INVESTOR PRESENTATION
November 2011
1
Turkey Real Estate Economic Highlights
3
Turkey Real Estate Market Review
5
3
Business Review
23
Project Pipeline
40
Financial Review
43
Future Outlook
50
Appendix
● Portfolio Review
52
● Financial Data
67
● Listed REIC's
69
2
Turkey Real Estate Economic Highlights
Mortgage Loans/GDP%
Eurozone : 60% (2010)
USA
: 70% (2010)
Mortgage Loans/GDP%
5.18
6.00
5.00
3.59
4.00
3.95
4.47
5,74
2.92
3.00
1.91
2.00
1.00
0.38
0.35
2002
2003
0.63
.00
2004
2005
2006
2007
2008
2009
2010
10/27/2007
11.1
12.4
Interest Rate on Mortgages(%)
50.0
50
40.4
40
27.8
30
17.7
20
18.2
18.3
18.6
15.6
10
0
Interest Rate on Mortgages(%)
Source: Central Bank of Turkey
3
Turkey Real Estate Economic Highlights
160
152.7
159.2
67.2
69.1
Jul.11
Oct.11
140.3
140
Consumer loans
and mortgage loans
(bn TRY)
127.3
116.5
120
107.8
99.4
100
80.4
81.4
83.5
86.4
91.6
80
CONSUMER LOANS
(BILLION TRY)
MORTGAGE LOANS (BILLION TRY)
60
37.5
38.6
40.6
46.7
37
43.2
50.1
Jan.09
Apr.09
Jul.09
Oct.09
Jan.10
Apr.10
Jul.10
40
53.6
Oct.10
63.2
58.5
20
70
Jan.11
Apr.11
61
60
Loan growth %
50
42
41
40
28
30
34
30
Consumer Loans
42
37
23
20
Total Loans
38
7
10
12
0
Source: Central Bank of Turkey
2006
2007
2008
2009
2010
2011 Oct.
4
Turkey Real Estate Economic Highlights
Turkey Real Estate Market Review
3
Business Review
Project Pipeline
Financial Review
Future Outlook
Appendix
● Portfolio Review
● Financial Data
● Listed REIC's
5
Turkey Residential Sales ( in units )
194,743
200,000
180,000
160,000
140,000
120,000
112,168 113,088 109,333
108,861
111,913
116,229
107,308
97,517
92,516
100,000
85,857
101,754
91,071
90,270
83,697
80,000
60,000
40,000
20,000
0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
Source: Turkish Statistical Institute
6
Q3 10
100,000
162,040
Q2 10
92,304
178,750
Q3 09
125,975
Q2 09
160,135
108,967
Q4 08
113,802
113,994
Q3 08
135,571
119,822
200,000
148,346
300,000
121,403
400,000
175,666
Construction Permit
342,669
Turkey Residential Permits (in units)
0
Q1 08
Q2 08
Q1 09
Q4 09
Q1 10
Q4 10
Q1 11
Q2 11
60,000
130,593
94,648
109,536
Q2 09
80,000
59,156
Q1 09
94,788
Q4 08
87,955
Q3 08
102,073
Q2 08
42,798
Q1 08
128,172
91,649
100,000
86,564
120,000
87,620
140,000
91,463
Building Occupancy Permit
131,015
Construction Permit
40,000
20,000
0
Q3 09
Q4 09
Q1 10
Q2 10
Q3 10
Q4 10
Q1 11
Q2 11
Building Occupancy Permit
Source: Turkish Statistical Institute
7
Residential Purchase Confidence Index
88.0
86.0
86.0
86.0
84.0
84.0
84.0
83.0
82.0
82.0
81.0
80.0
80.0
79.0
78.0
78.0
78.0
76.0
76.0
75.0
75.0
74.0
74.0
72.0
70.0
68.0
Source: ING Mortgage Barometer (Compiled from 805 interviews in 14 cities)
8
Turkey New Residential Price Index
NEW RESIDENTIAL UNITS PRICE INDEX
115.0
113.2
109.5
110.0
105.0
103.0
102.1 102.5
101.7
100.8 101.1
100.0 100.3 100.5
103.8
104.8 105.3
110.4 110.4
108.2
107.3 107.7
106.7
106.5
106.3
100.0
95.0
90.0
New Residential Price
Index
2011 Oct Index Value
Change M-o-M (%)
Change Y-o-Y(%)
Change Against January
2010(%)
113.2
2.54%
9.04%
13.20%
Source: REIDIN Turkey
9
Turkey New Residential Price Index by Sqm
Flat Size
2011 Oct Index
Value
Change M-o-M
Change Y-o-Y
Change Against
January 2010
51-75 M2
110.5
3.17%
6.66%
10.50%
76-100 M2
109.4
2.34%
6.24%
9.40%
101-125 M2
113.9
1.42%
10.04%
13.90%
126-150 M2
110.9
2.97%
5.41%
10.90%
151 M2 +
111.6
2.95%
8.21%
11.60%
Source: REIDIN Turkey
January 2010=100 beginning of the index
10
Turkey Construction Costs
2Q 2011
1Q 2011
Total
Labour
Material
QoQ(%)
4,35
2,34
4,96
YtD(%)
8,91
5,04
10,11
YoY(%)
12,76
6,49
Change to the
Average of 4
Quarters(%)
8,7
Source: Turkish Statistical Institute
6,58
Total
Labour
Material
QoQ(%)
4,37
2,64
4,91
14,76
Yoy(%)
8,44
7,32
8,79
9,37
Change to
the Average
of 4
Quarters(%)
6,62
6,43
6,67
(2005=100)
11
200,000
336,361
319,809
314,529
295,859
612,957
294,710
272,996
276,167
250,651
530,745
257,946
228,012
492,121
444,543
235,283
207,799
300,000
207,205
179,165
400,000
386,370
500,000
570,342
700,000
600,000
660,232
800,000
360,159
345,794
712,135
Turkey Retail Market
100,000
0
2009
2010
Retail Sales (TRY mn)
Source: Planet Retail
2011
2012
Grocery Retail Sales (TRY mn)
2013
2014
2015
2016
Non-Grocery Retail Sales (TRY mn)
12
Turkey Retail Market
Household Expenditure (by type, 2010)
Miscellaneous
Goods and
Services
Education
4%
2%
Health
2%
Other
16%
Food, beverage
and tobacco
27%
Housing
28%
Furnishing,
household
equipment
7%
Transportation
and
communication
16%
Retail Centre Supply (supply
breakdown by city)
Restaurant and
hotels
Clothing and 6%
Recreation and footwear
5%
culture
Trabzon
2%
Konya
2%
Mersin
2%
Gaziantep
2%
Denizli
2%
Kocaeli
2%
Adana
3%
Istanbul
40%
Antalya
3%
Izmir
5%
Bursa
6%
Ankara
15%
3%
Source: TURKSTAT
Source: DTZ Pamir & Soyuer
13
Shopping Mall Development
Unit
End 2009
Q3 2010
End 2010
Q3 2011
81
85
93
101
2,29 M
2,43 M
2,66 M
2,99 M
155
170
171
190
3,41 M
3,84 M
3,87 M
4,39 M
236
255
264
291
5,70 M
6,27 M
6,53 M
7,38 M
İstanbul
GLA (sq m)
Unit
Rest of Turkey
GLA (sq m)
Unit
Turkey
GLA (sq m)
Source: Jones Lang LaSalle
Unit
Active
Under Construction*
Total
101
29
130
2,99 M
1,08 M
4,07 M
190
40
230
4,39 M
1,10 M
5,49 M
291
69
360
7,38 M
2,18 M
9,5 M
İstanbul
GLA (sq m)
Unit
Rest of Turkey
GLA (sq m)
Unit
Turkey
GLA (sq m)
*As of end 2013
Source: Jones Lang LaSalle
14
