Is Gayrimenkul Yatirim Ortakligi A.s. · BIST:ISGYO
Is Gayrimenkul Yatirim Ortakligi A.s — Investor Presentation (September 2015)
71 slides from Is Gayrimenkul Yatirim Ortakligi A.s's investor presentation, September 2015
Slide 1: Investor Presentation
INVESTOR PRESENTATION INVESTOR PRESENTATION
Slide 2: REIC Sector
REIC Sector 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. 1
Slide 3: Mcap of the REIC Sector
Mcap of the REIC Sector 30.09.2015 REICs ($ mn) Emlak Konut 3.131 Torunlar 510 Yeni Gimat 445 İş 345 Saf 320 Doğuş 238 Other REICs 1.743 TOTAL 6.732 2
Slide 4: Regulation Highlights
GYO Regulation Highlights I$ GAYRIMENKUL YATIRIM ORTAKLIGI A.S. www.isgyo.com.tr
Slide 5: 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 6: 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 7: Is Real Estate Investment Company
IS REIT IS REAL ESTATE INVESTMENT COMPANY 6
Slide 8: ISGYO
ISGYO • ISGYO was established in 1999, by the strategic partnership of Isbank. (Isbank is Turkey’s biggest private bank established in 1924) • In the same year, ISGYO completed its IPO and was listed in Borsa Istanbul. As of 30.09.2015 IS GYO represents; • 5,1 % of the sector with its $ 345 Mcap. •
Slide 9: 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 10: Shareholders Structure by Ownership
Shareholders Structure by Ownership According to the Central Registry Agency of Turkey(MKK), as of 30.09.2015, the ratio of the shares in the free float is 49%. Based on this data, foreign holding ratio is 29% of the free float. 9
Slide 11: ISGYO Portfolio
GYO ISGYO PORTFOLIO 10 Is GAYRIMENKUL YATIRIM ORTAKLIGI A.S. | www.isgyo.com.tr
Slide 12: Portfolio Breakdown
Portfolio Breakdown Total Portfolio $ mn % Real Estate Investments 1.074 93% Money&Capital Market Instruments 75 7% Total Portfolio Value 1.149 100% * Projects include Tuzla Projects, Ege Perla Mixed Use Project, Manzara Adalar Mixed Use Project, IFC Mixed Use Project, and Topkapı İnistanbul Residen
Slide 13: Real Estate Portfolio Breakdown
Real Estate Portfolio Breakdown Real Estate Portfolio ($ mn) Projects 551 Office 294 Retail 212 Land 10 Hotel 7 TOTAL 1.074 12
Slide 14: ISGYO Properties Map
ISGYO- Properties Map OY LGARIA BLACK SEA AGYO pnoperties, map _— es ag : 13 I$ GAYRIMENKUL YATIRIM ORTAKLIGI A.S. | www.isgyo.com.tr
Slide 15: Real Estate Portfolio Generating Rental Income
REAL ESTATE PORTFOLIO GENERATING RENTAL INCOME 14
Slide 16: Office Investments
Office Investments Almost 60% of the rent generating assets in office sector. • İş Towers(Tower II&III) • Ankara İş Tower • Maslak Building • Ankara Ulus O.B. • Ankara Kızılay O.B. Office Investments • Antalya O.B. Total Appraisal Value, $ mn 294,2 • Sirkeci O.B. Total Rental Income, $ mn 25,2 • O
Slide 17: Is Towers
Is Towers Is Towers (Tower II&III) “A class” office buildings located in the central business district of the city Location : Istanbul GLA : 54.770 sqm Occupancy : 100% Annual Rent : $15,9 mn Completion Date : 2000 Development Cost : $139,6 mn Accumulated rent as of 2014 : $210,7 mn 16
Slide 18: Ankara Is Tower-Maslak Building-Office Lamartine
Ankara Is Tower-Maslak Building-Office Lamartine Ankara İş Tower Maslak Building Office Lamartine Location Ankara İstanbul, Maslak İstanbul, Taksim square GLA, sqm 26.488 12.904 3.890 Annual Rent, $ mn 3,0 1,5 0,7* Occupancy 100% 100% 65% Acquisition/Completion Date 1999 2001 2013 Q2 Acq./Developmen
Slide 19: Other Office Buildings
Other Office Buildings Ankara Ulus Ankara Antalya Sirkeci Office Kızılay Office Office Office Location Ankara Ankara Antalya İstanbul GLA, sqm 6.194 5.175 3.353 4.170 Annual Rent, $ mn 1,2 1,0 0,6 1,4 Occupancy 100% 100% 100% 100% Acquisition Date 2004 2004 2004 2008 Acquisition Cost 14,1 12,0 5,9 1
Slide 20: Retail Investments
