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1 1 1

INVESTOR PRESENTATION

August 2011

2 2 2

3

Turkish economic outlook

Listed REIC's

Operational review

Financial review

Development review

Future outlook

Appendix (Portfolio review)

Sectoral outlook

USD billion 2010a 2011b 2012b 2013b 2014b 2015b

GDP 735.3 746.0 806.6 892.8 999.5 1,095.3

Growth (GDP, %) 8.9 6.0 4.5 5.3 5.5 5.4

Private Consumption (%) 6.6 7.0 6.0 5.1 5.3 5.1

Inflation (CPI, average, %) 8.6 6.0 5.9 5.9 4.8 4.0

TL/USD (year-end) 1.54 1.66 1.66 1.66 1.64 1.64

TL/USD (average) 1.50 1.61 1.66 1.67 1.65 1.64

TL/EUR (average) 1.99 2.26 2.26 2.14 2.02 2.09

Exports 121.0 134.5 137.1 145.1 157.9 174.7

Imports -177.3 -210.4 -214.2 -218.2 -230.8 -250.6

C/A Balance (Ratio to GDP, %) -6.5 -8.8 -8.0 -6.5 -5.7 -5.2

Budget Balance (Ratio to GDP, %) -3.6 -1.5 -1.2 -1.4 -1.5 -1.2

a Actual b Economist Intelligence Unit estimates.

3

Turkey Economic Highlights

Source: EIU (01.08.2011)

4

GDPConstruction

-20,0%

-15,0%

-10,0%

-5,0%

,0%

5,0%

10,0%

15,0%

20,0%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q12010

2010 Q12011

-3,4%

6,8%

-5,7%

6,2% 5,3%

9,4% 8,4%

6,9% 4,7%

-0.7% -4,8%

12,0%

8,9% 11,0%

-3,1%

4,9%

-17,4%

13,9%

7,8%

14,1%

9,3%

18,5%

5,7%

-8,1%

-16,1%

8,3%

17,1% 14,8%

GDP Construction

Turkey GDP vs. Construction Sector

5

Turkey Real Estate Economic Highlights

80,4 81,4 83,5 86,4 91,6 99,4

107,8 116,5

127,3 140,3

152,7

37 37,5 38,6 40,6 43,2 46,7 50,1 53,6 58,5 63,2 67,2

20

40

60

80

100

120

140

160

Jan.09 Apr.09 Jul.09 Oct.09 Jan.10 Apr.10 Jul.10 Oct.10 Jan.11 Apr.11 Jul.11

CONSUMER LOANS(BILLION TRY)MORTGAGE LOANS (BILLIONTRY)

Consumer loans and mortgage

loans (bn TRY)

41

28 30

7

34 29

61

42

23

12

38 42

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010 2011*

Loan Growth %

Total Loans

Consumer Loans

Source: Turkish Statistical Institute *Deutsche Bank

6 6 6

Turkey Real Estate Economic Highlights

0,38 0,35 0,63

1,91

2,92 3,59

3,95 4,47

5,18 5.60

,00

1,00

2,00

3,00

4,00

5,00

6,00

2002 2003 2004 2005 2006 2007 2008 2009 2010 05.08.2011

Mortgage Loans/GDP % Mortgage Loans/GDP %

50.0

40,4

27,8

17,7 18,2 18,3 18,6 15,6

11,1 11,7

0

10

20

30

40

50

Interest Rate on Mortgages(%) Interest Rate on Mortgages(%)

Source: Turkish Statistical Institute

7 7 7

3


Listed REIC's

Operational review

Financial review

Development review

Future outlook


Sectoral outlook

8

International Position of Turkish Real Estate Market

Criteria Ranking

Market Maturity 18

Transparency

Semi-transparent (31)

Global Position of Istanbul 27

Housing Demand Medium

Potential Customer Profile Middle-income

Developing New Middle-Class Size Medium

Premium Residential Market Steady growth

Mortgage Financing Yes- developing

Real Estate Investment of Foreigners (Jan-Jun 2011) 1.242 million $

Principle of Reciprocity for Foreigners Yes

Growth in Retail Spending Medium-high

Global Retail Development Index 18

Office Market Steady growth Source: JLL Real Estate Market Index 2010

9

Residential Market Outlook

Turkey’s yearly requirement for new dwellings is estimated at around 600.000 units.*

Residential market demand on the rise requires the construction of at least 400.000 units each year.

10 million families live in their own houses and 3.6 million in rented accommodation.

Land in short supply accounts for 30-40% of total construction costs.

Many residential projects are constructed beyond city centers.

There are about 20 million registered and unregistered residential units with 14.6 million having construction permits and only 8.3 million having occupancy permits.

Housing supply increased in Q1 2011, while the initiation of new construction is weak.

*Source: GYODER

10

Residential Market Outlook

Strong demand in spite of the June election period, crisis expectations and seasonal slow-down.

Residential buyers brought forward their buying decisions due to election.

Rising construction material costs still have not yet been passed on to selling prices.

The project developers offer significantly favorable customer-based payment schedules due to stiff competition.

An indispensable price adjustment is on the cards in near term.

Mixed-use projects are highly on demand in the largest cities in particular.

11

Turkey Residential Sales ( in units )


12

Residential Projects in Supply

Residential Supply (European side of Istanbul) Number of Projects Number of Residential Units

2007 and before 243 144.227

2008 60 20.761

2009 42 17.486

2010 66 30.966

2011 (Jan-Jun) 24 29.000

Total 435 242.440

Residential Supply (Asian side of Istanbul) Number of Projects Number of Residential Units

2007 and before 242 76.962

2008 26 8.656

2009 31 11.318

2010 36 10.062

2011 (Jan-Jun) 14 2.800

Total 339 109.798

Source: Epos Property Consulting and Valuation Inc.

13

Pre and Post-Crisis Price Variations

Average selling prices/m2 of newly launched projects on the European side of Istanbul (TRY/m2)

Location 2007 2009 2011 Variance (2011 vs. 2009)

Bahcesehir 2.440 2.000 2.424 21%

Beylikduzu/Esenyurt 1.631 1.866 2.100 13%

Halkali 1.947 2.242 2.700 20%

Average selling prices/m2 of newly launched projects on the Asian side of Istanbul (TRY/m2)

Location 2007 2009 2011 Variance (2011 vs. 2009)

Atasehir 2.846 2.965 4.000 35%

Cekmekoy 2.159 2.254 2.500 11%

Kartal/Maltepe - 2.400 2.900 21%

Pendik/Kurtkoy 1.550 2.000 2.300 15%

Source: Epos Property Consulting and Valuation Inc.

14

Residential Purchase Confidence Index

Source: ING Mortgage Barometer (Compiled from 805 interviews in 14 cities)

75,0 76,0

75,0

80,0

78,0 79,0

84,0

81,0

86,0

84,0 83,0

86,0

78,0

68

70

72

74

76

78

80

82

84

86

88

15

Turkey New Residential Price Index

2011 July Index Value

Variance M-o-M (%) Variance Y-o-Y(%) Variance Against January 2010(%)

New Residential Price Index 109.5 1.20% 7.29% 9.50%

Source: REIDIN Turkey

100,0 100,3 100,5 100,8 101,1 101,7 102,1 102,5 103,0

103,8 104,8 105,3

106,3 106,5 106,7 107,3 107,7 108,2

109,5

94

96

98

100

102

104

106

108

110

112

16 16

Turkey New Residential Price Index by Sqm

Source: REIDIN Turkey

January 2010=100 beginning of the index

Flat Size 2011 July Index Value Variance M-o-M VarianceY-o-Y Variance Against January 2010

51-75 M2 109.8 0.37% 8.22% 9.80%

76-100 M2 107.1 1.13% 4.51% 7.10%

101-125 M2 111.2 1.65% 9.71% 11.20%

126-150 M2 107.7 0.65% 5.59% 7.70%

151 M2 + 104.6 1.16% 3.17% 4.60%

17

Purchasing Power vs. Mortgage Rates

Customer segment

Average monthly household income (TRY)

Maximum monthly installment amount (TRY)

Allowed maximum loan amount (TRY)

Monthly Interest Rate 1,53% (20% Compound)




Monthly Interest

Rate 0,64% (8%

Compound)

Monthly Interest

Rate 0,41% (5%

Compound)

A 22.000 8.800 540.000 660.000 760.000 840.000 937.000 1.120.000

B 13.000 5.200 320.000 390.000 450.000 495.000 553.000 662.000

C+ 3.200 1.280 78.000 96.000 110.000 122.000 136.000 163.000

C 1.300 520 32.000 39.000 45.000 50.000 55.000 66.000

Source: Turkish Statistical Institute, TBB, DD Mortgage

*Per capita income in 2010 is TRY 1.250/month. *Ratio of regular payments including loan installment to monthly household income is assumed to be 40% with 180 months of loan maturity.

2Q 2011

1Q 2011

Total Labour Material (2005=100)

QoQ(%) 4,35 2,34 4,96 Total Labour Material

YtD(%)

8,91 5,04 10,11

QoQ(%)

4,37 2,64 4,91

YoY(%)

12,76 6,49 14,76

Yoy(%)

8,44 7,32 8,79

Variance to the Average of 4 Quarters(%)

8,7 6,58 9,37

Variance to the Average of 4 Quarters(%)

6,62 6,43 6,67

18

Turkey Construction Costs


19

Retail Market Outlook

285 shopping malls, 7.1 million sqm GLA, 97 sqm per 1.000 inhabitants.*

17 new malls opened and 585.000 sqm added in H1 2011.*

48% of new openings in Ankara and Istanbul.

