Ozak Gayrimenkul Yatirim Ortakligi As · BIST:OZKGY
Ozak Gayrimenkul Yatirim Ortakligi As — Özak REIT — 1H 2016 Earnings Presentation
37 slides from Ozak Gayrimenkul Yatirim Ortakligi As's earnings presentation, Aug 22, 2016
Slide 1: 1H'2016 Investor Presentation
1H’ 2016 Investor Presentation 22 August 2016
Slide 2: Disclaimer
Disclaimer Certain statements contained herein should be construed solely as "forward-looking” manifestations. Such expressions most often than not are denoted via words such as "estimate," "project, "predict," "believe," "expect," "anticipate," "potential," "plan," "goal," “will” or any other expli
Slide 3: Agenda
Agenda ÖZAK Global ÖZAK REIT Financial & Projects Review p. 27 p. 7 p. 4 3
Slide 4: ÖZAK Global
ÖZAK Global 4
Slide 5: Global Activities
ÖZAK Global Activities Textiles Construction Tourism REIT • ÖZAK Textile • Int-Er Yapi • Ela Quality Resort Hotel • ÖZAK REIT • Founded in 1985 • Founded in 1995 • Entered the tourism industry in • Founded in 2009 2007 with Ela Quality Resort Hotel • 57,000 m2 of enclosed space in 4 • Undertakes and
Slide 6: Global History
ÖZAK Global History 2016 Hayat Tepe 2015 Project Özak Group’s Subsidiary Completed 20-year real estate experience 2014 company Aktay Tourism Büyükyalı Project’s Construction Büyükyalı Project, merged with was initiated by Int-Er Yapı in 1995 Kazlıçeşme ÖZAK REIT Permit 2013 İstanbul Özak REIT obtain
Slide 7: ÖZAK REIT & Projects
ÖZAK REIT & Projects 7
Slide 8: REIT Key Strengths
ÖZAK REIT ÖZAK REIT Key Strengths Differentiating as a Project Developer Based on Requirements Operations in four different segments provide flexibility and defensiveness against risks INDUSTRY INDUSTRY COMMERCIAL RESIDENTIAL TOURİSM -Reputable Tenants 90% FX-Based rental contracts Operations in Dif
Slide 9: REIT Snapshot
ÖZAK REIT ÖZAK REIT Snapshot TL 1.69 bn 26.5% Total Asset Size TL 17 mn 9.2% TL 5.9 mn TL 64 mn 2016 Rental Income Expectation Rental Income TL 64 mn TL 6.3 mn 98% Occupancy Rate TL 6.13 mn 10.0% 90% FX Based Contracts 1H’ 16 EBITDA TL 20.7 mn TL 53.5 mn TL 14.1 mn 22.1% 32.3% 1H’ 16 Revenue 9
Slide 10: Shareholding Structure
ÖZAK REIT Shareholding Structure 30.62% Share in Shareholders Nominal Value Capital Ahmet Akbalık 131,982,337.98 52.79% 52.79% Ürfi Akbalık 76,556,960.74 30.62% 4.50% ÖZAK Textile & Others 11,251,307.01 4.50% 12.08% Effective Free Float 30,209,394.27 12.08% Total 250,000,000.00 100.00% Ahmet Akbalık
Slide 11: Project Spread in Türkiye
ÖZAK REIT Project Spread in Türkiye Projects in İstanbul Projects in Türkiye İzmir Alsancak Didim Ela Quality Resort Hotel, Antalya Belek Demre 34 Portall Mahmutbey Göktürk Hayat Tepe İş İstanbul 34 Balmumcu Metro Gross Market Büyükyalı, Bulvar 216, İstanbul Ataşehir Marmara Sea Completed Projects O
Slide 12: Completed Projects – Leasing Portfolio Value Creation
ÖZAK REIT Completed Projects – Leasing Portfolio 34 Portall Plaza, İstanbul Value Creation İş İstanbul 34, İstanbul Value Creation Facts & Figures Facts & Figures 4,7x Completion Date 2010 Completion Date 2010 5,4x 251.2 116.9 TL mn TL mn Occupancy Rate 100% Occupancy Rate 85% 53.4 21.6 Annual Rent
Slide 13: Portall Plaza, İstanbul
ÖZAK REIT 34 Portall Plaza, İstanbul Project Details Ownership Özak REIT (100%) Project Type Industrial Office Building Location İstanbul, İkitelli Land & Development Cost TL53.4mn Appraisal Value TL251.2mn Occupancy Rate 100% Annual Rent Increase LIBOR+2% Operational Date 2010 • Strategically locat
Slide 14: İş İstanbul 34, İstanbul
