Özak REI Financial Results Presentation...6M’ 9 –Financial Results Presentation –August 09, 2019 Özak REI’s Total Real Estate Portfolio Value reached TL 2.912,5 MN as of

6M’ 2019 – Financial Results Presentation – August 09, 2019

6M’ 2019 – August 09, 2019

Özak REICFinancial Results Presentation


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 REIT 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 REIT 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


Our total assetsize increasedby %11 andreached to TL 3,97 billion.

Total Asset Value Net Asset Value (*)

%88

3,57

3,97

2018 6M'2019

TL 3,97 BN6M’2019

TL 2,04 BN 6M’2019

TL 2,05 BN2018

EBITDA

TL 15,3 MN6M’2019

TL 15,3 MN6M’2018

EBITDA Margin

% 21,96M’2018

% 19,36M’2019

Rental Portfolio Occupancy Rate

ÖZAK REIC 6M’2019 CONSOLIDATED KEY PORTFOLIO HIGHLIGHTS

3* Non -Consolidated Financial Table Data


Our total salesrevenue grew%14 andreachedTL 79 mn.

Net Profit / Loss Total Revenue

(34,86)

6M'2018 6M'2019

TL -34,86 MN6M’2019

TL 79,32 MN6M’2019

TL 69,63 MN 6M’2018

Net Debt

TL 563,93 MN

6M’2019

TL 483,84 MN 2018

Net FX Position

TL -97,92 MN 2018

TL -24,03 MN 6M’2019

Rental Revenue (*)

ÖZAK REIC 6M’2019 CONSOLIDATED KEY PORTFOLIO HIGHLIGHTS

4

6M’2019

TL 51,95 MN 6M’2018

TL 37,5 MN 6M’2018

* Non -Consolidated Financial Table Data


60,852,7

109,1

31,618,5

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

Total Revenues (Quarterly) (TL MN) Total Revenues (6M’2018 & 6M’2019) (TL MN)

TL 8,1 MN 2Q’19 – 2Q’18

TL 42,3 MN 2Q’19 – 1Q’19

69,6

79,3

6M'2018 6M'2019

ÖZAK REIC CONSOLIDATED REVENUES

5

Özak REIC’stotal salesincreased %14 year-over-yeardue to growthin tourismrevenues.


28,0

20,4

32,5

25,2 24,0

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

Rental Revenues (Quarterly) (TL MN) Rental Revenues (6M’2018 & 6M’2019) (TL Mn)

TL 7,6 MN 2Q’19- 2Q’18

TL 4,0 MN 2Q’19 – 1Q’19

37,5

52,0

6M'2018 6M'2019

ÖZAK REIC RENTAL REVENUES (*)

6* Non -Consolidated Financial Table Data


17,817,3

67,5

6,9 -2,5

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

%29,3

EBITDA (Quarterly) (TL MN) EBITDA (6M’2018 & 6M’2019) (TL Mn)

TL 0,5 MN 2Q’19 – 2Q’18

TL 20,3 MN 2Q’19 – 1Q’19

15,3

15,3

6M'2018 6M'2019

%61,9

%32,8

%21,9

%21,9

%19,3

EBITDA Margin

ÖZAK REIC CONSOLIDATED EBITDA

7

%-13,7


Summary of Consolidated Income Statement (TL MN)

TL Mn

Year to Date Quarterly

6M'2018 6M'2019%∆ (6M'19/6M'18) 2Q’18 1Q'19 2Q'19 %∆ (2Q’19/2Q’18) %∆ (2Q’19/1Q’19)

