Akis Gayrimenkul Yatirim Ortakligi A.s. · BIST:AKSGY

Akis Gayrimenkul Yatirim Ortakligi A.s — Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. — Investor Presentation (December 2018)

47 slides from Akis Gayrimenkul Yatirim Ortakligi A.s's investor presentation, December 2018

  1. Slide 1: Akiş REIT Investor Presentation (Dec'18)

    Akiş REIT Investor Presentation (Dec’18) Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 1

  2. Slide 2: Agenda

    Akiş REIT Investor Presentation (Dec’18) 1 Group Presentation 2 Company Overview 3 Snapshot as of 3Q18 4 Breakdown of Portfolio 5 Market & Portfolio Overview 6 Portfolio Performance 7 Planned Projects 8 Financials’ Overview & Guidance Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investme

  3. Slide 3: Group Presentation

    Akiş REIT Investor Presentation (Dec’18) 1 Group Presentation Founded in 1952 by Raif Dinçkök, Akkök Holding is one of the most well established industrial groups in Turkey. The Group conducts operations in the fields of chemicals, energy and real estate, with 18 commercial and industrial enterprise

  4. Slide 4: Company Overview (Ownership Structure)

    Akiş REIT Investor Presentation (Dec’18) 2 Company Overview (Ownership Structure) Shareholders (as of 30.09.2018 ) Shares (%) Nominal Value of Shares (TL) Ali Raif Dinçkök 24,19% 104.022.994 Akkök Holding Inc. 14,66% 63.065.857 Nilüfer Dinçkök Çiftçi 9,21% 39.605.908 Emniyet Ticaret ve Sanayi Inc. 9

  5. Slide 5: Company Overview (History)

    Akiş REIT Investor Presentation (Dec’18) 2 Company Overview (History) Total Assets: Total Assets: Total Assets: TL1.122.325.258 TL1.351.959.334 TL2.002.995.103 Establishment Transformation to REIT Opening of Akasya 2011 2013 2015 2017 2005 2012 2014 2016 Opening of Akbatı Akal Merger Acquisition of

  6. Slide 6: Company Overview (2018 in a nutshell)

    Akiş REIT Investor Presentation (Dec’18) 2 Company Overview (2018 in a nutshell) On 10/04/2018, European Bank for The Communiqué Regarding Amendment on the Reconstruction and Development (EBRD) Communiqué Regarding Decree No. 32 on the invested c.TL102mn (US$25.2mn equivalent) Protection of the Valu

  7. Slide 7: Company Overview (Investment Theme)

    Akiş REIT Investor Presentation (Dec’18) 2 Company Overview (Investment Theme) Prime assets with high rental Regular dividend distribution policy, Proven corporate governance and yields in unique locations attractive dividend yield, dividend record Akasya: Akbatı: Suadiye Average dividend Average di

  8. Slide 8: Company Overview (Disposals Summary 2015-2017)

    Akiş REIT Investor Presentation (Dec’18) 2 Company Overview (Disposals Summary 2015-2017) Type Of Real Estate Date Appraisal Value (TL) Sales Value (TL) Address of The Real Estate İstanbul İli Esenler İlçesi, Atışalanı mahallesi Teksitlkent Store 10.03.2015 310.000 368.960 Bilecik İli, Bozüyük İlçes

  9. Slide 9: Snapshot as of 3Q18

    Akiş REIT Investor Presentation (Dec’18) 3 Snapshot as of 3Q18 Net asset value: Current mcap: Shopping centers: 85% *in terms of portfolio breakdown TL3.7bn TL1.1bn Gross yield: 7.96% *on two shopping centers 9M18 NAV discount: Revenue generating assets 70% TL5.0bn 9M18 Current ratio: 9M18 net debt:

  10. Slide 10: Breakdown of Portfolio (as of 30.09.2018)

    Akiş REIT Investor Presentation (Dec’18) 4 Breakdown of Portfolio (as of 30.09.2018) Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 10