Retail Investments Almost 40% of the rent generating assets in retail sector. • Kanyon Shopping Center • Marmara Park S.C. • Real Hypermarket • Kule Çarşı S.C. Retail Investments Total Appraisal Value, $ mn 211,7 Total Rental Income, $ mn 19,2 19
Slide 21: Kanyon Shopping Center
Kanyon Shopping Center Kanyon Shopping Center • Open air shopping center in the central business district. • Part of Kanyon Complex which comprises also residential units and an office building. Completion Date : 2006 Location : Istanbul Accumulated rent as of 2014: $ 109,1 mn Total GLA* : 38.940 sq
Slide 22: Kule Carsi Shopping Center
Kule Carsi Shopping Center The shopping center under Is Towers. Location : Istanbul GLA : 3.618 sqm Occupancy : 96% Annual Rent : $1,2 mn Completion Date : 2000 Development Cost : $14,8 mn Accumulated rent as of 2014 : $23,5 mn 21
Slide 23: Real Hypermarket Building
Real Hypermarket Building Turn-key investment model with Metro AG. Developer: ISGYO Tenant: Metro AG GLA : 16.500 sqm Completion Date : 2007 Occupancy : 100% Annual Rent : $2,2 mn(1) Development Cost : $25,6 mn Accumulated rent as of 2014: $18,9 mn (1) Minimum contractual rent: € 1,7 mn from Hyperma
Slide 24: Marmara Park Shopping Center
Marmara Park Shopping Center Investment model : Built-Operate- Transfer(BOT) Developer : ECE&DWS* Opening Date : Oct. 2012 Annual rental income : $5 mn The building rights of the project land has been transferred to ECE&DWS for 72 years.(in June 2009) At the end of this period, the shopping center w
Slide 25: Hotel Investment
GYO HOTEL INVESTMENT 24 I$ GAYRIMENKUL YATIRIM ORTAKLIGI A.S. | www.isgyo.com.tr
Slide 26: Kapadokya Lodge Hotel
Kapadokya Lodge Hotel “Four-star” hotel in the famous touristic destination, Kapadokya Location : Nevsehir GLA : 11.422 sqm Annual Rent : $0,55 mn* Acquisition Date : 2010 Acquisition Cost : $9,6 mn Accumulated rent as of 2014 : $3 mn *$0,3 mn is the minimum base rent. The annual rent will be calcul
Slide 27: Projects Under Development
Projects Under Development 26
Slide 28: Projects Under Development
Projects Under Development Technology&Operation Center Tuzla Mixed Use Ege Perla Mixed Use Manzara Adalar Mixed Use İnistanbul Residential Project Istanbul Finance Center Project 27
Slide 29: Projects Under Development
Projects Under Development Development Cost $ Mn % Tuzla Technology&Operation Center $260-265 26% Tuzla Mixed Use Project $100-105 10% Ege Perla Mixed Use Project $130-135 14% Kartal Manzara Adalar Mixed Use Project* $210-215 22% Topkapı İnistanbul Residential Project* $165-180 18% Finance Center Pr
Slide 30: Tuzla Projects
29 GYO Tuzla Projects I$ GAYRIMENKUL YATIRIM ORTAKLIGI A.S. www.isgyo.com.tr
Slide 31: Tuzla Projects
Tuzla Projects Tuzla is one of the developing transformation areas on the Asian side of Istanbul. Acquisition Date Project Name Parcel no 1 Dec. 2010 Technology and Operation Center Project Parcel no 2 Dec. 2010 Tuzla Mixed Use Project 30
Slide 32: Technology & Operation Center - Mixed Used Project
Technology & Operation Center - Mixed Used Project *Designed by SOM and Dizayn Group. *Tuzla Operation Center Project is the winner of “Sign of the City Award, 2015” for “Best Office”. 31
Slide 33: Tuzla Technology & Operation Center Project
Tuzla Technology & Operation Center Project Location : Tuzla, Istanbul Land Area : 44.395 sqm Land Acquisition Date : 2010 Cost of Land : $27,2 mn Investment Model: Turnkey Project GLA of the center: 184.500 sqm It has been leased to Isbank for 25 years. Projections: (1) Total development cost of
Slide 34: Tuzla Mixed Use
Tuzla Mixed Use Location : Tuzla, Istanbul Land Area : 21.305 sqm Land Acquisition Date : 2010 Cost of Land : $12,8 mn Projections: (1) Cost of the project (inc. land): $100-105 mn A mixed use project comprising office units and . Annual rental income: $6-6,5 mn commercial areas. Leasable area for o
