27 AUGUST 2013

3

Financial Review 3

Project Pipeline 24

Future Outlook 28

Appendix

● Turkey Real Estate Economic Highlights 35

● Turkey Real Estate Market Review 40

● Financial Statements 53

● Listed REIC's 60

● Portfolio Review 66

3

FINANCIAL REVIEW

TORUNLAR GROUP OF COMPANIES

3

FOOD REAL ESTATE ENERGY OTHER

TORUNLAR

FOODRevenue: 852.7 mn TRY

TORUNLAR

REICRevenue: 392.7 mn TRY

TORUNLAR

ENERGYRevenue: 1.75 billion TRY

TORUN

PAPERRevenue: 45.02 mn TRY

TORUN

CONSTRUCTIONRevenue: 3.9 mn TRY

TORUN

MALL MANAGEMENTRevenue: 13.4 mn TRY

Combined Sales Revenue : 3.1 billion TRY in 2012

AZİZ TORUN

MEHMET TORUN

FINANCIAL REVIEW

Torunlar REIC Shareholding Structure

4

FINANCIAL REVIEW

Benefits of Investing in Torunlar REIC

5

Deliver: Consistent Sustainable Total Returns Provide: Growth and Defense Grow: Cash Flows and Dividend Maintain: Financial Strength Practice: Disciplined Capital Allocation while Continuing to Grow Have: Long Runway for Growth Manage: Balanced and Diversified Portfolio

FINANCIAL REVIEW

Key Overview

6

Accretive Mixed-Use Investments

900 mn TRY invested since 2010

Steady rental income generator

Managing 5 billion TRY Assets

+11.4% YTD June 2013

TRY (000) 2010 2011 2012 1H 2013

Sales 232,928 162,909 226,705 96,863

Residence 161,064 37,758 84,691 24,677

Mall Rental 53,899 91,969 105,948 55,206

Other 17,965 33,182 36,066 16,980

EBITDA 55,378 82,218 135,226 64,239

EBITDA Margin 23.8% 50.5% 59.6% 73.8%

Net Profit 214,245 177,312 336,888 25,437

Market Cap 1,411,200 889,280 1,610,000 1,745,000

Portfolio Value 3,135,732 3,818,283 4,432,710 4,379,214

Net Asset Value 2,369,083 2,532,906 2,847,035 2,822,473

Capex 213,280 206,831 313,141 163,268

Net Debt 344,599 444,931 524,529 987,575

LTV 13.40% 14.90% 13.96% 25.07%

FINANCIAL REVIEW

Build to Rent Assets

7

(TRY) Operation Date Land Cost Development Cost

Total Cost * Appraisal Value

Year 1 Year 2 Year 3 Total 2011 2012

Malls - in operation 69,276,753 348,876,398 418,153,151 1,571,524,518 1,741,921,375

Zafer 1999 18,448,375 18,448,375 176,776,696 197,948,489

Korupark 3Q 2007 6,719,681 77,315,718 84,035,399 600,228,815 695,068,628

Deepo Outlet 4Q 2004 7,700,000 10,149,518 17,849,518 185,806,924 212,631,598

Torium 4Q 2010 54,857,072 221,069,212 275,926,284 567,279,000 583,749,524

Samsun 3Q 2012 11,976,187 9,917,388 21,893,575 21,893,575 41,433,083 52,523,136

Malls - upcoming 113,469,959 460,383,110 573,853,069 856,804,148 1,056,173,020

MOI 1Q 2014 113,469,959 84,308,286 108,406,343 202,905,481 395,620,110 509,090,069 810,242,376 1,002,014,670

Deepo Extension 3Q 2015 64,763,000 64,763,000 64,763,000 46,561,772 54,158,350

Offices - upcoming 46,637,080 135,578,740 182,215,820 253,265,576 279,561,544

Torun Tower 1Q 2014 46,637,080 28,851,641 92,771,712 13,955,387 135,578,740 182,215,820 253,265,576 279,561,544

Offices - upcoming 54,110,355 52,870,000 106,980,355 0 355,793,650

Hotel Paşabahçe ** 4Q 2015 54,110,355 2,643,500 15,861,000 34,365,500 52,870,000 106,980,355 355,793,650

TOTAL 229,383,792 944,838,248 1,174,222,040 2,681,594,242 3,077,655,938

(TRY) GLA (sqm) 2011 2012 2014 F

Rental Revenues NOI Yield Rental Revenues NOI Yield* Rental Revenues NOI

Malls - in operation 222,879 94,974,941 87,195,562 5.70% 104,679,255 98,015,078 5.73% 128,306,634 117,471,950

Zafer 23,448 12,344,561 10,345,254 5.85% 13,494,606 11,662,531 5.89% 16,121,719 13,754,191

Korupark 71,267 38,472,638 37,898,157 6.31% 44,458,978 44,302,093 6.37% 54,075,206 52,444,397

Deepo Outlet 18,069 12,622,372 11,725,135 6.31% 13,458,758 13,103,384 6.16% 16,216,838 15,475,107

Torium 95,280 31,535,369 27,227,016 4.80% 31,757,339 27,809,186 4.76% 36,623,933 30,957,340

Samsun 14,815 1,509,575 1,137,884 NM 5,268,939 4,840,915

Malls - upcoming 180,613 77,794,994 66,624,617

MOI 153,963 77,794,994 66,624,617

Deepo Extension 26,650

Offices - upcoming 66,286 25,252,500 20,452,341

Torun Tower 66,286 25,252,500 20,452,341

Hotels - upcoming 6,000 0 0

Hotel Paşabahçe ** 6,000

TOTAL 475,778 94,974,941 87,195,562 5.16% 104,679,255 98,015,078 5.73% 231,354,128 204,548,907

* Total cost denotes historical cost of project

** Hotel Paşabahçe 2012 appraisal value 217.5mnTL and expected 2016 NOI 37.2mnTL

FINANCIAL REVIEW

Build to Sell Assets

8

(TRY) Start Year Completion Year Land Area Land Cost Construction Area Construction Cost Total Cost* Revenues

TRY TRY per sqm

Completed Projects 102,940 51,397,138 484,508 319,313,900 370,711,037 639,375,808 2,277

Korupark Residences Phases I-II 2Q 2006 4Q 2008 47,434 5,993,043 221,979 123,535,895 129,528,938 232,541,342 1,878

NishIstanbul 2H 2008 4Q 2010 19,733 37,200,000 81,175 79,509,556 116,709,556 172,547,801 3,219

Residences 12,781 24,093,620 52,575 55,380,486 79,474,106 91,936,393 2,880 Offices 4,325 8,153,749 17,792 22,339,396 30,493,144 46,909,276 3,809 Stores 2,627 4,952,631 10,807 1,789,674 6,742,305 33,702,131 3,599

Korupark Residences Phase III 2Q 2011 4Q 2012 35,773 4,503,546 166,402 104,185,610 108,689,156 33,702,131 3,599

Torium Residences 2Q 2008 2H 2011 3,700,549 14,952 12,082,839 15,783,388 10,616,155 1,855

Ongoing Projects 66,463 395,352,004 402,025 553,665,127 949,017,131 1,672,554,225 7,033

Torun Center 3Q 2012 3Q 2015 22,516 332,150,000 157,794 276,376,587 608,526,587 1,000,995,307 12,189

Residences 10,329 152,365,398 72,384 126,780,758 279,146,156 494,022,682 13,506 Offices 7,431 109,615,057 52,075 91,208,898 200,823,955 345,395,942 12,439

Stores 4,757 70,169,545 33,335 58,386,932 128,556,477 161,576,683 9,090

MOI 1Q 2011 4Q 2013 43,947 63,202,004 244,231 277,288,540 340,490,544 671,558,918 4,314

Residences 34,913 51,304,319 194,025 220,243,440 271,547,759 519,486,412 4,278 Offices 9,034 11,897,685 50,206 57,045,101 68,942,786 152,072,506 4,440

Upcoming Projects 15,626 319,157,847 69,339 186,640,075 505,797,922 943,004,507 17,952

Maltepe Residences 4Q 2013 4Q 2015 7,285 18,268,202 23,957 32,341,275 50,609,477 69,761,328 3,640

Villa Paşabahçe 1Q 2014 4Q 2015 8,341 300,889,645 45,382 154,298,800 455,188,445 873,243,179 26,173