41% of GLA and 100 shopping malls in Istanbul with the rest in Anatolia.

48 cities out of 81 accommodate shopping malls.

Rental growth in shopping centers and high streets predicted in H2.

Further yield compression expected for shopping centers.

Substantial new provision of retail space likely to be opened in H2.

Occupier demand expected to remain robust.

Bomonti Park in Istanbul acquired for € 5.2 million and half of Yapi Kredi Bank premises in Istiklal Avenue for € 29.5 million by VastNed.**

*Source: Council of Shopping Centers- Turkey ** Source: CBRE

20

285.

475 34

0.04

0

355.

034

389.

015

422.

503

456.

719

492.

520

531.

322

185.

210

217.

663

225.

316

244.

725

263.

685

282.

904

302.

863

324.

337

100.

265

122.

376

129.

718

144.

290

158.

817

173.

815

189.

657

206.

985

000

100.000

200.000

300.000

400.000

500.000

600.000

2009 2010 2011 2012 2013 2014 2015 2016

Retail Sales(USD mn)

Grocery retail sales(USD mn)

Non-Grocery Retail Sales (USD mn)

Turkey Retail Market

Source: Planet Retail

21 21 21

Shopping Mall Development

End 2009 Q1 2010 End 2010 Q1 2011

Unit 81 81 92 96

İstanbul GLA (sq m) 2,28 M 2,28 M 2,65 M 2,85 M

Unit 155 157 171 174

Rest of Turkey GLA (sq m) 3,41 M 3,50 M 3,87 M 3,93 M

Unit 236 238 263 270

Turkey GLA (sq m) 5,69 M 5,78 M 6,52 M 6,78 M

Source: Jones Lang LaSalle

Active Under Construction* Total

Unit 96 28 124

İstanbul GLA (sq m) 2,85 M 1,02 M 3,87 M

Unit 174 46 220

Rest of Turkey GLA (sq m) 3,93 M 1,27 M 5,20 M

Unit 270 74 344

Turkey GLA (sq m) 6,78 M 2,29 M 9,07 M

*As of end 2013


22

Turkey Map of Shopping Malls

Current Shopping Malls

Shopping Malls under Construction and in Project

Concentration of Shopping Malls by GLA

LEGEND

Source: EVA Real Estate Appraisal Consultancy Akademetre Research and Strategy Planning

23 23 23

City End 2010 Q1 2011 End 2013

İstanbul 200 sq m 215 sq m 280 sq m

Ankara 202 sq m 202 sq m 239 sq m

Denizli 118 sq m 154 sq m 166 sq m

Bursa 130 sq m 130 sq m 135 sq m

Tekirdağ 139 sq m 139 sq m 132 sq m

İzmir 112 sq m 118 sq m 130 sq m

Eskişehir 116 sq m 116 sq m 111 sq m

Adana 59 sq m 59 sq m 86 sq m

Turkey 88 sq m 92 sq m 118 sq m

Retail Density-GLA per 1,000 Capita, Turkey


24

Turkey’s Mall League

Source: Akademetre Research and Eva Real Estate

Mall Opening Date GLA Location Developer

1 Forum Istanbul 2009 180.000 Istanbul Multi Turkmall

2 Marmara Forum 2011 157.000 Istanbul Multi Turkmall

3 Cevahir 2005 110.000 Istanbul Celebioglu

4 Ankamall 1999 107.804 Ankara Yeni Gimat

5 Torium 2010 95.280 Istanbul Torunlar REIC

6 Istinyepark 2007 87.000 Istanbul Dogus, Orjin

7 Antares 2007 85.150 Ankara Dolunay

8 Anatolium 2010 84.165 Bursa Corio

9 Forum Ankara 2008 80.000 Ankara Multi Development TR

10 Kent Park 2008 80.000 Ankara Mega Turk Construction

11 Panora 2007 78.000 Ankara Polat Holding

12 M1 Merkez Adana 2000 75.700 Adana Metro

13 Korupark 2007 74.580 Bursa Torunlar REIC

14 Cepa 2007 72.000 Ankara Carrefour

15 Forum Mersin 2007 70.250 Mersin Multi Turkmall

16 Anatolium Ankara 2011 70.000 Istanbul Maya

17 M1 Meydan Umraniye 2007 70.000 Istanbul Metro

18 212 Istanbul Power Outlet 2009 69.000 Istanbul Edip International Real Estate

19 Ora Istanbul 2011 65.000 Istanbul Merkez Construction

20 Forum Bornova 2006 62.000 Izmir Multi Development TR

25 25 Source: Council of Shopping Centers- Turkey

*January 2010= the beginning of index

Turkey SHOPPING MALL Sales Turnover and Footfall

100 92 91 93

101 102 101 96 108 114 113

122 112 108 103 108 115 119

0

20

40

60

80

100

120

140

SALES TURNOVER INDEX (GENERAL)

SALES TURNOVER INDEX (GENERAL)

100

93 93

89

93

89

92 92

99 98

101

97 99

97 95

97

100

97

828486889092949698

100102

Jan.2010 Feb.2010 Mar.2010 Apr.2010 May.2010 Jun.2010 Jul.2010 Aug.2010 Sep.2010 Oct.2010 Nov.2010 Dec.2010 Jan.2011 Feb.2011 Mar.2011 Apr.2011 May.2011 Jun.2011

FOOTFALL INDEX (GENERAL)

FOOTFALL INDEX (GENERAL)

26

Turkey Shopping Mall Rental Yields- June 2011

PRIME RETAIL RENTS- Jun 2011

HIGH STREET US$ € US$ Compound (p.a) % growth

SHOPS sq.m/mth sq.m/yr sq.ft/yr 5yr 1yr

Istanbul 230 1,904 256 13.9 15.0

Izmir 70 579 78 4.9 9.4

Ankara 85 703 95 7.2 13.3

PRIME RETAIL YIELDS- Jun 2011

HIGH STREET Current Last Last 10 Year

SHOPS (Gross) Quarter Quarter Year High Low

Istanbul 7.50 7.50 8.00 14.50 7.50

Izmir 10.50 10.75 11.00 14.50 10.50

Ankara 10.50 10.50 11.00 15.50 10.50

SHOPPING Current Last Last 9 Year

CENTRES (Net) Quarter Quarter Year High Low

Istanbul 8.00 8.25 9.00 14.50 7.00

Source: Cushman&Wakefield

27

Office Market Outlook

Levent-Maslak Area still sees healthy levels of demand.

Increasing demand against limited Class-A stock pushes rents up.

Investor, both domestic and foreign competing for limited space will compress prime yields.

Supply increases as new space is delivered and older space released as occupiers upgrade.

Demand increases with the economy and establishment of the financial center.

Akbank’s three ex-operation buildings (48.000 sqm) in Maslak were acquired by Orta Real Estate (owned by Orjin Group) for $ 95 million.*

1.500 sqm in the Akkom Plaza in Umraniye rented at $19/ sqm/ month.**

915 sqm in the Is Towers in Levent rented at $30/ sqm/ month.**

3000 sqm in the Akkom Plaza in Umraniye rented at $19/ sqm/ month.**

*Source: Cushman & Wakefield **Source: CBRE

28 28 28

Sub Market GLA (sq m)

Europe CBD 1,1 million

Non CBD 0,73 million

Asia 0,80 million

Total 2,6 million

Existing Grade A Office Stock


Sub Market GLA (sq m)

Europe CBD 207,000

Non CBD 185,000

Asia 229,000

Total 621,000

Pipeline Projects Grade A Office Stock*

*For completion by end 2013


Office Market Overview

29

Turkey Office Rental Yields- June 2011 PRIME OFFICE RENTS- Jun 2011

US$ Prime Rent € US$ Compound (p.a) % growth sq.m/mth sq.m/yr sq.ft/yr 5yr 1yr

Istanbul Levent 36.0 298 40.1 14.9 0.0 Esentepe-Gayrettepe 31.0 257 34.6 15.6 6.9 Maslak 24.0 199 26.8 14.9 -4.0 Umraniye 20.0 166 22.3 6.7

Izmir 15.0 124 16.7 13.4 -6.3 Ankara 21.0 174 23.4 11.8 -4.5

PRIME OFFICE YIELDS- Jun 2011 Prime Yield (%)

Current Last Last 10 Year Quarter Quarter Year High Low

Istanbul Levent 8.00 8.00 8.25 18.00 7.50 Esentepe-Gayrettepe 8.00 8.25 8.50 18.00 7.50 Maslak 8.75 8.50 8.75 16.30 7.75 Umraniye 8.50 8.75 9.00 9.50 8.50

Izmir 10.00 10.00 10.25 22.00 9.00 Ankara 10.00 10.00 10.25 21.00 9.00

Source: Cushman&Wakefield

30 30 30

3


Listed REIC's

Operational review

Financial review

Development review

Future outlook


Sectoral outlook

31 31 31

REICs on the ISE (as of August 2, 2011)

