Özak rei investor presentation · Özak group… nav cagr* ’9 ... 12m’2018 –investor...

12M’2018 – INVESTOR PRESENTATION – MARCH 8, 2019

Özak REICInvestor Presentation12m’2018 – March 8, 2019


Certain statements contained herein should be construed solely as "forward-looking” manifestations. Such expressions most often than not are denoted via words such as "estimate," "project, "predict," "believe," "expect," "anticipate," "potential," "plan," "goal," “will” or any other explicit term implying uncertainty and ambiguity of future events. Hence, such vocabulary pertaining to an imprecise point in time-horizon are based on our current expectations, estimates and assumptions, and are inherently exposed to specific risks and improbabilities.

Although ÖZAK REIC purports that the evaluation inputs incorporated into such proclamations are deemed reasonable at this time, actual results could differ materially from those originally projected or assumed. Except to the extent required by law, ÖZAK REIC assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

2

ÖZAK REIC DISCLAIMER

12M’2018 – INVESTOR PRESENTATION – MARCH 8, 2019 3

ÖZAK REIC SNAPSHOT

A strong, sustainable revenue model… TOTAL ASSET SIZE

TL 3,57 BN

REAL ESTATE PORTFOLIO VALUE

TL 2,71 BN

NET ASSET VALUE

TL 2,05 BN

2018 RENTAL INCOME

TL 95,12 MNAverage Occupancy Rate 93%


Commercial Real Estate Providing

Rental Income

61%

Projects

21%

Lands

18%

4

ÖZAK REIC ALLOCATION OF REAL ESTATE PORTFOLIO

Diversified portfolio structure minimizing risk…

TOTAL REAL ESTATE PORTFOLIO VALUE

Gayrimenkul Portföy Dağılımı % Kira Getiren Ticari Gayrimenkuller Sektörel Dağılımı %

Hotel

35%

Office

37%

Retail

28%

4

TL 2,71 BN

Allocation of Real Estate Portfolio % Commercial Real Estate Providing Rental Income %


ÖZAK REIC KEY PORTFOLIO HIGHLIGHTS FOR 2018

Distribution of Rental Incomes (TL MN)

34 Portall Plaza; 23,8

Ela Quality Resort Hotel;

40,4

Metro Gross

Market; 11,0

İşİstanbul; 8,2

Bulvar 216; 11,7

2018 RENTAL REVENUE

TL 95,1 MN

2018 EBITDA

TL 89,7 MN

2018 TOTAL REVENUE

TL 210,3 MN

(*) Rental Revenue Expectation of 2019; TL 114,6 mn

Revenue andEBITDA continuing toexceed ourexpectations…


ÖZAK REIC NET ASSET VALUE PROJECTION

We expect a strong leap in NAV following the delivery of Büyükyalı in 2019…

669,7 685,8841,9

1.219,3 1.226,7

1.658,1

2.050,3

2.951,3

3.443,2

3.904,1

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

PROJECTEDREALIZED

Net Asset Value Projection (TL MN)

Büyükyalı, Göktürk& Balmumcu deliveries

BalmumcuLands

Ela Hotel’s remaining 43% share purchase

Göktürk1st Parcel

Hayat Tepedeliveries

Office sales to OPET

Bulvar216 AVM

Valuation Increase

Hayat Tepedeliveries Büyükyalı

stock increase

with construction

Göktürk2nd Parcel

Büyükyalıstock

increase with

construction

Büyükyalıdeliveries, 50 % of the

Project

BalmumcuLands

Büyükyalı , Göktürk 1.stage

deliveries

Büyükyalı5%

Share Purchase


ÖZAK REIC HIGHLIGHTS

FENDI CASAcame for

the chicest house of Turkey

BÜYÜKYALI,Loft apartments are on sale

7


ÖZAK REIC INVESTOR PRESENTATION

Özak REIC

Strong financial structure, high growth potential …


ÖZAK REIC SUCCESS JOURNEY

2017Göktürk 2 Land added to the portfolio

Büyükyalı Project shareholding increased by 5%.

