EMLAK KONUT REIC INVESTOR PRESENTATION

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1 EMLAK KONUT REIC INVESTOR PRESENTATION

2 2 BY A T T E N D I N G T H I S M E E T I N G W H E R E T H I S P R E S E N T A T I O N IS M A D E, OR BY R E A D I N G T H E P R E S E N T A T I O N S L I D E S, Y O U A G R E E TO BE B O U N D BY T H E F O L L O W I N G L I M I T A T I O N S. T H I S P R E S E N T A T I O N D O E S N O T C O N S T I T U T E OR F O R M P A R T OF A N D S H O U L D N O T BE C O N S T R U C T E D AS, AN O F F E R TO S E L L, OR T H E S O L I C I T A T I O N OR I N V I T A T I O N OF A N Y O F F E R TO B U Y OR S U B S C R I B E F O R, S E C U R I T I E S OF E M L A K K O N U T G A Y R I M E N K U L Y A T I R I M O R T A K L I G I A. Ş. ( T H E " C O M P A N Y " OR E M L A K K O N U T " ), IN A N Y J U R I S D I C T I O N OR AN I N D U C E M E N T TO E N T E R I N T O I N V E S T M E N T A C T I V I T Y. NO P A R T OF T H I S P R E S E N T A T I O N, N O R T H E F A C T OF I T S D I S T R I B U T I O N, S H O U L D F O R M T H E B A S I S O F, OR BE R E L I E D ON IN C O N N E C T I O N W I T H, A N Y C O N T R A C T OR C O M M I T M E N T OR I N V E S T M E N T S D E C I S I O N W H A T S O E V E R. T H E I N F O R M A T I O N C O N T A I N E D IN T H E P R E S E N T A T I O N H A S N O T B E E N I N D E P E N D E N T L Y V E R I F I E D. NO R E P R E S E N T A T I O N, W A R R A N T Y OR U N D E R T A K I N G, E X P R E S S E D OR I M P L I E D, IS M A D E AS T O, A N D NO R E L I A N C E S H O U L D BE P A L E D O N, T H E F A I R N E S S, A C C U R A C Y, C O M P L E T E N E S S OR C O R R E C T N E S S OF T H E I N F O R M A T I O N OR T H E O P I N I O N S C O N T A I N E D H E R E I N. N E I T H E R T H E C O M P A N Y N O R A N Y OF I T S R E S P E C T I V E A F F I L I A T E S, A D V I S O R S OR R E P R E S E N T A T I V E S S H A L L H A V E A N Y L I A B I L I T Y W H A T S O E V E R ( I N N E G L I G E N C E OR O T H E R W I S E ) F O R A N Y L O S S H O W E V E R A R I S I N G F R O M A N Y U S E OF T H I S P R E S E N T A T I O N OR I T S C O N T E N T S OR O T H E R W I S E A R I S I N G IN C O N N E C T I O N W I T H T H E P R E S E N T A T I O N. T H I S P R E S E N T A T I O N IS N O T D I R E C T E D A T, A N D M A Y N O T BE C O M M U N I C A T E D OR F O R W A R D E D TO P E R S O N S L O C A T E D IN T H E U N I T E D S T A T E S O T H E R T H A N Q U A L I F I E D I N S T I T U T I O N A L B U Y E R S AS D E F I N E D IN R U L E 144A U N D E R T H E U. S. S E C U R I T I E S A C T OF 1933, AS A M E N D E D ( T H E S E C U R I T I E S A C T ). T H E D I S T R I B U T I O N OF T H I S P R E S E N T A T I O N IN C E R T A I N J U R I S D I C T I O N S M A Y BE R E S T R I C T E D BY L AW A N D P E R S O N S I N T O W H O S E P O S S E S S I O N A N Y D O C U M E N T OR O T H E R I N F O R M A T I O N R E F E R R E D TO H E R E I N C O M E S S H O U L D I N F O R M T H E M S E L V E S A B O U T A N D O B S E R V E A N Y S U C H R E S T R I C T I O N S. A N Y F A I L U R E TO C O M P L Y W I T H T H E S E R E S T R I C T I O N S M A Y C O N S T I T U T E A V I O L A T I O N OF T H E S E C U R I T I E S L A W S OF A N Y S U C H J U R I S D I C T I O N. T H I S P R E S E N T A T I O N IS D I R E C T E D O N L Y AT ( I ) P E R S O N S W H O A R E O U T S I D E T H E U N I T E D K I N G D O M OR ( I I ) I N V E S T M E N T P R O F E S S I O N A L S F A L L I N G W I T H I N A R T I C L E 19( 5 ) OF T H E F I N A N C I A L S E R V I C E S A N D M A R K E T S A C T ( F I N A N C I A