ÖZAK REIT İş İstanbul 34, İstanbul Project Details Ownership Özak REIT (100%) Project Type Office & Commercial Location İstanbul, Güneşli Land & Development Cost TL21.6mn Appraisal Value TL116.9mn Occupancy Rate 86% Annual Rent Increase LIBOR+3% Operational Date 2010 Land Area 6,586 m² • Located str
Slide 15: Bayrampaşa Metro Gross Market, İstanbul
ÖZAK REIT Bayrampaşa Metro Gross Market, İstanbul Project Details Ownership Özak REIT (100%) Project Type Retail Location İstanbul, Bayrampasa Land & Development Cost TL34.7mn Appraisal Value TL94.1mn Occupancy Rate 100% Annual Rent Increase Euro CPI Operational Date 2012 Land Area 15,130 m² • Consi
Slide 16: Ela Quality Resort Hotel, Antalya
ÖZAK REIT Ela Quality Resort Hotel, Antalya Project Details Ownership Özak REIT (100%) Operation 95% subsidiary Aktay Otel İşletmeleri A.Ş. Project Type Tourism Location Antalya, Belek Hotel Capacity 1,200 beds / 583 rooms Land & Development Cost TL123.9mn Appraisal Value TL378.0mn Guest Occupancy R
Slide 17: Bulvar 216, İstanbul
ÖZAK REIT Bulvar 216, İstanbul Project Details Ownership ÖZAK REIT 100% Project Type Office & Retail Location Ataşehir, İstanbul Land & Development Cost TL102mn Appraisal Value (Retail) TL223.9mn Occupancy Rate 78% Project Completion Date October, 2014 Land Area 5,873 m² Retail Leasable Area 10,717
Slide 18: Hayat Tepe Residences, İstanbul
ÖZAK REIT Hayat Tepe Residences, İstanbul Project Details Ownership Özak REIT (100%) Project Type Residence Location İstanbul, Bayrampasa Land & Development Cost TL217.4mn Total Expected Sales Income TL320.0mn Project Start Date 2013 Land Area 16,698 m² Sellable Area 78,533 m² Total Housing Units 61
Slide 19: Current & Upcoming Projects
ÖZAK REIT Current& Upcoming Projects Büyükyalı İstanbul Project Facts & Figures Value Creation Expected Return on Equity Start Date 2015 1.5x Completion Date 2019 4,240 Sellable/Leasable Area 315,000 m² 485% Expected Avg. Sale Price per m² TL13,370 1,454 2,768 300 TL mn TL mn IRR 48% Land & Developm
Slide 20: Büyükyalı İstanbul Project
ÖZAK REIT Büyükyalı İstanbul Project Project Details Özak REIT (55%) Ownership Ziylan Gayrimenkul (30%) Yenigun Insaat (15%) Project Type Mixed Use Location İstanbul, Kazlıçeşme Start Date 2016 Expected Completion Date Construction 2019, Sales 2020 Land Area 111,200 m² 315,000 m² • 185,000 m² Reside
Slide 21: Büyükyalı İstanbul Project
ÖZAK REIT Büyükyalı İstanbul Project DENİZ KAPI HOUSES BAHÇE KAPI HOUSES GÜN KAPI HOUSE/OFFICE LOFTS HOTEL & BRANDED RESIDENCES KEMER KAPI HOUSES 21
Slide 22: İzmir Alsancak Project
ÖZAK REIT İzmir Alsancak Project Project Details Ownership Özak REIT (100%) Project Type Mixed Use Location İzmir, City Center – Alsancak Expected Start Date 2016 Phase 1 Phase 2 Expected Completion Date Construction 2019 2021 Sales 2020 2022 Land Area 133,360 m² 330,000 m² • 120,000 m² Residence •
Slide 23: İzmir Alsancak Project
ÖZAK REIT İzmir Alsancak Project 23
Slide 24: Prospects of Upcoming Projects
ÖZAK REIT Prospects of Upcoming Projects Two largest projects set İzmir Alsancak Project to further reinforce Notable proximity to a key attraction area of Izmir Largest plot available downtown for "value creation" Büyükyalı Project construction of a mixed-use project on such a massive scale Kazlıçe
Slide 25: Other Upcoming Projects
ÖZAK REIT Other Upcoming Projects Balmumcu Land "At a vantage Göktürk Land point right at Facts & Figures the city Facts & Figures "At the high- Location İstanbul Center with end Location İstanbul full Bosphorus residential Project Type Hotel & Residence Project Type Residence view" convergence Land
Slide 26: Financial Review