Revenues 69,6 79,3 13,9% 52,7 18,5 60,8 15,2% 227,6%

Rental Revenue (*) 37,5 52,0 38,5% 20,4 24,0 28,0 37,2% 16,7%

Hotel 13,6 26,8 97,0% 8,0 10,8 16,0 100,5% 48,5%

Office 13,9 13,9 0,2% 7,1 7,0 6,9 -2,9% -1,5%

Retail 10,0 11,2 12,3% 5,2 6,2 5,1 -2,6% -18,3%

Gross Profit 24,3 31,3 28,5% 22,1 3,8 27,5 24,5% 618,6%

Gross Margin 34,9% 39,4% 4,5 bp 41,8% 20,6% 45,2% 3,4 bp 24,6 bp

EBIT 7,7 5,4 -30,4% 13,4 -6,9 12,2 -9,0% -278,0%

EBIT Margin 11,1% 6,8% - 4,3 bp 25,5% -37,1% 20,1% -5,4 bp 57,2 bp

EBITDA 15,3 15,3 0,2% 17,3 -2,5 17,8 3,0% -802,4%

EBITDA Margin 21,9% 19,3% - 2,6 bp 32,8% -13,7% 29,3% -3,5 bp 43,0 bp

Net Financial Income / Expense -55,7 -69,7 25,0% -30,7 -29,7 -39,9 29,9% 34,2%

Net Income 0,5 -34,9 -7060,2% 24,6 -24,5 -10,4 -142,3% -57,6%

Net Income Margin 0,7% -44,0% -45,1 bp 46,6% -132,0% -17,1% -63,7 bp 114,9 bp

ÖZAK REIC SUMMARY OF CONSOLIDATED INCOME STATAMENT

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(*)Non -Consolidated Financial Table Data


Net P&L Bridge 6M’ 2019 (TL Mn)

79.3 67.5

(48.0)

(25.9)

(38.1)

(69.7) (34.9)

Revenue COGS OPEX Other Incomes Other Expenses Net Financial Expenses Tax Income Net Loss

0,0

TL (18,7) mn Net Interest Expense,

TL (51,0) mn CreditFX Loss Expense

TL (34,7) mnFX Loss,

TL (3,4) mnOther Expense

TL 63,8 mn FX Income,

TL 3,7 mnOther Income

ÖZAK REIC CONSOLIDATED NET PROFIT / LOSS

9


Total Credit Debt Split (TL MN)

957,3

563,9

Total Debt Reel Credit Debt

Cash & Cash Equivalents (*)

-393,4

%30,8REEL CREDIT DEBT / EQUITY

%14,2REEL CREDIT DEBT / TOTAL ASSETS

TL 563,9 MN REEL CREDIT DEBT

Summary of Consolidated Balance Sheet

ÖZAK REIC SUMMARY OF CONSOLIDATED BALANCE SHEET

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TL Mn 2018 6M’2019%∆

(6M’19/2018)

Current Assets 753,4 951,5 26,3%

Non Current Assets 2.818,9 3.021,5 7,2%

Total Assets 3.572,3 3.973,0 11,2%

S.T. Liabilities 1.001,6 1.292,7 29,1%

L.T. Liabilities 710,3 851,5 19,9%

Total Liabilities 1.711,8 2.144,2 25,3%

Shareholder’s Equity 1.860,5 1.828,8 -1,7%

Total Liabilities & Equity 3.572,3 3.973,0 11,2%

S.T Financial Debt 698,0 731,6 4,8%

L.T. Financial Debt 213,4 225,7 5,8%

Total Financial Debt 911,5 957,3 5,0%

Cash & Cash Equivalents 635,2 705,0 11,0%

Net Debt 276,3 252,3 -8,7%

Net Debt/Equity 14,9% 13,8% - 1,1 bp

Net Debt/Total Assets 7,7% 6,4% - 1,3 bp

(*) Reel Credit Debt calculated by deducting TL 393,4 mn from Cash & Cash Equivalents due to shareholders debt, as of 30.06.2019.


Net Debt 6M’2019 (TL Mn)

Change in Net Debt – 6M’2019 / 2018 (TL Mn)

731,6

225,7

(393,4)

563,9

S.T. Financial Debt L.T. Financial Debt Cash & Cash Equivalents Net Debt 6M'2019

483,8 563,9

33,6 12,3

(34,2)

Net Debt 2018 ∆ S.T. Financial Debts ∆ L.T. Financial Debts ∆ Cash & Cash Equivalents Net Debt 6M'2019

ÖZAK REIC CONSOLIDATED NET DEBT DYNAMICS

11


Özak REIC’s Total Real Estate Portfolio Value reached TL 2.912,5 MN as of 30.06.2019.