TOTAL 185,030 765,906,989 955,871 1,059,619,102 1,825,526,091 3,254,934,540 5,700

*Total cost denotes historical cost of project

(TRY) Unit Sellable Area

(sqm)

2010 2011 2012 2013 F 2014 F 2015 F TOTAL

Unit sqm Revenue Unit sqm Revenue Unit sqm Revenue Unit sqm Revenue Unit sqm Revenue Unit sqm Revenue

Completed Projects 2,179 280,747 1,249 141,502 295,232,000 322 44,120 88,391,790 93 14,385 33,905,190 163 26,367 60,143,341 190 30,028 85,415,885 125 22,704 69,293,035 639,375,808

Korupark Residences Phases I & II **

746 123,840 621 99,443 175,788,000 64 11,979 25,379,000 7 1,437 3,281,970 10 2,287 5,403,570 15 3,316 6,930,846 16 3,912 8,763,387 232,541,342

Korupark Residences Ph. III

680 97,581 214 27,203 50,493,018 69 11,055 23,243,546 138 22,379 50,200,465 131 20,072 52,012,435 104 16,872 47,721,048 223,670,510

NishIstanbul 700 53,602 628 42,059 119,444,000 41 4,592 11,956,102 6 955 5,588,080 2 337 2,018,019 18 3,565 20,733,000 5 1,920 12,808,600 172,547,801

Residences 585 31,922 560 30,556 86,775,730 22 1,192 4,527,000 1 112 633,663 0 0 0 91,936,393

Offices 63 12,315 50 9,351 26,556,175 5 810 7,429,102 1 270 1,620,000 7 1,884 11,304,000 46,909,276

Stores 52 9,365 18 2,152 6,112,095 14 2,590 0 5 843 4,954,417 1 67 398,019 11 1,681 9,429,000 5 1,920 12,808,600 33,702,131

Torium Residences 53 5,723 3 346 563,670 11 938 1,791,594 13 1,364 2,521,287 26 3,075 5,739,604 0 0 0 10,616,155

Ongoing Projects 1,895 237,799 0 0 0 575 62,086 206,405,727 281 41,260 169,773,278 202 53,605 449,956,131 150 43,876 439,393,993 52 36,973 407,025,095 1,672,554,225

Torun Center 635 82,122 0 0 0 0 0 0 0 0 0 0 27,230 317,422,437 0 26,358 333,285,093 0 28,535 350,287,777 1,000,995,307

Residences 408 36,579 0 10,579 132,001,676 0 12,025 170,144,468 0 13,975 191,876,537 494,022,682

Offices - Towers 113 27,768 0 11,811 142,595,362 0 8,158 104,652,939 0 7,800 98,147,641 345,395,942

Offices - Flat 114 17,776 0 4,841 42,825,398 0 6,175 58,487,686 0 6,760 60,263,600 161,576,683

MOI 1,260 155,677 575 62,086 206,405,727 281 41,260 169,773,278 202 26,375 132,533,695 150 17,518 106,108,900 52 8,438 56,737,318 671,558,918

Residences 1,081 121,426 536 55,158 178,015,737 223 29,776 122,972,789 170 19,526 100,489,396 114 11,676 77,756,866 38 5,291 40,251,624 519,486,412

Offices 179 34,250 39 6,928 28,389,990 58 11,484 46,800,489 32 6,849 32,044,299 36 5,842 28,352,034 14 3,147 16,485,694 152,072,506

Upcoming Projects 272 52,529 0 0 0 0 0 0 0 0 0 0 0 0 90 8,624 30,185,190 133 15,114 148,660,586 943,004,507

Maltepe Residences 210 19,165 90 8,624 30,185,190 120 8,624 32,197,536 69,761,328

Villa Paşabahçe 62 33,364 13 6,490 116,463,050 873,243,179

TOTAL 4,346 571,075 1,249 141,502 295,232,000 897 106,206 294,797,517 374 55,645 203,678,468 365 79,972 510,099,473 430 82,528 554,995,068 310 74,791 624,978,716 3,254,934,540

* Total cost denotes historical cost of project

** Korupark Residences Phases I & II 2010 breakdown; 2008 - 68.639.000 TRY (269 unit) ,2009 - 65.240.000 TRY (226 unit) ,2010 - 41.909.000 TRY (126 unit)

3

FINANCIAL REVIEW

REIC Legislation

In forms of joint stock company, with registered or bearer shares • REIC’s incomes are exempted from 20% corporate tax • Minimum 30 million TRY as initial capital, at least 6 million TRY shall be in cash (if less than 60 million TRY,

10% of share capital) • Registered capital system, IPO for 25% of the share capital (within 3 months after establishment), listing at

ISE • At least 51% of total assets shall be invested in Real Estate, Real Estate Projects and capital market

instruments backed by Real Estates • Time deposits in TRY or Foreign Currency with max. 10% of total assets • Max. 49% of total assets can be invested in Foreign Companies, Foreign Real Estates and capital market

instruments backed by Real Estates • Real Estates that are vacant without any development project for more than 5 years shall not exceed 20% of

the total assets

REICs cannot: Engage in capital market activities other than portfolio management for its own portfolio limited to the

investment areas • Be involved in construction of real estate as a constructor • Commercially operate any real estate i.e. hospital, shopping mall • Engage in deposit business, conduct business and operations resulting in deposit collection • Engage in commercial, industrial or agricultural activities other than the transactions permitted • Grant loan or commit in any debit/credit transaction which is not related to good/services purchase and sale

with their participations

9

IFRS 11 Joint arrangements is effective from 01.01.2013. There are two types of joint arrangement: joint operations and joint ventures. Torunlar Ozyazici (Nish Istanbul), TTA (Bulvar Samsun Mall) and Torunlar REIC-Torun Construction-Kapicioglu (Torun Center) joint ventures are no more accounted for by way of proportionate consolidation, but by the equity method of accounting like the company’s associates Yeni Gimat (Ankamall) and Netsel Marina. They will be treated as equity accounted investees. This will result in recognising a single line item for the investment and the company’s share of the joint arrangement’s profit or loss. Bulvar Samsun rental revenues, Nish Istanbul residential sales and their net operating income will not appear as a part of EBITDA. Torun Center presales will not appear in the balance sheet as cash and advances from customers. When the project is completed, final residential and offices sales and net operating income will not appear as a part of EBITDA. The financial loans raised by the JV’s are eliminated from the balance sheet. The share of JVs’ profit or losses will be booked in the post-EBITDA non-operational and non-recurring income from associates and JV’s.

FINANCIAL REVIEW

Effect of IFRS 11 on the financial statements

10

FINANCIAL REVIEW

1H 2013 Financial Performance ( million TL )

11

Portfolio Value

4,379.2 ( 3,751.8 )

SALES

MALL RENTAL

EBITDA

CAPEX

EBITDA MARGIN

96.9 (76.7)

55.2 ( 51.0 )

15% 64.2 ( 55.8 )

28% 167.2 ( 130.4 )

6.4pp 66.3 % ( 72.7 % )

*Numbers in paranthesis denote 1H 2012 figures.

8%

26%

17%

FINANCIAL REVIEW

Financial Highlights (million TRY)

12

PORTFOLIO VALUE ________________________________________

CAPEX___________________________________________________

FINANCIAL REVIEW


13

SALES___________________________________________________

PRESALES_______________________________________________

FINANCIAL REVIEW


14

MALL REVENUES__________________________________________

MALL SALES TURNOVER & FOOTFALL_______________________

FINANCIAL REVIEW


15

NET PROFIT______________________________________________

EBITDA__________________________________________________

FINANCIAL REVIEW

KPI Summary

16

2013/06 2012/12 Variance

Total net debt (000 TRY) 987,575 524,529 88.28%

Average loan term (years) 5 5

Average overall interest rate* 3.99% 4.85% -0.86 pp

Leverage (financial loans as % of total assets) 26.8% 20.2% 6.62 pp

Net debt to equity ratio 35.0% 18.4% 16.57 pp

Net debt/Assets (%) 19.7% 11.7% 8.04 pp

Equity to assets ratio 56.3% 63.3% -7.02 pp

Loan to property value ratio (LTV) 25.1% 14.0% 11.11 pp

Interest coverage ratio (times) 6.1 33.7 -27.55 pp

Net debt/EBITDA (times) 7.69 3.88 3.81 pp

FFO Yield (%, FFO/MCap) -16.1% 14.6% -30.74 pp

Headcount 251 289 -13.15%

* Excl. TRY Loans

17

FINANCIAL REVIEW

Project Monthly Pre-Sales (in Units) «30.06.2013»