2016Hayat Tepe Project Completed

Büyükyalı Project’s Construction Permit obtained, Sale Office opened, sample flats completed & pre-sales started.

Acquired subsidiary company Arstate Tourism

Demre Land added to Portfolio

2015Subsidiary company Aktay Tourism merged with Özak REIC

Özak REIC rated as 57. in the list of FORBES 2015 The Biggest 100 Turkish Firm.

2014Büyükyalı Project, Kazlıçeşme İstanbul

Göktürk Land, İstanbul

Demre Land, Antalya

Didim Land, Aydın

2012Özak REIC undertook its "IPO" and listed on the BIST

Bulvar 216 Project, İstanbul

Hayat Tepe Project, İstanbul

Balmumcu Land, İstanbul

Metro Gross Market Project, İstanbul

1995Int-Er Yapı construction company established

2011Bayrampaşa Land, İstanbul (Hayat Tepe and Metro Gross Market Projects)

2010Güneşli İş İstanbul 34 Project, İstanbul

İkitelli 34 Portall Project, Istanbul

2009"Özak REIC founded"

Mahmutbey Land, Istanbul &

Ela Quality Resort Hotel, Antalya

acquired by Özak REIC

2007Ela Quality Resort Hotel, Antalya

20 years of experience in the real estate sector via Int-Er Yapı under Özak Group…

NAV CAGR* ’09 - ’18

51,4%Compound Annual Growth Rate *

9

2018OngoingProject –Büyükyalı


ÖZAK REIC ÖZAK GLOBAL IN BRIEF

REICTEXTILES CONSTRUCTION FACILITY MANAGEMENT TOURİSM

ÖZAK REIC

• Founded in 2009

• Real estate and real estate investment projects, tourism activities

• Distinguished urban-center projects that have been recognized and cited for awards by leading European organizations

ÖZAK REIC Subsidiaries

• Aktay Otel İşletmeleri (%95)

• Özak-Yenigün-Ziylan J.V. (%60)

• Büyükyalı Otel İşletmeciliği (%60)

ELA QUALITY RESORT HOTEL

• Competition-driven winning strategies

• Family/child priority concept; kids’ reception & monitoring systems; teen club

• Superior - quality rooms, personalized villas, each villa serviced by a specialized team helicopter and VIP transfer services

• 9 separate a la carte and snack restaurants, food service team directed by celebrated chefs, quality management under the supervision of a full-time staff of food engineers

• Up to 100% occupancy during the high season

AKYÖN TESİS YÖNETİMİ

• Security, cleaning, maintenance-repairmen and leasing functions of Shopping malls, offices & residences in our portfolio.

• These services will be offered to non-group companies in the coming years and expected to reach an important brand and market value.

INT-ER YAPI

• Founded in 1995

• Undertakes and carries out the Özak Group’s construction projects

• Provides project management, procurement management, quality management, and cost & process management services in the fulfillment of Özak REIC projects

• Professional team of 210 specialists

• 2,300 construction site personnel (including subcontractor staff)

ÖZAK TEKSTİL

• Founded in 1985

• 45,000 m2 of enclosed space in 3 separate factories

• Competition-driven winning strategies

• Contract manufacturer for the Armani, Prada, Hugo Boss, Zara, Guess, Massimo Dutti, Replay, and Esprit labels

• 3,200 employees

• High added-value production, 95% of which is intended for export

• Consistent, stable growth since inception

10


ÖZAK REIC SHAREHOLDING STRUCTURE

Özak REIC’s effective free-float rate has reached 25%...

Shareholding Structure

Shareholders Nominal Value

Share in Capital

Ahmet Akbalık 118.046.751 %47,2

Ürfi Akbalık 64.922.414 %26,0

Kairos PegasusFund S.A.

23.004.061 %9,2

Others 44.026.774 %17,6

Total 250.000.000 %100,0

Diğer

%17,6

Kairos Pegasus Fund S.A.