Listed REICs Free Float 3M avg. daily

trading volume Current M.Cap

(TRY mn) (30.06.2011)

NAV (TRY mn) Prem/(Disc) to

NAV Dividend Yield

(2010) Dividend Yield

(2011) Emlak Konut 25% 76.2 6,200 5,764 9% - 2.6%

Torunlar 25% 4.1 1,281 2,527 -49% - 0.9% İş 48% 2.7 768 1,405 -45% 3.0% 2.8%

Sinpaş 37% 10.8 975 1,355 -28% - 3.1% Kiler 35% 4.9 326 934 -65% - -

Akmerkez 2% 1.0 803 806 0% 4.6% - Akfen 29% 2.0 296 739 -60% - -

Reysaş 31% 1.8 192 334 -43% - 0.6% Alarko 34% 3.0 213 273 -22% - 0.7% Martı 48% 1.7 102 222 -54% - 5.4% TSKB 29% 0.7 113 210 -47% - -

Atakule 16% 0.3 104 212 -51% 2.2% 2.1% Yesil 14% 1.5 270 184 47% - -

Doğuş 7% 0.5 154 181 -15% - - Pera 61% 1.2 73 165 -56% - - Vakıf 44% 2.4 72 135 -47% - -

Özderici 33% 0.5 109 101 8% - -

Yapı Kredi Koray 44% 1.4 102 87 16% - -

Sağlam 42% 3.8 82 76 9% - - Nurol 20% 0.9 80 57 41% - -

Avrasya 18% 1.4 104 80 29% - - EGS 66% 0.0 17 20 -16% - -

İdealist 25% 1.3 80 12 575% - - TOTAL 26% 124 12,517 15,788 -21%

exc. EKGYO 26% 48 6,317 10,114 -38% - -

32

Portfolio Structures of REICs (as of June 2011)

Listed REICs Land Buildings Ongoing projects Rights over real

estate assets Marketable securities Participations

Emlak Konut 52% 4% 32% - 12% - Torunlar 8% 39% 23% - 19% 11%

İş 12% 83% - - 6% 0% Sinpaş 33% 21% 37% - 2% 7% Kiler 6% 85% 3% - 6% 0%

Akmerkez - 91% - - 9% - Akfen - 45% 3% 2% 6% 44%

Reysaş 16% 74% 8% - 0% 1% Alarko 16% 16% 6% 20% 41% 0% Martı 16% - 21% 63% - 0% TSKB 4% 90% - - 6% 0%

Atakule 0% 60% 0% - 39% - Yesil 30% - 70% - 0% -

Doğuş - 89% - - 11% - Pera - 82% 10% 2% 4% 2% Vakıf 77% 12% - 2% 9% -

Özderici - 3% 79% - 18% - Yapı Kredi Koray 8% 25% 20% - 0% 47%

Sağlam - 68% - - 28% 4% Nurol 49% 34% - - 17% -

Avrasya 16% 83% - - 2% - EGS 2% - 98% - 0% 0%

İdealist - 95% - - 5% - TOTAL 27% 34% 22% 1% 11% 5%

exc. EKGYO 13% 51% 17% 2% 11% 8%

33

Competitors H1 2011 Financial Highlights

Emlak Konut REIC Summary Financials % Change

(mn TL) 2Q10 2Q11 1H10 1H11 2Q11/2Q10 1H11/1H10

Net Sales 225 191 440 362 -15,0% -18,0%

Gross Margin 61.2% 17.5% 65.6% 30.5% -43.7 pp -35.2 pp

Operating Margin 54.8% 11.1% 60.5% 23.0% -43.8 pp -37.5 pp

EBITDA Margin 55.1% 11.1% 60.6% 23.1% -44 pp -37.5 pp

Net Profit Margin 23.7% 15.3% 46.3% 28.3% -8.4 pp -18 pp

Sinpas REIC Summary Financials % Change (mn TL) 2Q10 2Q11 1H10 1H11 2Q11/2Q10 1H11/1H10

Net Sales 66 322 94 395 387,0% 319,0%

Gross Margin 37.6% 35.2% 27.9% 34.2% -2.3 pp 6.3 pp

Operating Margin 19.9% 28.9% 5.0% 26.0% 9 pp 21.1 pp

EBITDA Margin 21.5% 29.2% 7.2% 26.7% 7.7 pp 19.4 pp

Net Profit Margin 22.9% 33.4% 11.2% 30.2% 10.5 pp 18.9 pp

IS REIC Summary Financials % Change (mn TL) 2Q10 2Q11 1H10 1H11 2Q11/2Q10 1H11/1H10

Net Sales 23 28 47 54 18,0% 16,0%

Gross Margin 46.3% 47.5% 49.6% 49.4% 1.2 pp -0.2 pp

Operating Margin 40.0% 39.6% 41.9% 40.9% -0.4 pp -1 pp

EBITDA Margin 65.4% 62.5% 67.5% 64.0% -2.9 pp -3.5 pp

Net Profit Margin 49.0% 35.1% 47.5% 35.8% -14 pp -11.7 pp

34 34 34

3


Listed REIC's

Operational review

Financial review

Development review

Future outlook


Sectoral outlook

35 35

Shareholding Structure

June 2011

36 36

Development portfolio

Successful track record of liaising with local municipalities in contributing to and working on urban transformation projects

Leverage the development platform for performing value-adding tasks such as land development, funding and identify potential growth areas of development

Opportunistic development of other asset classes

Leverage track-record of JV development Access to attractive development opportunities Diversification of risk

Strategy focus

Primary focus on development of shopping malls Increased focus on mixed-use

projects

Creating ‘life centres’ with extensive leisure and entertainment avenues

Focus investments in urban centres with limited supply Developing residential

neighbourhoods in cities with good connectivity to metro etc.

Opportunistic investments in non shopping mall related projects

Asset management

Active asset management targeting occupancy optimisation and rent increase

Active refurbishment and extensions in-line with increased demand and evolving consumers and market trends

Tenant rationalisation opportunities Ensure appropriate shop and tenant mix Leveraging Torunlar Group’s reputation

and network of contacts to attract known Turkish/international tenants

Strategy highlights

37 37

History of Torunlar REIC–key milestones

1996 1999 2004 2005 2007 2008 2009 2010 1977

Construction for the company’s needs and third party use (small-scale residential units) Active in the Turkish

construction and real estate market since 1977

Foundation of Toray Construction

Acquisition of the Netsel Marina in Marmaris

Torunlar bought the land to be used for Torun Tower

Delivery of Korupark Residences phases I&II

Torunlar REIC became a listed company as of October 21st, 2010, emerging as one of the biggest listed Turkish real estate companies

Delivery of Nish İstanbul residences and offices

Opening of one of the biggest shopping malls in Turkey, Korupark

The residential compound at Korupark was Bursa’s first gated community

Opening of the biggest mall in Turkey in 1999, Ankamall

Opening of Zafer Plaza; the first shopping mall of Bursa

Opening of the biggest outlet of Antalya, Deepo Outlet

Opening of Torium Shopping Mall, October 30th, 2010

Torium Shopping Mall is the 3rd largest shopping mall in Istanbul

Torunlar bought the land for the Mall of Istanbul project, which will be one of Turkey’s largest mixed use projects including a shopping mall, residences, offices and a hotel

Conversion to Torunlar REIC

38 38

Key Investment Highlights

8%

39%

23%

11%

19%

Current Portfolio Breakdown

Land

Buildings

Projects

Participations

Money and CapitalMarket Instruments

10% 3%

28%

58%

1% 0% 0%

Composition of Real Estate Portfolio

Land

Completed units forsale

Ongoing projects

Shopping malls

Marina

Hotel

Other

•2nd largest listed retail property company in Turkey

• Included in ISE National XU 100, MSCI Turkey, EPRA indices

•GAV (Gross Asset Value): TRY 2.62 bn (2011/06)

•Portfolio value: TRY3.38 bn (2011/06)

•Revenues: TRY 83.1 mn (2011/06) •Market capitalisation: TRY1,4 bn(30/06/2011)

•Listed on 21.10.2010 on Istanbul Stock Exchange

•Diversified investment portfolio

•5 cities, Istanbul added in October 2010

•Portfolio ‘primarily’retail (58% shopping centres)

•Resilient operations: 98% occupancy rate (2011/06) •Healthy financial structure with leverage at 26.7 %

•Stable shareholder structure with 25.16 % free float

39 39

Istanbul

Ankara

Antalya

Izmir

Bursa

Mugla

Samsun

Mediterranean Region (Akdeniz Bölgesi)

Southeastern Anatolia Region (Güneydoğu Anadolu Bölgesi)

Eastern Analtolia Region (Doğu Anadolu Bölgesi)

Black Sea Region (Karadeniz Bölgesi)

Aegean Region (Ege Region)

Central Anatolia Region (Iç Anadolu Bölgesi)

Kutahya

Key portfolio information

Torunlar REIC’s presence

Additional target cities

Marmara Region (Marmara Bölgesi)

Number GLA(m²) Operational Shopping Malls 5 214,697

Pipeline Shopping Malls 2 181,116 Total Shopping Malls 7 395,913

Zafer Plaza (SM)

Occupancy 99%

Korupark (SM)

Occupancy 97%

Deepo Outlet Centre (SM)