FINANCIAL REVIEW

Mall Portfolio Encompasses Entire Retail Spectrum

18

VALUE PREMIUM

June 2013 Antalya Deepo Zafer Plaza Istanbul Torium Bursa Korupark Total

GLA ( m2 ) 18,069 23,448 95,280 71,267 208,064

Revenues (TRY) 10,041,000 8,500,000 21,272,000 31,920,000 71,733,000

LfL Revenues (% revenues) 30.79% 31.78% -13.42% 8.75% 5.42%

NOI (TRY) 6,087,000 6,199,000 11,631,000 25,092,000 49,009,000

LfL NOI (% NOI) 0.43% 31.78% -15.97% 13.07% 4.73%

% LfL Footfall Growth -0.2 0.6 -8.9 -3.1 -3.2

% LfL Mall Turnover growth 7.9 11.2 -7.9 6.5 3.1

Active Number of Stores 85 114 152 188 539

Occupancy 100% 100% 93% 99% 96%

Fixed Rent (sqm/month) 22.31 € 34.24 $ 13.52 $ 22.40 € 17.03 €

Turnover Rent (as % of fixed rent) 15.65 2.49 8.97 2.54 5.84

Breakdown of Rental Revenues

18% $ 63% $ 72% $ 11% $ 37% $

82% € 37% € 27% € 89% € 63% €

Sh

are

of

Inte

rnati

on

al

Ten

an

ts % of GLA 20% 25% 33% 43% 37%

% of Rental Revenue 11% 29% 33% 40% 38%

% of Retail Turnover 24% 32% 47% 44% 45%

FINANCIAL REVIEW

Shopping Mall Breakdown by Category «June 2013»

19

(TRY) Leased Area

(SQM)

Leased Area

Breakdown

SALES/ SQM/

MONTH

FIXED RENT/

SQM/ MONTH

(TRY)

RENT/ SALES

Breakdown of

Rental

Revenue

Monthly

Footfall

Average

Spending Per

Month (TRY)

Anchor 35,462 18% 326 23 7% 9%

Home 5,777 3% 429 67 16% 5%

Ready Wear 79,959 42% 513 52 10% 49%

Department Store 13,377 7% 315 20 6% 3%

Service 6,134 3% 147 40 27% 3%

Leisure/Gift/Special 4,722 2% 454 65 14% 4%

Personel

Care/Accessories 5,482 3% 1,125 107 10% 7%

Entertainment 20,992 11% 61 12 20% 3%

Technology 6,778 4% 821 64 8% 5%

Food&Drink 13,915 7% 517 77 15% 13%

TOTAL 192,598 100% 428 44 10% 100% 3,097,015 26.64

2012 (Same Month) 195,618 403 41 10% 100% 3,204,044 24.60

Variance -1.54% 6.31% 8.30% -3.34% 8.29%

FINANCIAL REVIEW

Continued Growth and positive re-letting/renewals

20

FINANCIAL REVIEW

Expiration of Lease Contracts in terms of Fixed Rent

21

Assuming that June 2013 monthly fixed rents are kept constant

FINANCIAL REVIEW

The Home of the Flagships

22

• Rank: 5 • GLA: 2.187 (1.1%) • 2.2% of Monthly

Fixed Rent

• Rank: 4 • GLA: 8,434 (4.4%) • 3.2% of Monthly

Fixed Rent


Fixed Rent/


Fixed Rent


Fixed Rent


Fixed Rent


Fixed Rent


Fixed Rent


Fixed Rent


Fixed Rent

Top 10 tenants account for 34.6% of total GLA and 26.3% of total fixed rent revenues.

*The graph excludes TRY 381.1 mn of cash and cash deposits

FINANCIAL REVIEW

Maturity of Financial Loans

23

3

Financial Review

Project Pipeline

Future Outlook

Appendix

● Turkey Real Estate Economic Highlights

● Turkey Real Estate Market Review

● Financial Statements

● Listed REIC's

● Portfolio Review

PROJECT PIPELINE

CAPEX (million TRY)

25

PROJECT PIPELINE

Evolution of the Projects (m2)

26

1 billion TRY Capex

GLA+GSA (m2) 2012 2013 2014 2015 2016 2017

Retail 224,004 229,930 384,778 411,429 411,429 411,429

Residence 79,712 189,290 189,290 235,452 268,816 614,167*

Office 2,154 36,404 102,690 148,234 148,234 148,234

Hotel 2,907 2,907 2,907 2,907 54,907 54,907

Marina 3,431 3,431 3,431 3,431 3,431 3,431

Other 7,715 7,715 7,715 20,870 20,870 20,870

Total 319,924 469,678 690,811 822,322 907,686 1,253,037

Land 237,404 237,404 237,404 230,323 132,742 60,833

*Kiptas delivery in 2017 as an asset sharing project, therefore not seen in the Landbank

PROJECT PIPELINE

GLA+GSA Breakdown by City

27

CAGR : 37%

319,924 sqm 822,322 sqm

3

Business Review

Project Pipeline

Future Outlook

Appendix



● Financial Statement

● Listed REIC's


Net rental income up 8.1% at TRY 55.2 Mn in spite of subdued consumer demand

Mall footfall down 3.1%, but sales up 3%, on a like-for-like basis, depressed by Torium

Buoyant presales (79%) at Mall of Istanbul at TRY 442.9 Mn triggered by foreigners’ demand (27.5%) and at Torun Center (10.1%) at TRY 49.6 Mn except for Mapfre office presales in July 2013

EBITDA up 15.2% at TRY 64.2 Mn backed by TRY 15.2 Mn dividend from Netsel Marina and Yeni Gimat

Opex up 108.1% led by TRY 4.1 Mn one-off donation, TRY 3.7 Mn marketing expenses at MOI and Torun Center and TRY 3.2 Mn real estate taxes and stamp duties

Net profit down 73.7% at TRY 25.4 Mn brought about by TRY 50 Mn forex loss and TRY 10.5 Mn net financial expense, but offset to a certain extent by the reversal of TRY 39.9 Mn deferred tax liability charges in Yeni Gimat

Net debt up 88.2% YTD at TRY 987.5 Mn driven by TRY 345.2 Mn outstanding early payment to TOKI for Torun Center land acquisition, new loan withdrawal and forex impact on TRY equivalent loans

Average cost of funding in Q2 2013 down to 3.99% (Q1 2013: 4.1%)

Capex up 28.1% at TRY 167.1 m excluding Torun Center due to IFRS 11 effect

NAV in Q2 2013 TRY 5.64 per share (Q4 2012: TRY 5.69)

FUTURE OUTLOOK

1H 2013 Highlights

29

FUTURE OUTLOOK

2013 Budgeted Income Statement (TRY)

30

mn TL 2013 F 2012 YoY 2011 2013 F

Sales 726,113 226,705 220.3% 162,909 726,113

Residence 568,856 84,691 571.7% 37,758 568,856

Mall rental 117,029 105,948 10.5% 91,969 117,029

Other 40,228 36,066 11.5% 33,182 40,228

Cost of sales (340,103) (86,757) 292.0% (62,754) (340,103)

Residence (286,927) (41,145) 597.4% (20,231) (286,927)

Mall rental (6,464) (8,419) -23.2% (4,790) (6,464)

Other (46,712) (37,193) 25.6% (37,733) (46,712)

Gross profit 386,010 139,948 175.8% 100,155 386,010

Gross margin 53.2% 61.7% -8.57 pp 61.5% 53.2%

Opex (26,736) (18,302) 46.1% (24,515) (26,736)

General&Admin exp (18,344) (12,440) 47.5% (13,777) (18,344)

Mrkt and selling exp (8,392) (5,862) 43.2% (10,738) (8,392)

Other income(expenses) 0 148 -100.0% (5,586) 0

Net gain (loss) fair value adjustments on investment property

0 159,824 -100.0% 182,534 0

Operating profit 359,273 281,618 27.6% 252,588 359,273

Operating profit excluding fair value adjustment 359,273 121,794 195.0% 70,054 359,273