%9,2Ürfi Akbalık

%26,0

Ahmet Akbalık

%47,2


ÖZAK REIC KEY STRENGHTS

Flexible Business Model

SHAPING THE SECTOR THROUGH A VISION THAT UNDERPINS

TRENDSETTING PROJECTS

OPERATIONS IN FOUR DIFFERENT SEGMENTS PROVIDE FLEXIBILITY AND DEFENSIVENESS AGANIST RISKS

INDUSTRY COMMERCIAL RESIDENTIAL TOURISM

• ELA QUALITY RESORT HOTEL BELEK

• ELA HOTEL DİDİM PROJECT

• ELA HOTEL DEMRE PROJECT

• BÜYÜKYALIZEYTİNBURNU

• HAYAT TEPE BAYRAMPAŞA

• GÖKTÜRK PROJECT• BALMUMCU

PROJECT• MAHMUTBEY

PROJECT

• METRO GROSS MARKETBAYRAMPAŞA

• BULVAR 216 ATAŞEHİR

• 34 PORTALL BAŞAKŞEHIR

• İŞ İSTANBUL 34GÜNEŞLI

StrongFinancial Structure

Operations in Different Segments

Distinct downtown

projects

Reputable Tenants

Portfolio of Valuable

Assets

Valuable projects in hand

Predictable Cash

Generation


ÖZAK REIC PROJECT SPREAD IN TÜRKİYE

Göktürk Land

34 Portall

Hayat Tepe

Metro Gross

Balmumcu Land

Mahmutbey Land

Büyükyalı Project

İş İstanbul 34

Bulvar 216

Demre Land

Ela Quality ResortDidim Land

Projects in central locations creating immense value…

Completed Projects

Ongoing Projects

Upcoming Projects


ÖZAK REIC’S ASSETS

34 PORTALL

High rental income with a 6,7%annual rate of return …

Ownership Özak REIC (100%)

Project TypeIndustrial Office Building

Locationİstanbul, Başakşehir

Appraisal Value TL 417,5 mn

2019 Rent Expectation

TL 27,9 mn

Occupancy Rate %90

Operational Date 2010

Land Area 25.371 m²

Leasable Area 88.276 m²

Value Creation

%6,7

27,9

417,5

Rent Expectation Appraisal Value

TL mn

%90OCCUPANCY

RATE

Project Details

%6,7

• Strategically located in İkitelli Organized Industrial Zone

• Long-term renting method

• Reputable tenant portfolio

Aras Kargo, LC Waikiki, Coats Türkiye, ÖZAK Tekstil, İntem Triko & Asır Grup

Major Tenants Benefits



İŞ İSTANBUL 34

A project highly attractive toglobal firms…


Project TypeOffice & Commercial

Location İstanbul, Güneşli



TL 11,0 mn

Occupancy Rate %65


Land Area 6.586 m²


Value Creation

%5,4

11,0

205,3


TL mn

%65OCCUPANCY

RATE

Project Details

%5,4

• Located strategically in Güneşli, at the center of a sprawling business and industrial district on the western side of Istanbul

• Very close to the airport

SGS Supervise, Odeabank




ELA QUALITY RESORT

At the heart of Antalya, the choice of high-end tourists…

Ownership

Management

Özak REIC (100%)

95% subsidiary Aktay Otel İşl. A.Ş.

