[PPT] - 1 Company Name : TSKB REAL ESTATE INVESTMENT TRUST Date of PowerPoint 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 Address : Meclisi Mebusan Cad. Molla Bayırı Sk. No:1 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

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Section I

The Company

Section III

Financial Data

Section II

Real Estate Portfolio

Section IV

TSGYO Stock Performance

Section V

Appendix

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Highlights

Aims to achieve sustainable growth – leasable area up from 2.4k sqm to 50k sqm in 4 years
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
Income-sharing and joint-venture projects under evaluation
Established in 2006 as a real estate investment and development company
Developer of new projects, has demonstrated its ability to ensure profitable project development

TSKB REIT aims to be a leading player in the Turkish real estate sector

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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.

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Shareholder Structure

 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 Shareholder Stake (%) TSKB 59.00 YF Securities 1.33 TSKB Employees Pension Fund 1.04 TSKB Real Estate Appraisal 0.30 Free Float on ISE 38.33 Total 100.00

 Experienced main shareholder, Turkey’s oldest and largest investment and development bank TSKB, part of the Is Bank Group.

Free Float 38% Other 3% TSKB 59%

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Management Board General Manager

Investments Accounting and Administrative Affairs

Accounting
Budgeting and Planning
Administrative Affairs

Legal Consultant Tax Consultant Property Appraiser

Organization

Finance and Investor Relations

Project Development
Project Management
Asset Management
Investor Relations
Compliance
Finance

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2006 2007 2008 2009 2010

TSKB REIT established in

February.

TSKB

contributed the Tahirhan Building as capital in kind in March.

Land for Pendorya Shopping Center (PSC)

purchased in July.

Land for Adana hotel project purchased in

50% partnership in November.

Paid

in capital upped from TL10m to TL75m.

Fındıklı Buildings added to the Company’s

portfolio in December.

TSKB acquired the construction

permit for PSC in July.

TSKB REIT laid the foundation for

PSC in December.

Paid in capital was increased to

TL100m.

PSC completed and opened

to shoppers in December.

TSKB REIT on the ISE in April.
Paid in capital was increased to

TL150m

Construction on the Adana hotel

project is planned to start in Q4.

History

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Strategy

Investment Philosophy

Commercial

real estate focus, as it provides more reliable rent income and stable cash flow

Real estate development to be preferred
ver liquidity management
Investment in other real estate segments

will be considered on a project basis should they provide high returns or stable cash flow

Invest and hold
Investing in at least one sizable new

project per year

To decrease asset-based risk through

portfolio diversification

To reach geographical diversification in a

wide hinterland

Value creation through development
Acquisition
f

developed assets a secondary alternative

Higher returns seen possible through

value creation approach

Look

to minimize risks before commencing project

Confirm

interest and requirements of anchor tenants before commissioning project

Ensure long-term rental arrangements
Secure borrowing from banks

Focus Sustainable Growth Development Risk Assessment

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Section I

The Company

Section III

Financial Data

Section II

Real Estate Portfolio

Section IV

TSGYO Stock Performance

Section V

Appendix

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Breakdown of Real Estate Portfolio* Breakdown of Total Portfolio

*Proportion of Total PortfolioValue.

Portfolio Breakdown

Buildings 29% Land 4% Pendorya Shopping Center 67% Marketable Securities 12% Real Estate 88%

As of 30.06.2010 ( TL )

Land 11.635.800 Adana Land 11.635.800 Buildings 79.570.000 Fındıklı Buildings 73.685.000 Tahirhan Building 5.885.000 Shopping Center 187.770.000 Pendorya Shopping Center 187.770.000 Total Real Estate Value 278.975.800 Participations

Marketable Securities

39.506.728 Total Portfolio Value 318.482.528

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Value

(TL 000)*



Pendorya Shopping Center



Fındıklı Office Buildings



Tahirhan Office Building

Total

187,770 73,685 5,885

278,976

* Valuations carried out by independent real estate appraisal companies 

Adana Land 11,636

Real Estate Portfolio Summary

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Pendorya Shopping Center

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Location Pendik - Istanbul TSKB REIT Stake 95% Operational Date December 2009 Land Area (sqm) 23,100 Construction Area (sqm) 80,648 Leasable Area (sqm) 30,250 Occupancy (sqm) (August 2010) 89% Number of Stores 104 Anchor Tenants Tesco Kipa (8,400 sqm), MediaMarkt (5,500 sqm), AFM (2,500 sqm) Appraisal Value (TLm) 188

95% of Pendorya is held by TSKB REIT and 5% by the

development consultant, the Ataman Group.