Financial Review 26
Slide 27: 1H Key Portfolio Highlights
ÖZAK REIT 1H’ 16 Key Portfolio Highlights • TL1.69bn Total Asset Value • TL 1.24 bn Net Asset Value (2015: TL1,2bn) • 98% Leasing Portfolio Occupancy Rate • 90% of rental contracts are FX-based • TL 53.5 mn Total Revenue generation (1H’ 15: TL 82.8 mn) • TL 21.1 mn Sales Revenue • TL 19.9 mn Rental
Slide 28: Revenue & EBITDA
ÖZAK REIT Revenue & EBITDA Total Revenues (Quarterly) Total Revenues (2014 vs. 2015) 62.8 TL-21.4mn 382.9 42.8 38.3 y/y ↓ 32.1 TLmn TLmn 21.4 183.9 TL-10.7mn q/q ↓ 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 2014 2015 EBITDA (Quarterly) EBITDA (*) (2014 vs. 2015) 248.5 258.9 EBITDA Margin 49.6% Other Operating 13
Slide 29: Rental Revenues & Debt Development
ÖZAK REIT Rental Revenues & Debt Development Rental Revenues (Quarterly) Rental Revenues (2014 vs. 2015) -1,8% y/y ↓ 1,27x 17.9 15.0 14.3 -2,3% 60.8 14.6 14.5 47.9 q/q ↓ TLmn TLmn 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 2014 2015 Total Debt Development Debt Split by Project Other Projects 449.0 417.9 402.5 İz
Slide 30: Net Income & Margin
ÖZAK REIT Net Income & Margin Net Income Bridge 1H’ 16 53.5 TL (2,8) mn TL 5.3 mn FX Income Interest from Income, operating TL 3,9 mn activities FX Income TL (1,0) mn from Rediscount TL (2,2) mn operating expenses FX Loss activities, TL (0,1) mn TL (9,8) mn Ela Hotel TL 3.3 mn Other Financial Deferr
Slide 31: Net Debt Dynamics
ÖZAK REIT Net Debt Dynamics Net Debt as of 1H’ 16 (29.6) 189.3 419.2 TLmn 259.6 "Net Debt figure standing at TL419.2mn L.T. Financial Debt S.T. Financial Debt Cash Net Debt 1H' 16 declines to TL 207.2mn when the total advance payment Change in Net Debt – 1H’ 16 vs. 2015 amounting TL 212 mn – mention
Slide 32: Net Asset Value
ÖZAK REIT Net Asset Value Mn TL Portfolio Value 2015 1H’ 16 2016 Portfolio Breakdown by NAV Mahmutbey, İstanbul – Land 29.7 29.7 32 26% Balmumcu, İstanbul – Land 13.2 13.2 14.3 Lands Göktürk, İstanbul – Land 56.5 56.5 61 38% Total 99.4 99.4 107.3 22% 34 Portall, İstanbul – Office 251.2 251.2 271.3 İ
Slide 33: Summary Balance Sheet
ÖZAK REIT Summary Balance Sheet %∆ TLmn 2014 2015 1H’ 16 (1H‘ 16/ ’15) Current Assets 258.8 113.2 90.6 -20.0% Non Current Assets 1,264.5 1,558.5 1,597.0 2.5% Total Assets 1,523.3 1,671.7 1,687.6 1.0% ST Liabilities 407.9 236.2 241.7 2.3% LT Liabilities 298.4 292.7 297.5 1.6% Total Liabilities 706.3
Slide 34: Summary Income Statement
ÖZAK REIT Summary Income Statement Year to Date Quarterly TLmn %∆ %∆ %∆ 2014 2015 Q2 ’15 Q1’ 16 Q2’ 16 (2015/2014) (Q2’16/Q2’15) (Q2’16/Q1’16) Revenues 382.9 183.9 -52.0% 42.8 32.1 21.4 -50.0% -33.3% Sales Revenue 335.1 123.2 -63.2% 28.3 17.5 7.2 -74.6% -58.9% Rental Revenue 47.9 60.7 26.8% 14.5 14.
Slide 35: Projections & Strategy: Revenue & EBITDA Projections
Projections & Strategy Revenue & EBITDA Projections Revenue Projections 1,370.9 1,267.4 1,260.9 Büyükyalı Büyükyalı 721.0 mnTL Alsancak Tourism Real Estate 750.4 mnTL & Alsancak 952.9 mnTL & Alsancak 397.8 mnTL 882.1 265.2 mnTL Alsancak 584.0 mnTL 171.3 130.7 138.1 648.6 1,021.0 1,179.7 MnTL 1,137.8
Slide 36: Strategy
Projections & Strategy Strategy Maintaining a strong position as a Sustaining our project developer REIT proven operational Creating value through distinct success in NAV Securing downtown projects growth at 71% STRATEGY sustainability TARGET CAGR Generating stable cash flow via in rental income Pur
Slide 37: Thank You
Thank You… For further information please e-mail yatirimci.iliskileri@ozakgyo.com or call ÖZAK REIT Investor Relations at (+90 212 486 3650) 37