akiş reit 2q18 performance presentation august 2018

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Akiş REIT 2Q18 Performance Presentation

August 2018

Breaking News

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New Investment Project

The project is located in the uprising Aldgate region (London) which is 20-25 min away from central London

The project includes c.40 residential units most of which will be pre-sold to Asian investors

The project will be undertaken with 40%/60% equity/debt ratio where the financing will be fully met from banks in the project country

New Credit Facility

Akiş REIT has secured a US$40mn loan from HSBC bank to extend average debt maturity

The loan will be repaid over a period of six years with a bullet payment structure

Share Buy Back

Akiş REIT initiated a buy-back in 3rd of August in order to protect the right of its investors’ from market fluctuation

The ceiling amount is 9.500.000 for number of shares and the allocation ceiling for such transaction has been determined as TL30mn

The current size of total buy back is 542.792 shares corresponding to 0,0126% of equity

Breakdown of Portfolio

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61,5%

23,5%

4,6%

0,6%

9,8%

Akasya Shopping Center Akbati Shopping Center Suadiye Beymen Other Assets Inventories

Turkey Shopping Mall Market Overview

4

345363

379

415

463 465

2014 2015 2016 2017/09 2018E 2019E

103,8

119,2

137,5

150,4

2016 2017 2018E 2019E

15.4%

9.4%

Number of Shopping Malls Shopping Malls Turnover (TLbn)

8.600.000; Local;

72,9%

2.722.001;

Foreign; 23,1%

471.750; Mix; 4,0%

Source: https://assets.kpmg.com/content/dam/kpmg/tr/pdf/2018/01/sektorel-bakis-2018-perakende.pdf

Breakdown of Investments by Investor (sqm) Competition is getting more intense every year

Planned supply and demand dynamics should be more carefully

analysed than ever

Shopping Malls are not just malls but living spaces where

technology and social media intersect

Location; closeness to customer is more important than ever

İstanbul is home to c.40% of Gross Leasable Area

Akasya Shopping Mall still holds its title as the only almost fully

let A+ shopping mall status on the Anatolian side of Istanbul

whereas Akbatı Shopping Mall is still the very first and only

attraction centre in its hinterland

14.8%

Overview of Our Commercial Portfolio

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Akasya Commercial Center Akbatı Commercial Center Suadiye Beymen

Opening Date 2014

Number of Shops 260

Gross Leasable Area (sqm) 80.000

Occupancy Rate 95%

Rent per sqm US$66/month

Rent for last Full Year US$57mn

International Awards 91

Opening Date 2011

Number of Shops 173

Gross Leasable Area (sqm) 65.500

Occupancy Rate 99%


Rent for last Full Year US$23mn

International Awards 87

Opening Date 2017

Number of Shops 1

Gross Leasable Area (sqm) c.5.000

Occupancy Rate 100%


Rent for last Full Year n.a.

International Awards -

Akasya Shopping Mall

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7

Occupancy Ratio ~ Near All Times High, Vacant stores already rented Average Store Tenure (month)

Akasya Shopping Mall stores’ total turnover rose by c.10% in 2Q18 (YoY) Income breakdown

2Q15 2Q16 2Q17 2Q18

Akasya Turnover

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

Rental Revenue Revenue on Turnover Turnover Top-Up Revenue Other Revenue

Crate & Barrel

exit impact,

vacant store

already rented,

but not

reflected in the

figure below97,3%

96,4% 96,5%96,0% 95,9%

96,7%95,9%

96,4%

95,4% 95,3%

98,5%97,7% 97,9%

94,8%

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

8,46

10,85 10,71 10,44

6,79

2014 (9M) 2015 2016 2017 2018 (7M)

Akasya Shopping Mall – Store Mix by Size (sqm)

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51% 49% 50% 49%

7% 7% 8% 9%

14% 14% 14% 15%

21% 21% 20% 20%

2Q15 2Q16 2Q17 2Q18

1,000 – 10,000 500 - 1,000 250 - 500 100 -250 50 - 100 0 - 50


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Akasya Shopping Mall posted a turnover increase c.10% YoY despite a tiny c.2.4% fall in terms of visitors

Yet, there has been slight increase (c.1.4%) in car entrance figure

Thus, core Akasya visitors remained almost unchanged

Net Operational Margin stood out at c.78.4% vs. c.77.1% average over the last three years due mainly to;

Effective cost management

Rise in complimentary income

Income yield

Akasya Shopping Mall (US$mn) 2015 2016 2017 2Q18

Revenue 58,4 58,9 57,5 13,4

NOI 44,5 45,0 45,3 10,5

EBITDA 45,5 45,9 46,0 10,7

Latest Appraisal Value 603,8 627,6 631,0 617,2

Yield 7,54% 7,31% 7,30% 7,65%

Akbatı Shopping Mall

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Occupancy Ratio ~ Near All Times High Average Store Tenure (month)

Akbatı Shopping Mall stores’ total turnover rose by c.19% in 2Q18 (YoY) Income breakdown