The center features a 1,000-person capacity food court and 1,000

vehicle parking lot. Annual expected footfall is 6 million.

Center management expect a 95% occupancy rate to be achieved

by end-2010.

Hypermarket 27% Electronics 18% Stores 37% Food 8% Cinema 8% Other 2%

Main Tenants

Pendorya Shopping Center (contd.)

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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

f 2010.

Pendik State Teaching and Research Hospital Turkey’s 3rd-largest marina First international fair facility on Asian side

Recent Developments in Pendik Region Pendik Development Pipeline

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Fındıklı Buildings

Fındıklı Office Buildings

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Location Istanbul TSKB REIT Stake 100% Land Area (sqm) 1,696 Leasable Area (sqm) 7,103 Number of Floors 7 Tenant TSKB Appraisal Value (TLm) 36.9

TSKB REIT is the 100% owner of the building.
The building of some 7,103 sqm of covered space was

purchased from TSKB in 2007.

Currently, it is rented by TSKB and serves as the headquarters
f 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
ptions also have positive effect on site’s exclusivity. Galata

Port operations will likely increase the site’s future appraisal value.

Fındıklı Office Buildings (contd.)

Fındıklı Building I

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Location Istanbul TSKB REIT Stake 100% Land Area (sqm) 2,503 Leasable Area (sqm) 10,542 Number of Floors 10 Tenants TSKB, TSKB Foundation, TSKB RE Appraisal Appraisal Value (TLm) 36.8

TSKB REIT is the 100% owner of the property.
The building has 10,542 sqm of enclosed area and was

purchased from TSKB in 2007.

Currently rented by TSKB and other TSKB Group companies.
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
ptions also have positive effect on site’s exclusivity. Galata

Port operations will likely increase the site’s future appraisal value.

Fındıklı Building II

Fındıklı Office Buildings (contd.)

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Tahirhan Office Building

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20 Location Istanbul TSKB REIT Stake 74% Land Area (sqm) 606 Leasable Area (sqm) 3.198 Number of Floors 8 Tenants Various Appraisal Value (TLm) 5.89

TSKB REIT owns 74% of the building. Tahirhan is a seven-

story building on 600 sqm plot and has a built up area of 3,198 sqm.

Building has full sea views from the third story and up.
Tahirhan is located on the border of a major redevelopment
project. It is suitable for conversion to more lucrative
activities. The appraisal value of this site could appreciate

considerably.

At present, the offices are rented out to various companies

and individuals.

Tahirhan Office Building (contd.)

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Adana Hotel Project

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Location Adana-City Center TSKB REIT Stake 50% Acquisition Date November 2007 Appraisal Value – Land (TLm) 11.3 Land Area (sqm) 3,608 Planned Project City hotel Planned Construction Start Date 4Q 2010 Planned Construction Completion Date April 2012 Estimated Operational Date June 2012 Planned Investment (EURm) 30-34

TSKB REIT acquired a 50% share of a 3,600 sqm plot

located in a central area of Adana.

Adana is one of Turkey’s main industrial cities, with

additional business growth potential due to investments in the energy and petrochemical sectors.

A city hotel project of 200 rooms is under development. A

construction permit will be obtained, and the project will break ground in the final quarter of 2010. The hotel is to be

perational in the second half of 2012.
Total investment is estimated at EUR30m-34m. Each owner

will fund approximately a further EUR10m.

Adana Hotel Project (contd.)

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Project fills need for a comfortable city hotel...

Despite significant commercial and industrial progress in the past

few years, no new high standard hotel has opened in Adana, while the occupancy rate of the existing 5-star hotels has increased remarkably.

Adana also lacks alternative places for social activities such as

conferences, wedding ceremonies, social occasions and MICE tourism.

The land for the city hotel was acquired in 2007 with the intent to
pen a city hotel in accordance with local demand. The land is

located in Seyhan, a central district of Adana.

The project is located some 2.5 km from the airport and 5.5 km

from the bus terminal.