Ankamall+ Crowne Plaza (SM+Hotel)

Occupancy 100% Occupancy 100%

Torium Istanbul (SM)

Occupancy 99%

Shopping Mall Portfolio

40

Operational Assets

Shopping Malls Zafer Plaza Korupark Deepo Outlet Torium

Land Area (sqm) 9.622 53.186 66.005 44.571

Land Cost (TRY) - 6.719.681 7.700.000 54.857.072

Land Price per sqm (TRY/sqm) - 126,34 116,66 1.230,78

Construction Area (sqm) 57.112 169.000 37.500 259.754

Development Cost (TRY) 18.448.375 77.315.718 10.149.518 221.069.212

Development Cost per sqm (TRY/sqm) 323 457 271 851

GLA (sqm) 16.944* 71.267 18.069 95.280

Rental Income-LTM June 2011 (TRY) 11.883.287* 37.233.592 13.060.492 19.295.014

Total Revenue-LTM June 2011 (TRY) 14.307.660* 37.233.592 16.246.583 19.295.014

EBITDA-LTM June 2011 (TRY) 8.854.893* 32.979.860 10.987.793 15.947.169

*Adjusted as per Torunlar, 72,26% share

Asset Korupark Residences Phase I-II Torium Residence NishIstanbul

Land Area (sqm) 47.434 - 32.889

Land Cost (TRY) 5.993.043 - 60.570.467

Land Price per sqm 126,34 - 1.841,66

Construction Area (sqm) 221.979 14.952 135.291

Development Cost (TRY) 124.194.888 12.083.839 118.309.589

Development Cost per sqm (TRY/sqm) 559 808 874

Units 746 80 700

GLA/GSA (sqm) 110.414 5.318* 81.066

Total Revenue-2011 F (TRY) 224.913.318* 17.000.000* 120.000.000

41

Completed Projects

* Assuming the remaining units in inventory will be sold.

Asset Mall of Istanbul Korupark Residences Phase III Boulevard Samsun

Land Area (sqm) 122.860 35.773 17.400

Land Cost (TRY) 176.671.963 3.100.000 -

Land Price per sqm (TRY/sqm) 1.437,99 86,66 -


Development Cost (TRY) 498.820.834 134.787.172 34.485.443

Development Cost per sqm (TRY/sqm) 760 810 900

GLA/GSA (sqm) 281.000 116.151 15.900

Rental Income-2011 F (TRY) 65.214.396 - 6.884.199

Total Revenue-2011 F (TRY) 583.714.396 220.686.900 -

Completion Date H2 2013 Q1 2013 Q2 2012

42

Ongoing Projects

Asset Torun Tower Ali Sami Yen Project Deepo Extension

Land Area (sqm) 14.992 34.640 21.595

Land Cost (TRY) 46.637.080 475.000.000* 9.400.000

Land Price per sqm (TRY/sqm) 3.110,80 13.712,47 435,29


Development Cost (TRY) 106.445.963 311.237.664* 36.640.200

Development Cost per sqm (TRY/sqm) 1.158 1.147 943

GLA/GSA (sqm) 47.175 190.183 26.651

Rental Income-LTM June 2011 (TRY) 30.395.354 - 15.842.207

Total Revenue-LTM June 2011 (TRY) 30.395.354 1.025.211.825** -

Net Operating Income-LTM June 2011 (TRY) 27.768.208 - -

43

Upcoming Projects

*Unadjusted total cost of the project **Adjusted 65% share of Torunlar

44

Project Deliveries & Pre-Sales Completed Projects

Location Saleable area (sq.m)

Total # of units # of units delivered delivery ratio start/

completion Torunlar REIC's revenue share

Torunlar REIC sales

revenue

Korupark I-II Bursa 110.414 746 676 91%

May 2006/Februa

ry 2008 100% 195.551.000

Torium Residence Istanbul 5.318 80 0 0%

June 2008/June

2011 100% 0

NishIstanbul Istanbul 70.129 648 648 100%

July 2008/Octobe

r 2010 60% 119.444.000

Residence 53.204 585 585 100%

July 2008/October

2010

Office 16.925 63 63 100%

July 2008/October

2010

Ongoing Projects

Location Saleable area (sq.m)

Total # of units

# of units presold

(03.08.2011)

GSA presold (sq.m)

(03.08.2011)

# of units delivered

presold ratio (unit)

presold ratio

(sq.m)

delivery ratio

start/ completion

Torunlar REIC's

revenue share

Presale Cash In

(TRY 000)

Mall of Istanbul Istanbul 146.000 1.215 431 46.156 NA 35% 32% NA April 2011/Q4

2013 100% 143.342

Residence 116.000 1.100 407 41.656 NA 37% 36% NA April 2011/Q4

2013 100% 124.342

Office 30.000 115 24 4.500 NA 21% 15% NA April 2011/Q4

2013 100% 19.000

Korupark Residences Phase III Bursa 116.151 680 153 19.052 NA 23% 16% NA

March 2011/ Q1 2013 100% 31.622

45 45

Footfall and Turnover (June 2011)

YoY variance(%) Torunlar REIC* Turkey**

Retail spending 12.0 15.0

Footfall 1.3 4.0

Occupancy ratio (%) 98 90

Source: Council of Shopping Centers Turkey *Like-for-Like, excluding Ankamall and newly opened Torium **Including new openings

46 46 46

Resilient retail operations through active hands-on management

June 2011 Bursa Zafer Plaza Bursa Korupark

Antalya Deepo Outlet İstanbul Torium Total

GLA ( m2 ) 23.448

71.267

18.069

95.280 201.584

Revenues 4.200.000

24.392.000

6.920.000

23.298.000 58.810.000

Revenues % growth

0*

35.7

25.9

NA 112.5

% Footfall growth 4.9

(3.0)

1.8

NA

1.3

Number of stores 127

182

81

180

570

Occupancy (%) 99

97

100

99

98

Turnover rent (as % of fixed rent)

3.5 3.7 18.6 13.4 8.6

Breakdown of rental revenues

62%USD 38%€

87%€ 13%USD

80%€ 20%USD

70%USD 30%€

61%€ 39%USD

Share of International Tenants

19% of GLA 24% of Rental

Revenue 22% of Retail

Turnover


Revenue 33% of Retail Turnover



Turnover



Turnover



Turnover *Annual rental revenue is fixed at TRY 8.4 mn between 2008-2012, to set aside each year TRY 2.4 mn reserve to pay back the loan raised for the capex.

47 47 47

Shopping Centers by Value

(TRY 000) 30-06-11 Nr of contracts Rental Yield on

Cost LTM June 2011

Rental Yield on Appraisal Value LTM June 2011

Rental Yield on Cost (2011 F)

Rental Yield on Appraisal Value

(2011 F)

Bursa Zafer Plaza 143.156 127 48,00% 6,19% 50,98% 6,57%

Bursa Korupark 540.510 182 43,90% 6,10% 42,28% 6,57%

Ankara Ankamall 138.274 315 37,90% 7,70% 43,50% 8,80%

Antalya Deepo Outlet

180.492 81 61,56% 6,09% 63,24% 6,25%

İstanbul Torium 549.876 180 9,33% 4,35% 9,21% 4,62%

TOTAL 1.552.308 882 33,50% 5,60% 35,90% 6,04%

GLA GLA Breakdown

Sales Density (Sales/Sqm/Mo

nth)

FIXED RENT/SQM/M

ONTH

Occupancy Cost Ratio

(Rent/Sales)

Breakdown of Rental Revenue

Monthly Footfall

Average Spending Per

Month

SQM TRY TRY TRY

ANCHOR 38.872 20% 312 20 6% 10%

HOME 5.661 3% 269 56 21% 4%

READY WEAR 74.437 38% 485 47 10% 47%

DEPARTMENT STORE 22.069 11% 297 20 7% 6%

SERVICE 4.653 2% 214 63 29% 4%

LEISURE/ GIFT/ SPECIAL 4.735 2% 348 57 16% 4%

PERSONAL CARE+ACCESSORIES 5.357 3% 838 92 11% 7%

CULTURE/ART/ENTERTAINMENT 19.531 10% 42 9 21% 2%

TECHNOLOGY 5.948 3% 652 54 8% 4%

FOOD & DRINK 12.408 6% 380 67 18% 11%

TOTAL 193.862 100% 357 38 11% 100% 3.018.012 22,9

48

Shopping Mall Tenants by Category

49 49 49

3


Listed REIC's

Operational review

Financial review

Development review

Future outlook


Sectoral outlook

50

H1 2011 Activities of Torunlar REIC

Korupark 3rd Phase Terrace Residences were put up for sale in mid-March.

Torunlar REIC signed a loan agreement for 10 year due USD 250 million with Is Bank of Turkey for Mall of Istanbul Project on 31 May.

Mall of Istanbul The Residence started to be sold on 23 April with the Office on 27 June.

Highly Commended Project Award to Mall of Istanbul in the Future Projects Category by Retail and Leisure Magazine in London on 13 June.

Torunlar REIC earned Jury Special Award in the “Investor of the Year” category among Ekovitrin 2011 Stars of the Year on 30 June.

ECE European Prime Shopping Centre Funds offered USD 525 million to buy 100% of Torunlar REIC’s 14.83% owned Ankamall and Crowne Plaza Hotel on July 15.