Slide 35: Completed Project
GYO (BB Completed Project 34 I$ GAYRIMENKUL YATIRIM ORTAKLIGI A.S. | www.isgyo.com.tr
Slide 36: Çınarlı Bahçe
Çınarlı Bahçe Location : Tuzla, Istanbul 2 km away from the Technology&Operation Center. Land Area : 40.983 sqm Acquisition Date : 2009 Completion Date: August 2013 Saleable area for residential: 56.484 sqm Number of units : 476 All of the units have been sold. *Çınarlı Bahçe is the winner of “Sign
Slide 37: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project 36
Slide 38: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project Location : Konak, Izmir Land Area : 18.392 sqm Acquisition Date : 2010 Estimated project development cost (inc. land) : TL 390-400 mn Project type : Mixed use project comprising residentials, offices and a shopping center *Designed by Emre Arolat. 37
Slide 39: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project 38
Slide 40: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project Projections(1) : Shopping Center: Leasable area : 25.600 sqm Rental income : TL 20-22 mn Residentials&Offices: Total saleable area(2) : 32.000 sqm Total net profit for the unit sales(3) : TL 20-23 mn 1 The estimated figures. 2 The presales activity started in Nov. 2012. 3
Slide 41: Ege Perla Mixed Use Project – Projections
Ege Perla Mixed Use Project – Projections* Strategy : To sell the residentials&offices and keep the shopping center in the portfolio. Total development cost of the project : TL 390-400 mn After selling the units and sharing the net profit; Remaining cost for the shopping center ≈ TL 160 mn R
Slide 42: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project 41
Slide 43: Manzara Adalar Kartal Mixed Use Project
Manzara Adalar Kartal Mixed Use Project 42
Slide 44: 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». 43
Slide 45: Manzara Adalar
Manzara Adalar Project Land: located below the E5 highway, close to the sea side (1,8 km) close to hospitals, universities and the newly built court house, close to the Sabiha Gökçen airport, easy access with subway, road and sea transportation. *Designed by Perkins&Eastman. 44
Slide 46: Manzara Adalar
Manzara Adalar Location : Kartal, Istanbul Acquisition Date : June, 2008 Investment Model: Revenue sharing model. In return for the project land, revenues of the project will be shared with the ex-land owner. Project Type : Mixed use project Projections (1): Total Development Cost (excluding land) :
Slide 47: İnistanbul Residential Project
İnistanbul Residential Project 46
Slide 48: 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 49: İnistanbul Residential Project
İnistanbul Residential Project 48
Slide 50: 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* : TL1-1,1bn Total saleable area for residentials: 214.000 sqm Total saleable area for commercials : 7.000 sqm *Total figures
Slide 51: İnistanbul Residential Project - Projections
İnistanbul Residential Project - Projections Project Figures for ISGYO share* Total cost of the project : TL500-550 mn1 Sales revenues : TL700-800 mn Net profit of the project : TL200-250 mn Profit margin : 25-30% *ISGYO has 50% share in the project. 1 Including borrowing cost. 50
Slide 52: Basketball Court Guest Room Cinema Room
Basketball Court Cinema Room Guest Room Music Room 51
Slide 53: Mixed Use Project in Istanbul International Financial Center (IFC Project)
Mixed Use Project in Istanbul International Financial Center (IFC Project) 52
Slide 54: IFC Project
IFC Project Location : Atasehir, Istanbul Project type : A mixed use project comprising offices and commercial area. Estimated project development cost (including land) : $100-110 mn Estimated saleable/leasable area : ≈ 32.000 sqm Estimated Rental Income : $9-11 mn 53 *Designed by HOK.
