Akiş REIT 1H20 Performance Presentation August 2020 · Telephone: +902123930100/53544 Disclosure: This presentation has been prepared in order to inform investors. Since the presentation

Akiş Gayrimenkul Yatırım Ortaklığı A.Ş. Akiş Real Estate Investment Trust 1

Akiş REIT 1H20 Performance Presentation – August 2020


Portfolio Performance 1

2 Financials’ Overview


3 What measures have we taken against Covid–19 ?


Portfolio Performance (Akasya Shopping Mall)1



96,7%

95,3%94,8%

94,3%

92,2%

2Q16 2Q17 2Q18 2Q19 2Q20

2Q16 2Q17 2Q18 2Q19 2Q20

Akasya Shopping Mall – General Overview

Occupancy Ratio by sqm Akasya Shopping Mall Expenses Evolution (YoY)

Akasya Shopping Mall Turnover per sqm* (YoY) Akasya Shopping Mall Revenue Breakdown

- 70%


* Open sqm only

Akasya was closed in

April & May 2020 due

to Covid - 19

2Q16 2Q17 2Q18 2Q19 2Q20

Rental Revenue Revenue on Turnover Other Revenue

With the opening of 3 new brands in 3Q20,

our occupancy rate will reach 97%.

H&M, on its own, will cover 3200 sqm.

-27%-21%

6%

30%

-79%

-12%-1%

22%29%

-64%

16% 11%4%

22%

-69%

2Q16 2Q17 2Q18 2Q19 2Q20

Marketing Expenses Energy Expenses Service Sub Contractor Expenses


Akasya Shopping Mall – Financials

Income yield

Akasya Shopping Mall closed its doors on 19th of March before re-opening on 1st of June.

During the first month of re-opening (June 2020),

Rental Incentives materialized at 50% of contractual figures

On the second month of re-opening (July 2020),

Turnover was only down by 15% YoY



Akasya Shopping Mall (TLmn) 2015 2016 2017 2018 2019 1H19 1H20 YoY

Revenue 158,7 177,7 205,8 249,6 270,6 135,2 74,4 -45%

EBITDA 123,8 138,5 164,2 201,9 218,2 108,7 50,8 -53%

Latest Appraisal Value 1.760,0 2.200,0 2.410,0 3.331,0 3.650,0


Portfolio Performance (Akbatı Shopping Mall)1



2Q16 2Q17 2Q18 2Q19 2Q20

Akbatı Shopping Mall – General Overview

Occupancy Ratio by sqm Akbatı Shopping Mall Expenses Evolution (YoY)

Akbatı Shopping Mall Turnover per sqm* (YoY) Akbatı Shopping Mall Revenue Breakdown


* Open sqm only

- 71%

Akbatı was closed in

April & May 2020 due

to Covid - 19

2Q16 2Q17 2Q18 2Q19 2Q20

Rental Revenue Revenue on Turnover Other Revenue

98,3% 97,9%99,1%

97,8% 97,7%

2Q16 2Q17 2Q18 2Q19 2Q20

-41%

8%

-23%

-80%

-4%

-27%

-1%

17%

-62%

29%19% 15% 16%

-69%

2Q16 2Q17 2Q18 2Q19 2Q20

Marketing Expenses Energy Expenses Service Sub Contractor Expenses


Akbatı Shopping Mall – Financials

Income yield


Akbatı Shopping Mall (TLmn) 2015 2016 2017 2018 2019 1H19 1H20 YoY

Revenue 64,8 72,7 84,6 106,1 117,7 57,6 33,9 -41%

EBITDA 45,2 50,8 62,2 81,3 89,2 43,4 21,6 -50%

Latest Appraisal Value 778,8 893,7 912,1 1.216,0 1.465,0

Akbatı Shopping Mall closed its doors on 19th of March before re-opening on 1st of June.

During the first month of re-opening (June 2020),


On the second month of re-opening (July 2020),

Turnover was almost flat YoY



186218

135123 147

65

466

246

-213

1H18 1H19 1H20

Revenue EBITDA Net Income

Financials’ Overview (TLmn)2

Our EBITDA margin decline is larger than that of Gross Margin due to some our operational expenses, although at very low levels, continued even when our

shopping malls were closed down in April and May 2020.