Share of profit of associates (recurring) 14,000 12,834 9.1% 6,496 14,000

EBIT * 373,273 134,628 177.3% 81,927 373,273

EBIT margin (%) 51.4% 59.4% -7.98 pp 50.3% 51.4%

Depreciation 960 598 60.5% 291 960

EBITDA 374,233 135,226 176.7% 82,218 374,233

EBITDA margin (%) 51.5% 59.6% -8.11 pp 50.5% 51.5%

Share of profits (non-recurring) 30,000 9,417 218.6% 38,731 30,000

Net financial interest income(expense) (22,694) 4,018 NA 1,334 (22,694)

Other net financial income (expense) 0 1,501 -100.0% 2,378 0

Forex gain (loss) (80,000) 36,463 NA (122,414) (80,000)

Profit before tax 300,579 345,851 -13.1% 179,113 300,579

Deferred Corporate tax 0 -6,831 -100.0% - 0

Corporate tax -2,000 -2,132 -6.2% -1,801 -2,000

Net profit 298,579 336,888 -11.4% 177,312 298,579

Net profit margin (%) 41.1% 148.6% -107.5 pp 108.8% 41.1%

FUTURE OUTLOOK

Long Term Sales & EBITDA Forecast (TRY ‘000)

31

FUTURE OUTLOOK

Cash Flow Statement Forecast

32

Cash Flow Statement (Forecast) 2013 2014 2015 2016 2017 CASH FLOW FROM OPERATIONS

From Mall Rentals ( + ) 106,065,359 179,232,510 209,045,176 219,366,753 233,388,684 From Office Rentals ( + ) 0 20,452,341 43,022,070 45,543,641 48,177,787 From Hotel Rentals ( + ) 0 0 0 20,531,368 19,330,650 From Residence Pre-Sales and Sales ( + ) 562,421,061 464,646,033 549,044,873 593,955,909 174,245,950 Change in Trade Receiveables ( + ) 95,455,008 93,602,089 122,292,390 129,903,776 76,076,610 Operational Expenses ( - ) 26,736,127 24,374,541 26,811,995 29,493,194 32,442,514 Net Cash Flow from Operations 737,205,301 733,558,432 896,592,514 979,808,254 518,777,168

CASH FLOW FROM INVESTING ACTIVITIES Construction Costs ( - ) 521,663,443 378,846,958 255,267,148 25,092,597 0 Shopping Mall Renewal Costs ( - ) 1,590,980 1,689,119 1,800,748 1,896,591 2,002,369 Net Cash Flow from Investing Activities -523,254,423 -380,536,077 -257,067,896 -26,989,188 -2,002,369

CASH FLOW FROM FINANCING ACTIVITIES Cash receipt from 717,113,621 279,910,245 97,075,910 88,416,931 114,276,144

Issuance of stock ( + ) 0 0 0 0 0 Deposits ( + ) 48,097,789 77,091,748 80,159,708 69,809,109 93,807,540 Dividends ( + ) 13,980,332 15,378,365 16,916,202 18,607,822 20,468,604 Loans ( + ) 655,035,500 185,000,000 0 0 0 Repurchase of Stock Sell ( + ) 0 2,440,132 0 0 0

Cash paid for 799,766,249 602,252,996 840,106,520 801,251,692 525,630,468 Repurchase of stock ( - ) 0 0 0 0 0 Repayment of loans for investment ( - ) 749,766,249 526,115,236 759,835,650 532,108,233 333,276,895 Dividends ( - ) 50,000,000 76,137,760 80,270,870 269,143,459 192,353,573

Net Cash Flow from Financing Activities -82,652,628 -322,342,750 -743,030,610 -712,834,761 -411,354,325

Net Increase / Decrease in Cash 131,298,249 30,679,604 -103,505,992 239,984,305 105,420,474 Cash at the beginning of the term 639,619,231 770,917,480 801,597,084 698,091,092 938,075,397 Cash at the end of the term 770,917,480 801,597,084 698,091,092 938,075,397 1,043,495,871

FUTURE OUTLOOK

Dividend Pay-out Projections (Million TRY)

33

FUTURE OUTLOOK

NAV 2015 (4,780 million TRY)

34

3

35

Business Review

Project Pipeline

Future Outlook

Appendix




● Listed REIC's


TURKEY REAL ESTATE ECONOMIC HIGHLIGHTS

Company Economic Forecast

36

2012

2013

Base Case Best Case Worst Case

Real Growth (GDP, %) 2.20 3.70 4.50 2.00

Inflation (CPI, %) 6.16 8.50 7.50 9.50

Producer Price Index (PPI, %) 2.45 7.50 6.50 8.50

TL/USD (year-end) 1.78 2.00 1.95 2.20

TL/EUR (year-end) 2.35 2.65 2.59 2.93

USD / EUR (year-end) 1.32 1.33 1.33 1.33

CBT weekly repo rate ( % ) 5.50 5.50

CBT overnight repo rate ( % ) 9.00 8.00

Mortgage loan average monthly interest rate (yer-end, % ) 0.98 0.80

Mortgage loan growth ( % ) 15.40 27.00

Construction sector growth rate ( % ) 0.60 5.30 6.10

Residential construction permits (growth, % ) 14.00 10.00 14.00

Residential prices/rents growth (%) 17.40 /

15.80

at par with

inflation

Commercial real estate investment growth ( % ) 7.00 6.00 8.00


Turkey GDP vs. Construction Sector

37


Turkey Real Estate Economic Highlights

38


Turkey Real Estate Economic Highlights

39

40

Business Review

Project Pipeline

Future Outlook

Appendix




● Listed REIC's


TURKEY REAL ESTATE MARKET REVİEW

Turkey Residential Sales ( in units )

41


Turkey Residential Permits (in units)

42


Residential Purchase Confidence Index

43


Turkey New Residential Price Index

44


Turkey Retail Market

45


Turkey Retail Market

46


Shopping Mall Development

47

End 2010 End 2011 End 2012 Under

Construction** Total**

İstanbul Unit 92 104 117 32 149

GLA (sq m) 2.65 M 3.08 M 3.46 M 1.38 M 4.84 M

Re

st

of

Tu

rke

y

Unit 171 198 220 41 261

GLA (sq m) 3.87 M 4.55 M 5.12 M 1.28 M 6.40 M

Tu

rke

y Unit 263 302 337 73 410

GLA (sq m) 6.52 M 7.63 M 8.58 M 2.66 M 11.24 M

**as of end 2015

Source: Jones Lang LaSalle


Retail Density-GLA per 1,000 Capita, Turkey

48

City End 2011 End 2012 End 2016

İstanbul 232 m2 254 m2 318 m2

Ankara 236 m2 252 m2 277 m2

Isparta 49 m2 62 m2 208 m2

Bursa 143 m2 143 m2 186 m2

Karabük 179 m2 186 m2 182 m2

Kırıkkale 37 m2 99 m2 199 m2

Bolu 148 m2 171 m2 173 m2

Muğla 76 m2 148 m2 160 m2

Gaziantep 108 m2 90 m2 140 m2

Turkey 103 m2 115 m2 150 m2

Source: Jones Lang LaSalle

France "Paris" 192 m2

Germany "Berlin" 402 m2

Italy "Rome" 228 m2

Poland "Warsaw" 449 m2

Portugal "Lisbon" 472 m2

Spain "Madrid" 460 m2

UK "London" 360 m2

European City Figures 425 m2

Source: DTZ Research

Mall Opening Date GLA Location Developer

1 Forum Istanbul 2009 178,834 Istanbul Multi Turkmall

2 Marmara Forum 2011 137,500 Istanbul Multi Turkmall

3 Cevahir 2005 110,000 Istanbul Kuwait Investment Authority

4 Vialand 2013 110,000 İstanbul Gürsoy & Via Grup

5 Marmara Park 2012 100,000 Istanbul Ece Turkey

6 Ankamall 1999 107,804 Ankara Migros

7 Torium 2010 95,280 Istanbul Torunlar REIC

8 Istinyepark 2007 88,490 Istanbul Dogus, Orjin

9 Anatolium 2010 84,165 Bursa Corio

10 Antares 2007 84,000 Ankara Dolunay

11 Panora 2007 82,591 Ankara Polat Holding

12 Forum Ankara 2008 80,000 Ankara Multi Development TR

13 Kent Park 2008 79,478 Ankara Mega Turk Construction

14 M1 Merkez Adana 2000 76,500 Adana Metro

15 Korupark 2007 74,580 Bursa Torunlar REIC

16 Cepa 2007 73,242 Ankara Carrefour

17 Forum Mersin 2007 71,125 Mersin Multi Turkmall

18 Anatolium Ankara 2011 70,000 Istanbul Corio

19 M1 Meydan Umraniye 2007 70,000 Istanbul Metro

20 Optimum Outlet 2011 69,000 Adana Ronesans REIC

*Source: Akademetre Research and Eva Real Estate


Turkey’s Mall League

49


Turkey SHOPPING MALL Sales Turnover and Footfall

50

Grade A Office Stock

2013 1H Sub Market Existing Projects GLA (sq m) Pipeline Projects GLA (sq m) **

Europe CBD 1,224,000 368,000 Non CBD 955,000 379,000

Asia 1,262,000 329,000 Total 3,441,000 1,076,000 **For completion by end 2015 Source: Jones Lang LaSalle