Turkey Map of Shopping Malls
Concentration of Shopping Malls by GLA
LEGEND
Current Shopping
Malls
Shopping Malls under Construction and in Project
Source: EVA Real Estate Appraisal Consultancy
Akademetre Research and Strategy Planning
15
Retail Density-GLA per 1,000 Capita, Turkey
City
End 2010
Q3 2011
End 2013
İstanbul
210 sq m
226 sq m
282 sq m
Ankara
207 sq m
225 sq m
247 sq m
Karabük
65 sq m
179 sq m
166 sq m
Bolu
25 sq m
148 sq m
146 sq m
Trabzon
142 sq m
143 sq m
139 sq m
Bursa
134 sq m
143 sq m
139 sq m
Tekirdağ
139 sq m
139 sq m
132 sq m
Denizli
119 sq m
130 sq m
142 sq m
Turkey
90 sq m
100 sq m
124 sq m
Source: Jones Lang LaSalle
16
Turkey’s Mall League
Mall
Opening Date
GLA
Location
Developer
1 Forum Istanbul
2009
180.000
Istanbul
Multi Turkmall
2 Marmara Forum
2011
157.000
Istanbul
Multi Turkmall
3 Cevahir
2005
110.000
Istanbul
Celebioglu
4 Ankamall
1999
107.804
Ankara
Yeni Gimat
5 Torium
2010
95.280
Istanbul
Torunlar REIC
6 Istinyepark
2007
87.000
Istanbul
Dogus, Orjin
7 Antares
2007
85.150
Ankara
Dolunay
8 Anatolium
2010
84.165
Bursa
9 Forum Ankara
2008
80.000
Ankara
Multi Development TR
10 Kent Park
2008
80.000
Ankara
Mega Turk Construction
11 Panora
2007
78.000
Ankara
Polat Holding
12 M1 Merkez Adana
2000
75.700
Adana
Metro
13 Korupark
2007
74.580
Bursa
Torunlar REIC
14 Cepa
2007
72.000
Ankara
Carrefour
15 Forum Mersin
2007
70.250
Mersin
Multi Turkmall
16 Anatolium Ankara
2011
70.000
Istanbul
Maya
17 M1 Meydan Umraniye
2007
70.000
Istanbul
Metro
18 212 Istanbul Power Outlet
2009
69.000
Istanbul
Edip International Real Estate
19 Ora Istanbul
2011
65.000
Istanbul
Merkez Construction
20 Forum Bornova
2006
62.000
Izmir
Corio
Multi Development TR
Source: Akademetre Research and Eva Real Estate
17
90
89
89
85
80
92
Source: Council of Shopping Centers- Turkey
95
97
Jun.2010
Jul.2010
Aug.2010
Mar.2011
Apr.2011
100
100
*January 2010= the beginning of index
Sep.2011
Aug.2011
Jul.2011
Jun.2011
May.2011
Feb.2011
Jan.2011
Dec.2010
Nov.2010
Oct.2010
112
Aug.2011
97
119
Jul.2011
97
99
115
Jun.2011
101
103
108
May.2011
98
108
Apr.2011
99
112
Mar.2011
105
122
Feb.2011
100
113
Jan.2011
100
Sep.2010
96
May.2010
140
Dec.2010
0
101
114
Nov.2010
20
102
108
Oct.2010
40
Apr.2010
60
101
Sep.2010
92
Aug.2010
93
Jul.2010
Jun.2010
93
May.2010
93
Apr.2010
80
91
93
Mar.2010
100
92
Feb.2010
100
Mar.2010
95
Feb.2010
Jan.2010
120
Jan.2010
Turkey SHOPPING MALL Sales Turnover and Footfall
SALES TURNOVER INDEX (GENERAL)
110
106
FOOTFALL INDEX (GENERAL)
101
97
18
Turkey Shopping Mall Rental Yields- Sep 2011
PRIME RETAIL RENTS- Sep 2011
HIGH STREET
US$
€
US$
Compound (p.a) % growth
SHOPS
sq.m/mth
sq.m/yr
sq.ft/yr
5yr
1yr
Istanbul
250
2,236
279
15.8
19.0
Izmir
70
626
78
4.9
4.5
Ankara
85
760
95
7.2
6.3
HIGH STREET
Current
Last
Last
SHOPS (Gross)
Quarter
Quarter
Year
High
Low
Istanbul
7.25
7.50
7.75
14.50
7.25
Izmir
10.50
10.50
10.75
14.50
10.50
Ankara
10.50
10.50
10.75
15.50
10.50
SHOPPING
Current
Last
Last
CENTRES (Net)
Quarter
Quarter
Year
High
Low
Istanbul
8.00
8.25
8.75
9.75
7.00
PRIME RETAIL YIELDS- Sep 2011
10 Year
9 Year
Source: Cushman&Wakefield
19
Shopping Centre Rents & Yields
Country
Prime Rent (€/sq.m/year)
Prime Yield (%)
Austria
700 - 1,020
6.10 - 6.75
Belgium
800 - 1,400
5.50 - 6.00
Czech Rep.
800 - 1,100
6.00 - 7.00
Denmark
500 - 1,150
5.75 - 6.25
Finland
900 - 1,600
5.00 - 6.25
France
1,400 - 2,000
4.75 - 5.75
Germany
1,200 - 1,560
4.95 - 5.80
Hungary
600 - 1,080
6.75 - 7.75
1,100 - 1,800
7.50 - 8.00
Italy
600 - 800
6.25 - 7.25
Netherlands
650 - 900
6.25 - 7.00
Norway
800 - 1,050
6.00 - 6.75
Poland
500 - 950
6.25 - 7.25
Portugal
700 - 900
7.25 - 8.50
Romania
300 - 650
9.00 - 10.00
750 - 2,200
9.50 - 10.50
Slovakia
650 - 800
7.25 - 8.00
Spain
700 - 950
6.00 - 6.50
Sweden
550 - 800
5.50 - 6.00
Turkey
600 - 950
8.00 - 9.00
1,330 - 1,850
5.50 - 6.50
Ireland
Russia
United Kingdom
Source: Cushman&Wakefield
Short Term Yield
Outlook





















20
Office Market Overview
Existing Grade A Office Stock Q3 2011
Pipeline Projects Grade A Office Stock*
Sub Market
Sub Market
CBD
GLA (sq m)
1,16 million
Europe
GLA (sq m)
CBD
295,000
Non CBD
256,000
Europe
Non CBD
0,75 million
Asia
0,88 million
Asia
242,000
Total
2,79 million
Total
793,000
Source: Jones Lang LaSalle
*For completion by end 2013
Source: Jones Lang LaSalle
21
Turkey Office Rental Yields- Sep 2011
PRIME OFFICE RENTS- Sep 2011
US$
Prime Rent €
US$
Compound (p.a) % growth
sq.m/mth
sq.m/yr
sq.ft/yr
5yr
1yr
Levent
36.0
322
40.1
14.9
0.0
Esentepe-Gayrettepe
32.0
286
35.7
16.4
10.3
24.0
20.0
15.0
21.0
215
179
134
188
26.8
22.3
16.7
23.4
14.9
n/a
13.4
11.8
-4.0
6.7
-6.3
-4.5
Istanbul
Maslak
Umraniye
Izmir
Ankara
PRIME OFFICE YIELDS- Sep 2011
Current
Quarter
Last
Quarter
8.00
8.00
8.75
8.50
10.00
10.00
8.00
8.00
8.75
8.50
10.00
10.00
Prime Yield (%)
Last
Year
10 Year
High
Low
16.30
16.30
16.30
9.50
17.00
17.00
7.50
7.50
7.75
8.50
9.00
9.00
Istanbul
Levent
Esentepe-Gayrettepe
Maslak
Umraniye
Izmir
Ankara
8.15
8.40
8.60
8.85
10.15
10.20
Source: Cushman&Wakefield
22
Turkey Real Estate Economic Highlights
Turkey Real Estate Market Review
3
Business Review
Project Pipeline
Financial Review
Future Outlook
Appendix
● Portfolio Review
● Financial Data
● Listed REIC's
23
Shareholding Structure
September 2011
Mahmut
KARABIYIK
0%
Torun Pazarlama
A.Ş.