Project Type Tourism

Location Antalya, Belek

Hotel Capacity583 rooms1.200 beds



TL 47,6 mn

Occupancy Rate %55




Value Creation

%8,2

47,6

579,9


TL mn

%100OWNERSHIP

RATE

Project Details

%8,2

• Premium segment services with high occupancy rates

• Certificate of Excellence 2014 winner

• Agreement signed with globally well-known travel groups; TUI, Odeon

Benefits



BULVAR 216

A jewel at the center of a finance hub…

Value Creation

%5,4

17,1

313,6


TL mn

%82OCCUPANCY

RATE

Project Details


Project Type Office & Retail

Location İstanbul, Ataşehir



TL 17,1 mn

Occupancy Rate %82

Land Area 5.873 m²


%5,4

• Average 5-year rental contracts

• TL 95 mn revenue registered in 2014 from 10.650 m2 office sale

• Winner of European Property Awards in 6 different areas

P.F.Chang's, Virginia Angus, Hunger, Caribou, Starbucks, D&R, Vatan Bilgisayar, If Performance Hall, Cinemo, Ayı Pub, BigKitchen




METRO GROSS MARKET

A long term contract with a 7,6% yield…

Value Creation

%7,6

10,8

143,3

Rent Expectation Apparisal Value

TL mn

%100OCCUPANCY

RATE

Project Details


Project Type Retail

Locationİstanbul, Bayrampaşa



TL 10,8 mn

Occupancy Rate %100




%7,6

Consistent cash flow guaranteed via 30 years contract signed with global retail giant, Metro Gross Market

Metro Gross Market




HAYAT TEPE

A life and investment center at the city center …

Value Creation

1,5X

217

320

Total Cost Value Creation

TL mn

%95DELIVERY

RATIO

Project Details


Project Type Residence

Locationİstanbul, Bayrampaşa

Total Cost TL 217 mn

Value Creation TL 320 mn



Saleable Area 78.533 m²

Total Units612 Residence +2 Shops

1,5X

In Hayat Tepe Project 582of 614 independent unit delivered with 95% delivery ratio as of 31.12.2018.

Benefits


34 PORTALL

Yield Multiple 15,0 X

Yield Rate %6,7

METRO GROSS


Yield Rate %7,6

BULVAR 216


Yield Rate %5,4

ELA QUALITY RESORT


Yield Rate %8,2

İŞ İSTANBUL 34


Yield Rate %5,4

ÖZAK REIC COMPLETED PROJECTS’ YIELDS

27,9

417,5


mn TL

11,0

205,3


mn TL

47,6

579,9


mn TL

17,1

313,6


mn TL

10,8

143,3


mn TL

%7,6%5,4%8,2%5,4%6,7



BÜYÜKYALI İSTANBUL

A milestone project that will boost net asset value by huge margin …

%60OWNERSHIP

In Büyükyalı Project, total 81.003 m2 of 475 units’ pre-sales realized as of 31.12.2018. TL 1,4 bn revenue realized.

Benefits

Özak GYO Kârı

%60

DiğerOrtaklar

Kârı

%40

İlk SermayeYatırımı

ArsaMaliyeti

%37

ArsaMaliyeti

%54

İnşaat & GeliştirmeMaliyeti

%46


%31



Ownership

Özak REIC (60%)

Ziylan Gayrimenkul (32%)

Yenigün İnşaat (8%)

Project Type Mixed Use

Location İstanbul, Kazlıçeşme

Start Date 2016

Expected Completion Date Construction 2019, Sales 2021


Sellable / Leasable Area 315.000 m²

Expected Total Sale Income TL 5,40 bn

Expected Total Project Cost TL 3,70 bn

Expected Project Cost TL 1,70 bn

Expected Profit60% Özak REIC Share

TL 1,70 bn

Expected Average Sale Price per m² TL 17.140

Project Details


ÖZAK REIC BÜYÜKYALI

Büyükyalı willwellcome itsresidents in 2019…



GÖKTÜRK PROJECT

Özak REIC’s signature in İstanbul’s most valuable district …

%100OWNERSHIP

23

Net Kar

244,8

SermayeYatırımı

ArsaMaliyeti

%22

ArsaMaliyeti

%32SermayeYatırımı

Arsa Maliyeti

Ownership ÖZAK REIC (100%)

Project Type Housing

Location Göktürk, Eyüp

Start Date 2019

Expected Completion Date 2022


Sellable / Leasable Area 49.000 m²

Expected Total Sale Income TL 778,4 mn

Expected Project Cost TL 533,6 mn

Expected Profit TL 244,8 mn

Expected Average Sale Price per m²

TL 15,850

Project Details



BALMUMCU PROJECT

A high-end mixed use project at the city center offering views over the Bosporus…