Torium became the first mall awarded with LEED green building certificate on 27 July.

51

TRY (000) 2010 2009 Variance %

Sales revenue 232.928 120.158 93.9

Residences sold 160.585 65.380 145.6

Rental revenue 58.584 39.859 47.0

EBITDA 55.377 71.700 -22.8

EBITDA margin 23.8% 59.7% -35.9

Dividend income 4.745 4.536 4.6

Net gains from fair value adjustment 166.660 488.159 -65.8

Net profit 214.245 535.641 -59.4

EPS 1.16 TRY 3.04 TRY -68.0

LfL rental revenue growth 33%

Occupancy ratio 98% 98% 0,0

TRY (000) 2010 2099 Variance %

Total Assets 3.203.839 2.509.787 27.7

Total Equity 2.369.083 1.805.168 31.2

Net debt -344.619 -547.895 37.1

Portfolio value 3.130.000 2.603.000 20.2

Market cap 1.420.160

Financial highlights

52 52 52

Financial highlights

TRY 000 2011/06 2010/06 Variance %

Sales revenue 83.142 49.856 66,8%

Residences sold 23.710 21.271 11,5%

Rental revenue 51.519 24.435 110,8%

EBITDA 44.594 28.902 54,3%

EBITDA margin 53,6% 58,0% -4,3 pp

Dividend income 6.496 4.744 36,9%

Valuation gain from financial assets and liabilities 0 114.740 -100,0%

Net profit -6.563 147.903 -104,4%

EPS -TRY0,03 TRY0,84

LfL rental revenue growth 28,3% 18,4%

Occupancy ratio 98% 98% 0,0%

TRY 000 2011/06 2010/12 Variance %

Total Assets 3.484.288 3.203.839 8,8%

Total Equity 2.349.867 2.369.083 -0,8%

Net debt -275.815 -344.599 -20,0%

Portfolio value 3.386.290 3.130.000 8,2%

Market cap 1.384.320 1.420.160 -2,5%

53

Breakdown of bank deposits

Deposits $ € TL Due date Bank

Principal 29.000.000 02.09.2011 Garanti


Principal 169 01.07.2011 Garanti

Principal 316.901 01.07.2011 Garanti

Principal 5.900.000 25.07.2011 Akbank + Garanti


Principal 251.170.000 July 2011

Isbank + Denizbank + TEB + Vakifbank +Finansbank

Principal 112.000.000 August 2011 Garanti + Denizbank

Principal 12.000.000 September 2011 Garanti + Denizbank

Interest 2.021.493 833.999 9.970.000

TOTAL 131.021.662 20.910.900 385.140.000

54

Breakdown of financial loans $ € TL Due date Interest Rate Purpose and term Bank

432.000 01.07.2011 Garanti 4.650.000 01.07.2011 10% Akbank 9.250.000 09.12.2011 9,95% Akbank 49.000 10.10.2011 Albaraka

5.000.000 27.12.2011 3,10% Denizbank 5.000.000 05.10.2011 3% Garanti

100.000.000 24.02.2017 6% Torun Tower (2+5) Garanti 27.300.000 02.02.2016 4,03% Ali Sami Yen (2+3) Garanti 1.300.000 02.02.2016 4,02% Garanti 30.000.000 28.08.2011 3,50% Isbank 15.000.000 17.11.2011 4,15% Isbank 15.000.000 30.12.2011 4% Isbank 5.500.000 05.04.2012 3,60% Isbank 3.000.000 11.04.2012 3,60% Isbank 1.000.000 10.05.2012 3,55% Isbank 18.000.000 15.06.2012 3,60% Isbank 2.000.000 18.06.2012 3,60% Isbank 81.250.003 17.09.2014 6,50% Torium (1+3) Isbank

30.000.000 01.06.2021 6M LIBOR+3,60% Mall of Istanbul (3+7) Isbank 15.000.000 20.09.2011 3,25% Akbank 5.000.000 14.05.2012 3,75% Akbank

191 Garanti Leasing 1.000.000 27.12.2011 3% Denizbank 2.000.000 31.01.2012 3,25% Denizbank 122.600.000 24.01.2018 4,94% (EURIBOR+220) Korupark (10) Akbank 1.000.000 14.05.2012 4% Akbank 2.000.000 14.05.2012 3,75% Akbank 2.000.000 26.04.2012 3,65% Isbank 1.000.000 15.06.2012 3,80% Isbank

2.077 Deniz Leasing

66 Garanti Leasing

TOTAL 359.350.194 131.602.143 14.381.000

55 55 55

Maturity of Financial Loans (TRY m)

*The graph excludes TRY 654.5 mm of cash and cash deposits as of June 2011.

64,9%USD, 33,5%€, 1,6%TRY

285

98 115

431

0

50

100

150

200

250

300

350

400

450

500

2011 2012 2013 2014+

Maturity of debt

Maturity of debt

Financial loans: TRY 930.3 mn

56

Net Foreign Currency Position

30.06. 2011 31.12.2010

(.000) € $ TL

Equivalent TL

Equivalent Variance %

Donen varliklar/ Current assets 16.673 60.308 137.483 219.902 -37,5%

Ticari alacaklar/ Trade receivables 0 0 0 1.626 -100,0% Parasal finansal varliklar/ Monetary financial assets 14.839 47.445 112.205 218.276 -48,6%

Diger/ Other 1.834 12.863 25.278 0

Toplam varlilklar/ Total assets 16.673 60.308 137.483 219.902 -37,5%

Kisa vadeli yukumlulukler/ Current liabilities -25.409 -301.830 -551.734 -218.988 151,9%

Ticari borclar/ Trade payables -1.707 -476 -4.786 -6.968 -31,3% Iliskili taraflara borclar/ Payables to related parties 0 -10.420 -16.987 0

Finansal yukumlulukler/ Financial liabilities -22.069 -280.500 -509.116 -212.020 140,1% Diger kisa vadeli yukumlulukler/ Other current liabilities -1.633 -10.434 -20.845 0 Uzun vadeli yukumlulukler/ Non-current liabilities -110.700 -198.184 -583.135 -552.122 5,6%

Finansal yukumlulukler/ Financial liabilities -110.700 -198.184 -583.135 -552.122 5,6%

Toplam yukumlulukler/ Total liabilities -136.109 -500.014 -1.134.869 -771.110 47,2% Net yabanci para (yukumluluk) pozisyonu/ Net foreign currency asset (liability) -119.436 -439.706 -997.386 -551.208 80,9%

57

Abridged Income Statement

(000 TL) 1H11 % 1H10 % YoY

Satışlar/Sales 83.142 100,0% 49.856 100,0% 66,8%

Konut/Residence 23.710 28,5% 21.271 42,7% 11,5%

AVM kira/ Mall rental 51.519 62,0% 24.435 49,0% 110,8%

Diğer/Other 7.913 9,5% 4.150 8,3% 90,6%

Brüt kar/Gross profit 48.629 58,5% 33.795 67,8% 43,9%

Faaliyet karı /Operating profit 37.973 45,7% 138.710 278,2% -72,6%

VFOK/EBIT 44.469 53,5% 28.714 57,6% 54,9%

VAFOK/EBITDA 44.594 53,6% 28.902 58,0% 54,3%

Vergi öncesi kar/Profit before tax -5.693 -6,8% 148.372 297,6% -103,8%

Net kar/net profit -6.563 -7,9% 147.903 296,7% -104,4%

58 58 58

Income Statement

Note: Sales are accounted when properties are physically transferred to buyers 1 EBIT includes operating profit and share of profits from associates excluding any effect of fair value changes 2 EBITDA = EBIT + Depreciation expenses ³ Excludes fair value gains/losses from “Investment Properties” and financial instruments

(000 TL) 2Q11 2Q10 YoY 1Q11 QoQ 1H11 1H10 YoY Satışlar/Sales 41.104 24.811 65,7% 42.038 -2,2% 83.142 49.856 66,8% Konut/Residence 10.841 10.485 3,4% 12.869 -15,8% 23.710 21.271 11,5% AVM kira/ Mall rental 26.808 12.212 119,5% 24.711 8,5% 51.519 24.435 110.8% Diğer/Other 3.455 2.114 63,4% 4.458 -22,5% 7.913 4.150 90,6% SMM/Cost of sales 17.942 8.348 114,9% 16.571 8,3% 34.513 16.061 114,9% Brüt kar/Gross profit 23.162 16.463 40,7% 25.467 -9,1% 48.629 33.795 43,9% Brüt marj/Gross margin 56,3% 66,4% -10,1 pp 60,6% -4,2 pp 58,5% 67,8% -9,3 pp Faaliyet giderleri/Opex -7.817 -7.645 2,2% -4.062 92,4% -11.879 -9.178 29,4%

Diğer gelir(gider)/Other income(expenses) 886 -549 -261,4% 337 162,9% 1.223 -647 -289,0%

Yatirim amacli gayrimenkuller deger artislari (azalislari)/ Net gain (loss) fair value adjustments on investment property 0 114.740 -100,0% 0 0 114.740 -100,0% Faaliyet karı /Operating profit 16.231 123.009 -86,8% 21.742 -25,3% 37.973 138.710 -72,6%