Covid – 19 related closure of 2 months (April, May 2020) had a net impact of rental loss of TL70-

75mn based on 2019 figures without making any inflation adjustment.

Considering inflation and other income loss, total impact on revenue is around TL85-90mn.

75,4% 74,7%

58,3%

66,1% 67,4%

47,8%

1H18 1H19 1H20

Gross Margin EBITDA margin


7,2

6,5

7,6

1H18 1H19 1H20

Financials’ Overview (TLmn)2

Although our average debt maturity is still low we are in constructive discussion with banks to increase our average debt maturity to above 3 years.

Our Net Debt/EBITDA has risen due to falling EBITDA.


1,972,12

1,62

1H18 1H19 1H20


What measures have we taken against Covid–19 (operational) ?3


i. For moving stairways inside the malls, a sterilising UV system equipment is placed

ii. Inside the air conditioning system, there is another UV system equipment as a sanitizer which is unique for the industry

iii. Service providers are wearing masks and other required equipment

iv. There is a heating measurement system (thermal camera) in place for every single visitor

v. Regular sanitization is in place

vi. In the dining hall for employees, queues are avoided, table replacement is done with strict distances, hand sanitizers are provided at the

entrance

vii. Used masks and other equipment are collected in a medical waste container

viii. Moreover, all air conditioning filters are replaced before mall re-openings

ix. A system to track visitors inside the malls is placed to limit the number of visitors at a specific time period

x. Food court sitting area is rearranged having regard to required distances

xi. Masks are provided to visitors at entrance and number of sanitizers inside the malls will increase in number

xii. All works are explained and showed to visitors via the screens inside the malls

xiii. There are stickers inside the malls emphasizing the importance of social distancing

xiv. Also please note that, we have efficiently and far more than our competitors, promoted what we have done our live TV programs,

printed news/magazines and on our social media account.

Total cost of this reconfiguration has been around US$300.000 and it will not be reflected to our tenants.


What measures have we taken against Covid–19 (financial) ?3


i. Postponed our Erenköy project (65-70% completed high street project) for a few months. For other projects on the pipeline, namely

Caddebostan and Beykoz, we were already waiting for construction permit for the first and zoning plan for the second.

ii. Planned to distribute US$5mn cash and US$15mn bonus share as dividend. However, in the General Assembly, US$20mn all bonus share

dividend was proposed and accepted.

iii. Have applied for short term working grant for our own employees. Some taxes and social security premiums for April, May and June

have been postponed by the government for 6 months. We benefited from that option as well.

iv. Reduced our common area expenses by c.50% as there were fewer sub-contractor employees inside the malls for cleaning/security etc.

Moreover, they have also applied to some government incentives for their employees. On the other hand, energy expenses and

marketing expenses have all declined significantly during lockdown.

v. All service and maintenance supplier contracts have also been revised either with discounts and/or with no payments for the lockdown

period.

vi. TL76mn short term loan have been renewed with lower interest rates and US$12mn equivalent loan repayment have been postponed for

up to 6 months.


Communication

Ozan Hançer

Director

Strategic Planning, Business Development and Investor Relations

E-mail: [email protected]

Telephone: +902123930100

Sercan Uzun, CFA, CAIA

Assistant Manager

Investor Relations, Strategic Planning and Business Development

E-mail: [email protected]

Telephone: +902123930100/53544

Disclosure:

This presentation has been prepared in order to inform investors. Since the presentation has been prepared regarding the previous period, the data in it may not reflect the current situation. The

estimations regarding projects are given in accordance with feasibility studies prepared on basis of certain assumptions and may be updated any time. Akiş REIT management and employees

can not be held responsible for any damages or losses arising from the direct/indirect use of content in this presentation.

For more information : [email protected]


Documents

Akiş REIT 1H20 Performance Presentation August 2020 · Telephone: +902123930100/53544 Disclosure: This presentation has been prepared in order to inform investors. Since the presentation