Özak rei investor presentation · 2020-02-04 · 3m’2019 –investor presentation –may 13,...
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3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
Özak REICInvestor Presentation3m’2019 – May 13, 2019
3M’2019 – INVESTOR PRESENTATION – MAY 13, 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
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 3
ÖZAK REIC SNAPSHOT
A strong, sustainable revenue model… TOTAL ASSET SIZE
TL 3,78 BN
REAL ESTATE PORTFOLIO VALUE
TL 2,84 BN
NET ASSET VALUE
TL 2,05 BN
ANNUAL RENTAL INCOME EXPECTATION
TL 114,60 MNAverage Occupancy Rate 88%
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
Commercial Real Estate Providing
Rental Income
58%
Projects
25%
Lands
17%
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 2,84 BN
Allocation of Real Estate Portfolio % Commercial Real Estate Providing Rental Income %
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 5
ÖZAK REIC KEY PORTFOLIO HIGHLIGHTS FOR THE FIRST 3 MONTHS, 2019
Distribution of Rental Incomes (TL MN)
34 Portall Plaza; 4,8
Ela Quality Resort Hotel;
10,8
Metro Gross Market;
2,9
İş İstanbul; 2,3
Bulvar 216; 3,3
3M’2019 RENTAL REVENUE
TL 24,0 MN
3M’2019 EBITDA
TL -2,5 MN
3M’2019 TOTAL REVENUE
TL 18,5 MN
(*) Rental Revenue Expectation of 2019; TL 114,6 mn
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 6
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
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
ÖZAK REIC HIGHLIGHTS
FENDI CASAcame for
the chicest house of Turkey
BÜYÜKYALI,Loft apartments are on sale
7
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
ÖZAK REIC INVESTOR PRESENTATION
Özak REIC
Strong financial structure, high growth potential …
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
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
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
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
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 11
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
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 12
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
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 13
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
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 14
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 %66
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
%66OCCUPANCY
RATE
Project Details
%6,7
• Strategically located in İkitelli Organized Industrial Zone
• Long-term renting method
• Reputable tenant portfolio
Aras Kargo, Coats Türkiye, ÖZAK Tekstil, İntem Triko & Asır Grup
Major Tenants Benefits
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 15
ÖZAK REIC’S ASSETS
İŞ İSTANBUL 34
A project highly attractive toglobal firms…
Ownership Özak REIC (100%)
Project TypeOffice & Commercial
Location İstanbul, Güneşli
Appraisal Value TL 205,3 mn
2019 Rent Expectation
TL 11,0 mn
Occupancy Rate %61
Operational Date 2010
Land Area 6.586 m²
Leasable Area 21.548 m²
Value Creation
%5,4
11,0
205,3
Rent Expectation Appraisal Value
TL mn
%61OCCUPANCY
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
Major Tenants Benefits
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 16
ÖZAK REIC’S ASSETS
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
Appraisal Value TL 579,9 mn
2019 Rent Expectation
TL 47,6 mn
Occupancy Rate %55
Operational Date 2007
Land Area 90.150 m²
Leasable Area 86.673 m²
Value Creation
%8,2
47,6
579,9
Rent Expectation Appraisal Value
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
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 17
ÖZAK REIC’S ASSETS
BULVAR 216
A jewel at the center of a finance hub…
Value Creation
%5,4
17,1
313,6
Rent Expectation Appraisal Value
TL mn
%79OCCUPANCY
RATE
Project Details
Ownership Özak REIC (100%)
Project Type Office & Retail
Location İstanbul, Ataşehir
Appraisal Value TL 313,6 mn
2019 Rent Expectation
TL 17,1 mn
Occupancy Rate %79
Land Area 5.873 m²
Leasable Area 24.198 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
Major Tenants Benefits
(*) Parking areas included.
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 18
ÖZAK REIC’S ASSETS
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
Ownership Özak REIC (100%)
Project Type Retail
Locationİstanbul, Bayrampaşa
Appraisal Value TL 143,3 mn
2019 Rent Expectation
TL 10,8 mn
Occupancy Rate %100
Operational Date 2012
Land Area 15.130 m²
Leasable Area 19.280 m²
%7,6
Consistent cash flow guaranteed via 30 years contract signed with global retail giant, Metro Gross Market
Metro Gross Market
Major Tenants Benefits
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 19
ÖZAK REIC’S ASSETS
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
Ownership Özak REIC (100%)
Project Type Residence
Locationİstanbul, Bayrampaşa
Total Cost TL 217 mn
Value Creation TL 320 mn
Operational Date 2013
Land Area 16.698 m²
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 31.03.2019.