Slide 55: Rental Income Projections
Rental Income Projections 54
Slide 56: Rental Income Projection
Rental Income Projection Rental Income Projection for 2019 $ mn Current 2019 Rental Income $45 $90-95 * Partial rent is taken for Kartal Mixed Use and IFC project, since they are estimated to be fully operational in 2020. **With the assumption that some part of the offices in IFC will be sold. 55
Slide 57: Appraisal Value of the Real Estate Portfolio
Appraisal Value of the Real Estate Portfolio Appraisal Property Name Value ($ mn) % Real Estate Projects 551,0 51,3% Is Towers II&III 179,4 16,7% Kanyon Shopping Center 128,2 11,9% Ankara Is Tower 35,3 3,3% Marmara Park Shopping Center 35,0 3,3% Maslak Building 27,0 2,5% Real Hypermarket Building 26
Slide 58: Rental Income
Rental Income Annual Rent $ mn Property Name (without VAT) % Is Towers II & III 15,9 35,5% Kanyon Shopping Center 10,5 23,5% Marmara Park Shopping Center 5,0 11,1% Ankara İş Kulesi 3,0 6,6% Real Hypermarket Building 2,2 4,8% Maslak Office Building 1,5 3,3% Sirkeci Office Building 1,4 3,0% Ankara- Ul
Slide 59: Dividend Payout
GYO Dividend Payout 58 Is GAYRIMENKUL YATIRIM ORTAKLIGI A.S. | www.isgyo.com.tr
Slide 60: 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 61: Financials
GYO FINANCIALS 60 Is GAYRIMENKUL YATIRIM ORTAKLIGI A.S. | www.isgyo.com.tr
Slide 62: Growth of the Real Estate Portfolio
Growth of the Real Estate Portfolio Aggregate value of the real estate portfolio of ISGYO increased 137 % within five years. 61
Slide 63: Bank Loans & Cash Position
Bank Loans & Cash Position Original Outstanding Total Loan Type of the loan Amount mn Date of the Loan Cost Maturity Loan Amount mn $ mn Euro Loan € 24,2 Dec. 2010 Euribor+350 bps 10 year € 14,6 $16,4 Dolar Loan $75,0 Oct. 2013 Libor +425 bps 10 year $75,0 $75,0 TL Loan 273,0 TL Dec.2013 - Apr. 2015
Slide 64: Balance Sheet
Balance Sheet TL, mn 30.9.2015 31.12.2014 % Change ASSETS 3.818,1 3.000,2 27% Current Assets 539,8 251,7 114% Long-term Assets 3.278,3 2.748,5 19% LIABILITIES 3.818,1 3.000,2 27% Short-term Liabilities 534,4 67,1 697% Long-term Liabilities 767,4 581,3 32% Shareholders' Equity 2.516,2 2.351,8 7% Of t
Slide 65: Income Statement
Income Statement TL, mn Jan.-Sep. 2015 Jan.-Sep. 2014 Sales Revenue 179,9 197,2 Cost of Sales -55,5 -111,7 Gross Profit/Loss 124,4 85,5 General Administrative Expenses -10,7 -9,9 Marketing, Sales and Distribution Expenses -12,0 -0,4 Other Operating Income 162,7 23,5 Other Operating Expense -18,1 -26
Slide 66: Income Statement
Income Statement Financials (TL, mn) Jan.-Sep. 2015 Jan.-Sep. 2014 Sales Revenue 179,9 197,2 Cost of Sales -55,5 -111,7 Gross Profit/Losses 124,4 85,5 General Administrative Expenses -10,7 -9,9 Marketing, Sales and Distribution Expenses -12,0 -0,4 Other Operating Income 162,7 23,5 Other Operating Ex
Slide 67: Stock Performance
GYO Stock Performance 66 I$ GAYRIMENKUL YATIRIM ORTAKLIGI A.S. | www.isgyo.com.tr
Slide 68: Trade Volume
Trade Volume Average Daily Trade Price change in TL ISGYO Volume terms 2014 $ 1,2 mn 14% Jan-Sep. 2015 $ 1,9 mn 13% 67
Slide 69: Stock Price vs. Index Performance
Stock Price vs. Index Performance Stock Price& Performance as of 30.09.2015 1 year 3 year 5 year ISGYO 25% 46% 62% BIST REIC 11% 2% 11% BIST 100 -1% 12% 13% 68
Slide 70: Investor Relations
Investor Relations Investor Relations Ayşegül Şahin Kocameşe Head Investor Relations Phone : +90 0212 325 23 50 E-mail : aysegul.sahin@isgyo.com.tr Mine Kurt Yıldırım Assistant Manager Investor Relations This presentation has been prepared in order to inform Phone : +90 0212 325 23 50 investors. E-m
Slide 71: Architect of Change
Architect of Change IS GAYRIMENKUL YATIRIM ORTAKLIGI A.S. | www.isgyo.com.tr
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