Is Gayrimenkul Yatirim Ortakligi A.s. · BIST:ISGYO
Is Gayrimenkul Yatirim Ortakligi A.s — Investor Presentation (March 2017)
63 slides from Is Gayrimenkul Yatirim Ortakligi A.s's investor presentation, Mar 31, 2017
Slide 1: IS GYO
IS G¥O
Slide 2: Is Real Estate Investment Company 31.03.2017
IS REAL ESTATE INVESTMENT COMPANY 31.03.2017
Slide 3: ISGYO
ISGYO ISGYO Established in 1999, by the strategic partnership of Isbank. Sector Mcap (Isbank is Turkey’s biggest private bank established in 1924) TL 25.003 mn The 5th largest REIC in terms of Mcap with TL1.233 mn. ISREIC TL 1.233 mn 5% Our Mission is to create desirable spaces for contemporary
Slide 4: Shareholders Structure by Ownership
Shareholders Structure by Ownership *According to the Central Registry Agency of Turkey(MKK), as of 31.03.2017, the free float ratio is 47%. Based on this data, foreign holding ratio is 33% of the free float. **16% of the paid capital is held by foreign investors.
Slide 5: Why ISGYO?
WHY ISGYO?
Slide 6: Why ISGYO?
Why ISGYO? Diversified real estate portfolio, Well-qualified assets leased to financially strong and qualified tenants, Solid and steady rental income, Strong project pipeline, Low and manageable debt ratio, Stable cash dividend payments, Strong shareholder structure, Brand value as
Slide 7: ISGYO Portfolio
ISGYO PORTFOLIO isgyo.com.tr
Slide 8: Portfolio Breakdown
Portfolio Breakdown Total Portfolio TL mn % Real Estate Investments 4.763 97% Money&Capital Market Instruments 136 3% Total Portfolio Value 4.899 100% * Projects include Ege Perla Mixed Use, Manzara Adalar Mixed Use, IFC Mixed Use Project and İnistanbul Residential Project.
Slide 9: Real Estate Portfolio Breakdown
Real Estate Portfolio Breakdown Real Estate Portfolio TL mn Office 2.239 Projects 1.447 Retail 859 Land 194 Hotel 24 TOTAL 4.763
Slide 10: Rent Generating Assets
RENT GENERATING ASSETS \ at isgyo.com.tr
Slide 11: ISGYO - Properties Map
isgyo.com.tr ISGYO- Properties Map ————" F % Sinap Kastamonu Bart __ FOnguidaie =. Sask 7 ig cvo Eskisenir , Ankara Kutahya IN = mm ‘Bite ig (Canakkale i ~__ Balikestn 3 vo %, cht Kirsenir 18 d ¥ Sara)
Slide 12: Office Investments – Appraisal Values
Office Investments – Appraisal Values 72% of the rental portfolio is in office sector. İş İş Tuzla Ankara İş Maslak Office TUTOM Towers Towers Office Tower Building Lamartine Tower 2 Tower 3 Appraisal TL 863 TL 387 TL 378 TL 229 TL 128 TL 101 TL 49 mn Value mn mn mn mn mn mn Appraisal Value Buy&le
Slide 13: Office Investments – Rental Income
Office Investments – Rental Income Almost 80% of the office investments generates Current Rental rental income. Income ≈ TL 125 mn İş Ankara Tuzla Maslak Ankara Antalya Office TUTOM Towers Kızılay Office Building Ulus O.B. O.B. Lamartine Tower 2 O.B. Annual TL 67,2 TL 25,1 TL14,5 TL 5,1 Rental TL
Slide 14: Retail Investments - Appraisal Values
Retail Investments - Appraisal Values 28% of the rental portfolio in retail sector. Marmara Kanyon Park Metro Kule Tuzla Shopping Shopping Hypermarket Çarşı Retail Center Center Appraisal TL 480 mn TL 147 mn TL 110 mn TL 61 mn TL 46 mn Value Retail Investments Total Appraisal Value, TL mn 859 11
Slide 15: Retail Investments - Rental Income
Retail Investments - Rental Income Marmara Kanyon Park Metro Kule Shopping Center Shopping Hypermarket Çarşı Current Rental Center Income Annual ≈ TL 68 mn Rental TL 37,6 mn TL 18,2 mn TL 8,1 mn TL 3,7 mn Income *Figures represent the annual rental income of retail investments 11
Slide 16: TUTOM & Tuzla Mixed Use
TUTOM&Tuzla Mixed Use isgyo.com.tr
Slide 17: TUTOM
TUTOM *Designed by SOM and Dizayn Group. TUTOM Project Tuzla Mixed Use Project Tuzla Operation Center Project is the winner of “Sign of the City Award, 2015” for “Best Office”. 12
Slide 18: Technology & Operation Center (TUTOM) and Tuzla Şişecam Office
Technology & Operation Center(TUTOM) and Tuzla Şişecam Office TUTOM Tuzla Şişecam Office Investment model: Turnkey Project Annual rental income: TL14,5 mn Tenant: SISECAM Total area: 184.650 sqm Tenant: ISBANK Annual rental income: TL67,2 mn Duration: 25 years 13
Slide 19: Projects Under Development
PROJECTS UNDER DEVELOPMENT isgyo.com.tr
Slide 20: Projects Under Development
Projects Under Development Ege Perla Mixed Use Manzara Adalar Mixed Use İnistanbul Residential Istanbul Finance Center Project 15
Slide 21: Projects Under Development
Projects Under Development Development Cost TL Mn % Ege Perla Mixed Use Project TL 450 23% Manzara Adalar Mixed Use Project TL 620-640 33% İnistanbul Residential Project TL 550-600 30% Finance Center Project (IFC) TL 260-280 14% TOTAL TL1.880-1.970 100%
Slide 22: Ege Perla Mixed Use Project
EGE PERLA MIXED USE PROJECT isgyo.com.tr
Slide 23: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project Location : Konak, Izmir Land area : 18.392 sqm Estimated development cost : TL450 mn Project type : Mixed use project comprising residentials, home-offices and a shopping center *Designed by Emre Arolat.