  11. Slide 11: Market Overview

    Akiş REIT Investor Presentation (Dec’18) 5 Market Overview Number of Shopping Malls Shopping Malls Turnover (TLbn) 150,4 435 9.4% 137,5 396 403 15.4% 360 377 119,2 338 103,8 2014 2015 2016 2017 2018 YtD 2019E 2016 2017 2018E 2019E Breakdown of Investments by Investor (sqm)  Competition is getting m

  12. Slide 12: Market Overview – Game Changers

    Akiş REIT Investor Presentation (Dec’18) 5 Market Overview – Game Changers Blurring Lines Between Online and Offline Shopping The Indispensability of Product/Service Customization, Consumers Holding the Power Over Brands Providing More Value to Consumers with Digital Solutions Providing Differentiat

  13. Slide 13: Market Overview – Importance of Physical Store

    Akiş REIT Investor Presentation (Dec’18) 5 Market Overview – Importance of Physical Store  In store shopping has increased for the third year straight. (In store pick-ups via online shopping is helping)  Increasing for six years straight: Mobile shopping.  Stores provide sensory and social experi

  14. Slide 14: Market Overview – Importance of Physical Store

    Akiş REIT Investor Presentation (Dec’18) 5 Market Overview – Importance of Physical Store  The true value of a physical store is increasingly being measured not only with direct sales that are generated inside, but as a step in the customers’ shopping journey.  In US, the share of online shopping

  15. Slide 15: Market Overview – Share of E-commerce

    Akiş REIT Investor Presentation (Dec’18) 5 Market Overview – Share of E-commerce (as % of total retail sales)  Turkish e-commerce market is growing with in parallel to other emerging markets such as India, Brazil, Russia, Poland.  In Turkey, 4 out of 10 people are shopping online. Men shop online

  16. Slide 16: Market Overview – Experiential Spaces

    Akiş REIT Investor Presentation (Dec’18) 5 Market Overview – Experiential Spaces  The growing focus on experience has led to a rising share in non-retail/experiential tenants, including food and beverage (F&B), salons, movie theaters, fitness centers and medical clinics. According to a recent study

  17. Slide 17: Market Overview – Example of Amazon

    Akiş REIT Investor Presentation (Dec’18) 5 Market Overview – Example of Amazon  Amazon’s success in its expansions varies in terms of online retail market shares in different countries.  Examples such as China, Brazil, Mexico show that it is harder for Amazon to generate a massive market share in

  18. Slide 18: Portfolio Overview

    Akiş REIT Investor Presentation (Dec’18) 5 Portfolio Overview Akasya Commercial Center Akbatı Commercial Center Suadiye Beymen Opening Date 2014 Opening Date 2011 Opening Date 2017 Number of Shops 260 Number of Shops 173 Number of Shops 1 Gross Leasable Area (sqm) 80.000 Gross Leasable Area (sqm) 65

  19. Slide 19: Portfolio Performance (Akasya Shopping Mall)

    Akiş REIT Investor Presentation (Dec’18) 6 Portfolio Performance (Akasya Shopping Mall) Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 19

  20. Slide 20: Akasya Shopping Mall – General Overview

    Akiş REIT Investor Presentation (Dec’18) Akasya Shopping Mall – General Overview Akasya stores’ total TL turnover growth CAGR (Sep’18 vs. Sep 15’) above Income breakdown benchmarks Occupancy Ratio ~ 2% store mix change effect Average Store Churn Rate Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real

  21. Slide 21: Akasya Shopping Mall – Expenditures breakdown

    Akiş REIT Investor Presentation (Dec’18) Akasya Shopping Mall – Expenditures breakdown Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 21

  22. Slide 22: Akasya Shopping Mall – Expenditures growth (YoY)

    Akiş REIT Investor Presentation (Dec’18) Akasya Shopping Mall – Expenditures growth (YoY) CPI: 24.5% CPI: 11.9% CPI: 8.5% Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 22

  23. Slide 23: Akasya Shopping Mall – Store mix by size (sqm)

    Akiş REIT Investor Presentation (Dec’18) Akasya Shopping Mall – Store mix by size (sqm) 1,000 – 10,000 250 - 500 50 - 100 500 - 1,000 100 - 250 0 - 50 Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 23