0.03%
Free Float
25%
Aziz TORUN
38%
Y. Emre TORUN
0.03%
Ali COŞKUN
0%
Mehmet TORUN
37%
24
Strategy highlights
Strategy focus
Primary focus on development of
shopping malls
 Increased focus on mixed-use
projects
Creating ‘life centres’ with extensive
leisure and entertainment avenues
Focus investments in urban centres
with limited supply
Development portfolio
Successful track record of liaising with local
municipalities in contributing to and working
on urban transformation projects
Leverage the development platform
for performing value-adding
tasks such as land development, funding and
identify potential growth areas of development
Opportunistic development of other asset classes
Leverage track-record of JV development
 Access to attractive development opportunities
 Diversification of risk
 Developing residential
neighbourhoods in cities with good
connectivity to metro etc.
Opportunistic investments in non
shopping mall related projects
Asset management
Active asset management targeting
occupancy optimisation and rent
increase
Active refurbishment and extensions in-line
with increased demand and evolving
consumers and market trends
Tenant rationalisation opportunities
 Ensure appropriate shop and tenant mix
 Leveraging Torunlar Group’s reputation
and network of contacts to attract known
Turkish/international
tenants
25
History of Torunlar REIC– Key Milestones
 Construction for the company’s
needs and third party use (smallscale residential units)
 Active in the Turkish
 Torunlar bought
the land to be
used for Torun
Tower
 Delivery of
Korupark
Residences
phases I&II
 Torunlar REIC became a
listed company as of
October 21st, 2010,
emerging as one of the
biggest listed Turkish real
estate companies
construction and real estate
market since 1977
 Foundation of Toray
Construction
1977
 Opening of Zafer
Plaza; the first
shopping mall of
Bursa
 Opening of the
biggest mall in
Turkey in 1999,
Ankamall
1996
 Opening of one of the biggest
shopping malls in Turkey, Korupark
 Acquisition of the
Netsel Marina in
Marmaris
1999
 The residential compound at Korupark
was Bursa’s first gated community
2004
2005
 Opening of the
biggest outlet of
Antalya, Deepo
Outlet
 Torunlar bought the land for the
Mall of Istanbul project, which
will be one of Turkey’s largest
mixed use projects including a
shopping mall, residences,
offices and a hotel
2007
 Delivery of
Nish İstanbul
residences
and offices
2008
2009
2010
 Conversion to
Torunlar REIC
 Opening of Torium
Shopping Mall, October
30th, 2010
 Torium Shopping Mall is the
3rd largest shopping mall in
Istanbul
26
Key Investment Highlights
Current Portfolio Breakdown
Land
1%
Buildings
•2nd largest listed retail property
company in Turkey
19%
Projects
39%
Participations
11%
Money and Capital
Market Instruments
Composition of Real Estate Portfolio
1% 2%
•Diversified investment portfolio
•Portfolio ‘primarily’retail (57%
shopping centres) in 5 cities
30%
2%
Land
38%
57%
• Included in ISE National XU 100,
MSCI Turkey, EPRA indices
Completed units for sale
Ongoing projects
Shopping malls
Marina
•Resilient operations: 98% occupancy
rate (2011/09)
•Healthy financial structure with
leverage at 28.8 %
•Stable shareholder structure with
25.16 % free float
27
Shopping Mall Portfolio
Zafer Plaza (SM)
Occupancy 99%
Korupark (SM)
Occupancy 97%
Ankamall+ Crowne Plaza
(SM+Hotel)
Occupancy 100%
Deepo Outlet Centre
(SM)
Occupancy 100%
Torium Istanbul (SM)
Occupancy 99%
Key portfolio information
Operational Shopping Malls
Pipeline Shopping Malls
Total Shopping Malls
Number
5
2
7
GLA(m²)
214,697
181,116
395,913
28
Operational Assets
Shopping Malls
Zafer Plaza
Korupark
Deepo Outlet
Torium
Land Area (sqm)
9.622
53.186
66.005
44.571
Land Cost (TRY)
-
6.719.681
7.700.000
54.857.072
Land Price per sqm (TRY/sqm)
-
126,34
116,66
1.230,78
Construction Area (sqm)
57.112
169.000
37.500
259.754
Development Cost (TRY)
18.448.375
77.315.718
10.149.518
221.069.212
323
457
271
851
16.944*
71.267
18.069
95.280
Rental Income-LTM Sept 2011 (TRY)
12.120.273*
36.462.266
12.354.258
23.199.437
Total Revenue-LTM Sept 2011 (TRY)
14.836.188*
46.451.404
16.451.700
23.199.437
EBITDA-LTM Sept 2011 (TRY)
10.720.629*
35.380.091
11.452.483
20.394.046
Development Cost per sqm (TRY/sqm)
GLA (sqm)
*Adjusted as per Torunlar, 72,26% share
29
Completed Projects
Korupark Residences
Phase I-II
Torium Residence
NishIstanbul
Land Area (sqm)
47.434
-
32.889
Land Cost (TRY)
5.993.043
-
60.570.467
126,34
-
1.841,66
Construction Area (sqm)
221.979
14.952
135.291
Development Cost (TRY)
124.194.888
12.083.839
118.309.589
Development Cost per sqm (TRY/sqm)
559
808
874
Units
746
80
700
110.414
5.318*
81.066
224.913.318*
9.040.600*
120.000.000
Asset
Land Price per sqm
GLA/GSA (sqm)
Total Revenue-Forecast (TRY)
* Assuming the remaining units in inventory will be sold.
