Is Gayrimenkul Yatirim Ortakligi A.s. · BIST:ISGYO

Is Gayrimenkul Yatirim Ortakligi A.s — İş Gayrimenkul Yatırım Ortaklığı A.Ş. (İş GYO) — Investor Presentation (June 2017)

63 slides from Is Gayrimenkul Yatirim Ortakligi A.s's investor presentation, Jun 30, 2017

1. Slide 1: İş GYO

   IS G¥O

2. Slide 2: İş Real Estate Investment Company 30.06.2017

   IS REAL ESTATE INVESTMENT COMPANY 30.06.2017

3. Slide 3: ISGYO

   ISGYO Sector Mcap ISGYO TL 26.059 mn  Established in 1999, by the strategic partnership of Isbank. (Isbank is Turkey’s biggest private bank established in 1924) ISREIC TL 1.334 mn  The 3rd largest REIC in terms of Mcap with TL1.334 mn. 5% Our Mission is to create desirable spaces for contemporary

4. Slide 4: Shareholders Structure by Ownership

   Shareholders Structure by Ownership *According to the Central Registry Agency of Turkey(MKK), as of 30.06.2017, the free float ratio is 47%. Based on this data, foreign holding ratio is 35% of the free float. **17% of the paid capital is held by foreign investors.

5. Slide 5: Why ISGYO?

   WHY ISGYO?

6. 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

7. Slide 7: ISGYO Portfolio

   ISGYO PORTFOLIO isgyo.com.tr

8. Slide 8: Portfolio Breakdown

   Portfolio Breakdown Total Portfolio TL mn % Real Estate Investments 5.078 99% Money&Capital Market Instruments 61 1% Total Portfolio Value 5.139 100% * Projects include Ege Perla Mixed Use, Manzara Adalar Mixed Use, IFC Mixed Use Project and İnistanbul Residential Project.

9. Slide 9: Real Estate Portfolio Breakdown

   Real Estate Portfolio Breakdown Real Estate Portfolio TL mn Office 2.239 Projects 1.762 Retail 859 Land 194 Hotel 24 TOTAL 5.078

10. Slide 10: Rent Generating Assets

    RENT GENERATING ASSETS \ at isgyo.com.tr

11. 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)

12. 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

13. 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 Office Antalya TUTOM Towers Kızılay Office Building Ulus O.B. Lamartine O.B. Tower 2 O.B. Annual TL 67,2 TL 24,3 TL14,5 TL 5,1 Rental TL

14. 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

15. 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 Rental TL 33,6 mn TL 17,5 mn TL 7,4 mn TL 3,7 mn ≈ TL 62 mn Income *Figures represent the annual rental income of retail investments

16. Slide 16: TUTOM & Tuzla Mixed Use

    TUTOM&Tuzla Mixed Use isgyo.com.tr

17. 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”.

18. 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

19. Slide 19: Projects Under Development

    PROJECTS UNDER DEVELOPMENT isgyo.com.tr

20. Slide 20: Projects Under Development

    Projects Under Development Ege Perla Mixed Use Manzara Adalar Mixed Use İnistanbul Residential Istanbul Finance Center Project

21. Slide 21: Projects Under Development

    Projec der Developmen Development Cost 5 Ege Perla Mixed Use Project TL 460 24% Manzara Adalar Mixed Use Project TL 620-640 32% inistanbul Residential Project TL 550-600 29% Finance Center Project (IFC) TL 280-300 In Terms of Type 3 = = = = 3 + Office Commercial + Residential is GYO isgyo.com.tr

22. Slide 22: Ege Perla Mixed Use Project

    EGE PERLA MIXED USE PROJECT isgyo.com.tr

23. Slide 23: Ege Perla Mixed Use Project

    Ege Perla Mixed Use Project Location : Konak, Izmir Land area : 18.392 sqm Estimated development cost : TL460 mn Project type : Mixed use project comprising residentials, home-offices and a shopping center *Designed by Emre Arolat.

24. Slide 24: Ege Perla Mixed Use Project

    Ege Perla Mixed Use Project is GYO isgyo.com.tr

25. 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.

26. Slide 26: Ege Perla Mixed Use Project

    Ege Perla Mixed Use Project EGEPERLA isgyo.com.tr

27. Slide 27: Manzara Adalar Mixed Use Project

    MANZARA ADALAR MIXED USE PROJECT

28. 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».

29. 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.