Benefits
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 20
34 PORTALL
Yield Multiple 15,0 X
Yield Rate %6,7
METRO GROSS
Yield Multiple 13,2 X
Yield Rate %7,6
BULVAR 216
Yield Multiple 18,4 X
Yield Rate %5,4
ELA QUALITY RESORT
Yield Multiple 12,2 X
Yield Rate %8,2
İŞ İSTANBUL 34
Yield Multiple 18,6 X
Yield Rate %5,4
ÖZAK REIC COMPLETED PROJECTS’ YIELDS
27,9
417,5
Rent Expectation Apparisal Value
mn TL
11,0
205,3
Rent Expectation Apparisal Value
mn TL
47,6
579,9
Rent Expectation Apparisal Value
mn TL
17,1
313,6
Rent Expectation Apparisal Value
mn TL
10,8
143,3
Rent Expectation Apparisal Value
mn TL
%7,6%5,4%8,2%5,4%6,7
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 21
ÖZAK REIC’S ASSETS
BÜYÜKYALI İSTANBUL
A milestone project that will boost net asset value by huge margin …
%60OWNERSHIP
In Büyükyalı Project, total 95.506 m2 of 530 units’ pre-sales realized as of 31.03.2019. TL 1,63 bn revenue realized.
Benefits
Özak GYO Kârı
%60
DiğerOrtaklar
Kârı
%40
İlk SermayeYatırımı
ArsaMaliyeti
%37
ArsaMaliyeti
%54
İnşaat & GeliştirmeMaliyeti
%46
İnşaat & GeliştirmeMaliyeti
%31
İlk SermayeYatırımı
İlk SermayeYatırımı
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
Land Area 111.200 m²
Sellable / Leasable Area 315.000 m²
Expected Total Sale Income TL 5,40 bn
Expected Total Project Cost TL 3,70 bn
Expected Project Construction Cost TL 1,70 bn
Expected Profit60% Özak REIC Share
TL 1,70 bnTL 1,02 bn
Expected Average Sale Price per m² TL 17.150
Project Details
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
ÖZAK REIC’S ASSETS
GÖKTÜRK PROJECT
Özak REIC’s signature in İstanbul’s most valuable district …
%100OWNERSHIP
22
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
Land Area 41.316 m²
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
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
ÖZAK REIC’S ASSETS
BALMUMCU PROJECT
A high-end mixed use project at the city center offering views over the Bosporus…
%100OWNERSHIP
23
Net Kar
141,0
SermayeYatırımı
ArsaMaliyeti
%38
ArsaMaliyeti
%56
İnşaat & GeliştirmeMaliyeti
%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
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019 24
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
Land Area 163.705 m²
Facts & Figures
Location Antalya
Project Type Hotel
Land Area71.000m² + 60.000m²
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
ÖZAK REIC PROSPECT OF PROJECTS
25
EXPECTED NAV GROWTH FOR 2018 - 2019
44% GROWTH
CURRENT NAV
TL 2.048,1 MN
*As of 31.12.2018TL 2.050,3 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
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
ÖZAK REIC INVESTOR PRESENTATION
Özak REICFinancial Indicators3M’ 2019
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
Our total assetsize increasedby %6 andreached to TL 3,78 billion.
Total Asset Value Net Asset Value (*)
%88
3,57
3,78
2018 3M'2019
TL 3,78 BN3M’2019
TL 2,05 BN3M’2019
TL 2,05 BN2018
EBITDA
TL -2,54 MN3M’2019
TL -2,04 MN 3M’2018
EBITDA Margin
%-12,13M’2018
%-13,73M’2019
Rental Portfolio Occupancy Rate
ÖZAK REIC 3M’2019 CONSOLIDATED KEY PORTFOLIO HIGHLIGHTS
27* Non -Consolidated Financial Table Data
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
Our total salesrevenue grew%10 andreachedTL 19 mn.