Gayrimenkul deger artisi haric faaliyet kari / Operating profit excluding fair value adjustment 16.231 8.269 96,3% 21.742 -25,3% 37.973 23.970 58,4%

İştiraklerden alınan temettü/Share of profit of associates (recurring) 4.188 2.681 56,2% 2.308 81,5% 6.496 4.744 36,9% VFOK/EBIT 20.419 10.950 86,5% 24.050 -15,1% 44.469 28.714 54,9% VFOK marjı /EBIT margin (%) 49,7% 44,1% 5,5 pp 57,2% -7,5 pp 53,5% 57,6% -4,1 pp Amortisman/Depreciation 44 161 -72,7% 81 -45,7% 125 188 -33,5% VAFOK/EBITDA 20.463 11.111 84,2% 24.131 -15,2% 44.594 28.902 54,3% VAFOK marjı/EBITDA margin (%) 49,8% 44,8% 5,0 pp 57,4% -7,6 pp 53,6% 58,0% -4,3 pp İştiraklerden gelir (gider)/share of profits (non-recurring) -3.122 6.331 -149,3% 874 -457,2% -2.248 6.267 -135,9% Net faiz geliri(gideri)/Net financial interest income(expense) -33 -20.669 -99,8% -1.952 -98,3% -1.985 -24.199 -91,8%

Net diğer finansal gelir (gider)/Other net financial income (expense) 2.034 -1.193 -270,5% 1.329 53,0% 3.363 -1.072 -413,7%

Kur farkı geliri (gideri)/Forex gain (loss) -34.207 17.206 -298,8% -15.085 126,8% -49.292 23.922 -306,1%

Vergi öncesi kar/Profit before tax -14.909 127.365 -111,7% 9.216 -261,8% -5.693 148.372 -103,8%

Vergi gideri/Corporate tax -425 -469 -9,4% -445 -4,5% -870 -469 85,5%

Net kar/net profit -15.334 126.896 -112,1% 8.771 -274,8% -6.563 147.903 -104,4%

Net kar marjı/Net profit margin (%) -37,3% 511,5% -548,8 pp 20,9% -58,2 pp -7,9% 296,7% -304,6 pp

59

Abridged Balance Sheet

(000 TL) 2011/06 % 2010/12 % Fark/Variance %

DÖNEN VARLIKLAR/CURRENT ASSETS 808.986 23,2% 577.444 18,0% 40,1%

DURAN VARLIKLAR/NON-CURRENT ASSETS 2.675.302 76,8% 2.626.395 82,0% 1,9%

TOPLAM VARLIKLAR/TOTAL ASSETS 3.484.288 100,0% 3.203.839 100,0% 8,8%

KISA VADELİ YÜKÜMLÜLÜKLER/CURRENT LIABILITIES 420.036 12,1% 282.544 8,8% 48,7%

UZUN VADELİ YÜKÜMLÜLÜKLER/NON-CURRENT LIABILITIES 714.385 20,5% 552.212 17,2% 29,4%

ÖZKAYNAKLAR/ TOTAL EQUITY 2.349.867 67,4% 2.369.083 73,9% -0,8%

TOPLAM KAYNAKLAR/TOTAL LIABILITIES AND EQUITY 3.484.288 100,0% 3.203.839 100,0% 8,8%

60

Balance Sheet (000 TL) 2011/06 2010/12 Fark/Variance %

NAKİT VE NAKİT BENZERİ/CASH AND CASH EQUIVALENTS 453.992 438.664 3,5% FINANSAL YATIRIMLAR/FINANCIAL INVESTMENTS 200.565 0 TİCARİ ALACAKLAR/TRADE RECEIVABLES 43.727 49.706 -12,0% STOKLAR/INVENTORY 43.623 47.716 -8,6% DİĞER DÖNEN VARLIKLAR/OTHER CURRENT ASSETS 67.079 41.358 62,2% DÖNEN VARLIKLAR/CURRENT ASSETS 808.986 577.444 40,1% FINANSAL YATIRIMLAR/FINANCIAL INVESTMENTS 0 29.459 -100,0% TİCARİ ALACAKLAR/TRADE RECEIVABLES 14.579 4.729 208,3% ÖZKAYNAK YÖNTEMİ İLE DEĞ.YAT./INVEST.IN ASSOCIATES 123.209 125.458 -1,8% YATIRIM AMAÇLI GAYRIMENKULLER/INVESTMENT PROPERTY 2.226.952 2.388.865 -6,8% MADDİ DURAN VARLIKLAR/TANGIBLE FIXED PROPERTY 4.368 1.115 291,7% MADDİ OLMAYAN DURAN VARLIKLAR/INTANGIBLE FIXED ASSETS 97 82 18,3% STOKLAR/INVENTORY 226.863 2.337 DİĞER DURAN VARLIKLAR/OTHER NON-CURRENT ASSETS 79.234 74.350 6,6% DURAN VARLIKLAR/NON-CURRENT ASSETS 2.675.302 2.626.395 1,9% TOPLAM VARLIKLAR/TOTAL ASSETS 3.484.288 3.203.839 8,8% FİNANSAL BORÇLAR/FINANCIAL LIABILITIES 347.237 231.141 50,2% FİNANSAL KİRALAMA BORÇLARI/FINANCE LEASE LIABILITIES 5 20 -75,0% DİĞER FİNANSAL YÜKÜMLÜLÜKLER/OTHER FINANCIAL LIABILITIES 2.308 3.877 -40,5% TİCARİ BORÇLAR/TRADE PAYABLES 56.835 34.536 64,6% DÖNEM KARI VERGİ YÜKÜMLÜLÜĞÜ/TAX PAYABLES 870 0 DİĞER YÜKÜMLÜLÜKLER/OTHER CURRENT LIABILITIES 12.781 12.970 -1,5% KISA VADELİ YÜKÜMLÜLÜKLER/CURRENT LIABILITIES 420.036 282.544 48,7% FİNANSAL BORÇLAR/FINANCIAL LIABILITIES 583.135 552.122 5,6% ÇALIŞANLARA SAĞLANAN FAYDALARA İLİŞKİN KARŞILIKLAR/PROVISION FOR EMPLOYMENT TERMINATION BENEFITS 127 90 41,1% DİĞER YÜKÜMLÜLÜKLER/OTHER NON-CURRENT LIABILITIES 131.123 0 UZUN VADELİ YÜKÜMLÜLÜKLER/NON-CURRENT LIABILITIES 714.385 552.212 29,4% ÖDENMİŞ SERMAYE/SHARE CAPITAL 224.000 224.000 0,0% HİSSE SENEDİ İHRAÇ PRİMLERİ/SHARE PREMIUM 301.770 301.770 0,0% YASAL YEDEKLER/LEGAL RESERVES 4.560 3.127 45,8% GEÇMİŞ YIL KARLARI/RETAINED EARNINGS 1.826.100 1.625.941 12,3% NET DÖNEM KARI/NET PROFIT -6.563 214.245 -103,1% ÖZKAYNAKLAR/ TOTAL EQUITY 2.349.867 2.369.083 -0,8% TOPLAM KAYNAKLAR/TOTAL LIABILITIES AND EQUITY 3.484.288 3.203.839 8,8%

61

Cash Flow Statement

(000 TL) H1 2011 H1 2010 2010 2009 2008

Nakit ve nakit benzeri degerlerin donem basi bakiyesi/ Cash and cash equivalents at the beginning of the year 438.664 72.639 72.639 80.168 137.441

Nakit ve kredili mevduat hesaplari kur farki (zarari)/ Exchange losses on cash and blocked deposits 13.751 160 320 -211 4.154

Bloke mevduat/ Blocked deposits 0 0 -121.447 0 0

Isletme faaliyetlerinde elde edilen (kullanilan) net nakit/ Net cash generated (used) in operating activities 146.301 91.210 32.380 63.287 -30.371

Yatirim faaliyetlerinde kullanilan net nakit/ Net cash used in investing activities -209.322 -46.253 -122.002 -58.490 -70.920

Finansal faaliyetlerden elde edilen (kullanilan) net nakit/ Net cash generated (used in) from financing activities 64.598 144.532 455.327 -12.115 39.864

Nakit ve nakit benzeri degerlerdeki net (azalis) artis/ Net (decrease) increase in cash and cash equivalents 1.577 189.489 365.705 -7.318 -61.427

Nakit ve nakit benzeri degerlerin donem sonu bakiyesi/ Cash and cash equivalents at the end of the period 453.992 262.288 317.217 72.639 80.168

62

Funding Summary

2011/06 2010/12 Variance

Total net debt (000 TL) -275.815 -344.599 -20,0%

Average loan term (years) 5 5

Average overall interest rate 5,1% 5,2% -0,1 pp

Leverage (financial loans as % of total assets) 26,7% 24,4% 2,3 pp

Net debt to equity ratio -11,7% -14,5% 2,8 pp

Net debt/Assets (%) -7,9% -10,8% 2,8 pp

Equity to assets ratio 67,4% 73,9% -6,5 pp

Loan to property value ratio (LTV) 35,4% 30,5% 4,9 pp

Interest coverage ratio (times) 22,5 2,6 19,8

Net debt/EBITDA (times) 3,1 6,2 -3,1

% loans with a fixed interest rate 58,4% 66,2% -7,8 pp

63 63 63

3


Listed REIC's

Operational review

Financial review

Development review

Future outlook


Sectoral outlook

64 64

Evolution of the Projects (m2)

GLA+GSA (m2) 2010 2011 2012 2013 2014

Retail 214.697 214.697 246.943 381.943 395.813

Residence 31.081 31.081 31.081 249.906 305.884

Office 2.964 2.964 3.345 78.105 131.876

Hotel 2.907 2.907 2.907 2.907 2.907

Marina 2.984 2.984 2.984 2.984 2.984

Other 15.599 15.599 15.599 18.014 18.014

Total

270.232 270.232 302.859 733.859 857.478

Land 56.893 56.893 56.893 56.893 56.893

65 65 65

2014 2010

Istanbul grasps a larger share by 2014, overtaking Bursa.

