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

Is Gayrimenkul Yatirim Ortakligi A.s — Investor Presentation (December 2017)

53 slides from Is Gayrimenkul Yatirim Ortakligi A.s's investor presentation, Dec 31, 2017

  1. Slide 1: IS GYO

    IS G¥O

  2. Slide 2: IS Real Estate Investment Company 31.12.2017

    IS REAL ESTATE INVESTMENT COMPANY 31.12.2017

  3. Slide 3: ISGYO

    ISGYO ISGYO Sector Mcap  Established in 1999, by the strategic partnership of Isbank. TL 26.924 mn (Isbank is Turkey’s biggest private bank established in 1924) ISREIC TL 1.243  The 5th largest REIC in terms of Mcap with TL1.243 mn. mn 4,6% Our Mission is to create desirable spaces for contemporar

  4. Slide 4: Shareholders Structure by Ownership

    Shareholders Structure by Ownership *14% of the 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 5.132 98% Money&Capital Market Instruments 83 2% Total Portfolio Value 5.215 100% *Inventories include offices and residential units on sale in Ege Perla. **Projects include Manzara Adalar Mixed Use Project, IFC Project and İnistanb

  9. Slide 9: Real Estate Portfolio Breakdown

    Real Estate Portfolio Breakdown Real Estate Portfolio TL mn Office 2.349 Projects 1.420 Retail 1.037 Land 216 Inventories* 85 Hotel 25 TOTAL 5.132

  10. Slide 10: Rent Generating Assets

    RENT GENERATING ASSETS \ at isgyo.com.tr

  11. Slide 11: Office Investments – Appraisal Values

    Office Investments – Appraisal Values İş Ankara İş Towers Tuzla Ankara İş Maslak Office TUTOM Towers Ulus Office Tower 3 Office Tower Building Lamartine Tower 2 Building Appraisal TL 941 TL 422 TL 412 TL 232 TL 135 mn TL 108 mn TL 50 mn TL 48 mn Value mn mn mn mn % share in 40% 18% 18% 10% 6% 5% 2%

  12. Slide 12: Office Investments – Rental Income

    Office Investments – Rental Income İş Tuzla Maslak Ankara Office Ankara İş TUTOM Towers Office Building Ulus O.B. Lamartine Towers Tower 2 Annual TL 67,2 TL 26,3 TL14,5 TL 5,1 Rental TL 4,3 mn TL 1,8 mn TL 0,7 mn mn mn mn mn Income Figures represent the annual rental income in 2017. Annual Rental In

  13. Slide 13: Retail Investments - Appraisal Values

    Retail Investments - Appraisal Values Marmara Kanyon Ege Perla Park Tuzla Shopping Shopping Kule Çarşı Shopping Retail Center Center Center Appraisal TL 510 mn TL 245 mn TL 162 mn TL 66 mn TL 38 mn Value % share in 49% 24% 16% 6% 4% office investments Retail Investments Total Appraisal Value, TL mn

  14. Slide 14: Retail Investments - Rental Income

    Retail Investments - Rental Income Marmara Kanyon Ege Perla Park Tuzla Shopping Kule Çarşı Shopping Center Shopping Center Center Retail Annual Rental Income Annual Rental TL 36,6 mn TL 18,3 mn TL 4 mn TL 2,8 mn* TL 2,1 mn ≈ TL 64 mn Income *Operational since Sep.2017. ** Figures represent the annua

  15. Slide 15: Projects Under Development

    PROJECTS UNDER DEVELOPMENT isgyo.com.tr

  16. Slide 16: Projects Under Development

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

  17. Slide 17: Projects Under Development

    Projects Under Development Development Cost TL Mn % Manzara Adalar Mixed Use Project TL 620-640 43% İnistanbul Residential Project TL 550-600 39% Finance Center Project (IFC) TL 260-280 18% TOTAL TL1.430-1.520 100%

  18. Slide 18: Manzara Adalar Mixed Use Project

    MANZARA ADALAR MIXED USE PROJECT

  19. Slide 19: Manzara Adalar

    Manzara Adalar Kartal Region:  one of the developing areas on the Asian side,  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».

  20. Slide 20: 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.

  21. Slide 21: Manzara Adalar

    Manzara Adalar *Designed by 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 Projections (1): Development cost (excluding land) : TL620-640 mn Saleable area for resid

  22. Slide 22: Manzara Adalar - Projections

    Manzara Adalar - Projections Total leasable area : 49.000 sqm Expected rental income(ISGYO share) : TL16-17 mn Total saleable area for residentials : 140.000 sqm

  23. Slide 23: Manzara Adalar

    Manzara Adalar isgyo.com.tr

  24. Slide 24: Inistanbul Residential Project

    İNISTANBUL RESIDENTIAL PROJECT

  25. Slide 25: Inistanbul 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, 

  26. Slide 26: Inistanbul Residential Project

    İnistanbul Residential Project

  27. Slide 27: Inistanbul Residential Project

    İnistanbul Residential Project Location : Topkapı, Istanbul Investment model: A joint venture between İş GYO and NEF. Total development cost* : TL1,1-1,2 bn Total sales revenues* : TL 1,5-1,6 bn Total saleable area*: ≈ 250.000 sqm *Total figures. Designed by