Net Profit / Loss Total Revenue
(24,06)
(24,48)
3M'2018 3M'2019
-24,48 MN TL3M’2019
TL 18,55 MN
3M’2019
TL 16,89 MN 3M’2018
Net Debt
TL 533,82 MN 3M’2019
TL 483,84 MN 2018
Net FX Position
TL -97,92 MN 2018
TL -15,15 MN 3M’2019
Rental Revenue (*)
ÖZAK REIC 3M’2019 CONSOLIDATED KEY PORTFOLIO HIGHLIGHTS
28
3M’2019
TL 23,96 MN 3M’2018
TL 17,04 MN
* Non -Consolidated Financial Table Data
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
18,516,9
52,7
109,1
31,6
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19
Total Revenues (Quarterly) (TL MN) Total Revenues (2017 & 2018) (TL MN)
TL 1,6 MN 1Q’19 – 1Q’18
TL -13,1 MN 1Q’19 – 4Q’18
138,5
210,3
2017 2018
ÖZAK REIC CONSOLIDATED REVENUES
29
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
24,017,0
20,4
32,5
25,2
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19
Rental Revenues (Quarterly) (TL MN) Rental Revenues (2017 & 2018) (TL MN)
TL 7,0 MN 1Q’19- 1Q’18
TL -1,2 MN 1Q’19 – 4Q’18
71,6
95,1
2017 2018
ÖZAK REIC RENTAL REVENUES (*)
30* Non -Consolidated Financial Table Data
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
-2,5-2,017,3
67,5
6,9
1Q'18 2Q'18 3Q'18 4Q'18 1Q'19
EBITDA (Quarterly) (TL MN) EBITDA (2017 & 2018) (TL MN)
TL -0,5 MN 1Q’19 – 1Q’18
TL -9,4 MN 1Q’19 – 4Q’18
56,0
89,7
2017 2018
%61,9
%32,8
%-12,1 %21,9
%40,4
%42,6
EBITDA Margin
ÖZAK REIC CONSOLIDATED EBITDA
31
%-13,7
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
Summary of Consolidated Income Statement (TL MN)
TLMn
Yearly Quarterly
2017 2018 %∆ (2018/2017) 1Q’18 4Q'18 1Q'19 %∆ (1Q’19/1Q’18) %∆ (1Q’19/4Q’18)
Revenues 138,5 210,3 51,9% 16,9 31,6 18,5 9,8% -41,3%
Rental Revenue (*) 71,6 95,1 32,8% 17,0 25,2 24,0 40,9% -4,9%
Hotel 25,8 40,4 56,7% 5,5 9,8 10,8 95,6% 9,8%
Office 24,5 32,0 30,6% 6,8 9,3 7,0 3,5% -24,3%
Retail 21,3 22,7 6,5% 4,7 6,1 6,2 31,1% 1,0%
Gross Profit 70,9 112,0 58,0% 2,3 16,2 3,8 67,3% -76,4%
Gross Margin 51,2% 53,3% 2,1 bp 13,5% 51,2% 20,6% 7,1 bp -30,6 bp
EBIT 43,2 73,9 71,1% -5,7 3,3 -6,9 19,6% -307,3%
EBIT Margin 31,2% 35,1% 4,0 bp -34,0% 10,5% -37,1% -3,0 bp -47,5 bp
EBITDA 56,0 89,7 60,2% -2,0 6,9 -2,5 24,4% -136,7%
EBITDA Margin 40,4% 42,6% 2,2 bp -12,1% 21,9% -13,7% -1,6 bp -35,6 bp
Net Financial Income / Expense -59,9 -80,9 35,1% -25,0 129,0 -29,7 19,1% -123,1%
Net Income 259,0 236,0 -8,9% -24,1 267,1 -24,5 1,7% -109,2%
Net Income Margin 187,0% 112,2% -74,8 bp -142,4% 844,8% -132,0% 10,4 bp -976,8 bp
ÖZAK REIC SUMMARY OF CONSOLIDATED INCOME STATAMENT
32
(*)Non -Consolidated Financial Table Data
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
Net P&L Bridge 3M’2019 (TL MN)
18.5
31.6(14.7)
(10.7)
(19.7)
(29.7) (24.5)
Revenue COGS OPEX Other Incomes Other Expenses Net Financial Expenses Tax Income Net Loss
0,2
TL (6,3) mn Net Interest Expense,
TL (23,4) mn CreditFX Loss Expense
TL (18,4) mnFX Loss,
TL (1,3) mnOther Expense
TL 28,7 mn FX Income,
TL 2,9 mn OtherIncome
ÖZAK REIC CONSOLIDATED NET PROFIT / LOSS
33
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
Total Credit Debt Split (TL MN)
993,4
533,8
Total Debt Reel Credit Debt
Cash & Cash Equivalents (*)
-459.6
%29,1REEL CREDIT DEBT / EQUITY
%14,1REEL CREDIT DEBT / TOTAL ASSETS
TL 533,8 MNREEL CREDIT DEBT
Summary of Consolidated Balance Sheet
ÖZAK REIC SUMMARY OF CONSOLIDATED BALANCE SHEET
34
TL Mn 2018 3M’2019%∆
(3M’19/2018)
Current Assets 753,4 834,2 10,7%
Non Current Assets 2.818,9 2.945,1 4,5%
Total Assets 3.572,3 3.779,3 5,8%
S.T. Liabilities 1.001,6 1.143,1 14,1%
L.T. Liabilities 710,3 800,5 12,7%
Total Liabilities 1.711,8 1.943,6 13,5%
Shareholder’s Equity 1.860,5 1.835,7 -1,3%
Total Liabilities & Equity 3.572,3 3.779,3 5,8%
S.T Financial Debt 698,0 785,8 12,6%
L.T. Financial Debt 213,4 207,6 -2,7%
Total Financial Debt 911,5 993,4 9,0%
Cash & Cash Equivalents 635,2 663,9 4,5%
Net Debt 276,3 329,5 19,3%
Net Debt/Equity 14,9% 18,0% 3,1 bp
Net Debt/Total Assets 7,7% 8,7% 1,0 bp
(*) Reel Credit Debt calculated by deducting TL 204,3 mn from Cash & Cash Equivalents due to shareholders debt, as of 31.03.2019.