Office Market Overview

51

Number of

Foreign Visitors2011 2012 2013 1H

ISTANBUL 8,056,390 9,383,054 4,946,604

TURKEY 31,456,076 31,782,832 14,549,641

% YoY 25.61 29.52 34.00


Hotel Market Overview

52

3

Business Review

Project Pipeline

Future Outlook

Appendix




● Listed REIC's


FINANCIAL STATEMENT

Income Statement

54

mn TRY 1H 2013 1H 2012 YoY

Sales 96,863 76,665 26.3%

Residence 24,677 8,233 199.7%

Mall rental 55,206 51,077 8.1%

Other 16,980 17,355 -2.2%

Cost of sales (35,707) (25,793) 38.4%

Residence (12,949) (4,504) 187.5%

Mall rental (4,739) (3,779) 25.4%

Other (18,019) (17,510) 2.9%

Gross profit 61,156 50,872 20.2%

Gross margin 63.1% 66.4% -3.22 pp

Opex (14,003) (6,730) 108.1%

General&Admin exp (10,232) (4,969) 105.9%

Mrkt and selling exp (3,771) (1,761) 114.1%

Other income(expenses) 1,436 (1,394) -203.0%

Net gain (loss) fair value adjustments on investment property 0 0 0.0%

Operating profit 48,589 42,748 13.7%

Operating profit excluding fair value adjustment 48,589 42,748 13.7%

Share of profit of associates (recurring) 15,296 12,835 19.2%

EBIT * 63,885 55,583 14.9%

EBIT margin (%) 66.0% 72.5% -6.55 pp

Depreciation 354 187 89.3%

EBITDA * 64,239 55,770 15.2%

EBITDA margin (%) 66.3% 72.7% -6.43 pp

Share of profits (non-recurring) 26,232 (10,258) -355.7%

Net financial interest income(expense) (10,521) 14,530 -172.4%

Other net financial income (expense) (3,601) 1,714 -310.1%

Forex gain (loss) (50,332) 36,494 -237.9%

Profit before tax 25,663 98,063 -73.8%

Deferred Corporate tax

Corporate tax (226) (1,088) -79.23%

Net profit 25,437 96,975 -73.77%

Net profit margin (%) 26.3% 126.5% -100.23 pp

FINANCIAL STATEMENT

Income Statement

55

mn TL 2Q 2013 2Q 2012 YoY 1Q 2013 QnQ

Satışlar/Sales 49,873 36,963 34.9% 46,990 6.1%

Konut/Residence 14,063 1,795 683.5% 10,614 32.5%

AVM kira/ Mall rental 28,046 26,431 6.1% 27,160 3.3%

Diğer/Other 7,764 8,737 -11.1% 9,216 -15.8%

SMM/Cost of sales -19,847 -11,559 71.7% -15,860 25.1%

Konut/Residence -8,256 -1,047 688.5% -4,693 75.9%

AVM kira/ Mall rental -2,630 -1,887 39.4% -2,109 24.7%

Diğer/Other -8,961 -8,625 3.9% -9,058 -1.1%

Brüt kar/Gross profit 30,026 25,404 18.2% 31,130 -3.5%

Brüt marj/Gross margin 60.2% 68.7% -8.52 pp 66.2% -6.04 pp

Faaliyet giderleri/Opex -7,188 -4,078 76.3% -6,815 5.5%

Genel yönetim giderler/General&admin exp -5,451 -3,253 67.6% -4,781 14.0%

Paz satış giderleri/Mrkt and selling exp -1,737 -825 110.5% -2,034 -14.6%

Diğer gelir(gider)/Other income(expenses) 590 -1,971 -129.9% 846 -30.3%

Yatirim amacli gayrimenkuller deger artislari (azalislari)/ Net gain (loss) fair value adjustments on investment property

0 0 0.0% 0 NA

Faaliyet karı /Operating profit 23,428 19,355 21.0% 25,161 -6.9%

Gayrimenkul deger artisi haric faaliyet kari / Operating profit excluding fair value adjustment

23,428 19,355 21.0% 25,161 -6.9%

İştiraklerden alınan temettü/Share of profit of associates (recurring)

9,382 9,382 0.0% 5,914 58.6%

VFOK/EBIT * 32,810 28,737 14.2% 31,075 5.6%

VFOK marjı /EBIT margin (%) 65.8% 77.7% -11.96 pp 66.1% -0.34 pp

Amortisman/Depreciation 174 112 55.4% 180 -3.3%

VAFOK/EBITDA * 32,984 28,849 14.3% 31,255 5.5%

VAFOK marjı/EBITDA margin (%) 66.1% 78.0% -11.91 pp 66.5% -0.38 pp

İştiraklerden gelir (gider)/share of profits (non-recurring) 23,007 -12,398 -285.6% 3,225 613.4%

Net faiz geliri(gideri)/Net financial interest income(expense) -5,257 6,093 -186.3% -5,264 -0.1%

Net diğer finansal gelir (gider)/Other net financial income (expense)

-3,601 447 -905.6% 0 NA

Kur farkı geliri (gideri)/Forex gain (loss) -54,778 8,418 -750.7% 4,446 -1332.1%

Vergi öncesi kar/Profit before tax -7,819 31,297 -125.0% 33,482 -123.4%

Vergi gideri/Corporate tax -226 -556 -59.35% 0 NA

Net kar/net profit -8,045 30,741 -126.17% 33,482 -124.03%

Net kar marjı/Net profit margin (%) -16.1% 83.2% -99.30 pp 71.3% -87.38 pp

FINANCIAL REVIEW

Income Statement

56

000 TRY 2012 2011 YoY 2010

Sales 226,705 162,909 39.2% 232,928

Residence 84,691 37,758 124.3% 161,064

Mall rental 105,948 91,969 15.2% 53,899

Other 36,066 33,182 8.7% 17,965

Cost of sales (86,757) (62,754) 38.2% (152,910)

Residence (41,145) (20,231) 103.4% (122,099)

Mall rental and Management Fee (8,419) (4,790) 75.8% (3,383)

Other (37,193) (37,733) -1.4% (27,428)

Gross profit 139,948 100,155 39.7% 80,018

Gross margin 61.7% 61.5% 0.25 pp 34.4%

Opex (18,302) (24,515) -25.3% (29,040)

General&Admin exp (12,440) (13,777) -9.7% (23,498)

Mrkt and selling exp (5,862) (10,738) -45.4% (5,542)

Other income(expenses) 148 (5,586) NA (529)

Net gain (loss) fair value adjustments on investment property

159,824 182,534 -12.4% 166,660

Operating profit 281,618 252,588 11.5% 217,109

Operating profit excluding fair value adjustment 121,794 70,054 73.9% 50,449

Share of profit of associates (recurring) 12,834 6,496 97.6% 4,745

EBIT * 134,628 81,927 64.3% 55,194

EBIT margin (%) 59.4% 50.3% 9.09 pp 23.7%

Depreciation 598 291 105.5% 184

EBITDA * 135,226 82,218 64.5% 55,378

EBITDA margin (%) 59.6% 50.5% 9.18 pp 23.8%

Share of profits (non-recurring) 9,417 38,731 -75.7% 9,980

Net financial interest income(expense) 4,018 1,334 201.2% (20,975)