30
Ongoing Projects
Mall of Istanbul
Korupark Residences
Phase III
Boulevard Samsun
Land Area (sqm)
122.860
35.773
17.400
Land Cost (TRY)
176.671.963
3.100.000
-
Land Price per sqm (TRY/sqm)
1.437,99
86,66
-
Construction Area (sqm)
656.000
166.402
38.334
Development Cost (TRY)
498.820.834
134.787.172
34.485.443
760
810
900
281.000
102.260
15.900
Rental Income- Forecast (TRY)
65.214.396
-
6.884.199
Total Revenue- Forecast (TRY)
583.714.396
220.686.900
-
H2 2013
Q1 2013
Q2 2012
Asset
Development Cost per sqm
(TRY/sqm)
GLA/GSA (sqm)
Completion Date
31
Upcoming Projects
Asset
Torun Tower
Ali Sami Yen Project
Deepo Extension
Land Area (sqm)
14.992
34.640
21.595
Land Cost (TRY)
46.637.080
475.000.000*
9.400.000
3.110,80
13.712,47
435,29
Construction Area (sqm)
91.940
271.272
38.869
Development Cost (TRY)
106.445.963
311.237.664*
36.640.200
1.158
1.147
943
47.175
190.183
26.651
30.395.354
-
15.842.207
Land Price per sqm (TRY/sqm)
Development Cost per sqm (TRY/sqm)
GLA/GSA (sqm)
Rental Income-Forecast (TRY)
Total Revenue-Forecast (TRY)
30.395.354
Net Operating Income-Forecast (TRY)
27.768.208
*Unadjusted total cost of the project
**Adjusted 65% share of Torunlar
1.025.211.825**
-
-
-
32
Project Deliveries & Pre-Sales
Completed
Projects
30.09.2011 Location
Saleable area (sq.m)
Total # of units # of units delivered
delivery ratio
Torunlar
Torunlar REIC
start/ completion REIC's revenue
sales revenue
share
Bursa
110.414
746
678
91%
May
2006/February
2008
Torium Residence
Istanbul
5.318
80
0
0%
June 2008/June
2011
100%
0
NishIstanbul
Istanbul
70.129
648
648
100%
July 2008/October
2010
60%
127.003.000
Residence
53.204
585
585
100%
July 2008/October
2010
Office
16.925
63
63
100%
July 2008/October
2010
Korupark I-II
100%
198.331.000
Ongoing Projects
Saleable area Total #
21.11.2011 Location
(sq.m)
of units
Mall of Istanbul
Istanbul
Residence
Office
Korupark Residences
Phase III
Bursa
146.000
1.186
116.882
1.071
30.000
115
116.151
680
Torunlar
# of
presold
GSA presold # of units presold ratio
delivery
start/
REIC's Presale Cash
units
ratio (in
(sq.m)
delivered
(in units)
ratio
completion revenue
In (TRY)
presold
sq.m)
share
April
2011/Q4
572
61.573
NA
48%
42%
NA
2013
100% 203.917.040
April
2011/Q4
535
54.762
NA
50%
47%
NA
2013
100%
172.009.000
April
2011/Q4
37
6.811
NA
32%
23%
NA
2013
100%
31.908.040
March
2011/ Q1
204
25.460
NA
30%
22%
NA
2013
100%
45.761.296
33
Project Monthly Pre-Sales (in Units)
MALL OF İSTANBUL PRESALES
2011 MONTH RESIDENCE
KORUPARK TERRACE APARTMENTS
PRESALES
OFFICE
2011 MONTH
PRESALES
APRIL
293
0
APRIL
113
MAY
76
0
MAY
27
JUNE
11
15
JUNE
9
JULY
12
5
JULY
3
AUGUST
7
3
AUGUST
4
SEPTEMBER
44
2
SEPTEMBER
24
OCTOBER
55
7
OCTOBER
22
NOV 21st
37
5
NOV 21st
2
DECEMBER
0
0
DECEMBER
0
TOTAL
535
37
TOTAL
204
34
Resilient retail operations through active hands-on management
Sept 2011
Bursa
Zafer Plaza
Bursa Korupark
Antalya Deepo
Outlet
Istanbul Torium
Total
GLA ( m2 )
23.448
71.267
18.069
95.280
201.584
Revenues
(TRY)
6.312.000
37.826.000
11.155.000
35.781.000
91.074.000
LfL Revenues
% growth
0*
31.5
25.1
NA
25.7
% LfL Footfall growth
6.0
(0.5)
2.2
NA
2.8
Number of stores
127
182
81
180
570
Occupancy (%)
99
97
100
99
98
Turnover rent (as %
of fixed rent)
3.5
3.6
16.2
13.4
8.6
62%USD
38%€
87%€
13%USD
80%€
20%USD
70%USD
30%€
61%€
39%USD
19% of GLA
24% of Rental
Revenue
22% of Retail
Turnover
27% of GLA
33% of Rental
Revenue
33% of Retail
Turnover
20% of GLA
22% of Rental
Revenue
23% of Retail
Turnover
28% of GLA
28% of Rental
Revenue
43% of Retail
Turnover
26% of GLA
29% of Rental
Revenue
33% of Retail
Turnover
Breakdown of rental
revenues
Share of
International Tenants
*Annual rental revenue is fixed at TRY 8.4 mn between 2008-2012, to set aside each year TRY
2.4 mn reserve to pay back the loan raised for the capex.
35
60
50.7
50
%10
37.7
40
30
2009
2010
%26
%20
2011
18.0
14.3
13.1
%9
16.6
%9
13.8
16.1
13.3
11.9
%12
12.7
%20
20
10
41.4
Million TL
Shopping Mall LfL Performance
Rent Revenues (TRY Million)
0
1. Quarter
2. Quarter
3. Quarter
9 Month
50
45.6
45
40
37.2
35
25
2011
%18
%23
12.7
9.7
14.7
12.5
9.9
14.8
12.1
15
10
2010
16.1
20
5
2009
28.8
30
9.2
Million TL
EBITDA (TRY Million)
0
1. Quarter
2. Quarter
3. Quarter
9 Month
36
500
450
429
400
385
%1.1
350
313
300
250
2009
2010
%13
%11
135
114
147
130
108
50
2011
%11
%19
133
91
100
120
150
149
200
0
1. Quarter
2. Quarter
3. Quarter
9 Month
Footfall (000)
25,000
15,000
20,025
19,114
20,000
20,589
%2.8
2009
2010
%5.8
2011
7,205
6,809
6,761
6,592
6,705
%1.6
%2.6
6,261
5,000
%-0.0
6,624
%7.7
6,623
10,000
6,149
Thousand
Million TL
Shopping Mall LfL Performance
Trade Volume (TRY Million)
37
0
1. Quarter
2. Quarter
3. Quarter
9 Month
Shopping Centers by Value
Rental Yield on
Rental Yield on
Appraisal
Rental Yield on
Appraisal
Value
Cost
Value
LTM
(2011 F)
(2011 F)
Sept 2011
Appraisal
value
30-09-11
Nr of
contracts
Rental Yield
on Cost
LTM
Sept 2011
Bursa Zafer Plaza
143.156
127
48,04%
6,19%
48,56%
6,26%
Bursa Korupark
540.510
182
47,09%
6,55%
43,75%
6,80%
Antalya Deepo
Outlet
180.492
81
64,16%
6,35%
65,45%
6,47%
İstanbul Torium
549.876
180
9,44%
4,95%
9,44%
4,95%
1.414.034
570
21,72%
5,86%
20,71%
6,00%
(TRY 000)
TOTAL
38
Shopping Mall Tenants by Category
GLA
FIXED
Breakdown
GLA
SALES/SQM/ RENT/SQM/
of Rental
Breakdown
MONTH
MONTH
RENT/SALES Revenue
SQM
TRY
TRY
Average
Monthly Spending
Footfall Per Month
TRY
ANCHOR
38.872
20%
295
13
4%
7%
HOME
5.185
3%
324
60
19%
4%
READY WEAR
84.898
45%
437
44
10%
50%
DEPARTMENT STORE
10.550
6%
301
22
7%
3%
SERVICE
3.313
2%
254
53
21%
2%
LEISURE/ GIFT/ SPECIAL
3.898
2%
330
55
17%
3%
PERSONAL
CARE+ACCESSORIES
5.683
3%
802
91
11%
7%
CULTURE/ART/ENTERTAINMENT
19.041
10%
69
11
16%
3%
TECHNOLOGY
6.778
4%
502
65
13%
6%
FOOD & DRINK
12.232
6%
483
69
14%
11%
TOTAL
190.451
100%
369
39
11%
100%
3.197.237
39
22,2
Turkey Real Estate Economic Highlights
Turkey Real Estate Market Review
3
Business Review
Project Pipeline
Financial Review
Future Outlook
Appendix
● Portfolio Review
● Financial Data
● Listed REIC's
40
Evolution of the Projects (m2)
GLA+GSA (m2)
2010
2011
2012
2013
2014
214.697
214.697
246.943
381.943
395.813
31.081
31.081
31.081
249.906
305.884
Office
2.964
2.964
3.345
78.105
131.876
Hotel
2.907
2.907
2.907
2.907
2.907
Marina
2.984
2.984
2.984
2.984
2.984
Other
15.599
15.599
15.599
18.014
18.014
270.232
270.232
302.859
733.859
857.478
56.893
56.893
56.893
56.893
56.893
Retail
Residence
Total
Land
41
GLA Breakdown by City
2010
2014
Mugla
1%
Mugla
0%
Samsun
1%
Bursa
22%
Bursa
46%
Istanbul
40%
Antalya
5%
Istanbul
70%
Ankara
6%
Antalya
7%
Ankara
2%
 Istanbul grasps a larger share by 2014, overtaking Bursa.