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
Net Debt 3M’2019 (TL MN)
Change in Net Debt – 3M’2019 / 2018 (TL MN)
785,8
207,6
(459,6)
533,8
S.T. Financial Debt L.T. Financial Debt Cash & Cash Equivalents Net Debt 1Q'2019
483,8 533,8
(5,8)31,9
87,7
Net Debt 2018 ∆ S.T. Financial Debts ∆ L.T. Financial Debts ∆ Cash & Cash Equivalents Net Debt 1Q'2019
ÖZAK REIC CONSOLIDATED NET DEBT DYNAMICS
35
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
Özak REIC’s Total Real Estate Portfolio Value reached TL 2.844,5 MN as of 31.03.2019.
Solo Net Asset Value Bridge (TL MN)
ASSETS LIABIL ITIES
482,5
622,9
579,9
456,9
702,3
153,1
612,6
228,5
(889,7)
(901,0)
2.048,1
Land Office Hotel Retail Project Subsidiaries Cash Other Assets OtherLiabilities
Debts 3M'2019NAV
TL 2.844,5 MN REAL ESTATE PORTFOLIO VALUE
ÖZAK REIC SOLO NET ASSET VALUE BRIDGE
36
EQUITY
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
Özak REIC, which trades at a 70% discount on the Istanbul Stock Exchange, offers investors a strong opportunity for the future.
Net Asset Value Table Portfolio Breakdown by NAV %
%70DISCOUNT RATE
TL 620,0 MN MCAP as of 10.05.2019
ÖZAK REIC NET ASSET VALUE
37
(TL Mn ) 2018 3M’20192019
Tahmin
Lands
Mahmutbey, İstanbul 48,6 48,6 54,9
Balmumcu, İstanbul 155,1 155,1 175,2
Göktürk 1, İstanbul 84,6 84,6 95,6
Göktürk 2, İstanbul 185,6 185,6 -
Göktürk (PPI)*, İstanbul 8,7 8,7 9,8
(+) Total Lands 482,5 482,5 335,5
Buildings
Office - 34 Portall Plaza, İstanbul 417,5 417,5 471,8
Office- İş İstanbul 34, İstanbul 205,3 205,3 232,0
Retail - MetroGrossMarket, İstanbul 143,3 143,3 161,9
Retail - Bulvar 216, İstanbul 313,6 313,6 354,4
Hotel - Ela Quality Resort Quality Otel 579,9 579,9 650,5
(+) Total Buildings 1.659,6 1.659,6 1.870,6
Projects
Completed Projects - Hayat Tepe 13,9 13,9 9,0
Continuing Projects – Büyükyalı 562,6 688,4 482,0
Continuing Projects – Göktürk 2 - - 231,2
(+) Total Stock 576,5 702,3 722,2
Subsidiaries (Tourism)
Aktay Otel İşletmeleri A.Ş 152,7 152,7 183,2
Büyükyalı Otel İşletmeciliği 0,0 0,0 0,0
Betuyap - Detuyap 0,4 0,4 0,0
(+) Total Subsidiaries 153,1 153,1 183,2
(+) Cash 576,1 612,6 154,1
(+) Other Assets 206,2 228,7 579,9
(-) Other Liabilities 786,2 889,7 247,7
(-) Debts 817,6 901,0 646,6
NET ASSET VALUE 2.050,3 2.048,1 2.951,3
As of 31.03.2019; MCAP TL 540,0 MNDISCOUNT RATE %74
Land; 16%
Office; 20%
Retail; 16%Tourism;
25%
Project; 23%
(*) Public Partnership Interest
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
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
38
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
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
39
272,6
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
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
40
430,2
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
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
41
3M’2019 – INVESTOR PRESENTATION – MAY 13, 2019
Thank you …
For further information:
ÖZAK REIC Investor Relations
+90 212 486 3650