L P R O M O T I O N ) O R D E R 2005 ( A S A M E N D E D ) ( T H E O R D E R ) OR ( I I I ) H I G H N E T W O R T H C O M P A N I E S A N D O T H E R P E R S O N S TO W H O M IT M A Y L A W F U L L Y BE C O M M I T T E D F A L L I N G W I T H I N A R T I C L E 49( 2 ) ( A ) TO ( D ) OF T H E O R D E R ( A L L S U C H P E R S O N S T O G E T H E R B E I N G R E F E R R E D TO AS R E L E V A N T P E R S O N S ). A N Y P E R S O N W H O IS N O T A R E L E V A N T P E R S O N M U S T N O T A C T OR R E L Y ON T H I S P R E S E N T A T I O N OR A N Y OF I T S C O N T E N T S. A N Y I N V E S T M E N T OR I N V E S T M E N T A C T I V I T Y TO W H I C H T H I S C O M M U N I C A T I O N R E L A T E S IS A V A I L A B L E O N L Y TO R E L E V A N T P E R S O N S A N D W I L L BE E N G A G E D IN O N L Y W I T H R E L E V A N T P E R S O N S. T H I S P R E S E N T A T I O N IS O N L Y F O R P E R S O N S H A V I N G P R O F E S S I O N A L E X P E R I E N C E IN M A T T E R S R E L A T I N G TO I N V E S T M E N T S A N D M U S T N O T BE A C T E D OR R E L I E D ON BY P E R S O N S W H O A R E N O T R E L E V A N T P E R S O N S. S O L I C I T A T I O N S R E S U L T I N G F R O M T H I S P R E S E N T A T I O N W I L L O N L Y BE R E S P O N D E D TO IF T H E P E R S O N C O N C E R N E D IS A R E L E V A N T P E R S O N. T H I S P R E S E N T A T I O N A N D I T S C O N T E N T S M U S T N O T BE D I S T R I B U T E D, P U B L I S H E D OR R E P R O D U C E D ( I N W H O L E OR IN P A R T ) BY A N Y M E D I U M OR IN A N Y F O R M, OR D I S C L O S E D OR M A D E A V A I L A B L E BY R E C I P I E N T S TO A N Y O T H E R P E R S O N, W H E T H E R OR N O T S U C H P E R S O N IS A R E L E V A N T P E R S O N S. IF Y O U H A V E R E C E I V E D T H I S P R E S E N T A T I O N A N D Y O U A R E N O T A R E L E V A N T P E R S O N Y O U M U S T R E T U R N IT I M M E D I A T E L Y TO T H E C O M P A N Y. T H I S P R E S E N T A T I O N D O E S N O T C O N S T I T U T E A R E C O M M E N D A T I O N R E G A R D I N G T H E S E C U R I T I E S OF T H E C O M P A N Y. T H I S P R E S E N T A T I O N A N D A N Y M A T E R I A L S D I S T R I B U T E D IN C O N N E C T I O N W I T H T H I S P R E S E N T A T I O N A R E N O T D I R E C T E D T O, OR I N T E N D E D F O R D I S T R I B U T I O N TO OR U S E B Y, A N Y P E R S O N OR E N T I T Y T H A T IS A C I T I Z E N OR R E S I D E N T OR L O C A T E D IN A N Y L O C A L I T Y, S T A T E, C O U N T R Y OR O T H E R J U R I S D I C T I O N W H E R E S U C H D I S T R I B U T I O N, P U B L I C A T I O N, A V A I L A B I L I T Y OR U S E W O U L D BE C O N T R A R Y TO L A W OR R E G U L A T I O N OR W H I C H W O U L D R E Q U I R E A N Y R E G I S T R A T I O N OR L I C E N S I N G W I T H I N S U C H J U R I S D I C T I O N. T H I S P R E S E N T A T I O N I N C L U D E S " F O RW A R D - L O O K I N G S T A T E M E N T S ". T H E S E S T A T E M E N T S C O N T A I N T H E W O R D S " A N T I C I P A T E ", W I L L, " B E L I E V E ", " I N T E N D ", " E S T I M A T E ", " E X P E C T " A N D W O R D S OF S I M I L A R M E A N I N G. A L L S T A T E M E N T S O T H E R T H A N S T A T E M E N T S OF H I S T O R I C A L F A C T S I N C L U D E D IN T H I S P R E S E N T A T I O N, I N C L U D I N G, W I T H O U T L I M I T A T I O N, T H O S E R E G A R D I N G T H E C O M P A N Y S F I N A N C I A L P O S I T I O N, B U S I N E S S S T R A T E G Y, P L A N S A N D O B J E C T I V E S OF M A N A G E M E N T F O R F U T U R E O P E R A T I O N S ( I N C L U D I N G D