  24. Slide 24: Akasya Shopping Mall – Store mix by category

    Akiş REIT Investor Presentation (Dec’18) Akasya Shopping Mall – Store mix by category (in terms of sqm %) Category Jan'15 Sep'18 Shoes/Bag 3,8% 4,6% Men/Women Clothing 7,8% 6,9% Underwear 2,3% 2,5% Women Clothing 5,3% 4,7% Department Store 17,8% 18,4% Men's Clothing 2,5% 2,6% Home/Decoration 6,2% 3,

  25. Slide 25: Akasya Shopping Mall – Financials

    Akiş REIT Investor Presentation (Dec’18) Akasya Shopping Mall – Financials Income yield Akasya Shopping Mall (US$mn) 2015 2016 2017 9M17 9M18 YoY Revenue 58,4 58,9 57,5 42,5 39,9 -6% NOI 44,5 45,0 45,3 32,9 32,3 -2% EBITDA 45,5 45,9 46,0 33,5 32,7 -2% Latest Appraisal Value 603,8 627,6 631,0 Yield 7

  26. Slide 26: Portfolio Performance (Akbatı Shopping Mall)

    Akiş REIT Investor Presentation (Dec’18) 6 Portfolio Performance (Akbatı Shopping Mall) Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 26

  27. Slide 27: Akbatı Shopping Mall – General Overview

    Akiş REIT Investor Presentation (Dec’18) Akbatı Shopping Mall – General Overview Akbatı stores’ total TL turnover growth CAGR (Sep’18 vs. Sep 15’) above Income breakdown benchmarks Occupancy Ratio ~ Near All Times High Average Store Churn Rate Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate

  28. Slide 28: Akbatı Shopping Mall – Expenditures breakdown

    Akiş REIT Investor Presentation (Dec’18) Akbatı Shopping Mall – Expenditures breakdown Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 28

  29. Slide 29: Akbatı Shopping Mall – Expenditures growth (YoY)

    Akiş REIT Investor Presentation (Dec’18) Akbatı Shopping Mall – Expenditures growth (YoY) CPI: 24.5% CPI: 11.9% CPI: 8.5% Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 29

  30. Slide 30: Akbatı Shopping Mall – Store mix by size (sqm)

    Akiş REIT Investor Presentation (Dec’18) Akbatı Shopping Mall – Store mix by size (sqm) 1,000 – 10,000 250 - 500 50 - 100 500 - 1,000 100 - 250 0 - 50 Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 30

  31. Slide 31: Akbatı Shopping Mall – Store mix by category

    Akiş REIT Investor Presentation (Dec’18) Akbatı Shopping Mall – Store mix by category (in terms of sqm %) Category Jan'15 Sep'18 Shoes/Bag 2,8% 4,0% Men/Women Clothing 6,8% 6,1% Underwear 1,0% 1,0% Women Clothing 2,4% 1,8% Department Store 21,1% 21,1% Men's Clothing 1,7% 2,1% Home/Decoration 5,3% 4,

  32. Slide 32: Akbatı Shopping Mall – Financials

    Akiş REIT Investor Presentation (Dec’18) Akbatı Shopping Mall – Financials Income yield Akbatı Shopping Mall (US$mn) 2015 2016 2017 9M17 9M18 YoY Revenue 23,8 24,1 23,2 16,7 16,2 -3% NOI 16,5 16,7 16,9 12,0 11,9 -1% EBITDA 16,6 16,8 17,1 12,1 12,0 -1% Latest Appraisal Value 267,4 253,5 239,4 Yield 6

  33. Slide 33: Portfolio Performance (High Street Retail)

    Akiş REIT Investor Presentation (Dec’18) 6 Portfolio Performance (High Street Retail) Uşaklıgil (Suadiye Beymen) Ak Apartmanı Erenköy Caddebostan Current Status Operational Completed Under Construction On Hold Est. Opening Date Sep' 17 Jan' 19 Sept' 20 Sept' 20 Usage Commercial Mix Commercial Commer