42
Turkey Real Estate Economic Highlights
Turkey Real Estate Market Review
3
Business Review
Project Pipeline
Financial Review
Future Outlook
Appendix
● Portfolio Review
● Financial Data
● Listed REIC's
43
Financial highlights
TRY (000)
2010
2009
Change %
Sales revenue
232.928
120.158
93.9
Residences sold
160.585
65.380
145.6
Rental revenue
58.584
39.859
47.0
EBITDA
55.377
71.700
-22.8
EBITDA margin
23.8%
59.7%
-35.9
4.745
4.536
4.6
Net gain/(loss) from from fair
value adjustments on investment
property
166.660
488.159
-65.8
Net profit
214.245
535.641
-59.4
1.16 TRY
3.04 TRY
-68.0
Dividend income
EPS
LfL rental revenue growth
33%
Occupancy ratio
98%
98%
0,0
Total Assets
3.203.839
2.509.787
27.7
Total Equity
2.369.083
1.805.168
31.2
-344.619
-547.895
37.1
Portfolio value
3.130.000
2.603.000
20.2
Market cap
1.420.160
Net debt
44
Financial highlights
TRY 000
2011/09
2010/09
Change %
121.248
150.868
-19,6%
Residences sold
28.815
103.485
-72,2%
Rental revenue
79.641
38.584
106,4%
EBITDA
66.438
47.450
40,0%
EBITDA margin
54,8%
31,5%
23,3 pp
6.497
4.744
37,0%
0
114.740
-127.857
32.353
NM
-47.849
181.539
NM
-0,21 TRY
0,81 TRY
NM
25,8%
22,3%
3.5pp
98%
98%
0,0%
2011/09
2010/12
Change %
Total Assets
3.608.777
3.203.839
12,6%
Total Equity
2.308.581
2.369.083
-2,6%
-358.788
-344.599
4,1%
Portfolio value
3.454.572
3.130.000
10,4%
Market cap
1.135.680
1.420.160
-20,0%
Sales revenue
Dividend income
Net gain/(loss) from fair value adjustments on investment
property
Forex gain/loss
Net profit
EPS
LfL rental revenue growth
Occupancy ratio
TRY 000
Net debt
45
Maturity of Financial Loans (TRY m)
200
193
180
160
146
140
129
123
117
120
122
112
100
80
Financial loans: TRY 1.038 mn
60
66,6%USD, 32,2%€, 1,2%TRY
37
40
23
23
20
11
0
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
*The graph excludes TRY 680.1 mn of cash and cash deposits as of Sept 2011.
2021
46
Net Foreign Currency Position
30.09.2011
31.12.2010
$
TL
TL
Change %
Equivalent Equivalent
(.000)
€
Current assets
21.002
107.839
251.831
219.902
14,5%
1
50
95
1.626
-94,2%
3.971
0
9.990
218.276
-95,4%
14.791
103.330
227.885
0
2.239
4.459
13.861
0
21.002
107.839
251.831
219.902
14,5%
-25.236
-134.707
-312.061
-218.988
42,5%
-2.210
-10.671
-25.251
-6.968
262,4%
-22.888
-123.542
-285.551
-212.020
34,7%
-138
-494
-1.259
0
-110.300
-251.933
-742.374
-552.122
34,5%
-110.300
-251.933
-742.374
-552.122
34,5%
Trade receivables
Monetary financial assets
Financial investments
Other
Total assets
Current liabilities
Trade payables
Financial liabilities
Other current liabilities
Non-current liabilities
Financial liabilities
Total liabilities
-135.536
-386.640 -1.054.435
-771.110
36,7%
Net foreign currency asset (liability)
-114.534
-278.801
-551.208
45,6%
-802.604
47
Abridged Income Statement
(000 TRY)
9M11
%
9M10
%
YoY
121.248
100,0%
150.868
100,0%
-19,6
Residence
28.815
23,8%
103.485
68,6%
-72,2
Mall rental
79.641
65,7%
38.584
25,6%
106,4
Other
12.792
10,6%
8.799
5,8%
45,4
Gross profit
73.261
60,4%
54.849
36,4%
33,6
Operating profit
59.750
49,3%
157.164
104,2%
-62,0
EBIT
66.247
54,6%
47.168
31,3%
40,4
EBITDA
66.438
54,8%
47.450
31,5%
40,0
-46,458
-38.3%
182,372
120.9%
-125.5
-47.849
-39,5%
181.539
120,3%
-126,4
Sales
Profit before tax
Net profit
48
Funding Summary
2011/09
Total net debt (000 TRY)
2010/12
Change
-358.788
-344.599
5
5
Average overall interest rate
5,01%
5,22%
-0,2 pp
Leverage (financial loans as % of total assets)
28,8%
24,4%
4,4 pp
-15,5%
-14,5%
1,0 pp
Net debt/Assets (%)
-9,9%
-10,8%
-0,9 pp
Equity to assets ratio
64,0%
73,9%
-9,9 pp
-13,2%
-13,4%
0,2 pp
Interest coverage ratio (times)
5,9
-2,6
NM
Net debt/EBITDA (times)
4,1
6,2
-2,2
Average loan term (years)
Net debt to equity ratio
Loan to property value ratio (LTV)
4,1%
49
Turkey Real Estate Economic Highlights
Turkey Real Estate Market Review
3
Business Review
Project Pipeline
Financial Review
Future Outlook
Appendix
● Portfolio Review
● Financial Data
● Listed REIC's
50
2012 Outlook

On the back of its strong financial position, the company will support residential
demand for Mall of Istanbul and Korupark Residences with an attractive payment
schedule in spite of increasing banking loan rates.

The company will gradually increase the frozen rents/sqm in € and US$ in Torium,
Korupark and Zafer Plaza due to abrupt TRY devaluation in September 2011.

The company will start the construction and pre-sales of Mecidiyekoy Project in early
2012, while Torun Tower and Mall of Istanbul will be under way.

Korupark Terrace Residences (3rd phase) are expected to be completed in
December 2012.

Samsun Bulvar Shopping Mall will come on stream in May 2012.

The major part of sales revenue will come from shopping malls.

10 % annual LFL growth is forecast in rental revenues.

The company will seek for further land acquisition and tender opportunities with its
favorable cash position.