%100OWNERSHIP

24

Net Kar

141,0

SermayeYatırımı

ArsaMaliyeti

%38

ArsaMaliyeti

%56


%44

SermayeYatırımı

Arsa Maliyeti

Net Kar

%33

Ownership ÖZAK REIC (100%)

Project Type Mixed Use

Location Balmumcu, İstanbul

Start Date 2020

Expected Completion Date 2022

Land Area 8.349 m²

Land Appraisal Value TL 155,1 mn

Proje Detayları


ÖZAK REIC UPCOMING PROJECTS

Özak REIC’s precious assets constantly gain in value and pave the way for fresh value-added projects…

MAHMUTBEYLAND

DİDİMLAND

DEMRELANDS

Facts & Figures

Location İstanbul

Project Type Housing

Land Area 6.682 m²

AppraisalValue

TL 48,6 mn

Facts & Figures

Location Aydın

Project Type Hotel


Facts & Figures

Location Antalya

Project Type Hotel

Land Area71.000m² + 60.000m²


ÖZAK REIC PROSPECT OF PROJECTS

26

NAV GROWTH FOR 2017 - 2018

24% GROWTH

CURRENT NAV

TL 2.050,3 MN

*As of 31.12.2017 itibariyle 1.658,1 TL mn

COMPLETEDPROJECTS

34 Portall Plaza

İş İstanbul 34

Bulvar 216

Ela Quality Resort Hotel

Hayat Tepe

Metro Gross Market

2019 NAV TARGET

BÜYÜKYALIİSTANBUL

Multiple-use project sited on one of the most valuable and largest plots currently available on the coastline

One of the largest tenders of Emlak KonutREIC ("EKGYO") via RSM*

60 % Özak REIC Future projects will further increase the "appraisal multiplier”in the upcoming period…

TL 2.951,3 MN

BALMUMCUPROJECT

A high-end mixed use project at the city center offering views over the Bosporus…

100% Özak REIC ownership

GÖKTÜRKPROJECT

300 units of High-end housing Project located in the hearth of Göktürkwhich Dominated with white-collar professionals.

100% Özak REIC ownership


ÖZAK REIC INVESTOR PRESENTATION

Özak REICFinancial Indicators12M’ 2018


Our total assetsize increasedby %48 andreached to TL 3,57 billion.

Total Asset Value Net Asset Value

%93

2,40

3,57

2017 2018

TL 3,57 BN2018

TL 2,05 BN2018

TL 1,66 BN2017

EBITDA

TL 89,7 MN 2018

TL 56,00 MN

2017

EBITDA Margin

%40,4

2017

%42,62018

Rental Portfolio Occupancy Rate

ÖZAK REIC 12M’2018 CONSOLIDATED KEY PORTFOLIO HIGHLIGHTS

28


Our total salesrevenue grew%52 andreachedTL 210 mn.

Net Profit Total Revenue

258,98236,01

2017 2018

236,01 MN TL2018

TL 210,32 MN 2018

TL 138,48 MN 2017

Net Debt

TL 453,22 MN 2018

TL 363,00 MN2017

Net FX Position

TL -171,14 MN 2017

TL -97,92 MN 2018

Rental Revenue

ÖZAK REIC 12M’2018 CONSOLIDATED KEY PORTFOLIO HIGHLIGHTS

29

2018

TL 95,12 MN 2017

TL 71,61 MN


Özak REIC’stotal salesincreased %52 year-over-yeardue to therobust growthin tourismrevenues.