  28. Slide 28: Inistanbul Residential Project

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

  29. Slide 29: Basketball Court, Cinema Room, Guest Room

    Basketball Court Cinema Room Guest Room Music Room

  30. Slide 30: Istanbul Finance Center Project (IFC Project)

    ISTANBUL FINANCE CENTER PROJECT (IFC Project)

  31. Slide 31: 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 : TL 45-50 mn *Designed by

  32. Slide 32: Pipeline Projects

    PIPELINE PROJECTS © +c ey 9 mn et Ye) Ma Co isgyo.com.tr

  33. Slide 33: Tuzla Residential Project

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

  34. Slide 34: Tuzla Residential Project

    Tuzla Residential Project ~𝟐 km ~𝟖𝟎𝟎𝐦𝐭 Location : Tuzla, Istanbul Acquisition date: January, 2016 Project Land area: ≈ 53.460 sqm Land value: TL168 mn

  35. Slide 35: Kadıköy Hotel Project

    Kadıköy Hotel Project ~𝟏𝟎𝟎𝐦𝐭 ~𝟐 km Tepe Nautilus ~𝟖𝟎𝟎𝐦𝐭 Location : Kadikoy, Istanbul Acquisition date: December, 2016 Project Land area: ≈ 8.293 sqm Investment Model: ISGYO has 45% share in the project* Project type: A project comprising hotel and commercial area Land value of ISGYO’s…

  36. Slide 36: Dividend Payout

    DIVIDEND PAYOUT isgyo.com.tr

  37. Slide 37: 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

  38. Slide 38: Debt & Cash Position

    DEBT & CASH POSITION isgyo.com.tr

  39. Slide 39: Debt & Cash Position

    Debt & Cash Position Outstanding Loan Outstanding Loan Bank Loans Original Amount mn Date of the Loan Cost Maturity TL mn Euro Loan € 7,3 Dec. 2010 Euribor+350 bps 10 year 32,9 TL Dolar Loan* $53,7 Oct. 2013 Libor +425 bps 10 year 202,5 TL TL Loan 546,6 TL Dec.2013-May.2017 11,75% -15,10% 4-6 year 5

  40. Slide 40: Financials

    # Financials”

  41. Slide 41: ISGYO

    ISGYO 9% 7% 19% 21% 42% 39% 17% 20% 3% 16% 42% 16% 34

  42. Slide 42: Balance Sheet

    Balance Sheet TL, mn 31.12.2017 31.12.2016 % Change ASSETS 5.311,9 4.887,0 9% Current Assets 968,0 323,0 200% Long-term Assets 4.344,0 4.564,0 -5% LIABILITIES 5.311,9 4.887,0 9% Short-term Liabilities 873,3 188,5 363% Long-term Liabilities 1.158,0 1.537,2 -25% Shareholders' Equity 3.280,6 3.161,3 4%

  43. Slide 43: Income Statement

    Income Statement TL, mn Jan.-Dec. 2017 Jan.-Dec. 2016 Sales Revenue 439,7 404,5 Cost of Sales -261,8 -209,7 Gross Profit/Loss 177,8 194,8 General Administrative Expenses -20,3 -18,4 Marketing, Sales and Distribution Expenses -15,6 -18,7 Other Operating Income 207,7 376,9 Other Operating Expense -123

  44. Slide 44: Income Statement

    Income Statement Financials (TL, mn) Jan.-Dec. 2017 Jan.-Dec. 2016 Sales Revenue 439,7 404,5 Cost of Sales -261,8 -209,7 Gross Profit/Losses 177,8 194,8 General Administrative Expenses -20,3 -18,4 Marketing, Sales and Distribution Expenses -15,6 -18,7 Other Operating Income 207,7 376,9 Other Operati

  45. Slide 45: Stock Performance

    STOCK PERFORMANCE isgyo.com.tr

  46. Slide 46: Trade Volume

    Trade Volume Average Daily Trade Price change in TL ISGYO Volume terms 2016 TL 4,1 mn 5% 2017 TL 5,2 mn -2% 32

  47. Slide 47: Stock Price vs. Index Performance

    Stock Price vs. Index Performance Stock Price& Performance as of 31.12.2017 1 year 3 year BİST 100 48% 35% ISGYO -2% 47% XGMYO 4% 18% 33

  48. Slide 48: Regulation Highlights

    REGULATION HIGHLIGHTS isgyo.com.tr

  49. Slide 49: 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.

  50. Slide 50: 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

  51. Slide 51: 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

  52. Slide 52: Ratings

    Ratings CREDIT RATING CORPORATE GOVERNANCE RATING 94.76 (9.48)

  53. Slide 53: 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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