1 Company Name : TSKB REAL ESTATE INVESTMENT TRUST Date of - PowerPoint PPT Presentation

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Company Name : TSKB REAL ESTATE INVESTMENT TRUST Date of Establishment : 03.02.2006 Share Capital : 150.000.000 TL Listing : Istanbul Stock Exchange Ticker Symbol : TSGYO : Meclisi Mebusan Cad. Molla Bayırı Sk. No:1 Address 34427 Fındıklı İstanbul Web-site : www.tskbgyo.com.tr e-mail : gyo@tskb.com.tr Phone : +90 (212) 334 50 20 Fax : +90 (212) 334 50 27 Disclaimer: This presentation must be read with the disclaimer in the Appendix 2 2

Section I The Company Section II Real Estate Portfolio Financial Data Section III TSGYO Stock Performance Section IV Appendix Section V 3 3

Highlights  Established in 2006 as a real estate investment and development company  Developer of new projects, has demonstrated its ability to ensure profitable project development  Asset size grew from TL12m (2006) to TL 340m (1H10)  Strong real estate portfolio with a commercial focus enabling reliable revenues derived from rental income  Aims to achieve sustainable growth – leasable area up from 2.4k sqm to 50k sqm in 4 years  Income-sharing and joint-venture projects under evaluation TSKB REIT aims to be a leading player in the Turkish real estate sector 4 4

Mission & Vision MISSION  To establish an attractive real estate portfolio with special emphasis on diversification and liquidity in order to provide the shareholders’ with high returns .  To achieve a sustainable asset growth without sacrificing efficiency and profitability. VISION  To be the “innovative and reliable business partner” in the sector with the support of TSKB’s unique expertise, especially where and when new business alternatives shall emerge. 5 5

Shareholder Structure  Experienced main shareholder, Turkey’s oldest and largest investment and development bank TSKB, part of the Is Bank Group. Shareholder Stake (%) TSKB 59.00 YF Securities 1.33 TSKB Free Float 59% 38% TSKB Employees Pension Fund 1.04 TSKB Real Estate Appraisal 0.30 Free Float on ISE 38.33 Other Total 100.00 3%  The Company is one of four subsidiaries established by TSKB in the real estate market, demonstrating the parent company’s commitment to the sector: 1. TSKB Real Estate Investment Company 2. TSKB Real Estate Appraisal 3. TSKB Real Estate Consultancy Services 4. TSKB Real Estate Brokerage Services 6 6

Organization Management Board General Manager Legal Consultant Tax Consultant Property Appraiser Accounting and Finance and Investments Administrative Affairs Investor Relations • Project Development • Accounting • Investor Relations • Project Management • Budgeting and Planning • Compliance • Asset Management • Administrative Affairs • Finance 7 7

History  TSKB REIT on the ISE in April.  TSKB acquired the construction  Paid in capital was increased to  TSKB REIT established in permit for PSC in July. TL150m February.  TSKB REIT laid the foundation for  Construction on the Adana hotel  TSKB contributed the PSC in December. project is planned to start in Q4. Tahirhan Building as  Paid in capital was increased to capital in kind in March. TL100m. 2006 2007 2008 2009 2010  Land for Pendorya Shopping Center (PSC) purchased in July.  PSC completed and opened  Land for Adana hotel project purchased in to shoppers in December. 50% partnership in November.  Paid in capital upped from TL10m to TL75m.  Fındıklı Buildings added to the C ompany’s portfolio in December. 8 8

Strategy Investment Philosophy Focus Sustainable Growth • Commercial • Invest and hold real estate focus, as it • Investing in at least one sizable new provides more reliable rent income and stable cash flow project per year • Real estate development to be preferred • To decrease asset-based risk through over liquidity management portfolio diversification • Investment in other real estate segments • To reach geographical diversification in a will be considered on a project basis wide hinterland should they provide high returns or stable cash flow Development Risk Assessment • Value creation through development • Look to minimize risks before • Acquisition commencing project of developed assets a • Confirm interest and requirements of secondary alternative • Higher returns seen possible through anchor tenants before commissioning project value creation approach • Ensure long-term rental arrangements • Secure borrowing from banks 9 9

Section I The Company Section II Real Estate Portfolio Financial Data Section III TSGYO Stock Performance Section IV Appendix Section V 10 10