31,623,8 16,9

52,7

109,1

Q4'17 Q1'18 Q2'18 Q3'18 Q4'18

Total Revenues (Quarterly) (TL MN) Total Revenues (2017 & 2018) (TL MN)

TL 7,8 MN Q4’18 - Q4’17

TL -77,4 MN Q4’18 - Q3’18

138,5

210,3

2017 2018

ÖZAK REIC CONSOLIDATED REVENUES

30


25,2

16,6 17,020,4

32,5

Q4'17 Q1'18 Q2'18 Q3'18 Q4'18

Our rentalincomeincreased by%33 year-over-year promptedby the rise in foreignExchange rates.

Rental Revenues (Quarterly) (TL MN) Rental Revenues (2017 & 2018) (TL MN)

TL 8,6 MN Q4’18- Q4’17

TL -7,2 MN Q4’18 - Q3’18

71,6

95,1

2017 2018

ÖZAK REIC RENTAL REVENUES

31


6,91,7 -2,0

17,3

67,5

Q4'17 Q1'18 Q2'18 Q3'18 Q4'18

Our EBITDA grew %60 year-over- yearowing to salessoaring in parallel withtourismrevenues.

EBITDA (Quarterly) (TL MN) EBITDA (2017 & 2018) (TL MN)

TL 5,2 MN Q4’18 - Q4’17

TL -60,6 MN Q4’18 - Q3’18

56,0

89,7

2017 2018

%61,9

%32,8

%12,1%7,1

%21,9

%40,4

%42,6

EBITDA Margin

ÖZAK REIC CONSOLIDATED EBITDA

32


The stronggrowth in tourismrevenues has a positive effecton ourprofitability.

Summary of Consolidated Income Statement (TL MN)

MnTL

Yearly Quarterly

2017 2018 %∆ (2018/2017) Q4’17 Q3'18 Q4'18 %∆ (Q4’18/Q4’17) %∆ (Q4’18/Q3’18)

Revenues 138,5 210,3 51,9% 23,8 109,1 31,6 32,9% -71,0%

Sales Revenue 66,9 115,2 72,2% 7,2 76,6 6,4 -11,0% -91,6%

Rental Revenue 71,6 95,1 32,8% 16,6 32,5 25,2 51,9% -22,3%

Hotel 25,8 40,4 56,7% 6,1 17,1 9,8 60,5% -42,7%

Office 24,5 32,0 30,6% 6,2 8,8 9,3 50,0% 6,1%

Retail 21,3 22,7 6,5% 4,4 6,6 6,1 39,1% -7,2%

Gross Profit 70,9 112,0 58,0% 9,2 71,5 16,2 76,0% -77,3%

Gross Margin 51,2% 53,3% 2,1 bp 38,7% 65,5% 51,2% 12,6 bp -14,3 bp

EBIT 43,2 73,9 71,1% -1,6 62,9 3,3 -313,7% -94,7%

EBIT Margin 31,2% 35,1% 4,0 bp -6,5% 57,7% 10,5% 17,0 bp -47,2 bp

EBITDA 56,0 89,7 60,2% 1,7 67,5 6,9 310,1% -89,7%

EBITDA Margin 40,4% 42,6% 2,2 bp 7,1% 61,9% 21,9% 14,8 bp -40,0 bp

Net Financial Income / Expense -59,9 -80,9 35,1% -29,0 -154,1 129,0 -545,0% -183,7%

Net Income 259,0 236,0 -8,9% 194,2 -31,6 267,1 37,6% -944,8%

Net Income Margin 187,0% 112,2% -74,8 bp 815,8% -29,0% 844,8% 29,0 bp 873,8 bp

ÖZAK REIC SUMMARY OF CONSOLIDATED INCOME STATAMENT

33


Net Income Bridge 2018 (TL MN)

210,3

499,6

(98,3)

(38,1)

(256,8)

(80,9)

236,0

Revenue COGS OPEX Other Incomes Other Expenses Net Financial Expenses Tax Income Net Profit

