%-72,2 Mall rental ,7% ,6%106,4 Other ,6%8.7995,8%45,4 Gross profit ,4% ,4%33,6 Operating profit ,3% ,2%-62,0 EBIT ,6% ,3%40,4 EBITDA ,8% ,5%40,0 Profit before tax -46, %182, % Net profit ,5% ,3%-126,4

49 49 Funding Summary 2011/ /12 Change Total net debt (000 TRY) ,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 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 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 Samsun Bulvar Shopping Mall will come on stream in May 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 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 H 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 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 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 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 OwnershipTorunlar REIC (100%) Start of constructionH 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, 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 Date 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 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 Start of construction: Nov End of construction: Q 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 ( sq.m), six blocks Inventory as of Sept 30 th,2011: 18 units (3.088 sq.m) Phase II: 403 units ( sq.m), seven blocks Inventory as of Sept 30 th, 2011: 50 units ( 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 ( m2) were presold as of November 13th Map of Korupark Korupark Shopping Mall Korupark Residences Phase III Korupark Residences Phase I & II Note: Exchange rate US$/TL= 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 dateQ Estimated investmentTL87.3mm (US$56.5mm) Appraisal valueTL50.4mm (US$32.6mm) Leasehold / Freehold statusFreehold Number of residential units/GSA680 units / 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 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 526 units (53.765m2) were presold for 3.130TL/m2 out of and 38 office units (6.928m2) out 75 for 3.943TL/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. OwnershipTorunlar REIC (100%) Start of constructionMarch 2011 Estimated date of completionH Estimated operational dateQ Estimated investmentc.TL500.0mm (US$323mm) Number of residences / GSA-GLA m2 GLA mall, m2 GSA residence, 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 For Torun Tower, office units will be leased for 35$/sqm/month, retail units for 47$/sqm/month. Breakdown–Area (GLA) GLA Office: m 2 Other: 2.415m 2 OwnershipTorunlar REIC (100%) Estimated start of constructionDecember 2011 Estimated date of completionQ Estimated operational dateQ 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 constructionQ Estimated date of completionH Estimated operational dateH 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 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 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 constructionH 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 Sales ,3% ,6% Residence ,8% ,2% Mall rental ,8% ,4% Other ,9% ,4% Cost of sales ,1% ,0% Gross profit ,0% ,6% Gross margin64,6%20,8%43,8 pp56,3%60,6%60,4%36,4%24,0 pp Opex ,9% ,8% Other income(expenses) ,9% ,7% Net gain (loss) fair value adjustments on investment property ,0% Operating profit ,0% ,0% Operating profit excluding fair value adjustment ,0% ,8% Share of profit of associates (recurring) ,0% EBIT ,0% ,4% EBIT margin (%)57,1%18,3%38,8 pp49,7%57,2%54,6%31,3%23,3 pp Depreciation ,8% ,3% EBITDA ,8% ,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) ,5% ,4% Net financial interest income(expense) ,5% ,2% Other net financial income (expense) ,4% ,6% Forex gain (loss) ,3% ,2% Profit before tax ,9% ,5% Corporate tax ,1% ,0% Net profit ,7% ,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 Kavacik, Istanbul, TURKEY Phone: Fax:


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