Other net financial income (expense) 1,501 2,378 -36.9% 1,098

Forex gain (loss) 36,463 (122,414) NA 3,562

Profit before tax 345,851 179,113 93.1% 215,519

Deferred Corporate tax (6,831) - NA -

Corporate tax (2,132) (1,801) 18.38% (1,274)

Net profit 336,888 177,312 90.00% 214,245

Net profit margin (%) 148.6% 108.8% 39.76 pp 92.0%

FINANCIAL STATEMENT

Balance Sheet

57

(000 TRY) 2013/06 2012/12 Variance % Cash and Cash Equivalents 364,673 434,630 -16.1 Financial Investments 16,461 0 NA Trade Receivables 155,979 156,784 -0.5 Other Receivables 609 582 4.6 Inventory 556,768 487,622 14.2 Prepaid Expenses 76,104 23,310 226.5 Other Current Assets 3,308 8,152 -59.4 CURRENT ASSETS 1,173,902 1,111,080 5.7 Trade Receivables 34,388 50,387 -31.8 Invest.In Associates 253,832 224,960 12.8 Investment Property 3,126,258 3,043,707 2.7 Tangible Fixed Property 1,641 1,375 19.3 Intangible Fixed Assets 178 159 11.9 Inventory 1,827 0 NA Prepaid Expenses 345,915 850 40595.9 Other Non-current Assets 72,889 61,897 17.8 NON-CURRENT ASSETS 3,836,928 3,383,335 13.4 TOTAL ASSETS 5,010,830 4,494,415 11.5 ST Financial Liabilities 160,140 70,345 127.6 ST Portion of LT Financial Liabilities 185,607 122,247 51.8 Trade Payables 90,066 76,209 18.2 Other Payables 9,370 7,115 31.7 Tax Payables 226 448 -49.6 Deferred Income 454,576 388,896 16.9 Other Current Liabilities 2,531 2,289 10.6 CURRENT LIABILITIES 902,516 667,549 35.2 Financial Liabilities 1,022,962 766,567 33.4 Trade Payables 262,647 213,000 23.3 Provision For Employment Termination Benefits 232 232 0.0 Other Non-Current Liabilities 0 32 -100.0 NON-CURRENT LIABILITIES 1,285,841 979,831 31.2 Share Capital 500,000 500,000 0.0 Share Premium 25,770 25,770 0.0 Legal Reserves 16,639 5,240 217.5 Treasury Shares -1,195 -1,195 0.0 Retained Earnings 2,255,821 1,980,332 13.9 Net Profit 25,438 336,888 -92.4 TOTAL EQUITY 2,822,473 2,847,035 -0.9 TOTAL LIABILITIES AND EQUITY 5,010,830 4,494,415 11.5

FINANCIAL STATEMENT

Cash Flow Statement

58

(000 TRY) 1H 2013 2012* 2011 2010 2009 2008

Cash and cash equivalents at the beginning of the year

430,112 584,501 438,664 72,639 80,168 137,441

Exchange losses on cash and blocked deposits

7,163 -2,096 3,187 320 -211 4,154

Blocked deposits 0 0 0 -121,447 0 0

Net cash generated (used) in operating activities

-281,003 235,615 121,271 32,380 63,287 -30,371

Net cash used in investing activities -48,937 -398,539 -65,839 -122,002 -58,490 -70,920

Net cash generated (used in) from financing activities

247,786 155,574 87,218 455,327 -12,115 39,864

Net (decrease) increase in cash and cash equivalents

-82,154 -7,350 142,650 365,705 -7,318 -61,427

Cash and cash equivalents at the end of the period

355,121 575,055 584,501 317,217 72,639 80,168

* Adjusted according to IFRS 11 "joint arrangements"

FINANCIAL STATEMENT

Net Foreign Currency Position

59

(000) € $ TL Equivalent

Variance % 30.06.2013 31.12.2012

Current assets 21,918 108,516 263,966 140,003 88.5

Trade receivables 0 84 162 0 NA

Monetary financial assets 10,455 106,376 231,032 131,743 75.4

Financial Investments 6,549 0 16,462 0 NA

Other 4,914 2,056 16,310 8,260 97.5

Total assets 21,918 108,516 263,966 140,003 88.5

Current liabilities -40,760 -94,929 -285,180 -188,065 -51.6

Trade payables -2,534 -1,101 -8,489 -5,039 -68.5

Financial liabilities -38,017 -93,588 -275,704 -182,645 -51.0

Other current liabilities -209 -240 -987 -381 -159.1

Non-current liabilities -124,200 -369,265 -1,022,962 -705,480 -45.0

Trade payables 0 0 0 0 NA

Financial liabilities -124,200 -369,265 -1,022,962 -696,567 -46.9

Derivative Liabilities (net) 0 0 0 -8,913 NA

Total liabilities -164,960 -464,194 -1,308,142 -893,545 -46.4

Net foreign currency asset (liability) -143,042 -355,678 -1,044,176 -753,542 -38.6

3

Business Review

Project Pipeline

Future Outlook

Appendix




● Listed REIC's


2010 2011 2012 2013 1H

Net Profit 214,245,000 177,312,000 336,888,000 25,437,000

Share Price 6.30 3.97 3.22 3.49

Number of Shares 224,000,000 224,000,000 500,000,000 500,000,000

Market Cap 1,411,200,000 889,280,000 1,610,000,000 1,745,000,000

Earnings Per Share* 0.43 0.35 0.67 0.05

P/E 6.59 5.02 4.78 68.60

Mcap/BV 0.60 0.35 0.57 0.62

Market Share 12.50% 8.20% 10.20% 10.86%

Dividend Yield 0.9% 1.85% 2.36% -

* Adjusted for bonus share issue

Subject to Approval

LISTED REIC’s

TRGYO Equity Overview

61

Listed REITs Free Float 3M avg. daily

trading volume

Current M.Cap (TRY

mn)

Dividend Yield

(2010)

Dividend Yield

(2011)

Dividend Yield

(2012)

1 EMLAK KONUT GMYO 25% 45.251 6,800 - 2.6% 2.0%

2 TORUNLAR GMYO 14% 4.902 1,745 - 0.9% 2.3%

3 İŞ GMYO 48% 5.483 882 3.0% 2.8% 4.0%

4 HALK GMYO 28% 4.243 822 - - -

5 SAF GMYO 29% 0.688 736 - - 16.5%

6 SİNPAŞ GMYO 37% 6.923 690 - 3.1% 4.3%

7 AKMERKEZ GMYO 2% 0.177 604 4.6% - 4.7%

8 VAKIF GMYO 10% 1.111 504 - - -

9 DOĞUŞ GMYO 7% 5.269 405 - - -

10 PANORA GMYO 25% 0.115 380 - - -

11 AKİŞ GMYO 27% 0.219 350 - - -

12 AKFEN GMYO 29% 1.029 270 - - -

13 NUROL GMYO 20% 1.901 267 - - -

14 ÖZAK GMYO 3% 0.187 254 -

15 KİLER GMYO 35% 2.055 202 - - -

16 ALARKO GMYO 41% 3.384 196 - 0.7% 1.7%

17 TSKB GMYO 29% 1.280 134 - - -

18 SERVET GMYO 18% 0.157 132 - - -

19 YEŞİL GMYO 24% 1.896 127 - - -

20 REYSAŞ GMYO 31% 1.137 122 - 0.6% -

21 ATAKULE GMYO 16% 0.247 100 2.2% 2.1% -

22 ÖZDERİCİ GMYO 33% 0.220 97 - - -

23 YAPI KREDİ KORAY GMYO 44% 2.783 61 - - -

24 MARTI GMYO 48% 1.013 56 - 5.4% 0.9%

25 PERA GMYO 51% 0.560 44 - - -

26 AVRASYA GMYO 72% 1.552 39 - - -

27 ATA GMYO 27% 0.051 32 - - -

28 İDEALİST GMYO 25% 0.355 20 - - -

TOTAL 24% 94.190 16,070

exc. EKGYO 24% 48.939 9,270 - - -

Source: Istanbul Stock Exchange

LISTED REIC’s

REICs on the ISE (as of 02.07.2013)

62

LISTED REIC’s

TORUNLAR REIC PERFORMANCE

63

LISTED REIC’s

TORUNLAR REIC PERFORMANCE

64

LISTED REIC’s

Equity Analysts’ Views

65

Broker House Recommendation Date Target Price "TRY"