0,2

TL (74,9) mn CreditFX Loss,

TL (6,0) OtherExpense

TL (254,3) mnFX Loss,

TL (2,5) mn,Other Expense

TL 263,0 mnIncrease in value of

InvestmentProperties,

TL 229,3 mn FX Income,

TL 7,3 mnOther Income

NET PROFIT MARGIN

%112

ÖZAK REIC CONSOLIDATED NET INCOME & MARGIN

34


Total Credit Debt Split (TL MN)

911,5

483,8

Total Debt Reel Credit Debt

Cash & Cash Equivalents (*)

-427,7

%26,0REEL CREDIT DEBT / EQUITY

%13,5REEL CREDIT DEBT / TOTAL ASSETS

TL 483,8 MN REEL CREDIT DEBT

Summary of Consolidated Balance Sheet

ÖZAK REIC SUMMARY OF CONSOLIDATED BALANCE SHEET

35

TL Mn 2017 2018%∆

(2018/2017)

Current Assets 242,8 753,4 210,3%

Non Current Assets 2.160,9 2.818,9 30,4%

Total Assets 2.403,7 3.572,3 48,6%

S.T. Liabilities 407,3 971,0 138,4%

L.T. Liabilities 516,8 740,9 43,4%

Total Liabilities 924,1 1.711,8 85,2%

Shareholder’s Equity 1.479,6 1.860,5 25,7%

Total Liabilities & Equity 2.403,7 3.572,3 48,6%

S.T Financial Debt 286,0 698,0 144,1%

L.T. Financial Debt 249,2 213,4 -14,3%

Total Financial Debt 535,2 911,5 70,3%

Cash & Cash Equivalents 172,2 635,2 268,9%

Net Debt 363,0 276,3 -23,9%

Net Debt/Equity 24,5% 14,9% -9,7 bp

Net Debt/Total Assets 15,1% 7,7% -7,4 bp

(*) Reel Credit Debt calculated by deducting TL 207,5 mn from Cash & Cash Equivalents due to shareholders debt, as of 31.12.2018.


Net Debt 2018 (TL MN)

Change in Net Debt – 2018 / 2017 (TL MN)

698,0

213,5

(427,7)

483,8

S.T. Financial Debt L.T. Financial Debt Cash & Cash Equivalents Net Debt 2018

363,0483,8

(35,8)

255,4

412,0

Net Debt 2017 ∆ S.T. Financial Debts ∆ L.T. Financial Debts ∆ Cash & Cash Equivalents Net Debt 2018

ÖZAK REIC CONSOLIDATED NET DEBT DYNAMICS

36


Özak REIC’s Total Real Estate Portfolio Value reached TL 2.718,6 MN as of 31.12.2018.

Solo Net Asset Value Bridge (TL MN)

ASSETS LIABIL ITIES

482,5

622,9

579,9

456,9

576,5

152,7

576,1

206,6

(786,2)

(817,6)

2.050,3

Land Office Hotel Retail Project Subsidiaries Cash Other Assets OtherLiabilities

Debts 2018NAV

TL 2.718,6 MN REAL ESTATE PORTFOLIO VALUE

ÖZAK REIC SOLO NET ASSET VALUE BRIDGE

37

EQUITY


Özak REIC, which trades at a 72% discount on the Istanbul Stock Exchange, offers investors a strong opportunity for the future.

Net Asset Value Table Portfolio Breakdown by NAV %

%72DISCOUNT RATE

TL 575,0 MN MCAP as of 05.03.2019

ÖZAK REIC NET ASSET VALUE

38

(TL Mn ) 2017 20182019

Forecast

Lands

Mahmutbey, İstanbul 46,1 48,6 54,9

Balmumcu, İstanbul 144,7 155,1 175,2

Göktürk 1, İstanbul 78,6 84,6 95,6

Göktürk 2, İstanbul 174,3 185,6 -

Göktürk (PPI)*, İstanbul - 8,7 9,8

(+) Total Lands 443,7 482,5 335,5

Buildings

Office - 34 Portall Plaza, İstanbul 322,4 417,5 471,8

Office- İş İstanbul 34, İstanbul 139,6 205,3 232,0

Retail - MetroGrossMarket, İstanbul 124,7 143,3 161,9

Retail - Bulvar 216, İstanbul 268,8 313,6 354,4

Hotel - Ela Quality Resort Quality Otel 434,7 579,9 650,5

(+) Total Buildings 1.290,3 1.659,6 1.870,6

Projects

Completed Projects - Hayat Tepe 19,3 13,9 9,0

Continuing Projects – Büyükyalı 318,6 562,6 482,0

Continuing Projects – Göktürk 2 - - 231,2

(+) Total Stock 337,9 576,5 722,2

Subsidiaries (Tourism)