Slide 24: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project is GYO isgyo.com.tr
Slide 25: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project Projections(1) : Residentials&Offices: Total saleable area : 33.000 sqm Shopping Center: Total GLA ≈ 23.500 sqm Rental income : TL17-18 mn 1 The estimated figures. 19
Slide 26: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project 20
Slide 27: Manzara Adalar Mixed Use Project
MANZARA ADALAR MIXED USE PROJECT
Slide 28: Manzara Adalar
Manzara Adalar Kartal Region: one of the developing areas on the Asian side of İstanbul, ongoing urban transformation in the region, easy access supported with different means of transportation, close to the industrial zone of İstanbul and planned to be «the commercial center of the future».
Slide 29: Manzara Adalar
Manzara Adalar Project Land: located below the E5 highway(1,6 km) 1,8 km to the sea side, 16 km to Sabiha Gökçen airport, easy access with subway, road and sea transportation, close to hospitals, universities and the newly built court house.
Slide 30: Manzara Adalar
Manzara Adalar Location : Kartal, Istanbul Investment model: Revenue sharing model. Revenues of the project will be shared with the ex-land owner. Project type : Mixed use project *Designed by Perkins&Eastman. Projections (1): Development cost (excluding land) : TL620-640 mn Saleable area for reside
Slide 31: Manzara Adalar - Projections
Manzara Adalar - Projections Strategy : To sell the residentials and keep the rent generating offices & retail area in the portfolio. Total leasable area : 50.000 sqm Total Expected rental income(ISGYO’s share) : TL24-26 mn Total saleable area for residentials : 140.000 sqm
Slide 32: Manzara Adalar
Manzara Adalar isgyo.com.tr
Slide 33: İnistanbul Residential Project
İNISTANBUL RESIDENTIAL PROJECT
Slide 34: İnistanbul Residential Project
İnistanbul Residential Project Topkapı Region: transformation area supported with new real estate projects, industry is dominant in the north side of the region, while south side dominated by residentials, an intersection point for transportation, supported by every means of transportation,
Slide 35: İnistanbul Residential Project
İnistanbul Residential Project
Slide 36: İnistanbul Residential Project
İnistanbul Residential Project Location : Topkapı, Istanbul Acquisition date : December, 2013 Investment model: A joint venture between İş GYO and NEF. Total development cost* : TL1,1-1,2 bn Total sales revenues*: TL1,5-1,6 bn Total saleable area*≈ 250.000 sqm *Total figures. Designed by Perkins+Wil
Slide 37: İnistanbul Residential Project
İnistanbul Residential Project 1st Project 3rd Project İnistanbul GALA İnistanbul HAYAT Number of total residential units ≈ 2.740 Presales ratio: 87% 2nd Project 4th Project İnistanbul LOKAL İnistanbul KONSEPT 26
Slide 38: Basketball Court, Cinema Room, Guest Room
Basketball Court Cinema Room Guest Room Music Room
Slide 39: Mixed Use Project in Istanbul International Financial Center
MIXED USE PROJECT in ISTANBUL INTERNATIONAL FINANCIAL CENTER (IFC Project)
Slide 40: IFC Project
IFC Project Location : Atasehir, Istanbul Project type : A mixed use project comprising offices and retail area. Estimated development cost: TL260-280 mn Estimated saleable/leasable area : ≈ 32.000 sqm Estimated rental Income : TL45-50 mn *Designed by
Slide 41: Land Investment
LAND INVESTMENT © +c ey 9 mn et Ye) Ma Co isgyo.com.tr
Slide 42: Tuzla
Tuzla Tuzla is one of the developing transformation areas on the Asian side of Istanbul. 29
Slide 43: Tuzla Land
Tuzla Land ~𝟐 km ~𝟖𝟎𝟎𝐦𝐭 Location : Tuzla, Istanbul Acquisition date: January, 2016 Land area: 62.655 sqm 30 Land value: TL150 mn
Slide 44: Kadıköy Land
Kadıköy Land ~𝟏𝟎𝟎𝐦𝐭 ~𝟐 km Tepe Nautilus ~𝟖𝟎𝟎𝐦𝐭 Location : Kadikoy, Istanbul Acquisition date: December, 2016 Land area: 9.043 sqm Investment Model: ISGYO has 45% share in the project* Project type: A project comprising hotel and commercial area Land value of ISGYO’s 45% share: TL40 mn 30…