An architectural project was prepared for the site, which is already

zoned.

A Letter of Intent was signed between TSKB REIT and Palmira

Turizm (Divan Group) at August 9, 2010.

Adana Hotel Project (contd.)

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Section I

The Company

Section III

Financial Data

Section II

Real Estate Portfolio

Section IV

TSGYO Stock Performance

Section V

Appendix

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Current Assets 8,083 7,602 34,083 7,688 43,526

Cash and Banks 2,084 3,666 23,845 3,745 39,515 Financial Investments 5,979 3,417 489 841 919 Other Current Assets 20 519 9,749 3,102 3,093

Non-Current Assets 3,655 114,584 152,327 290,663 296,136

Investment Property 3651 69,245 75,580 278,976 283,367 Fixed Assets 4 45,339 76,729 25 29 Other Non-Current Assets

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11,662 12,731

Total Assets 11,738 122,186 186,410 298,351 339,661 Short-term Liabilities 41 12,319 7,113 20,431 21,686

Bank Debts

1,343

2,062 12,163 19,649 Trade Payables

8,769

156 4,397 881 Other 41 2,207 4,895 3,871 1,156

Long-term Liabilities

29,143

70,510 113,788 98,252

Bank Debts

29,139

70,509 113,700 98,170 Other

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1 88 82

Shareholders’ Equity 11,697 80,724 108,787 164,133 219,723

Paid-in Capital 10,000 75,000 100,000 100,000 150,000 Share Premium

593

Reserves

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43 153 153 Retained Earnings

1,666

5,681 8,634 63,980 Net Income (Loss) 1,697 4,026 3,063 55,346 4,998

Total Liabilities and Shareholders Equity 11,738 122,186 186,410 298,351 339,661

Balance Sheet

(TL 000)

2006 2007 2008 2009 1H10

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Revenues 25 66 6,048 4,723 7,595

Operating Costs (-) (375) (1,146) (3,149) (3,343) (7,020)

Net Operating Profit (350) (1,080) 2,899 1,380 575

Income from Other Operations 1,060 786 6,253 52,632 15 Expenses from Other Operations (-) (13 ) (177) (114) (41) (155)

Operating Profit 658 (471) 9,038 53,971 435

Financial Income 1,039 4,498 803 1,676 8,039 Financial Expenses (-)

(6,778)

(301) (3,476)

Profit Before Tax 1,697 4,026 3,063 55,346 4,998

Tax

Net Income

1,697 4,026 3,063 55,346 4,998

Income Statement

(TL 000) 2006 2007 2008 2009 1H10

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Total Assets Net Income Real Estate Portfolio Assets

Key Parameters

Shareholders’ Equity

2006 2007 2008 2009 1H10 12 122 186 298 340

TL m 2006 2007 2008 2009 1H10

12 81 109 164 220

TL m

2006 2007 2008 2009 1H10 4 115 152 279 279

TL m

2006 2007 2008 2009 1H10 2 4 3 55 5

TL m

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Revenue Net Income

Periodic Comparison

1H09 1H10 2,2 7,6

TL m

1H09 1H10 1,9 5,0

TL m

245% 157%

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Section I

The Company

Section III

Financial Data

Section II

Real Estate Portfolio

Section IV

TSGYO Stock Performance

Section V

Appendix

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TSGYO Stock Performance

Performance Performance 08.04.10 30.06.10 13.08.10 08.04-30.06 08.04-13.08 TSGYO Market Cap (TRL mn) 158 134 129

15,2%
18,1%

TSGYO Market Cap (USD mn) 105 85 86

19,3%
18,6%

Performance Performance 08.04.10 30.06.10 13.08.10 08.04-30.06 08.04-13.08 ISE 100 Index 58.412 54.839 58.480

6,1%

0,1% ISE REIT Index 34.929 28.699 29.739

17,8%
14,9%

TSGYO 1,05 0,89 0,86

15,2%
18,1%

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TSGYO Stock Performance

TSGYO, ISE REIT Index and ISE 100 Index Performance

0,70 0,80 0,90 1,00 1,10 1,20 TSGYO ISE REIT Index

ISE 100 Index

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TSGYO Stock Performance

TSGYO - Relative Performance to ISE REIT Index

90 95 100 105 110 TSGYO ISE REIT Index

4,1%

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Net Asset Value

* as of June 30, 2010 ** as of August 13, 2010

TSGYO NET Asset Value (NAV) ( TL ) Land 11.635.800 Adana Land 11.635.800 Buildings 79.570.000 Fındıklı Buildings 73.685.000 Tahirhan Building 5.885.000 Shopping Center 187.770.000 Pendorya Shopping Center 187.770.000 Real Estate Portfolio 278.975.800 Participations

