Is Gayrimenkul Yatirim Ortakligi A.s. · BIST:ISGYO
Is Gayrimenkul Yatirim Ortakligi A.s — Investor Presentation (December 2015)
59 slides from Is Gayrimenkul Yatirim Ortakligi A.s's investor presentation, December 2015
Slide 1: IS GYO
IS G¥O
Slide 2: Is Real Estate Investment Company 31.12.2015
IS REAL ESTATE INVESTMENT COMPANY 31.12.2015
Slide 3: ISGYO
ISGYO ISGYO Established in 1999, by the strategic partnership of Isbank. (Isbank is Turkey’s biggest private bank established in 1924) Sector Mcap TL 21.465 mn The 4th largest REIC in terms of Mcap with TL1.313 mn. ISREIC TL 1.313 mn 6,1% Our Mission is to create desirable spaces for contemporar
Slide 4: Shareholders Structure by Ownership
Shareholders Structure by Ownership According to the Central Registry Agency of Turkey(MKK), as of 31.12.2015, the ratio of the shares in the free float is 48%. Based on this data, foreign holding ratio is 31% of the free float.
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 3.912 97% Money&Capital Market Instruments 124 3% Total Portfolio Value 4.036 100% * Projects include Ege Perla Mixed Use Project, Manzara Adalar Mixed Use Project, IFC Mixed Use Project, and Topkapı İnistanbul Residential Project.
Slide 9: Real Estate Portfolio Breakdown
Real Estate Portfolio Breakdown Real Estate Portfolio TL mn Office 2.050 Projects 1.045 Retail 759 Land 34 Hotel 23 TOTAL 3.912
Slide 10: Rent Generating Assets
RENT GENERATING ASSETS \ at isgyo.com.tr
Slide 11: ISGYO - Properties Map
ISGYO- Properties Ma en sS Sinop? 7 op | pou 0 Restameny os seimoud ww tL a Pe a } i Vn % ? Boru Amasya’ fk ‘@ Lo Fra - a Pn a Te roa fEanakkaie\ “Bursa _ {Bilecik fF es ‘ * ~_ Balikesn JVWL y ‘es Sa + Eskisehir ™. Yozgat TE ~~. : é ae ve, _ Kutahye ON y e Kirsehir aay, & - } tenes =e } J ‘ . os ST
Slide 12: Office Investments
Office Investments Almost 70% of the rent generating assets in office sector. • TUTOM(Technology&Operation Center)* • İş Towers(Tower II&III) • Tuzla Office** • Ankara İş Tower • Maslak Building • Sirkeci O.B. • Ankara Ulus O.B. • Ankara Kızılay O.B. • Antalya O.B. • Office Lamartine *Completed in
Slide 13: Retail Investments
Retail Investments Almost 30% of the rent generating assets in retail sector. • Kanyon Shopping Center • Marmara Park S.C. • Real Hypermarket • Kule Çarşı S.C. • Tuzla Retail Area* *Rent generation will start in Q22016.
Slide 14: Lately Completed Projects TUTOM & Tuzla Mixed Use
Lately Completed Projects TUTOM&Tuzla Mixed Use
Slide 15: Technology & Operation Center (TUTOM)
Technology & Operation Center(TUTOM) Location : Tuzla, Istanbul Investment model: Turnkey Project Total area: 184.650 sqm Completion date: 3Q2015 Tenant: ISBANK Annual rental income: TL61,5 mn Duration: 25 years
Slide 16: TUTOM
TUTOM *Designed by SOM and Dizayn Grup. Tuzla Operation Center Project is the winner of “Sign of the City Award, 2015” for “Best Office”.
Slide 17: Tuzla Mixed Use (Offices and Retail Area)
Tuzla Mixed Use (Offices and Retail Area) Location : Tuzla, Istanbul Completion date: 3Q2015 Total figures: Total leasable area ≈ 34.000 sqm Expected rental income(1): TL18 mn Current occupancy ≈ 90% Tuzla Offices GLA ≈ 30.000 sqm Annual rental income: TL14,5 mn Tenant: SISECAM 1 Estimated rental in
Slide 18: Projects Under Development
PROJECTS UNDER DEVELOPMENT isgyo.com.tr
Slide 19: Projects Under Development
Projects Under Development Ege Perla Mixed Use Manzara Adalar Mixed Use İnistanbul Residential Istanbul Finance Center Project
Slide 20: Projects Under Development
Projects Under Development Development Cost TL Mn % Ege Perla Mixed Use Project TL 390 21% Manzara Adalar Mixed Use Project TL640 34% İnistanbul Residential Project TL 575 31% Finance Center Project (IFC) TL275 15% TOTAL TL1.880 100%
Slide 21: Ege Perla Mixed Use Project
EGE PERLA MIXED USE PROJECT isgyo.com.tr
Slide 22: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project Location : Konak, Izmir Land area : 18.392 sqm Estimated development cost : TL390 mn Project type : Mixed use project comprising residentials, home-offices and a shopping center *Designed by Emre Arolat.