51
Turkey Real Estate Economic Highlights
Turkey Real Estate Market Review
3
Business Review
Project Pipeline
Financial Review
Future Outlook
Appendix
● Portfolio Review
● Financial Data
● Listed REIC's
52
53
Zafer Plaza Shopping Mall
Ownership
Torunlar REIC (72.26%)
Operational Date
1999
Leasable area (m2)
23,449 (REIC share 16,944)
Occupancy (%) as of date
99% (as of Sep 2011)
Number of stores
127
Anchor tenants
4% anchors (30% of GLA): Migros, YKM, Bimeks
and Boyner
Appraisal value
TL143.2mm (US$92.6mm)
Average lease term as of Sep-2011
1.2 years
Average LTM NOI (per TL/m2/month)
TL43.5
Leasehold/Freehold status
Freehold
Rental income (Sept 2011). Last 12
months
TL12.1mm
•The Property is located at the most central part of the city
•Close to the metro station, on major public transportation routes and at the junction of intercity roads
•The property includes a movie theater with six screens and an amusement park for children and teenagers
•In 2000, Zafer Plaza was selected "The Best Shopping Centre" by the AMPD, Trade Council of Shopping Centres and Retailers
•Majority of rents (62%) are USD denominated
Tenants-Breakdown of Income
Tenants-Breakdown of GLA
7%
4%
8%
2%
HOME
11%
DEPARTMENT STORE
SERVICE
36%
8%
17%
1%
SERVICE
LEISURE/ GIFT/ SPECIAL
44%
PERSONAL CARE+ACCESSORIES
CULTURE/ART/ENTERTAINMENT
TECHNOLOGY
FOOD & DRINK
DEPARTMENT STORE
10%
9%
LEISURE/ GIFT/ SPECIAL
4%
HOME
READY WEAR
11%
READY WEAR
5%
3%
ANCHOR
2% 5%
ANCHOR
PERSONAL CARE+ACCESSORIES
CULTURE/ART/ENTERTAINMENT
8%
8%
TECHNOLOGY
FOOD & DRINK
54
Korupark Shopping Mall
Ownership
Operational Date
Leasable area (m2)
Torunlar REIC (100%)
H2 2007
71,267
Occupancy (%) as of date
97% (as of Sep 2011)
Number of stores
182
Anchor tenants
(39% of GLA): Tesco, Koçtaş, Beymen, C&A,
Boyner and Electro World
Appraisal value
TL540.5mm (US$349.6mm)
Average lease term as of Sep-2011
1.9 years
Average LTM NOI (per
TL/m2/month)
Leasehold/Freehold status
Rental income (Sep 2011). Last 12
months
TL41.3
Freehold
TL36.4mm
 Korupark is the largest shopping mall in Bursa and is located on the Mudanya Highway in the Nilüfer neighbourhood
 The property has three retail floors and two carpark floors with a capacity for 2,500 cars underground and 500 above ground
 The property includes a hypermarket (12,000m²), a do-it-yourself store (5,127m²), cinema complex (nine screens) and entertainment area (amusement park, children
play centre) totalling 5,317m²
 Most of the rents (87%) at the shopping mall are Euro denominated
Tenants-Breakdown of GLA
1% 5%
2%
2%
ANCHOR
3%
2%
2%
Tenants-Breakdown of Income
HOME
9%
READY WEAR
29%
DEPARTMENT STORE
SERVICE
11%
LEISURE/ GIFT/ SPECIAL
6%
ANCHOR
HOME
9%
15%
READY WEAR
5%
DEPARTMENT STORE
4%
SERVICE
4%
LEISURE/ GIFT/ SPECIAL
PERSONAL CARE+ACCESSORIES
3%
34%
PERSONAL CARE+ACCESSORIES
CULTURE/ART/ENTERTAINMENT
TECHNOLOGY
FOOD & DRINK
6%
45%
CULTURE/ART/ENTERTAINMENT
TECHNOLOGY
FOOD & DRINK
55
Deepo Outlet Mall–Antalya
 Antalya Deepo is the biggest outlet
Tenants-Breakdown of GLA Tenants-Breakdown of Income
in the Mediterranean region.
 The property is located close to the
1%
10%
Antalya Airport
 The mall attracts annual foot traffic
of c.5 mm
1%
1%
0% 1%
9%
4%
2%
0% 2%
1%
3%
4%
1%
2%
2%
69%
70%
 For Antalya Deepo, majority of rents
(80%) are denominated in EURO
ANCHOR
ANCHOR
 Zoning of this region is expected to
be approved in early 2012.
HOME
HOME
READY WEAR
READY WEAR
DEPARTMENT STORE
DEPARTMENT STORE
SERVICE
SERVICE
 Deepo Antalya is not directly held
by Torunlar REIC, but is instead
held by a subsidiary which is 100%
owned by Torunlar REIC
13%
LEISURE/ GIFT/ SPECIAL
LEISURE/ GIFT/ SPECIAL
PERSONAL CARE+ACCESSORIES
PERSONAL CARE+ACCESSORIES
CULTURE/ART/ENTERTAINMENT
CULTURE/ART/ENTERTAINMENT
TECHNOLOGY
TECHNOLOGY
FOOD & DRINK
FOOD & DRINK
Antalya Deepo extension project
Ownership
Operational Date
Leasable area (m2)
Occupancy (%) as of date
Number of stores
Torunlar REIC (100%)
October 24, 2004
18,069
100% (as of Sep 2011)
81
Anchor tenants
LCW, Ayakkabı Dünyası, Mudo City, Collezione,
Sarar, Aydınlı Group
Appraisal value
TL180.5mm (US$116.7mm)
Average lease term as of Sep 2011
Ownership
Estimated start of construction
December 2012
Estimated operational date
December 2012
Leasable area (m2)
Estimated investment
2.2 years
TL52.8
Current status
Leasehold/Freehold status
Rental income (Sep 2011), last 12
months
Freehold
TL12.3 mm
January 2012
Estimated date of completion
Leasehold / Freehold status
Average LTM NOI (per TL/m2/month)
Torunlar REIC + Hastalya
26,651
TL31.2mm (US$20.2mm)
Partially freehold, partially
leasehold from Hastalya
Under zoning process
56
Torium Shopping Mall–Istanbul
Ownership
Torunlar REIC (100%)
Start of construction
H2 2008
Date of completion
October 30th, 2010
Operational date
October 30th, 2010
Number of stores
180
Investment cost
TL207.2mm
Appraisal value*
TL549.8mm (US$355.1mm)
Leasehold / Freehold status
95,280 m2 GLA retail
5,318 m2 GSA residential
TL32mm
GLA / GSA
Rental income 2011 F
•Torium is a mixed-use project of retail and
residential use and the 5th largest mall of
Turkey.
•It is located at the centre of high density
residential settlements along one of the
two major highways of Istanbul
•The shopping mall provides a broad range
of leisure and entertainment facilities
•Majority of rents (70%) at the shopping
mall are denominated in USD
•80 residential units will be sold for
1.700TL/m2 starting from November 2011.
Freehold
Tenants-Breakdown of GLA
Tenants-Breakdown of Income
3%
7%
5%
21%
13%
3%
2%
3%
2%
14%
13%
4%
4%
7%
12%
4%
36%
44%
3%
7%
ANCHOR
HOME
READY WEAR
DEPARTMENT STORE
SERVICE
LEISURE/ GIFT/ SPECIAL
PERSONAL CARE+ACCESSORIES
CULTURE/ART/ENTERTAINMENT
TECHNOLOGY
FOOD & DRINK
ANCHOR
HOME
READY WEAR
DEPARTMENT STORE
SERVICE
LEISURE/ GIFT/ SPECIAL
PERSONAL CARE+ACCESSORIES
CULTURE/ART/ENTERTAINMENT
TECHNOLOGY
FOOD & DRINK
57
Ankamall Shopping Mall + Crowne Plaza Hotel–Ankara
Yeni Gimat in which Torunlar REIC
holds (14.83%)
19991
3
88,421 (REIC’s share 13,112)
Ownership
Operational Date
Leasable area (m2)
Occupancy (%) as of date
100% (as of December 2010)
Number of stores
315
Number of rooms
280
Migros, Koçtaş, Tepe Home,
Electro World, Boyner, Mudo City,
Marks&Spencer, LCW
Anchor tenants
Rental revenue (2010)
TL72.2mm
NOI (2010)
TL54.8mm
Appraisal value (REIC share)
•Ankamall is located in Yenimahalle, in the centre of
Ankara. The shopping mall is considered to be the
largest in Ankara and fourth largest in Turkey.
•Ankamall is owned by Yeni Gimat which was formed
as a cooperative with over 1000 investors, and in
which Torunlar REIC currently has 14.83% stake,
making it the largest shareholder as of Sep 30, 2011.
•The property includes the Crowne Plaza Hotel which
is a 21–storey building with 280 rooms
•For Ankamall, the rents in Phase 1 are denominated
in Turkish Lira, while the rents in Phase 2 are
denominated in USD
• ECE European Prime Shopping Centre Funds
offered USD 525 million to buy 100% of Torunlar
REIC’s 14.83% owned Ankamall and Crowne Plaza
Hotel on July 15.
