Turkey's REIT sector: and iceberg in Europe- Emlak Konut REIT

Our Company at a Glance Emlak Konut became a Real Estate Investment Company in 2002 The company is the largest REIC in Turkey by market value, property portfolio and size of the land bank, with a market value of TRY 5,85 bn as of February 22, 2012  The business involves the purchase of land and the development, marketing and sale of residential real estate in Turkey with a focus on the upper-middle and middle income groups 2

MY WORLD (Atasehir, ISTANBUL)3

Company At A Glance From 2003 up to date; over 63.000 units have either been completed or under construction Since 2002, the aggregate tender worth has been valued at TRY 19,57 bn  Under Revenue Sharing Model TRY 19,03 bn  Under Public Procurement Model TRY 549 mn Since 2002, tendered and projected land has been reached to 4,53 mn sqm  Revenue Sharing Model 3,67 mn sqm  Public Procurement Model 0,86 mn sqm 29 completed projects with 26.405 units 29 tendered projects which cover more than 22.163 units Since 2002, Emlak Konut has undertaken 58 projects and cooperated with more than 33 major contractors in Turkey. 21 out of those contractors are still involved in the ongoing projects 4

UPHILL COURT (Atasehir, ISTANBUL)5

Strong Relationship With Controlling Shareholder TOKI AndAsset CompositionCommitted ownership - Post-IPO Strategic relationship enablingownership structure Emlak Konut to: Post-IPO ownership structure  Acquire land without participating in a Total shares (mn) (%) tenderTOKI 1,874.83 74.99  Acquire land that is best suited forFloating 625.00 25.00 development by Emlak KonutOthers 0.17 0.01TOTAL 2,500.00 100.00  TOKI’s portfolio has been the main supply for our developments Kirklareli 25% Tekirdag Istanbul Kocaeli & Gebze Ankara 75% Izmir TOKI Post IPO shareholders Source: Company data 6

MAVİŞEHİR MODERN (IZMIR)7

Key Financialsin TRY mn 2007 2008 2009 2010 2011 Q1 2011 H1 As of September 30, 2011Net sales 1,111.3 1,044.6 864.9 1,497.9 171.1 362,2 429,5EBITDA 234.2 563.7 476.9 628.5 58.9 77,7 75,9EBITDA margin(%) 21.1 54.0 55.1 42.0 34.4 21,4 17,7Profit for the period 367.5 526.9 445.9 469.0 73.2 102,5 92,6Total assets 3,768.6 4,372.0 4,671.3 7,115.5 7,297.3 7.402,9 7.079,2Shareholder’s equity 1,121.7 1,648.6 2,094.5 3,615.4 3,513.1 3.542,4 3.532,5Number of current tendered projects by business model 6 Revenue Sharing Model Public Procurement Model 23 8

SOYAK PART APARTS (Halkalı, ISTANBUL)9

The Real Estate Sector in Turkey Housing Demand 707 707 673 674 677 677 15,1 14,8 14,4 14,1 13,7 13,4 2010 2011 2012 2013 2014 2015 No. of urban housholds (mn) Housing need (000) Source: GYODER report "The Growth Potential of the Housing Finance System“, GYODER Report ‘’ Main Indicators of Real Estate Sector in Turkey 2010 10

The Real Estate Sector in TurkeyThere are 3 major drivers for the residential demand in Turkey.1. POPULATION GROWTH Every year new six hundred thousands units demand is sourced just only from the population growth.2. MIGRATION The avarage urbanization ratio in europe is approximitly %85. In Turkey this ratio is %74. So there is a way to go for Turkey because of this gap.3. RENEWAL OF THE CURRENT HOUSESTOCK There is an immediate need for renewal of the current housestock in Turkey due to the old unhealthy and uninspected buildings. 18 millions residential units exist in the country and %48 of this number have to be renewed.The government’s legislation efforts on the Reciprocity rule, Sales of 2B type plots of land and UrbanTransformation still continue and about to be completed very soon.As the new reciprocity law come into effect; more foreign investors will be able to buy properties in Turkey.Together with the sales of 2B type plots of land, a new land potential is born for real estate developments.As an emerging market and country, in Turkey, Urban Transformation becomes vital because of theearthquake risk and gains more importance with the high level of unhealthy housestock in the cities. 11

VARYAP MERIDIAN (Atasehir, ISTANBUL)12

Independent Unit Sales of Emlak Konut 12658 7766 4840 4206 3953 3819 2837 540 2004 2005 2006 2007 2008 2009 2010 2011Source: Company data 13

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Turkey's REIT sector: and iceberg in Europe- Emlak Konut REIT

by MIPIMWorld on Mar 27, 2012

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Turkey’s REIT sector: and iceberg in Europe- Emlak Konut REIT Presentation Transcript