E V E L O P M E N T P L A N S A N D O B J E C T I V E S R E L A T I N G TO T H E C O M P A N Y ' S P R O D U C T S A N D S E R V I C E S ) A R E F O RW A R D - L O O K I N G S T A T E M E N T S. S U C H F O RW A R D - L O O K I N G S T A T E M E N T S I N V O L V E K N OW N A N D U N K N O W N R I S K S, U N C E R T A I N T I E S A N D O T H E R I M P O R T A N T F A C T O R S T H A T C O U L D C A U S E T H E A C T U A L R E S U L T S, P E R F O R M A N C E OR A C H I E V E M E N T S OF T H E C O M P A N Y TO BE M A T E R I A L L Y D I F F E R E N T F R O M F U T U R E R E S U L T S, P E R F O R M A N C E OR A C H I E V E M E N T S E X P R E S S E D OR I M P L I E D BY S U C H F O RW A R D - L O O K I N G S T A T E M E N T S. S U C H F O R W A R D - L O O K I N G S T A T E M E N T S A R E B A S E D ON N U M E R O U S A S S U M P T I O N S R E G A R D I N G T H E C O M P A N Y ' S P R E S E N T A N D F U T U R E B U S I N E S S S T R A T E G I E S A N D T H E E N V I R O N M E N T IN W H I C H T H E C O M P A N Y W I L L O P E R A T E IN T H E F U T U R E. T H E S E F O R W A R D - L O O K I N G S T A T E M E N T S S P E A K O N L Y AS OF T H E D A T E OF T H I S P R E S E N T A T I O N. T H E C O M P A N Y E X P R E S S L Y D I S C L A I M S A N Y O B L I G A T I O N OR U N D E R T A K I N G TO D I S S E M I N A T E A N Y U P D A T E S OR R E V I S I O N S TO A N Y F O RW A R D - L O O K I N G S T A T E M E N T S C O N T A I N E D H E R E I N TO R E F L E C T A N Y C H A N G E IN T H E C O M P A N Y ' S E X P E C T A T I O N S W I T H R E G A R D T H E R E T O OR A N Y C H A N G E IN E V E N T S, C O N D I T I O N S OR C I R C U M S T A N C E S ON W H I C H A N Y S U C H S T A T E M E N T IS B A S E D. T H E C O M P A N Y C A U T I O N S Y O U T H A T F O R W A R D - L O O K I N G S T A T E M E N T S A R E N O T G U A R A N T E E S OF F U T U R E P E R F O R M A N C E A N D T H A T I T S A C T U A L F I N A N C I A L P O S I T I O N, B U S I N E S S S T R A T E G Y, P L A N S A N D O B J E C T I V E S OF M A N A G E M E N T F O R F U T U R E O P E R A T I O N S M A Y D I F F E R M A T E R I A L L Y F R O M T H O S E M A D E IN OR S U G G E S T E D BY T H E F O RW A R D - L O O K I N G S T A T E M E N T S C O N T A I N E D IN T H I S P R E S E N T A T I O N. IN A D D I T I O N, E V E N IF T H E C O M P A N Y ' S F I N A N C I A L P O S I T I O N, B U S I N E S S S T R A T E G Y, P L A N S A N D O B J E C T I V E S OF M A N A G E M E N T F O R F U T U R E O P E R A T I O N S A R E C O N S I S T E N T W I T H T H E F O R W A R D - L O O K I N G S T A T E M E N T S C O N T A I N E D IN T H I S P R E S E N T A T I O N, T H O S E R E S U L T S OR D E V E L O P M E N T S M A Y N O T BE I N D I C A T I V E OF R E S U L T S OR D E V E L O P M E N T S IN F U T U R E P E R I O D S. T H E C O M P A N Y D O E S N O T U N D E R T A K E A N Y O B L I G A T I O N TO R E V I E W OR C O N F I R M OR TO R E L E A S E P U B L I C L Y A N Y R E V I S I O N S TO A N Y F O R W A R D - L O O K I N G S T A T E M E N T S TO R E F L E C T E V E N T S T H A T O C C U R OR C I R C U M S T A N C E S T H A T A R I S E A F T E R T H E D A T E OF T H I S P R E S E N T A T I O N. PAST P E R F O R M A N C E IS N O T N E C E S S A R I L Y AN I N D I C A T O R OF F U T U R E P E R F O R M A N C E. T H E I N F O R M A T I O N A N D O P I N I O N S C O N T A I N E D IN T H I S D O C U M E N T A R E P R O V I D E D AS OF T H E D A T E OF T H I S P R E S E N T A T I O N A N D A R E S U B J E C T TO C H A N G E W I T H O U T N O T I C E. DISCLAIMER