TL138.2mm (US$89.3mm)
Leasehold/ Freehold status
Freehold
Dividends - Torunlar REIC share (TLmm)
5
4.2
4
3
2
1.9
2.1
2007
2008
2.4
2.7
1
0
2009
2010
2011
58
Boulevard Samsun Shopping Mall
Ownership
Torunlar REIC (40%)
Leasehold /
Freehold
status
Leasehold
Current status
Under construction
Land: 17,400 m2
Area
breakdown
Total construction area: 37,500 m2
Gross Leasable Area
Mall: 14,700 m2
Office: 1,200 m2
•The property is located on the site of an ex-tobacco factory building at
the city center of Samsun on the Black Sea region in Northern Turkey.
Completion
date
•Retail units will be leased for 19.25€/sq.m/month and office units for
13€/sq.m/month.
Start of construction: Nov. 2010
End of construction: Q1 2012
•The land is leased for 30 years from Samsun Metropolitan Municipality.
•The project is a mixed-use project developed in conjunction with the
shopping mall developer Turkmall.
Construction permit : Sept. 2010
Capex
TL 27.3mm (US$17.6mm)
TL10.9mm (US$7mm)*
Appraisal
value
TL14.8mm (US$9.5mm)
•64% of the retail area has already been leased as of Sept 2011.
*Torunlar REIC 40% share.
59
Korupark Residences Phase I & II
Ownership
Torunlar REIC (100%)
Start of construction
Date of completion
May, 2006
Phase 1: January 2008/
Phase 2: December 2008
Operational date
February 2008
Total investment
TL 107.3mm (US$74mm)
Units sold (%)
91% (as of Sep 2011)
Appraisal value (remaining
units)¹
TL50.1mm (US$32.4mm)
Leasehold/ Freehold status
Freehold
•Located on the western side of Bursa (adjacent to Korupark Shopping Mall), the
property is a residential settlement of luxurious units with sports and recreation
facilities
•The project is the first gated community in Bursa
•Phase I: 343 units (57.119 sq.m), six blocks
Inventory as of Sept 30th ,2011: 18 units
(3.088 sq.m)
•Phase II: 403 units (66.721 sq.m), seven blocks
Inventory as of Sept 30th, 2011: 50
units (10.737 sq.m)
•For Korupark residences I/II, sales are Turkish Lira denominated and currently 2200
TL/ sq.m
60
Korupark Residences Phase III
Ownership
Torunlar REIC (100%)
Estimated start of construction
Estimated operational date
Q1 2013
Estimated investment
TL87.3mm (US$56.5mm)
Appraisal value
TL50.4mm (US$32.6mm)
Leasehold / Freehold status
Freehold
Number of residential units/GSA
•The property, adjacent parcel to Korupark phase I & II, is a luxurious
housing settlement.
May 2011
Current status
680 units / 102.260 m2 residence
Under construction
•For Korupark Residences Phase III, sales are denominated in Turkish Lira
and 2.111TL/sq.m
•203 units (25.299 m2) were presold as of November 13th 2011.
Map of Korupark
Korupark Residences Phase III
Korupark Residences Phase I & II
Korupark Residences Phase I & II
Korupark Residences Phase III
Korupark Shopping Mall
•Note: Exchange rate US$/TL=1.5460 as of
December 31, 2010
¹ Prime appraisal report (based on the CMB
standards as of December 31, 2010)
61
Mall of Istanbul–Istanbul
Ownership
Torunlar REIC (100%)
Start of construction
March 2011
Estimated date of completion
H2 2013
Estimated operational date
Q4 2013
Estimated investment
c.TL500.0mm (US$323mm)
Number of residences / GSA-GLA
135.000 m2 GLA mall,
116.000 m2 GSA residence,
30.000 m2 GSA office
Appraisal value
TL637.1mm (US$411.5mm)
Leasehold / Freehold status
Freehold
Current status
•Mall of Istanbul is a mixed-use project with a large shopping mall
development along with residential, office units
•It is expected to be one of the largest mixed-use projects in Turkey
•Planned to be built with 135.000 m² GLA enriched with 16,000 m² kids
entertainment, 7,200 m² snowpark, cinema complex and conference /
performance hall¹
•Mall of Istanbul is well connected to the city centre through the D100
and TEM highway. In addition, the site is located within 5km of the
airport
•For the Mall of İstanbul,retail units will be rented for 26$/m2 and
residential and office units will be sold for 3500TL/m2 on the average.
•Presales commenced on 23.04.2011 and 526 units (53.765m2) were
presold for 3.130TL/m2 out of 1.071 and 38 office units (6.928m2) out 75
for 3.943TL/m2 until 13.11.2011.
•On 31.05.2011, the company signed USD 250 million loan agreement
with Is Bank of Turkey for a term of 10 years with 3 years grace period.
Under construction
Breakdown–Area (GLA/GSA)
11%
Retail
48%
Residential
Office
41%
62
Torun Tower–Istanbul
Ownership
Torunlar REIC (100%)
Estimated start of construction
December 2011
Estimated date of completion
Q4 2013
Estimated operational date
Q4 2013
Estimated investment
c.TL128.3mm (US$83mm)
Appraisal value
TL237.7mm (US$153.8mm)
GLA
Leasehold/ Freehold status
Current status
Freehold
Under project development
Breakdown–Area (GLA)
Office:
Other
GLA
0%5%
44760m2
•The property is located at the city centre in one of the
most expensive commercial districts of Istanbul with a
subway connection.
•40 floor high-rise tower is planned
•The building is planned to be a landmark for the city
with very modern architecture and construction
technology
•The Property is planned as a mixed-use project with
office and retail units and will be leased.
•Construction permit was awarded on 30.09.2011.
•For Torun Tower, office units will be leased for
35$/sqm/month, retail units for 47$/sqm/month.
GLA
Office:
44.760m2
Other:
2.415m2
Office
95%
63
Mecidiyeköy (Ex-Ali Sami Yen Stadium) Mixed-use Project–Istanbul
Ownership
Torunlar REIC (65%), Ascioglu
(30%), Kapicioglu (5%)
Estimated start of construction
Q1 2012
Estimated date of completion
H2 2014
Estimated operational date
H2 2014
Estimated investment
c.TL311mm (US$201.3mm) /
TL202mm (US$130mm)*
Land acquired
Revenue Share (45%)
Land area (m2)
34,640
Sellable area (m2)
Number of residences
Appraisal value
Leasehold / Freehold status
Current status
86,120 m2 (55,978 m2)*residence,
82,725 m2 (53,771 m2)*office,
21,338 m2 (13,869 m2)* retail
593
TL300mm (US$195mm) / TL195mm
(US$125mm)*
Revenue Share
Under project development
 Mecidiyeköy is a mixed-use project with unit residential complex, along
with office and retail units.
 Its location is in the city center, on the land where the ex-stadium of
Galatasaray is located.
 The project is planned on three high-rise blocks of 40 storey's each. Two
of the blocks will be used as residential, one block will be developed as
A- Class Office Tower. All of them will be sold.
 For the Mecidiyeköy Project sales will be denominated in Turkish Lira.
* Torunlar REIC’s share
64
Netsel Marina-Marmaris
Ownership
Torunlar REIC (44.6%)
Operational Date
1989
Land
37,478 m2
Capacity
700 yachts
5,996 (REIC’s share 2,674)
Leasable area (m2)
Mall Occupancy (%) as of date
68.7% (as of December 2010)
Number of stores
75
Migros, Lacoste, Sisley, Tommy
Hilfiger
Tenants
•Netsel is one of the largest marinas in Turkey by capacity.