Portfolio Breakdown Breakdown of Real Estate Portfolio* Pendorya Shopping Center Buildings 67% As of 30.06.2010 ( TL ) 29% Land 11.635.800 Adana Land 11.635.800 Land 4% Buildings 79.570.000 Fındıklı Buildings 73.685.000 Tahirhan Building 5.885.000 *Proportion of Total PortfolioValue. Shopping Center 187.770.000 Pendorya Shopping Center 187.770.000 Breakdown of Total Portfolio Total Real Estate Value 278.975.800 Participations - Marketable Securities Marketable Securities 39.506.728 12% Total Portfolio Value 318.482.528 Real Estate 88% 11 11

Real Estate Portfolio Summary Value (TL 000)* Pendorya Shopping Center 187,770  Fındıklı Office Buildings 73,685  Tahirhan Office Building 5,885  11,636 Adana Land  Total 278,976 * Valuations carried out by independent real estate appraisal companies 12 12

Pendorya Shopping Center 13 13

Pendorya Shopping Center (contd.) Pendik - Location Istanbul TSKB REIT Stake 95% December Operational Date 2009 Land Area (sqm) 23,100 Construction Area (sqm) 80,648  95% of Pendorya is held by TSKB REIT and 5% by the Leasable Area (sqm) 30,250 development consultant, the Ataman Group. Occupancy (sqm) (August  The center features a 1,000-person capacity food court and 1,000 89% 2010) vehicle parking lot. Annual expected footfall is 6 million. 104 Number of Stores  Center management expect a 95% occupancy rate to be achieved Tesco Kipa by end-2010. (8,400 sqm), MediaMarkt Anchor Tenants Other (5,500 sqm), Cinema 2% Main Tenants AFM (2,500 8% Hypermarket Food sqm) 27% 8% 188 Appraisal Value (TLm) Stores 37% Electronics 18% 14 14

Pendorya Shopping Center (contd.)  The Pendorya site was selected after careful evaluation of the surrounding region to ensure appropriate demographics and growth dynamics as well as unsaturated market conditions and potential.  Pendorya is located at the crossroads of two of Istanbul’s main highways, and is 3 km distant from the Sabiha Gokcen (SG) International Airport.  The Pendik area on the Asian side of Istanbul has a rapidly growing catchment population of Grade B income consumers. Ongoing boutique residential projects, a marina and other nearby tourism investments increase the attraction of Pendorya’s location.  A 3,000-person Garanti Bank operations center is planned for the neighbouring plot. Also located in the vicinity, Turkey’s largest state teaching and research hospital (540 beds) will open at the end of 2010. Recent Developments in Pendik Region Pendik Development Pipeline Pendik State Teaching Turkey’s 3rd -largest First international fair and Research Hospital marina facility on Asian side 15 15

Fındıklı Office Buildings Fındıklı Buildings 16 16

Fındıklı Office Buildings (contd.) Fındıklı Building I Location Istanbul TSKB REIT Stake 100% Land Area (sqm) 1,696 Leasable Area (sqm) 7,103  TSKB REIT is the 100% owner of the building. Number of Floors 7  The building of some 7,103 sqm of covered space was purchased from TSKB in 2007. Tenant TSKB  Currently, it is rented by TSKB and serves as the headquarters Appraisal Value (TLm) 36.9 of the bank.  The building was renovated in September 2007, and no major maintenance outlays are expected in the near future.  Close proximity to Bosphorus foreshore and mass transit options also have positive effect on site’s exclusivity. Galata Port operations will likely increase the site’s future appraisal value. 17 17

Fındıklı Office Buildings (contd.) Fındıklı Building II Location Istanbul TSKB REIT Stake 100% Land Area (sqm) 2,503 Leasable Area (sqm) 10,542  TSKB REIT is the 100% owner of the property. Number of Floors 10 TSKB, TSKB  The building has 10,542 sqm of enclosed area and was Foundation, Tenants purchased from TSKB in 2007. TSKB RE Appraisal  Currently rented by TSKB and other TSKB Group companies. Appraisal Value (TLm) 36.8  The building was renovated in September 2007, and no major maintenance outlays are expected in the near future.  Close proximity to Bosphorus foreshore and mass transit options also have positive effect on site’s exclusivity. Galata Port operations will likely increase the site’s future appraisal value. 18 18

Tahirhan Office Building 19 19