GLA Breakdown by City

66 66 66

3


Listed REIC's

Operational review

Financial review

Development review

Future outlook


Sectoral outlook

67 67 67

2011 Outlook

On the back of its strong financial position, the company will keep solid residential

demand for Mall of Istanbul and Korupark Residences with an attractive payment schedule at 0.79% monthly interest rate.

Faced with the forex currency appreciation, the company will freeze the rents in € and

US$ at a certain exchange rate in Torium for 3 months, but will increase the turnover based portion of the rent.

On top of Korupark Terrace Residences and Mall of Istanbul, the company will start the construction of Torun Tower and Mecidiyekoy Project in the second half of the year.

No new opening or delivery will take place in 2011. The major part of sales revenue

will come from shopping malls including Torium which will operate full year.

10% annual LFL growth is forecast in rental revenues.

The company will chase further land acquisition and tender opportunities with its favorable cash position.

68

Sales & EBITDA Forecast

232.

928

142.

795

150.

033

902.

914 1.

440.

342

160.

585

35.4

00

30.6

00

739.

187

1.18

6.50

2

58.5

84

94.6

98

106.

341

150.

242

239.

950

13.7

59

12.6

97

13.0

92

13.4

86

13.8

90

,0

150000,0

300000,0

450000,0

600000,0

750000,0

900000,0

1050000,0

1200000,0

1350000,0

1500000,0

2010 2011 2012 2013 2014

TRY

000 Satışlar/Sales

Konut-Ofis/ Residence-Office

Kira/ Rental

Diger/ Other

55,377 99.650 120.264

331.570

544.805

24%

70%

80%

37%

54%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

,0

100000,0

200000,0

300000,0

400000,0

500000,0

600000,0

2010 2011 2012 2013 2014

TRY

000 VAFOK/EBITDA

VAFOK marjı/EBITDAmargin (%)

69 69 69

3


Listed REIC's

Operational review

Financial review

Development review

Future outlook


Sectoral outlook

70 70 70

71 71 71

Zafer Plaza Shopping Mall

•The Property is located at the most central part of the city •Close to the metro station, on major public transportation routes and at the junction of intercity roads •The property includes a movie theater with six screens and an amusement park for children and teenagers •In 2000, Zafer Plaza was selected "The Best Shopping Centre" by the AMPD, Trade Council of Shopping Centres and Retailers •Majority of rents (62%) are USD denominated

7% 4%

36%

17%

8% 3% 5% 2% 11%

8%

Tenants-Breakdown of GLA ANCHOR

HOME

READY WEAR

DEPARTMENT STORE

SERVICE

LEISURE/ GIFT/ SPECIAL

PERSONAL CARE+ACCESSORIES

CULTURE/ART/ENTERTAINMENT

TECHNOLOGY

FOOD & DRINK

2% 5%

44%

8% 8% 4%

9% 1% 10%

11%

Tenants-Breakdown of Income ANCHOR

HOME

READY WEAR

DEPARTMENT STORE

SERVICE




TECHNOLOGY

FOOD & DRINK

Ownership Torunlar REIC (72.26%) Operational Date 1999 Leasable area (m2) 23,449 (REIC share 16,944)

Occupancy (%) as of date 99% (as of June 2011)


Anchor tenants 4% anchors (30% of GLA): Migros, YKM, Bimeks

and Boyner

Appraisal value TL143.2mm (US$92.6mm)

Average lease term as of Jun-2011 1.5 years

Average LTM NOI (per TL/m2/month) TL43.5

Leasehold/Freehold status Freehold

Rental income (June 2011). Last 12 months TL11.9mm

72 72 72

Korupark Shopping Mall

Korupark is the largest shopping mall in Bursa and is located on the Mudanya Highway in the Nilüfer neighbourhood

The property has three retail floors and two carpark floors with a capacity for 2,500 cars underground and 500 above ground

The property includes a hypermarket (12,000m²), a do-it-yourself store (5,127m²), cinema complex (nine screens) and entertainment area (amusement park, children play centre) totalling 5,317m²

Most of the rents (87%) at the shopping mall are Euro denominated

29%

3% 34%

11%

2% 2%

3% 9%

1% 5%

Tenants-Breakdown of GLA

ANCHOR

HOME

READY WEAR

DEPARTMENT STORE

SERVICE




TECHNOLOGY

FOOD & DRINK

15% 5%

45% 6%

4% 4%

6% 2% 2%

9%

Tenants-Breakdown of Income ANCHOR

HOME

READY WEAR

DEPARTMENT STORE

SERVICE




TECHNOLOGY

FOOD & DRINK

Ownership Torunlar REIC (100%) Operational Date H2 2007 Leasable area (m2) 71,267

Occupancy (%) as of date 97% (as of June2011)


Anchor tenants (39% of GLA): Tesco, Koçtaş, Beymen, C&A,

Boyner and Electro World


Average lease term as of Jun-2011 2.2 years

Average LTM NOI (per TL/m2/month)

TL38.5

Leasehold/Freehold status Freehold Rental income (June 2011). Last 12 months

TL37.2mm

73 73

Korupark Residences Phase I & II

•Located on the western side of Bursa (adjacent to Korupark Shopping Mall), the property is a residential settlement of luxurious units with sports and recreation facilities •The project is the first gated community in Bursa •Phase I: 343 units (57.119 sq.m), six blocks Inventory as of June 30th ,2011: 19 units (3.326 sq.m) •Phase II: 403 units (66.721 sq.m), seven blocks Inventory as of June 30th, 2011: 55 units (14.857 sq.m) •For Korupark residences I/II, sales are Turkish Lira denominated and currently 2200 TL/ sq.m

Ownership Torunlar REIC (100%)

Start of construction May, 2006

Date of completion Phase 1: January 2008/

Phase 2: December 2008

Operational date February 2008

Total investment TL 107.3mm (US$74mm)

Units sold (%) 90% (as of June 2011)

Appraisal value (remaining units)¹ TL50.1mm (US$32.4mm)

Leasehold/ Freehold status Freehold

74 74 74

Korupark Residences Phase III

•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 and 1960 TL/sq.m

•153 units (19.052 m2) were presold as of August 1st 2011. Map of Korupark

Korupark Shopping Mall

Korupark Residences Phase III

Korupark Residences Phase I & II

•Note: Exchange rate US$/TL=1.5460 as of December 31, 2010 ¹ Prime appraisal report (based on the CMB standards as of December 31, 2010)

Korupark Residences Phase I & II Korupark Residences Phase III


Estimated start of construction May 2011 Estimated operational date Q1 2013 Estimated investment TL87.3mm (US$56.5mm) Appraisal value TL50.4mm (US$32.6mm) Leasehold / Freehold status Freehold

Number of residential units/GSA 680 units / 102.000 m2 residence Current status Under construction

75 75 75

Deepo Outlet Mall–Antalya 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 (80%) are denominated in EURO

Zoning of this region is expected to be approved in 2011.

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

0% 1%

70% 2% 1% 1% 4%

10% 1%

9%


ANCHORHOMEREADY WEARDEPARTMENT STORESERVICELEISURE/ GIFT/ SPECIALPERSONAL CARE+ACCESSORIESCULTURE/ART/ENTERTAINMENTTECHNOLOGYFOOD & DRINK

0% 2%

69% 2%

2% 1% 4% 3%

1% 13%

Tenants-Breakdown of Income

ANCHOR

HOME

READY WEAR

DEPARTMENT STORE

SERVICE




TECHNOLOGY

FOOD & DRINK

Ownership Torunlar REIC + Hastalya

Estimated start of construction January 2012 Estimated date of completion December 2012 Estimated operational date December 2012 Leasable area (m2) 26,651 Estimated investment TL31.2mm (US$20.2mm)

Leasehold / Freehold status

Partially freehold, partially leasehold from Hastalya

Current status Under zoning process

Ownership Torunlar REIC (100%) Operational Date October 24, 2004 Leasable area (m2) 18,069

Occupancy (%) as of date 100% (as of June 2011)

Number of stores 81

Anchor tenants

LCW, Ayakkabı Dünyası, Mudo City, Collezione, Sarar, Aydınlı Group


Average lease term as of June 2011 2.5 years

Average LTM NOI (per TL/m2/month) TL50.6

Leasehold/Freehold status Freehold Rental income (June 2011), last 12 months

TL13.1mm

76 76

Ankamall Shopping Mall + Crowne Plaza Hotel–Ankara

•Ankamall is located in Yenimahalle, in the centre of Ankara. The shopping mall is considered to be the largest in Ankara and third 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 June 30, 2011. •The property includes the Crowne Plaza Hotel which is a 21–storey building with 280 rooms •For Ankamall, the rents in Phase 1 are denominated in Turkish Lira, while the rents in Phase 2 are denominated in USD • ECE European Prime Shopping Centre Funds offered USD 525 million to buy 100% of Torunlar REIC’s 14.83% owned Ankamall and Crowne Plaza Hotel on July 15.