Aktay Otel İşletmeleri A.Ş 152,7 152,7 183,2

Büyükyalı Otel İşletmeciliği 0,0 0,0 0,0

Betuyap - Detuyap 0,0 0,0 0,0

(+) Total Subsidiaries 152,7 152,7 183,2

(+) Cash 160,9 576,1 154,1

(+) Project Advances 31,2 - -

(+) Other Assets 108,3 206,6 579,9

(-) Other Liabilities 373,2 786,2 247,7

(-) Debts 493,8 817,6 646,6

NET ASSET VALUE 1.658,1 2.050,3 2.951,3

As of 31.12.2018; MCAP TL 527,5 MNDISCOUNT RATE %74

Land; 17%

Office; 20%

Retail; 17% Tourism; 26%

Project; 20%

(*) Public Partnership Interest


Net asset value is expected to reach TL 2.95billion by end of 2019, in an increase of 44%.

Net Active Value Projections (TL MN)

Rent Projections (TL MN)

2.050,32.951,3

3.443,23.904,1

2018 2019 2020 2021

95,1 114,6 133,0176,9

2018 2019 2020 2021

ÖZAK REIC NAV & RENT PROJECTIONS

39


A strong leap is forecast in revenue following the first deliveries of Büyükyalı in 2019.

Revenue Projections (TL MN)

145,6 193,4 228,1335,7

518,8646,2

64,774,0 84,0

94,0

105,6

113,8

83,6

102,2

75,9

430,0

191,0

1.001,7

529,2

510,3

2018 2019 2020 2021 2022 2023

Büyükyalı

Balmumcu

Göktürk

Mahmutbey

Other Real Estate

Tourism

233,4

{TL 185,8 mn}

{TL 778,4 mn}

{TL 2.041,2 mn}

{TL 424,4 mn}

760,0

1.232,5

1.644,5

917,2

1.269,1

210,3

ÖZAK REIC REVENUE PROJECTIONS

40

272,6


89,7 109,5 127,7170,6

240,8291,6

11,6

14,1

22,1

125,0

97,763,5

77,6510,1

286,9

224,2

2018 2019 2020 2021 2022 2023

Büyükyalı

Balmumcu

Göktürk

Mahmutbey

Tourism & Other Real Estate

The year 2019 is expected to usher in a strong rise in the EBITDA margin as well

EBITDA Projections (TL MN)

{TL 25,7 mn}

{TL 244,8 mn}

{TL 1.021,2 mn}

{TL 141,0 mn}

619,6 594,8

436,7

ÖZAK REIC EBITDA PROJECTIONS

41

430,2


A business model and future plan based on sustainable revenue generation…

Maintaining a strong position as a project developer REIC

Creating value through distinct downtown projects

Generating stable cash flow via rental income

Retaining a voluminous portfolio of valuable assets

Ensuring lucrative capital appreciation of assets held

STR

ATE

GY

TAR

GET

Sustaining our proven operational success in NAV growth at 51.4% (CAGR)

Pursuing alternative value-added projects as soon as current ventures reach their fair values

Securing sustainabilityİn viable cash flow and overall growth

>

ÖZAK REIC STRATEGY

42


Thank you …

For further information:

ÖZAK REIC Investor Relations

[email protected]

+90 212 486 3650

Özak rei investor presentation · Özak group… nav cagr* ’9 ... 12m’2018 –investor...

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