Marketable Securities

39.506.728 Toplam Portföy Değeri 318.482.528 Cash and Banks 7.829 Receivables 918.595 Other Assets 20.252.528 Payables 119.938.060 NAV* 219.723.420 Market Cap** 129.000.000 Premium to NAV

41%

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REITs on ISE

* as of August 13, 2010 ** NAV as of June 30, 2010

Ticker Company Share Price* NAV Per Share* MCAP* NAV** Premium to NAV TRL TRL USD mn USD mn SNGYO Sinpas REIT 1,70 2,27 564 736

23%

ISGYO Is REIT 1,60 2,79 478 844

43%

AKGMY Akmerkez REIT 48,75 58,12 443 534

17%

ALGYO Alarko REIT 15,20 24,25 107 174

38%

RYGYO Reysas REIT 0,90 1,28 102 143

29%

TSGYO TSKB REIT 0,86 1,46 86 146

41%

DGGYO Dogus GE REIT 1,14 1,82 71 115

38%

AGYO Atakule REIT 1,25 2,29 70 129

46%

YKGYO Yapı Kredi Koray REIT 1,72 2,31 46 63

27%

VKGYO Vakıf REIT 3,20 4,98 44 69

36%

PEGYO Pera REIT 0,60 1,04 38 70

45%

YYGYO Y & Y REIT 3,86 1,53 35 14 150% SAGYO Saglam REIT 0,82 1,27 30 47

35%

OZGYO Ozderici REIT 1,51 1,05 26 18 44% NUGYO Nurol REIT 3,52 5,89 23 39

41%

IDGYO Idealist REIT 2,26 0,96 15 6 134% EGYO EGS REIT 0,37 0,96 12 6 92%

TOTAL 2.192 3.152

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REITs on ISE

In terms of NAV**

* ss of August 13, 2010 ** as of June 30, 2010

ISGYO 26,8% SNGYO 23,3% AKGMY 16,9% ALGYO 5,5% TSGYO 4,6% RYGYO 4,5% AGYO 4,1% DGGYO 3,6% Others 10,6%

In terms of MCAP*

SNGYO 25,7% ISGYO 21,8% AKGMY 20,2% ALGYO 4,9% RYGYO 4,6% TSGYO 3,9% DGGYO 3,2% AGYO 3,2% Others 12,4%

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Section I

The Company

Section III

Financial Data

Section II

Real Estate Portfolio

Section IV

TSGYO Stock Performance

Section V

Appendix

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Regulation Highlights

 Capital markets institution, under the supervision of the CMB  Corporate tax exemption  Allowed to invest in real estate, real estate projects, rights and capital market instruments backed by real estate, and money and capital market instruments  >50% of the the portfolio to be invested in real estate  Not allowed to carry out construction  Properties to be valued by independent and CMB licensed appraisal companies  Obligation to go public in 3 months after the establishment of the company  1/3 of the board of directors must be “independent”

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Public REITS 1. Akmerkez 2. Alarko 3. Atakule 4. Doğuş GE 5. EGS 6. İdealist 7. İş 8. Nurol 9. Özderici

10. Pera
11. Reysaş
12. Sağlam
13. Sinpaş
14. TSKB
15. Vakıf
16. Y&Y
17. Yapı Kredi Koray

Non-public REITs 1. Akfen 2. Albayrak 3. Bayraktar 4. Büyükhanlı 5. Emlak Konut 6. Finans 7. Kiler 8. Martı 9. Maya

10. Özak
11. Torunlar
12. Tuna
13. Servet

REITs in Turkey

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Disclaimer

This presentation does not 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. Investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigations and appraisal of the business and financial condition of such company and the nature of the securities. Any decision to purchase securities in the context of a proposed offering of securities, if any, should be made solely on the basis of information contained in an offering circular published in relation to such an offering. Neither TSKB REIT nor any of its managers or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation.

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