Dividends - Torunlar REIC share (TLmm)

1,9 2,1 2,4 2,7

4,2

0

1

2

3

4

5

2007 2008 2009 2010 2011

Ownership Yeni Gimat in which Torunlar REIC

holds (14.83%) Operational Date 19991

Leasable area (m2) 88,4213 (REIC’s share 13,112)

Occupancy (%) as of date 100% (as of December 2010)


Number of rooms 280

Anchor tenants

Migros, Koçtaş, Tepe Home, Electro World, Boyner, Mudo City,

Marks&Spencer, LCW

Rental revenue (2010) TL72.2mm

NOI (2010) TL54.8mm

Appraisal value (REIC share) TL138.2mm (US$89.3mm)

Leasehold/ Freehold status Freehold

77

Netsel Marina-Marmaris

•Netsel is one of the largest marinas in Turkey by capacity. •It is located in Marmaris on the Aegean coast. •Torunlar purchased its stake for TL 14.9 mn in 2005. •The marina is operated by Setur, a subsidiary of Koc Holding. •66 cruisers with 166.000 guests visited the marina in 2010. •2500-3000 people are estimated to visit the mall on a daily basis from May to October in 2010.

Dividends - Torunlar REIC share (TLmm)

1,5 1,5

2,2 2,1 2,3

0

0,5

1

1,5

2

2,5

2007 2008 2009 2010 2011

Ownership Torunlar REIC (44.6%) Operational Date 1989 Land 37,478 m2

Capacity 700 yachts

Leasable area (m2) 5,996 (REIC’s share 2,674)

Mall occupancy (%) as of date 68.7% (as of December 2010)

Number of stores 75

Tenants

Migros, Lacoste, Sisley, Tommy Hilfiger

Mall rental revenue (2010) TL1.2mm Total rental revenue (2010) TL13.1mm

Appraisal value (REIC share) TL30.7mm (US$19.8mm)

Leasehold / Freehold status Leasehold

78 78 78

Breakdown–Area (GLA/GSA)

Mall of Istanbul–Istanbul

•Mall of Istanbul is a mixed-use project with a large shopping mall development along with residential, office units •It is expected to be one of the largest mixed-use projects in Turkey •Planned to be built with 135.000 m² GLA enriched with 16,000 m² kids entertainment, 7,200 m² snowpark, cinema complex and conference / performance hall¹ •Mall of Istanbul is well connected to the city centre through the D100 and TEM highway. In addition, the site is located within 5km of the airport •For the Mall of İstanbul,retail units will be rented for 26$/m2 and residential and office units will be sold for 3500TL/m2 on the average. •Presales commenced on 23.04.2011 and 407 units (41.656 m2) were presold for 2984TL/m2 out of 524 and 24 office units (4500 m2) out 75 for 4200TL/m2 until 01.08.2011. •On 31.05.2011, the company signed USD 250 million loan agreement with Is Bank of Turkey for a term of 10 years with 3 years grace period.


Start of construction March 2011 Estimated date of completion H2 2013 Estimated operational date Q4 2013 Estimated investment c.TL500.0mm (US$323mm)

Number of residences / GSA-GLA

135.000 m2 GLA mall, 116.000 m2 GSA residence,

30.000 m2 GSA office Appraisal value TL637.1mm (US$411.5mm) Leasehold / Freehold status Freehold

Current status Under construction

48%

41%

11%

Retail

Residential

Office

79 79 79

Torium Shopping Mall–Istanbul

•Torium is a mixed-use project of retail and residential use and the 5th largest mall of Turkey. •It is located at the centre of high density residential settlements along one of the two major highways of Istanbul •The shopping mall provides a broad range of leisure and entertainment facilities •Majority of rents (70%) at the shopping mall are denominated in USD •80 residential units will be sold for 3200TL/m2 starting from September 2011.

21%

3%

36% 12%

2% 3% 2%

13%

3% 7%



13% 4%

44%

7% 3%

4%

7%

4%

5% 14%

Tenants-Breakdown of Income



Start of construction H2 2008 Date of completion October 30th, 2010 Operational date October 30th, 2010 Number of stores 180 Investment cost TL207.2mm Appraisal value* TL549.8mm (US$355.1mm)

Leasehold / Freehold status Freehold GLA / GSA

95,280 m2 GLA retail 5,318 m2 GSA residential

Rental income 2011 F TL35mm

80

Boulevard Samsun Shopping Mall

•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.

•The land is leased for 30 years from Samsun Metropolitan Municipality.

•The project is a mixed-use project developed in conjunction with the shopping mall developer Turkmall.

•Retail units will be leased for 19.25€/sq.m/month and office units for 13€/sq.m/month.

•60% of the retail area has already been leased as of May 2011.


Leasehold / Freehold status

Leasehold

Current status Under construction

Area breakdown

Land: 17,400 m2

Total construction area: 37,500 m2

Gross Leasable Area

Mall: 14,700 m2

Office: 1,200 m2

Completion date

Construction permit : Sept. 2010

Start of construction: Nov. 2010

End of construction: Q1 2012

Capex

TL 27.3mm (US$17.6mm) TL10.9mm (US$7mm)*

Appraisal value

TL14.8mm (US$9.5mm)

*Torunlar REIC 40% share.

81 81 81

GLA

Office: 44760m2

Torun Tower–Istanbul

•The property is located at the city centre in one of the most expensive commercial districts of Istanbul •It also has a subway connection •40 floor high-rise tower is planned •The building is planned to be a landmark for the city with very modern architecture and construction technology •The Property is planned as a mixed-use project with office and retail units and will be leased. •For Torun Tower, office units will be leased for 35$/sqm/month, retail units for 47$/sqm/month.

Breakdown–Area (GLA)

GLA

Office: 44.760m2

Other: 2.415m2

Office 95%

Other 5%


Estimated start of construction September 2011 Estimated date of completion Q4 2013 Estimated operational date Q4 2013 Estimated investment c.TL128.3mm (US$83mm) Appraisal value TL237.7mm (US$153.8mm)

Leasehold/ Freehold status Freehold Current status Under project development

82 82 82

NishIstanbul Mixed-use Project–Istanbul

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

•Three residential blocks, one office block and retail units

•As of June 2011, the project partnership was terminated. 3 residential units (291 m2) will be kept, 5 office (1340 m2) units will be sold for 5000TL/m2. 20 stores (3425 m2) will be leased for 25$/m2/month. •Torunlar REIC has 8 more offices (2160 m2) and a 1080 m2 spa in its portfolio.


Start of construction H2 2008

Date of completion November 2010

Operational date November 2010

Number of residences / Sellable area (m2) 585 / 53,204

Number of offices / Sellable area (m2) 63/ 16,925

Number of retail units / Leasable area (m2) 52 / 10,937


Leasehold/Freehold status Freehold

83 83 83 P O

R T

F O

L I

O

O V

E R

V I

E W

Mecidiyeköy is a mixed-use project with unit residential complex, along with office and retail units.

Its’ location is in the city center, on the land where the ex-stadium of Galatasaray is located.

The project is planned on three high-rise blocks of 40 storey's each. Two of the blocks will be used as residential, one block will be developed as A- Class Office Tower. All of them will be sold.

For the Mecidiyeköy Project sales will be denominated in Turkish Lira.

Mecidiyeköy (Ex-Ali Sami Yen Stadium) Mixed-use Project–Istanbul

* Torunlar REIC’s share

Ownership Torunlar REIC (65%), Ascioglu

(30%), Kapicioglu (5%)

Estimated start of construction Q4 2011 Estimated date of completion H2 2014 Estimated operational date H2 2014

Estimated investment

c.TL311mm (US$201.3mm) / TL202mm (US$130mm)*

Land acquired Revenue Share (45%) Land area (m2) 34,640

Sellable area (m2)

86,120 m2 (55,978 m2)*residence, 82,725 m2 (53,771 m2)*office, 21,338 m2 (13,869 m2)* retail

Number of residences 593

Appraisal value TL300mm (US$195mm) / TL195mm

(US$125mm)*

Leasehold / Freehold status Revenue Share

Current status Under project development

84 84 84

Torunlar REIC: Competitive Advantages

One of the leading real estate developers in Turkey

Well established performance track record of development and asset management

Excellent growth potential

Professional management team with long-term local experience and deal sourcing capability

Turkey has strong long term economic fundamentals supporting RE growth

Stable financial structure and flexible tax efficient REIC regime

1

2

3

4

5

6

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.

85

Disclaimer

Haluk YUKLER Investor Relations Director [email protected]

86

Contacts

Ismail KAZANC CFO [email protected]

TORUNLAR REIC (Real Estate Investment Company) Ruzgarlibahce 95.Sokak No:634805 Kavacik, Istanbul, TURKEY

Phone: +90-216-425 20 07 Fax: +90-216-425 03 12

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