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4 EMLAK KONUT REIC MILESTONES A great success story written in 15 years Adopted REIC Status Capital Increase 50.4 % Freefloat SPO / Capital Increase 2023 Target 250,000 Units Q Establishment IPO / Capital Increase Largest REIC in Turkey Capital Increase 25 % Freefloat Total Assets TRY bn EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 4

5 COMPANY FIGURES Turkey's largest REIC with total assets of TRY22.95 bn Land Bank Investing 3 Years of New Launches 3.9 Million sqm Total Revenue Sharing Model Tender 80 TRY Billion Total Turn Key Tender 5.8 TRY Billion Presales in TRY Billion Total Profit Target in 5 Years 7.2 TRY Billion Profit Target for TRY Billion Completed and Tendered Units Since k Units EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 5

6 2017 AT A GLANCE A milestone year for large tenders Sales as of Dec 2017 TRY 7.44 bn Pre-Sales k sqm pre-sold area Share Buy Back Emlak bought back million shares which is 3.38 % of paid in capital since 2013 Average gross cost per share TRY 2.22 Emlak received TRY 35.1 million cash dividend from these shares 2017 Leverage 9 tenders has been completed TRY 13 bn Est. Total Sales Revenues in tenders Min. Guaranteed Emlak Konut Share TRY 2,061 bn 1.83 average multiplier TRY1.27 Billion worth of land purchase Facts Strategic partnership with TOKI 94 RSM, 44 TurnKey, Total 138 projects are successfully driving or delivered since 2003 Strong launch to sales ratio in 2018 (87%) and 2019 (55%) Million TRY distributed as cash dividend according to the decision taken in 2017 Ordinary General Assembly Average net cost per share TRY 1.94 EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 6

7 OUTLOOK Strong earnings visibility ahead from RSM projects Progress of Guaranteed Profit in RSM Projects (bn TRY) 12,56 Book Value 13,56 13,74 Min.Guaranteed Profit 14,55 7,6 7,48 7,91 7,33 7,16 4,66 5,41 6,05 4,39 3,38 3,01 2,4 2,26 2,4 2,67 3,21 5,08 5,65 6,41 7, Q Emlak REIC expects to recognize TRY 7.16 bn of profit over the next 5 years. Emlak REIC Min. Guaranteed Revenue recognition depends on completion of construction. Abovementioned values will be recognized when we complete our projects. EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION see page 8 for details 7