Slide 23: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project is GYO isgyo.com.tr
Slide 24: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project Projections(1) : Residentials&Offices: Total saleable area : 32.000 sqm Total net profit for the unit sales(2) : TL40-46 mn Shopping Center: Leasable area : 25.600 sqm Rental income : TL20-22 mn 1 The estimated figures. 2In return for the land, 50% of the net profit from
Slide 25: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project isgyo.com.tr
Slide 26: Manzara Adalar Mixed Use Project
MANZARA ADALAR MIXED USE PROJECT
Slide 27: 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 28: 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 29: 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) : TL640 mn Saleable area for residentia
Slide 30: 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 saleable area for residentials : 140.000 sqm Expected rental income(ISGYO share) : TL19-22 mn Number of units : 975
Slide 31: Manzara Adalar
Manzara Adalar isgyo.com.tr
Slide 32: İnistanbul Residential Project
İNISTANBUL RESIDENTIAL PROJECT
Slide 33: 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 34: İnistanbul Residential Project
İnistanbul Residential Project
Slide 35: 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* : TL1,15 bn Total saleable area for residentials*: 214.000 sqm Total saleable area for retail*: 7.000 sqm *Total figures. De
Slide 36: İnistanbul Residential Project
İnistanbul Residential Project 1st Project İnistanbul GALA 3rd Project Number of total residential units ≈ 2.600 2nd Project 4th Project İnistanbul LOKAL
Slide 37: İnistanbul Residential Project - Projections
İnistanbul Residential Project - Projections Project Figures for ISGYO share Development cost : TL575 mn Sales revenues : TL800 mn ISGYO has 50% share in the project. Net profit of the project : TL225 mn *İnistanbul Residential project is the winner of “Sign of the City Award, 2015” for “Best
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: TL275 mn Estimated saleable/leasable area : ≈ 32.000 sqm Estimated rental Income : TL40 mn *Designed by HOK.
Slide 41: Dividend Payout
DIVIDEND PAYOUT isgyo.com.tr
Slide 42: 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 43: Bank Loans & Cash Position
BANK LOANS & CASH POSITION isgyo.com.tr
Slide 44: Bank Loans & Cash Position
Bank Loans & Cash Position Outstanding Original Outstanding Loan Type of the loan Amount mn Date of the Loan Cost Maturity Loan Amount mn TL mn* Euro Loan € 24,2 Dec. 2010 Euribor+350 bps 10 year € 12,1 38,6 TL Dolar Loan $75,0 Oct. 2013 Libor +425 bps 10 year $70,6 205,9 TL TL Loans 273,0 TL Dec. 2
Slide 45: Financials
# Financials”
Slide 46: ISGYO
ISGYO Total Assets TL mn Total Portfolio TL mn 42% 39% 5.000 17% 5.000 20% 4.000 4.000 3.000 3.000 4.125 4.036 2.000 2.000 2.476 2.909 2.905 2.415 1.000 1.000 0 0 2013 2014 2015 2013 2014 2015 Rental Income TL mn 16% 135,0 130,0 125,0 135,0 120,0 115,0 116,1 116,4 110,0 105,0 2013 2014 2015
Slide 47: Balance Sheet
Balance Sheet TL, mn 31.12.2015 31.12.2014 % Change ASSETS 4.125,2 2.908,9 42% Current Assets 459,9 251,6 83% Long-term Assets 3.665,3 2.657,3 38% LIABILITIES 4.125,2 2.908,9 42% Short-term Liabilities 556,0 67,1 729% Long-term Liabilities 778,6 581,3 34% Shareholders' Equity 2.790,6 2.260,6 23% Of
Slide 48: Income Statement
Income Statement TL, mn Jan.-Dec. 2015 Jan.-Dec. 2014 Sales Revenue 222,0 234,1 Cost of Sales -62,1 -119,3 Gross Profit/Loss 159,9 114,7 General Administrative Expenses -15,2 -14,6 Marketing, Sales and Distribution Expenses -21,3 -3,6 Other Operating Income 486,0 267,6 Other Operating Expense -17,2
Slide 49: Income Statement
Income Statement Financials (TL, mn) Jan.-Dec. 2015 Jan.-Dec. 2014 Sales Revenue 222,0 234,1 Cost of Sales -62,1 -119,3 Gross Profit/Losses 159,9 114,7 General Administrative Expenses -15,2 -14,6 Marketing, Sales and Distribution Expenses -21,3 -3,6 Other Operating Income 486,0 267,6 Other Operating
Slide 50: Stock Performance
STOCK PERFORMANCE isgyo.com.tr
Slide 51: Trade Volume
Trade Volume Average Daily Trade Price change in TL ISGYO Volume terms 2014 TL 2,7 mn 14% 2015 TL 5,7 mn 42%
Slide 52: Stock Price vs. Index Performance
Stock Price vs. Index Performance Stock Price& Performance as of 31.12.2015 1 year 3 year 5 year ISGYO 42% 64% 100% BIST REIC 1% -8% 5% BIST 100 -16% -8% 9%
Slide 53: Real Estate Portfolio
REAL ESTATE PORTFOLIO isgyo.com.tr
Slide 54: Appraisal Value of the Real Estate Portfolio
Appraisal Value of the Real Estate Portfolio Appraisal Property Name Value TL mn % Real Estate Projects 1.044,9 27% TUTOM 760,4 19% Is Towers II&III 651,3 17% Kanyon Shopping Center 440,0 11% Tuzla Office&Retail 270,1 7% Marmara Park Shopping Center 130,0 3% Ankara Is Tower 118,0 3% Real Hypermarket
Slide 55: Regulation Highlights
REGULATION HIGHLIGHTS isgyo.com.tr
Slide 56: REICs
REICs Real Estate Investment Companies (REICs) are portfolio management companies that invest in; • Real estate, • Rights and capital market instruments backed by real estate, • Real estate projects and • Money&capital market instruments.
Slide 57: 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 58: 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 59: 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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