•It is located in Marmaris on the Aegean coast.
•Torunlar purchased its stake for TL 14.9 mn in 2005.
•The marina is operated by Setur, a subsidiary of Koc
Holding.
•66 cruisers with 166.000 guests visited the marina in 2010.
•2500-3000 people are estimated to visit the mall on a daily
basis from May to October in 2010.
Mall rental revenue (2010)
TL1.2mm
Total rental revenue (2010)
TL13.1mm
Appraisal value (REIC share)
TL30.7mm (US$19.8mm)
Leasehold / Freehold status
Leasehold
Dividends - Torunlar REIC share (TLmm)
2.5
2.2
2.1
2009
2010
2.3
2
1.5
1.5
2007
2008
1.5
1
0.5
0
2011
65
NishIstanbul Mixed-use Project–Istanbul
Ownership
Start of construction
Torunlar REIC (60%)
H2 2008
Date of completion
November 2010
Operational date
November 2010
Number of residences / Sellable area
(m2)
585 / 53,204
Number of offices / Sellable area (m2)
63/ 16,925
Number of retail units / Leasable area
(m2)
52 / 10,937
Appraisal value
Leasehold/Freehold status
TL33.3mm (US$22.4mm)
Freehold
•Located on the west-side of Istanbul in Yenibosna, 1.5 km away from Istanbul Atatürk Airport
•Three residential blocks, one office block and retail units
•As of June 2011, the project partnership was terminated. 3 residential units (291 m2) will be kept, 5 office
(1340 m2) units will be sold for 5000TL/m2. 20 stores (3425 m2) will be leased for 25$/m2/month.
•Torunlar REIC has 6 more offices (1620 m2) and a 1080 m2 spa in its portfolio.
66
Turkey Real Estate Economic Highlights
Turkey Real Estate Market Review
3
Business Review
Project Pipeline
Financial Review
Future Outlook
Appendix
● Portfolio Review
● Financial Data
● Listed REIC's
67
Income Statement
(000 TL)
Sales
3Q11
3Q10
YoY
2Q11
1Q11
9M11
9M10
YoY
38.106
101.012
-62,3%
41.104
42.038
121.248
150.868
Residence
5.105
82.214
-93,8%
10.841
12.869
28.815
103.485
-72,2%
Mall rental
28.122
14.149
98,8%
26.808
24.711
79.641
38.584
106,4%
4.879
4.649
4,9%
3.455
4.458
12.792
8799
45,4%
Cost of sales
13.474
79.958
-83,1%
17.942
16.571
47.987
96.019
-50,0%
Gross profit
24.632
21.054
17,0%
23.162
25.467
73.261
54.849
33,6%
Gross margin
64,6%
20,8%
43,8 pp
56,3%
60,6%
60,4%
36,4%
24,0 pp
Opex
-3.744
-3.046
22,9%
-7.817
-4.062
-15.623
-12.224
27,8%
889
447
98,9%
886
337
2.112
-201
-1150,7%
0
0
0
0
0
114.740
-100,0%
21.777
18.455
18,0%
16.231
21.742
59.750
157.164
-62,0%
21.777
18.455
18,0%
16.231
21.742
59.750
42.424
40,8%
0
0
4.188
2.308
6.497
4.744
37,0%
EBIT
21.777
18.455
18,0%
20.419
24.050
66.247
47.168
40,4%
EBIT margin (%)
57,1%
18,3%
38,8 pp
49,7%
57,2%
54,6%
31,3%
23,3 pp
-32,3%
Other
Other income(expenses)
Net gain (loss) fair value adjustments on
investment property
Operating profit
Operating profit excluding fair value
adjustment
Share of profit of associates (recurring)
Depreciation
-19,6%
66
94
-29,8%
44
81
191
282
EBITDA
21.843
18.549
17,8%
20.463
24.131
66.438
47.450
40,0%
EBITDA margin (%)
57,3%
18,4%
38,9 pp
49,8%
57,4%
54,8%
31,5%
23,3 pp
3.805
2.598
46,5%
-3.122
874
1.556
8.865
-82,4%
12.171
-7.056
-272,5%
-33
-1.952
11.201
-20.306
-155,2%
47
716
-93,4%
2.034
1.329
2.395
-448
-634,6%
Forex gain (loss)
-78.565
19.289
-507,3%
-34.207
-15.085
-127.857
32.353
-495,2%
Profit before tax
-40.765
34.002
-219,9%
-14.909
9.216
-46.458
182.372
-125,5%
-521
-364
43,1%
-425
-445
-1.391
-833
67,0%
-41.286
33.638
-222,7%
-15.334
8.771
-47.849
181.539
-126,4%
-108,3%
33,3%
NM
-37,3%
20,9%
-39,5%
120,3%
NM
share of profits (non-recurring)
Net financial interest income(expense)
Other net financial income (expense)
Corporate tax
Net profit
Net profit margin (%)
Note: Sales are accounted when properties are physically transferred to buyers
1 EBIT includes operating profit and share of profits from associates excluding any effect of fair value changes
2 EBITDA = EBIT + Depreciation expenses ³ Excludes fair value gains/losses from “Investment Properties” and financial instruments
68
Turkey Real Estate Economic Highlights
Turkey Real Estate Market Review
3
Business Review
Project Pipeline
Financial Review
Future Outlook
Appendix
● Portfolio Review
● Financial Data
● Listed REIC's
69
Portfolio Structures of REICs (as of June 2011)
Listed REICs
Land
Buildings
Ongoing projects
Rights over real
estate assets
Marketable
securities
Participations
Emlak Konut
52%
4%
32%
-
12%
-
Torunlar
8%
39%
23%
-
19%
11%
İş
12%
83%
-
-
6%
0%
Sinpaş
33%
21%
37%
-
2%
7%
Kiler
6%
85%
3%
-
6%
0%
Akmerkez
-
91%
-
-
9%
-
Akfen
-
45%
3%
2%
6%
44%
Reysaş
16%
74%
8%
-
0%
1%
Alarko
16%
16%
6%
20%
41%
0%
Martı
16%
-
21%
63%
-
0%
TSKB
4%
90%
-
-
6%
0%
Atakule
0%
60%
0%
-
39%
-
Yesil
30%
-
70%
-
0%
-
Doğuş
-
89%
-
-
11%
-
Pera
-
82%
10%
2%
4%
2%
Vakıf
77%
12%
-
2%
9%
-
Özderici
-
3%
79%
-
18%
-
Yapı Kredi Koray
8%
25%
20%
-
0%
47%
Sağlam
-
68%
-
-
28%
4%
Nurol
49%
34%
-
-
17%
-
Avrasya
16%
83%
-
-
2%
-
EGS
2%
-
98%
-
0%
0%
İdealist
-
95%
-
-
5%
-
TOTAL
27%
34%
22%
1%
11%
5%
exc. EKGYO
13%
51%
17%
2%
11%
8%
70
Disclaimer
This presentation does contain forward-looking statements that
reflect the Company management’s current views with respect to
certain future events based on the base-case assumptions.
Although it is believed that the expectations reflected in these
statements are reasonable, they may be affected by a variety of
variables and changes in underlying assumptions that could cause
actual results to differ materially.
Neither Torunlar REIC nor any of its directors, managers or
employees nor any other person shall have any liability whatsoever
for any loss arising from the use of this presentation.
71
Contacts
Ismail KAZANC
CFO
ismailkazanc@torunlargyo.com.tr
Haluk YUKLER
Investor Relations Director
halukyukler@torunlargyo.com.tr
TORUNLAR REIC (Real Estate Investment Company)
Ruzgarlibahce Mah. Selvi Cikmazi No.4 34805 Kavacik, Istanbul, TURKEY
Phone: +90-216-425 20 07
Fax: +90-216-425 03 12
72