Slide 45: Dividend Payout
DIVIDEND PAYOUT isgyo.com.tr
Slide 46: Dividend Payout
Dividend Payout • Concerning the distribution of profits, REICs are subject to same regulations like all other companies listed in BIST. • 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
Slide 47: Debt & Cash Position
DEBT & CASH POSITION isgyo.com.tr
Slide 48: Debt & Cash Position for 2017 1Q
Debt & Cash Position for 2017 1Q Outstanding Loan Outstanding Original Original Amount Loan Bank Loans Amount mn Date of the Loan Cost Maturity mn TL mn Euro Loan € 24,2 Dec. 2010 Euribor+350 bps 10 year € 9,7 37,9 TL Dolar Loan $75,0 Oct. 2013 Libor +425 bps 10 year $61,8 224,6 TL TL Loan 593,0 TL
Slide 49: Financials
# Financials”
Slide 50: ISGYO
ISGYO 21% 19% 42% 39% 17% 20% 42% 16% 16% 35
Slide 51: Balance Sheet
Balance Sheet TL, mn 31.03.2017 31.12.2016 % Change ASSETS 5.023,2 4.887,0 3% Current Assets 339,3 323,0 5% Long-term Assets 4.684,0 4.564,0 3% LIABILITIES 5.023,2 4.887,0 3% Short-term Liabilities 248,4 188,5 32% Long-term Liabilities 1.656,6 1.537,2 8% Shareholders' Equity 3.118,2 3.161,3 -1% Of t
Slide 52: Income Statement
Income Statement TL, mn Jan.-Mar. 2017 Jan.-Mar. 2016 Sales Revenue 61,5 51,9 Cost of Sales -14,5 -4,9 Gross Profit/Loss 47,0 47,0 General Administrative Expenses -6,8 -5,0 Marketing, Sales and Distribution Expenses -4,0 -2,7 Other Operating Income 0,5 12,0 Other Operating Expense - - Operating Prof
Slide 53: Income Statement
Income Statement Financials (TL, mn) Jan.-Mar. 2017 Jan.-Mar. 2016 Sales Revenue 61,5 51,9 Cost of Sales -14,5 -4,9 Gross Profit/Losses 47,0 47,0 General Administrative Expenses -6,8 -5,0 Marketing, Sales and Distribution Expenses -4,0 -2,7 Other Operating Income 0,5 12,0 EBIT 36,8 51,3 Net Period I
Slide 54: Stock Performance
STOCK PERFORMANCE isgyo.com.tr
Slide 55: Trade Volume
Trade Volume Average Daily Trade Price change in TL ISGYO Volume terms 2016 TL 4,1 mn 5% 2017 TL 6,6 mn -2% 39
Slide 56: Stock Price vs. Index Performance
Stock Price vs. Index Performance Stock Price& Performance as of 31.03.2017 1 year 3 year 5 year BİST 100 3% 15% 46% ISGYO -4% 65% 132% XGMYO 3% 15% 25% 40
Slide 57: Real Estate Portfolio
REAL ESTATE PORTFOLIO isgyo.com.tr
Slide 58: Appraisal Value of the Real Estate Portfolio
Appraisal Value of the Real Estate Portfolio Appraisal Property Name Value TL mn % Real Estate Projects 1.447,1 30% TUTOM 862,6 18% Is Towers II&III 764,9 16% Kanyon Shopping Center 480,0 10% Tuzla Office&Retail 274,8 6% Lands 194,0 4% Marmara Park Shopping Center 146,6 3% Ankara Is Tower 128,0 3% M
Slide 59: Regulation Highlights
REGULATION HIGHLIGHTS isgyo.com.tr
Slide 60: REICs
REICs Real Estate Investment Companies (REICs) can invest in; • Real estate, • Rights and capital market instruments backed by real estate, • Real estate projects and • Money&capital market instruments.
Slide 61: Regulation Highlights
Regulation Highlights REICs are subject to REIC’s communiqué issued by Capital Markets Board(CMB) of Turkey. • REICs have to offer their shares to the public equal to at least 25% of their issued capital. • REICs have to invest at least 51% of their total asset value into real estate, rights and pro
Slide 62: Regulation Highlights
Regulation Highlights • REICs can not in any way be involved in construction of real estates and can not recruit personnel and equipment with this purpose. • REICs properties must be valued by an independent appraisal company authorized by the CMB. • REICs are exempt from corporate taxes and income
Slide 63: Investor Relations
Investor Relations Ayşegül Şahin Kocameşe Head Investor Relations Phone : +90 0212 325 23 50 E-mail : aysegul.sahin@isgyo.com.tr This presentation has been prepared in order to inform Mine Kurt Yıldırım investors. Assistant Manager Investor Relations Since the presentation has been prepared regardin
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