30. Slide 30: Manzara Adalar

    Manzara Adalar Location : Kartal, Istanbul Investment model: Revenue sharing model. Revenues of the project is shared with the ex-land owner in return for the land. Project type : Mixed use project *Designed by Perkins&Eastman. Projections (1): Development cost (excluding land) : TL620-640 mn Saleab

31. Slide 31: Manzara Adalar - Projections

    Manzara Adalar - Projections Total leasable area : 50.000 sqm Total Expected rental income(ISGYO’s share) : TL19-21 mn

32. Slide 32: Manzara Adalar

    Manzara Adalar isgyo.com.tr

33. Slide 33: İnistanbul Residential Project

    İNISTANBUL RESIDENTIAL PROJECT

34. 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, 

35. Slide 35: İnistanbul Residential Project

    İnistanbul Residential Project

36. 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

37. Slide 37: İnistanbul Residential Project

    İnistanbul Residential Project 1st Project 3rd Project İnistanbul GALA İnistanbul HAYAT 2nd Project 4th Project İnistanbul LOKAL İnistanbul KONSEPT

38. Slide 38: Basketball Court, Cinema Room, Guest Room

    Basketball Court Cinema Room Guest Room Music Room

39. Slide 39: Mixed Use Project in Istanbul International Financial Center

    MIXED USE PROJECT in ISTANBUL INTERNATIONAL FINANCIAL CENTER (IFC Project)

40. 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 : ≈ 33.000 sqm Estimated rental Income : TL45-50 mn *Designed by

41. Slide 41: Land Investment

    LAND INVESTMENT © +c ey 9 mn et Ye) Ma Co isgyo.com.tr

42. Slide 42: Tuzla

    Tuzla Tuzla is one of the developing transformation areas on the Asian side of Istanbul.

43. Slide 43: Tuzla Land

    Tuzla Land ~𝟐 km ~𝟖𝟎𝟎𝐦𝐭 Location : Tuzla, Istanbul Acquisition date: January, 2016 Land area: 62.655 sqm Land value: TL150 mn

44. 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 *…

45. Slide 45: Dividend Payout

    DIVIDEND PAYOUT isgyo.com.tr

46. Slide 46: Dividend Payout

    Dividend Payout • 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 and/or stock.  Up until now, ISGYO distributed higher than the ratio determined in the dividend policy.  In the last 10

47. Slide 47: Debt & Cash Position

    DEBT & CASH POSITION isgyo.com.tr

48. Slide 48: Debt & Cash Position for 2017 2Q

    Debt & Cash Position for 2017 2Q 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 38,9 TL Dolar Loan $75,0 Oct. 2013 Libor +425 bps 10 year $57,4 201,7 TL TL Loan 593,0 TL

49. Slide 49: Financials

    # Financials”

50. Slide 50: ISGYO

    ISGYO 5% 5% 19% 21% 42% 39% 17% 20% 42% 16% 16% 35

51. Slide 51: Balance Sheet

    Balance Sheet TL, mn 30.06.2017 31.12.2016 % Change ASSETS 5.121,0 4.887,0 5% Current Assets 584,8 323,0 81% Long-term Assets 4.536,2 4.564,0 -1% LIABILITIES 5.121,0 4.887,0 5% Short-term Liabilities 457,3 188,5 143% Long-term Liabilities 1.514,0 1.537,2 -2% Shareholders' Equity 3.149,7 3.161,3 0% O

52. Slide 52: Income Statement

    Income Statement TL, mn Jan.-June 2017 Jan.-June 2016 Sales Revenue 124,8 248,6 Cost of Sales -30,8 -139,1 Gross Profit/Loss 94,0 109,6 General Administrative Expenses -11,9 -10,1 Marketing, Sales and Distribution Expenses -5,9 -14,8 Other Operating Income 41,5 74,9 Other Operating Expense -48,8 -30

53. Slide 53: Income Statement

    Income Statement Financials (TL, mn) Jan.-June 2017 Jan.-June 2016 Sales Revenue 124,8 248,6 Cost of Sales -30,8 -139,1 Gross Profit/Losses 94,0 109,6 General Administrative Expenses -11,9 -10,1 Marketing, Sales and Distribution Expenses -5,9 -14,8 Other Operating Income 41,5 74,9 EBIT 68,9 129,1 Ne

54. Slide 54: Stock Performance

    STOCK PERFORMANCE isgyo.com.tr

55. Slide 55: Trade Volume

    Trade Volume Average Daily Trade Price change in TL ISGYO Volume terms 2016 TL 4,1 mn 5% 2017 TL 5,7 mn 6%

56. Slide 56: Stock Price vs. Index Performance

    Stock Price vs. Index Performance Stock Price& Performance as of 30.06.2017 1 year 3 year 5 year BİST 100 11% 9% 57% ISGYO -4% 72% 162% XGMYO 6% 21% 38%

57. Slide 57: Real Estate Portfolio

    REAL ESTATE PORTFOLIO isgyo.com.tr

58. 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 1.762,0 35% TUTOM 862,6 17% Is Towers II&III 764,9 15% Kanyon Shopping Center 480,0 9% Tuzla Office&Retail 274,8 5% Lands 194,0 4% Marmara Park Shopping Center 146,6 3% Ankara Is Tower 128,0 3% Me

59. Slide 59: Regulation Highlights

    REGULATION HIGHLIGHTS isgyo.com.tr

60. 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.

61. 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

62. 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

63. 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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