Solo Net Asset Value Bridge (TL MN)

ASSETS LIABIL ITIES

482,5

622,9

579,9

456,9

770,4

153,1

605,0

264,0

(1034,7)

(855,1)

2.044,8

Land Office Hotel Retail Project Subsidiaries Cash Other Assets OtherLiabilities

Debts 6M'2019NAV

2.912,5 TL MN REAL ESTATE PORTFOLIO VALUE

ÖZAK REIC SOLO NET ASSET VALUE BRIDGE

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EQUITY


Özak REIC, which trades at a 73% discount on the Istanbul Stock Exchange, offers investors a strong opportunity for the future.

Net Asset Value Table Portfolio Breakdown by NAV %

%73DISCOUNT RATE

TL 546,0 MN MCAP as of 08.08.2019

ÖZAK REIC NET ASSET VALUE

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(TL Mn) 2018 6M’2019

Lands

Mahmutbey, İstanbul 48,6 48,6

Balmumcu, İstanbul 155,1 155,1

Göktürk 1, İstanbul 84,6 84,6

Göktürk 2, İstanbul 185,6 185,6

Göktürk (PPI)*, İstanbul 8,7 8,7

(+) Total Lands 482,5 482,5

Buildings

Office - 34 Portall Plaza, İstanbul 417,5 417,5

Office- İş İstanbul 34, İstanbul 205,3 205,3

Retail - MetroGrossMarket, İstanbul 143,3 143,3

Retail - Bulvar 216, İstanbul 313,6 313,6

Hotel - Ela Quality Resort Quality Otel 579,9 579,9

(+) Total Buildings 1.659,6 1.659,6

Projects

Completed Projects - Hayat Tepe 13,9 13,9

Continuing Projects – Büyükyalı 562,6 756,5

Continuing Projects – Göktürk 2 - -

(+) Total Stock 576,5 770,4

Subsidiaries (Tourism)

Aktay Otel İşletmeleri A.Ş 152,7 152,7

Büyükyalı Otel İşletmeciliği 0,0 0,0

Betuyap - Detuyap 0,4 0,4

(+) Total Subsidiaries 153,1 153,1

(+) Cash 576,1 605,0

(+) Other Assets 206,2 264,0

(-) Other Liabilities 786,2 1034,7

(-) Debts 817,6 855,1

NET ASSET VALUE 2.050,3 2.044,8

As of 30.06.2019; MCAP TL 553,3 MNDISCOUNT RATE %73

Land; 16%

Office; 20%

Retail; 15%

Tourism; 24%

Project; 25%

(*) Public Partnership Interest


ÖZAK REIC PROSPECT OF UPCOMING PROJECTS

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In Büyükyalı Project total 97.238 m2 of 547 units’ pre-sales realized as of 30.06 2019. TL 1,65 bn revenue realized.

• Mixed-use project sited on one of the most valuable and largest plots currently available on the coastline

• One of the largest tenders of Emlak Konut REIT (EKGYO) via RSM*

• 60% Özak REIC ownership

• TL 5,40 BN Total Project Revenues• TL 3,70 BN Total Project Cost

(Land&Constraction)

• TL 1,70 BN Constraction Cost• TL 1,70 BN Profit• 60% OZAK REIC profit share (TL 1,02 BN)

• Start Date; 2016• Expected Completion Date;

Construction 2019, Sales 2021

Büyükyalı Project

• 300 units of High-end housing Project located in the hearth of Göktürkwhich Dominated with white-collar professionals.

• 100% Özak REIC ownership

• TL 778,4 mn Total Project Revenues• TL 533,6 mn Total Project Cost• TL 244,8 mn Profit

• Start Date; 2019• Expected Completion Date; 2022

Göktürk Project


ÖZAK REIC 2019 FORECASTS

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Total Revenue

2019Revenue Forecast

TL 1.069,6 MN

EBITDA

2019EBITDA Forecast

TL 519,9 MN

Rents

2019Total Rent Forecast

TL 114,6 MN*

* Non -Consolidated Financial Table Data


Thank You …

For further information:

ÖZAK REIC Investor Relations

[email protected]

+90 212 486 3650

Documents

Özak REI Financial Results Presentation...6M’ 9 –Financial Results Presentation –August 09, 2019 Özak REI’s Total Real Estate Portfolio Value reached TL 2.912,5 MN as of