BGC Partners Hold 31.07.2013 4.20

Garanti Yatırım Marketperform 18.07.2013 4.00

İş Yatırım Overperform 12.07.2013 5.04

Oyak Yatırım Marketperform 02.07.2013 4.33

Eczacıbaşı Yatırım Overperform 02.07.2013 4.00

Ekspres Yatırım Buy 24.06.2013 4.80

HSBC Yatırım Overperform 19.06.2013 6.00

Tera Brokers Buy 11.06.2013 4.60

Yapı Kredi Yatırım Hold 20.06.2013 4.60

BOA ML Hold 20.05.2013 4.60

Yatırım Finansman Marketperform 26.04.2013 4.00

Bizim Menkul Overperform 19.03.2013 4.40

Sardis Hold 15.03.2013 -

Standard Ünlü Overperform 18.01.2013 3.96

Erste Bank Buy 04.11.2012 3.90

Ata Yatırım Overperform 03.08.2012 2.58

3

Business Review

Project Pipeline

Future Outlook

Appendix




● Listed REIC's


3

APPENDIX

Project Locations

ISTANBUL • Torium Shopping Mall Kiptaş Finanskent Phase II • NishIstanbul Mixed-Use Project Maltepe Land • Mall of Istanbul Kemankeş Land • Torun Tower Kayabaşı Land • Torun Center Paşabahçe Ex-TEKEL Land

SAMSUN

• Boulevard Samsun Shopping Mall

ANKARA • Ankamall Shopping Mall

• Crowne Plaza Hotel

BURSA • Zafer Plaza Shopping Mall • Korupark Shopping Mall • Korupark Residences Phase I-II • Korupark Residences Phase III

MUĞLA

• Netsel Marina

ANTALYA • Deepo Outlet Mall • Deepo Outlet Extension Project

3

APPENDIX

Project Locations

APPENDIX

Zafer Plaza Shopping Mall

69

•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 (63%) are USD denominated

Rental income (2012)

Torunlar REIC (72.26%)

1999

23,449 (REIC share 16,944)

100%

114

Freehold

13,494,606 TL

Ownership

Operational Date

Leasehold/Freehold status

7% anchors and Dpt. Stores (16% of

GLA): Migros, M&S, YKM, Teknosa and

Average NOI (per TL/m2/month)

Average lease term as of Dec-2012

Appraisal value (Dec. 2012)

Anchor tenants

1.5 years

TRY 50.9

TRY 198 mn (US$ 110mn)

Leasable area (m2)

Occupancy (%) as of Dec 2012

Number of stores

Anchor7%

Home4%

Ready Wear40%

Department Store16%

Service4%

Leisure/ Gift/ Special

2%

Personel Care/ Accessories

6%

Culture/ Art/ Entertainment

2%

Technology11%

Food & Drink8%

Tenants - Breakdown of GLAAnchor

2%Home

5%

Ready Wear50%

Department Store

7%

Service3%


3%


10%


1%

Technology8%

Food & Drink12%

Tenants - Breakdown of Income

APPENDIX

Korupark Shopping Mall

70

•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

•Most of the rents (89%) at the shopping mall are Euro denominated

Leasehold/Freehold status Freehold

Rental income (2012) 44,458,978 TL

•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

TRY 44.1

Occupancy (%) as of Dec 2012 99%

Number of stores 188

Anchor tenants(34% of GLA): Tesco, Koçtaş, Beymen,

C&A, Boyner and Electro World

Appraisal value (Dec 2012) TRY 695.7mn (US$ 386.5mn)

Average lease term as of Dec-2012 5 years

Average NOI (per TL/m2/month)

Ownership Torunlar REIC (100%)

Operational Date H2 2007

Leasable area (m2) 71,267

Anchor28%

Home3%

Ready Wear40%

Department Store

5%

Service2%


2%


3%


9%

Technology1%

Food & Drink6%

Tenants - Breakdown of GLA

Anchor13%

Home6%

Ready Wear48%Department

Store2%

Service2%


4%


6%


3%

Technology3%

Food & Drink11%


APPENDIX

Deepo Outlet Mall–Antalya

71

•Antalya Deepo is the biggest outlet in the Mediterranean region.

•The property is located close to the Antalya Airport

•The mall attracts annual foot traffic of c.5 mm

•For Antalya Deepo, majority of rents (82%) are denominated in EURO

•Zoning of this region is expected to be approved in 2012.

•Deepo Antalya is not directly held by Torunlar REIC, but is instead held by a subsidiary which is 100% owned by Torunlar REIC

Antalya Deepo Extension Project

Ownership Torunlar REIC + Hastalya

Estimated start of construction 3Q 2013

Estimated date of completion 3Q 2015

Estimated operational date 3Q 2015


Estimated investment TRY 64.8mn (US$36mn)

Current status Under zoning process

Leasehold / Freehold statusPartially freehold, partially

leasehold from Hastalya


Rental income (2012) 13,458,758 TL

Appraisal value (Dec 2012) TRY 266.8mn (US$ 148.2mn)

Average lease term as of Dec-2012 1.66 years

Average NOI (per TL/m2/month) TRY 51.1


Number of stores 85

Anchor tenantsLCW, Ayakkabı Dünyası, Mudo City,

Collezione, Sarar, Aydınlı Group


Operational Date October 24, 2004


Anchor0%

Home1%

Ready Wear66%

Department Store

0%Service

1%

Leisure/ Gift/

Special1%

Personel Care/

Accessories4%

Culture/ Art/

Entertainment17%

Technology2%

Food & Drink

7%


Anchor0%

Home2%

Ready Wear71%

Department Store

0%Service

2%


1%

Personel Care/

Accessories7%

Culture/ Art/ Entertainme

nt4%

Technology2%

Food & Drink11%


APPENDIX

Torium Shopping Mall–Istanbul

72

•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 (72%) at the shopping mall are denominated in USD

•16 out of 53 residetial units were sold for 1.660 TL/sqm starting from December 2011 until 30.06.2013


Rental income 2012 31,757,339 TL

Appraisal value (Dec 2012) TL583.7mn (US$324.6mn)

Average lease term as of Dec-2012 3 years

GLA / GSA95,280 m2 GLA retail

5,723 m2 GSA residential



Anchor tenantsMigros, Elektroworld, H&M, M&S,

Teknosa, YKM, Zara, Özdilek


Operational Date October 30th, 2010

Investment cost TL221mm

Anchor17%

Home3%

Ready Wear38%

Department Store8%

Service4%


3%


2%


13%

Technology4%

Food & Drink8%


Anchor11%

Home3%

Ready Wear40%

Department Store3%

Service4%


4%


6%


5%

Technology7%

Food & Drink16%


Ankamall Shopping Mall + Crowne Plaza Hotel–Ankara

APPENDIX

73

Operational Date 1999

Leasable area (m2) 88,421 (REIC’s share 13,112)

OwnershipYeni Gimat in which Torunlar REIC holds

(14.83%)

Anchor tenantsMigros, Koçtaş, Tepe Home, Electro

World, Boyner, Mudo City, M&S, LCW

Appraisal value (REIC share) (Dec 2012) TRY 192.8mn (US$107.2mn)

Occupancy (%) as of date 98.6% (as of December 2012)


Number of rooms 280


Rental income 2012 TRY 104.4mn

NOI TRY 77.3 mn

•ECE European Prime Shopping Centre Funds offered USD 525 million to

buy 100% of Ankamall and Crowne Plaza Hotel on July 15 and withdrew

its offer on 25.09.2012. Yeni Gimat will turn into REIC and go public.

•Ankamall is located in Yenimahalle, in the centre of Ankara. The

shopping mall is considered to be the largest in Ankara and fifth 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 Dec 31, 2012

•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

1.9 2.1 2.4 2.7

4.2

9.3

0

1

2

3

4

5

6

7

8

9

10

2007 2008 2009 2010 2011 2012

Dividends - Torunlar REIC share (TRY mm)

Boulevard Samsun Shopping Mall

APPENDIX

74

• Commendation for medium new developments and special

distinction for regeneration projects in 2013 ICSC European Shopping

Center Awards

•3.035 sqm new GLA will be created by the end of this year with the

conversion of the adjacent ex-congress and cultural center.

•The project is a mixed-use project developed in conjunction with the

shopping mall developer Turkmall.

•The land is leased for 30 years from Samsun Metropolitan

Municipality.