2Q15 2Q16 2Q17 2Q18

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

Rental Revenue Revenue on Turnover Turnover Top-Up Revenue Other Revenue

98,5% 98,3% 98,0%97,6% 97,6%

98,3% 98,6% 98,4%

96,3%

97,9% 98,0%

99,1%98,7%

99,1%

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

11,2210,60 10,68 10,58

11,0110,64

6,51

2012 2013 2014 2015 2016 2017 2018 (7M)

Akbatı Shopping Mall– Store Mix by Size

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58% 58% 58% 57%

11% 12% 12% 12%

9% 10% 10% 11%

16% 14% 14% 13%

2Q15 2Q16 2Q17 2Q18

1,000 – 10,000 500 - 1,000 250 - 500 100 -250 50 - 100 0 - 50


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Akbatı Shopping Mall posted significant turnover increase (c.19%) YoY coupled with c.2% rise in the # of visitors due to;

Akbatı’s unique shopping mall status in its hinterland

Net Operational Margin remained around c.71% in line with the average over the last 3 years thanks to ongoing efforts on;

Effective cost management

Rise in complimentary income

Income yield

Akbatı Shopping Mall (US$mn) 2015 2016 2017 2Q18

Revenue 23,8 24,1 23,2 5,7

NOI 16,5 16,7 16,9 4,0

EBITDA 16,6 16,8 17,1 4,1

Latest Appraisal Value 267,4 253,5 239,4 235,3

Yield 6,22% 6,64% 7,13% 6,77%

Our Portfolio vs. Market

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Turnover Change YoY

Visitors Change YoY

-10%

-5%

0%

5%

10%

15%

20%

25%

Jan

-16

Feb

-16

Mar-

16

Ap

r-16

May-1

6

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec-

16

Jan

-17

Feb

-17

Mar-

17

Ap

r-17

May-1

7

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

Dec-

17

Jan

-18

Feb

-18

Mar-

18

Ap

r-18

May-1

8

Jun

-18

AYD Akasya Akbatı

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec

-16

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

Dec

-17

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

AYD Akasya Akbatı

High Street Retail Projects

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We are developing four retail oriented units that will fit the texture of the city and reflect the company’s vision; in Erenköy, Caddebostan and Suadiye,

located on Bağdat Street, one of the most coveted shopping streets in Istanbul with a total investment value of US$185mn (US$170mn realized).

Expected Opening Dates: 2018-2019

Gross Leasable Area: 12.000 m2

Gross Sellable Area: 2.000 m2

Exp. Yearly Rental Income: USD7mn

Expected Sales Revenue: USD16mn

Opened in September 2017, Suadiye Beymen adds to the

prestige of Bağdat Street with its spectacular interior and

exterior architecture

15-year lease contract with a well known retailer: Beymen

USD3.6mn rental income per annum

(c.7.75%) yield based on latest appraisal value)

Our Track Record on High Street Retail

Beykoz Projects

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We plan on developing a residential/commercial project in Beykoz, one the most upmarket districts in Istanbul, seizing the opportunity of supply deficit

in the region. The expected date for the project kick-off is 2019.

Project Kick-Off Date: 2019

Project Area: 45.000 m2

Expected IRR: 25% (in TL terms)

Expected Project Income: TL350mn

Total Investment Value: TL230mn

(TL85mn realized)

Investment Rationale:

• Limited modern residential supply in the area

• Most of the available land plot is protected area

• Residential density one the lowest of Istanbul

• Looking over the forest and the sea

• New and upcoming infrastructure will make commuting easier

37,2

146,8186,4

12,8

91,2123,1

41,3

263,7

466,0

1H16 1H17 1H18

Revenue EBITDA Net Income

Financial Performance Overview

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Average Debt Maturity has fallen significantly due to hefty previously long term

payments being now recorded as short term. We target to lengthen average debt

maturity in 2018.

EBITDA/Interest Expense

EBITDA margin improved thanks to c.26% rise in store rent revenues and significant

jump in other revenues coupled with a good cost management

Net profit of 1H18 is mainly due to revaluation gain of Investment Properties

(TLmn)

c.TL182mn

stem from

one-off

merger profit

c.TL597mn

re-appraisal

gain

2,622,51

1,97

1H16 1H17 1H18

66,4%

73,7% 75,4%

34,3%

62,1%66,1%

1H16 1H17 1H18

Gross margin EBITDA margin

1,2

1,9 1,9

1H16 1H17 1H18

Akiş REIT Share Summary

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0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18

Opening Low High Closing Average

Communication

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Ozan Hançer

Director

Strategic Planning, Business Development and Investor Relations

E-mail: [email protected]

Telephone: +902123930100

Sercan Uzun, CFA

Assistant Manager

Investor Relations, Strategic Planning and Business Development

E-mail: [email protected]

Telephone: +902123930100/53544

Disclosure:

This presentation has been prepared in order to inform investors. Since the presentation has been prepared regarding the previous period, the data in it may not reflect the current situation.

The estimations regarding projects are given in accordance with feasibility studies prepared on basis of certain assumptions and may be updated any time. Akiş REIT management and

employees can not be held responsible for any damages or losses arising from the direct/indirect use of content in this presentation.

For more information : [email protected]

akiş reit 2q18 performance presentation august 2018

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