  34. Slide 34: Portfolio Performance (Turnover Growth CAGR Sep'18-Sep'15)

    Akiş REIT Investor Presentation (Dec’18) 6 Portfolio Performance (Turnover Growth CAGR Sep’18-Sep’15) Source: AYD, TUIK Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 34

  35. Slide 35: Portfolio Performance (Visitor Growth CAGR Sep'18-Sep'15)

    Akiş REIT Investor Presentation (Dec’18) 6 Portfolio Performance (Visitor Growth CAGR Sep’18-Sep’15) Source: AYD Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 35

  36. Slide 36: Our Track Record on High Street Retail

    Akiş REIT Investor Presentation (Dec’18) Our Track Record on High Street Retail Located in one of the most prestigious 15 year lease contract Shopping Street Catchment Area Population: US$5mn Tenant Capex ~850,000 (5km radius) Luxury Market Leader Tenant Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş

  37. Slide 37: Our Track Record on High Street Retail

    Akiş REIT Investor Presentation (Dec’18) Our Track Record on High Street Retail Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 37

  38. Slide 38: Planned Projects - Beykoz

    Akiş REIT Investor Presentation (Dec’18) 7 Planned Projects - Beykoz We plan on developing a residential/commercial project in Beykoz, one the most upmarket districts in Istanbul, seizing the opportunity of supply deficit in the region. The expected date for the project kick-off is 2020. Project Kic

  39. Slide 39: Planned Projects – Aldgate (London)

    Akiş REIT Investor Presentation (Dec’18) 7 Planned Projects – Aldgate (London) We have acquired a site on Aldgate, one of the most dynamic regions of London real estate market, where we will be developing a residential project consisting of 42 flats. The expected date for the project kick-off is 201

  40. Slide 40: Financials' Overview (TLmn)

    Akiş REIT Investor Presentation (Dec’18) 8 Financials’ Overview (TLmn) Net profit of 9M18 is mainly due to revaluation gain of Investment Properties EBITDA margin improved thanks to c.27% rise in store rent revenues and c.TL1.5bn significant jump in other revenues coupled with a good cost management

  41. Slide 41: Financials' Overview (Synergy of the Saf REIT Merger)

    Akiş REIT Investor Presentation (Dec’18) 8 Financials’ Overview (Synergy of the Saf REIT Merger) EBITDA Level Expense synergy Management Control Brand Awareness Process Efficiency Competitiveness + Below EBITDA Level: VAT Receivables Advantage Disposals Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş R

  42. Slide 42: Financials' Overview (Net Debt Evolution in USDmn)

    Akiş REIT Investor Presentation (Dec’18) 8 Financials’ Overview (Net Debt Evolution in USDmn) Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 42

  43. Slide 43: Financials' Overview (Debt Payment Schedule by Currency)

    Akiş REIT Investor Presentation (Dec’18) 9 Financials’ Overview (Debt Payment Schedule by Currency, in mn) Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 43

  44. Slide 44: Financials' Overview (TL, Collateral Status)

    Akiş REIT Investor Presentation (Dec’18) 8 Financials’ Overview (TL, Collateral Status) Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 44

  45. Slide 45: 2019 Agenda & Guidance

    Akiş REIT Investor Presentation (Dec’18) 8 2019 Agenda & Guidance Our top priorities for 2019 are to;  Extend debt maturity  Manage cash flow succesfully  Use capital markets products occasionally (derivatives etc.)  Increase footfall with more focus on F&B and entertainment Our medium term prio

  46. Slide 46: NAV Discount evolution (an unmerited divergence)

    Akiş REIT Investor Presentation (Dec’18) 8 NAV Discount evolution (an unmerited divergence) May-13 May-14 May-15 May-16 May-17 May-18 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jul-13 Jul-1

  47. Slide 47: Communication

    Akiş REIT Investor Presentation (Dec’18) Communication Ozan Hançer Director Strategic Planning, Business Development and Investor Relations E-mail: ozan@akisgyo.com Telephone: +902123930100 Sercan Uzun, CFA Assistant Manager Investor Relations, Strategic Planning and Business Development E-mail: ser

Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. — Investor Presentation (December 2018) on 6ix