•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

•Retail units are leased for 23€/sq.m/month and office units will be

leased for 12€/sq.m/month.

Occupancy (%) as of date 96%

Number of stores 40

Anchor tenants%43.2 of GLA ; Teknosa, Boyner, Koton,

Deichmann

Rental income (Annual Forecast) TRY 8.6mm (€3.7mm)

Appraisal value (Dec 2012) TRY 52.5mm (US$ 29.2mm)

Average lease term (as of Dec 2012) 4.5 years

Average NOI (per TL/m2/month) TRY32 (€14) (Forecast)

Leasehold/Freehold status Leasehold


Operational Date 24.06.2012

Leasable area (m2)14.943 m2

(13.991m2 retail 952 m2 office)

APPENDIX

Korupark Residences Phase I & II

75

•The project is the first gated community in Bursa

Date of completion



Start of construction May, 2006

Phase 1: January 2008/

Phase 2: December 2008

•For Korupark residences I/II, sales are Turkish Lira denominated and

currently 2.300 TL/ sq.m

Appraisal value (remaining units) TL31.8mn (US$17.7mn) (Dec 2012)

•Phase I&II: 746 units (123.840 sq.m), thirteen blocks

Inventory as of June 30th, 2013: 53 units (10.948 sqm)

•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

Operational date February 2008

Total investment TRY 123.3mn (US$85mn)

Units sold (%) 93% (as of Dec 2012)

APPENDIX

Korupark Terrace Residences Phase III

76

•The property, adjacent parcel to Korupark phase I & II, is a luxurious housing settlement.

•For Korupark Residences Phase III, sales are denominated in Turkish Lira at an average 1.945TL/sq.m

•Total 678 units (102,213sqm), 370 units (53.418 sqm) were presold as of June 30th 2013 and deliveries started in mid-October, 2012.

•Current price is 2.300 TL/sqm as of end June, 2013

Korupark Residences Phase I & II

Korupark Residences Phase III

Korupark Shopping Mall

Total investment TRY 90mm (US$47.8mm)

Appraisal value TRY 159mn (US$88.3mm) (Dec 2012)


Start of construction May 2011

Operational date 4Q 2012

MAP OF KORUPARK

Leasehold / Freehold status Freehold

Number of residential units/GSA 680 units / 102.213 m2 residence

Current status Under construction

APPENDIX

Mall of Istanbul–Istanbul

77

•It is expected to be one of the largest mixed-use projects in Turkey

Appraisal value TRY 1,002mn (US$556.6mn) (Dec 2012)

Estimated date of completion Q4 2013

Estimated operational date 1Q 2014

Estimated investment c.TRY695mm (US$370mm)


Start of construction March 2011

Number of residences / GSA-GLA

153.963 m2 GLA mall,

121.426 m2 GSA residence,

34.250 m2 GSA office


•Presales commenced on 23.04.2011 and 848 units (79% in sqm) were

presold for 3.721 TL/m2 out of 1.081 and 112 office units (%65 in sqm)

out of 179 for 4.550 TL/m2 with 442.9 mnTRY overall until 30.06.2012 • As of 1H 2013, 27.5% of residential units were sold to foreigners.

•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.

•For the Mall of İstanbul,retail units will be rented for 28$/m2 and

residential and office units will be sold for 4000TL/m2 on the average.


•Mall of Istanbul is a mixed-use project with a large shopping mall

development along with residential, office units

•Planned to be built with 153.963 m² GLA enriched with 11.558 m² kids

entertainment, 11.690 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

Retail50%

Residential39%

Office11%

Breakdown - Area (GLA/GSA)

APPENDIX

Torun Tower–Istanbul

78

•34 floor high-rise tower is planned

•Construction started in December 2011.

•For Torun Tower, office units will be leased for 40$/sqm/month, retail units for 17$/sqm/month.

•Colliers will be in charge of marketing and leasing Torun Tower. A block lease is on the cards.


Estimated operational date Q1 2014


Start of construction December 2011

Estimated investment c.TRY 135.6mn (US$75.3mn)

•The building is planned to be a landmark for the city with very modern

architecture and construction technology

•The property is located at the city centre in one of the most expensive

commercial districts of Istanbul with a subway connection.

•The Property is planned as a mixed-use project with office and retail

units and will be leased.

Appraisal value TRY 279.6mn (US$155.3mm) (Dec 2012)



Office64,179 m2

97%

Other2,107 m2

3%

Breakdown - Area (GLA)

APPENDIX

Torun Center (Ex-Ali Sami Yen Stadium) –Istanbul

79

•For the Torun Center sales will be denominated in USD.

•It will be included in the company's portfolio in the future•Presales as of June,2013 amounted to TRY 49.6mn for 14.405 sqm. On

top of it, Mapfre Insurance was presold 8.246 sqm for USD 66.6 mn (inc

VAT) in July, 2013

OwnershipTorunlar REIC (65%), Torun

Construction (30%), Kapicioglu (5%)

Leasehold/Freehold status Revenue Share

Start of construction Q3 2012


Estimated operational date Q3 2015

* Torunlar REIC’s share


Appraisal valueTRY 140mn (US$78mn) /

TRY 90mn (US$50mn)* (Dec 2012)

Estimated investment

•Torun Center 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 over 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

34,640

Number of Units 635 (Res.- 408 , Off.-227)

Sellable area (m2)

66.140 sqm (42.991 sqm)*residence,

45.263 sqm (29.420 sqm)*office

tower, 30.053 sqm (19.534 sqm)* flat

office

Land area (m2)

c.TRY 414mn (US$230mn) /

TRY 269mn (US$150mn)*

Land acquired Revenue Share (45%)

APPENDIX

Netsel Marina-Marmaris

80

•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.

•2500-3000 people are estimated to visit the mall on a daily basis.

Ownership Torunlar REIC (44.6%)

Operational Date 1989

Capacity 770 yachts

Land 37,478 sqm

Leasable area (m2) 5,971 (REIC’s share 2,663)

Mall Occupancy (%) as of date 94% (as of December 2012)

Number of stores 75

Freehold

•75% of yatchs carry foreign flag.

Anchor tenantsMigros, Lacoste, Sisley, Tommy Hilfiger,

Paul&Shark, Stefanel, Mudo

Appraisal value (REIC share) TRY 37mn (US$20.5mn)

Mall rental revenue TRY 2mn

Total rental revenue TRY 17.8 mn

Leasehold/Freehold status

1.5 1.5

2.2 2.1 2.3

3.5

5.9

0

1

2

3

4

5

6

7

2006 2007 2008 2009 2010 2011 2012

Dividends - Torunlar REIC share (TRY mm)

APPENDIX

NishIstanbul Mixed-use Project–Istanbul

81

•Three residential blocks, one office block and retail units



Start of construction H2 2008

Number of residences /

Sellable area (m2)585 /53,204

Operational date November 2010

Number of offices /

Sellable area (m2)63/ 16,925

•Located on the west-side of Istanbul in Yenibosna, 1.5 km away from

Istanbul Atatürk Airport

Appraisal value (Dec 2012) TRY 30mn (US$16.6mn)

Number of retail units /

Leasable area (m2)52 / 10,937

•The project partnership was terminated in June 2011.

•As of June 2013, 2 residential units (179 m2) will be kept, 8 office (2150

m2) units will be sold for 6000-8000 TRY/m2. 20 stores (3.773 m2) will be

sold for 4.500-6.300 TRY/m2.

APPENDIX

Landbank

82

• Hotel & Mansions 71,909 sqm (355.7mn TRY)

PAŞABAHÇE - ISTANBUL

• MOI Hotel 18.209 sqm (28.8 mnTRY)

BAŞAKŞEHİR - ISTANBUL

• Residence 6.928 sqm (19.8 mn TRY)

MALTEPE - ISTANBUL

• Residence 60.833 sqm (21.2 mn TRY)

KAYABAŞI - ISTANBUL

Haluk YUKLER

Investor Relations Director

[email protected]

Ismail KAZANC

CFO

[email protected]

TORUNLAR REIC (Real Estate Investment Company)

Ruzgarlibahce Mah. Selvi Cikmazi No.4 Kavacik 34805

Istanbul TURKEY

Phone: +90-216-425 20 07

Fax: +90-216-425 03 12

Contacts

83

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.

Disclaimer

84

27 AUGUST 2013 - torunlarreic.com

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