8 ONGOING RSM PROJECTS TABLE LINE PROJECT NAME EMLAK KONUT MIN. GUARANTEED REVENUE BOOK VALUE GUARANTEED MIN. PROFIT TOTAL UNIT # OF UNITS SOLD (as of 30th Sep) LAUNCH / SALE RATIO 1 MASLAK 1453 ISTANBUL % 94,48% EVVEL ISTANBUL % 81,15% ISTMARINA % 89,18% AVRUPARK % 68,39% KARAT % 50,08% NIDAPARK KAYAŞEHIR % 83,41% KOORDINAT ÇAYYOLU % 40,41% 2018 TOTAL % 74,81% 8 TEMAŞEHIR KONYA % 48,76% TUAL ADALAR % 29,50% TUAL BAHÇEKENT % 33,11% EVORA DENIZLI % 28,99% VALIDEBAĞ KONAKLARI % 13,40% OFIS KARAT BAKIRKÖY % 20,97% İDEALİST KORU/İDEALİST CADDE % KÖY % 35,03% 2019 TOTAL % 26,22% 16 IFC % 44,28% SEMT BAHÇEKENT % 5,40% TEM 34 TAHTAKALE % AVRUPARK HAYAT % 9,27% EBRULI ISPARTAKULE % 7,74% NIDAPARK ISTINYE % 10,10% CER İSTANBUL % KOCAELİ/ DERİNCE NOT ON SALE AVANGART ISTANBUL % 7,55% YENIKÖY KONAKLARI % 9,61% MERKEZ ANKARA % 9,94% TUAL ARTI NOT ON SALE BÜYÜKYALI İSTANBUL % 33,42% ANTALYA MURATPAŞA NOT ON SALE TOTAL % 9,81% 30 NIDAPARK KÜÇÜKYALI % 16,10% İSTANBUL/ ZEYTİNBURNU BEŞTELSİZ NOT ON SALE EVORA İZMİR NOT ON SALE ALLSANCAK NOT ON SALE PROGRESS LEVEL EXPECTED COMPLETION DATE* 34 DÜŞLER VADİSİ NOT ON SALE / ANKARA ÇANKAYA ORAN NOT ON SALE TOTAL % 2,68% 36 TUAL BİZİM MAHALLE NOT ON SALE ANKARA SARAÇOĞLU NOT ON SALE - - TOTAL İSTANBUL/ TEŞVİKİYE NOT ON SALE BAKIRKÖY FLORYA NOT ON SALE ÇEKMEKÖY TAŞDELEN NOT ON SALE - - TOTAL % 22,70% EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION * C o m p l e t i o n d a t e o f t h e p r o j e c t s a r e b a s e d o n o u r a s s u m p t i o n s. P r o j e c t s m a y b e c o m p l e t e d b e f o r e or a f t e r o u r e s t i m a t e s. 8

9 NEW LIVING AREA in opportunities with New Istanbul Airport

10 NEW PIPELINE INVESTMENT Strong Collaboration with 3rd parties Arising need for new urban areas TOTAL LAND AREA 3.6 Million sqm CAPITAL PARTNERSHIP % 50 Once its fully completed, Istanbul New Airport will bring many opportunities; Flights to more than 300 destinations Annual passenger capacity of up to 200 mio Employment opportunity of nearly 225 K people EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 10

11 REVENUE SHARING MODEL Strong Tender Performance 2018 Tenders 2016 Tenders Project Appraisal Value Min.Company Share Total Sales Revenue 1 İstanbul Şişli Teşvikiye 455,121, ,500,000 1,763,750,000 Total Base Value TRY 1.09 BN Total Min. Emlak Konut s Share TRY 2.28 BN 2 İstanbul Çekmeköy Taşdelen 247,830, ,552,000 1,111,100,000 3 İstanbul Florya* 383,554, ,500,000 2,250,000,000 Total Sales Revenue TRY 6.45 BN Tender Multiplier Ankara Çankaya Saraçoğlu İstanbul Bakırköy Şevketiye İstanbul Küçükçekmece Bizim Mahalle 1st and 3rd Stage ,925, ,372, Hoşdere 2nd Stage 109,528, Tenders Total Base Value TRY 2.11 BN Total Min Company Share TRY 3.87 BN * In Florya tender, Emlak REIC owns 71.43% of the Min. Company Share and 28.57% will belong to Galatasaray Sport Club Association. TOTAL (ytd) 2,075,332,353 1,893,552,000 5,124,850,000 Total Min. Emlak Konut s Share (ytd) 2018 TurnKey 1.65 BN 1 Samsun Canik 94,264, Total Sales Revenue TRY BN Total Min Emlak Konut Share TRY 2,06 BN Tender Multiplier 1.83 EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 11

12 PROJECT DEVELOPMENT Attractive Multiplier Effect Multiplier for RSM Projects Base Value CSTR Multiplier ,45 Billion 5,87 Billion 2, ,03 2,18 2,30 2,08 2,30 1,83 1, ,98 Billion 1,62 3,87 Billion 1, ,61 Billion 2,55 Billion 2,41 Billion 2,28 Billion 2,11 Billion 1,89 Billion 1,15 0,79 Billion 1,11 Billion 1,1 Billion 1,09 Billion 0,58 0 0, and pre (ytd) EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 12

13 REVENUE SHARING MODEL Emlak REIC expects to maintain high multiplier on ongoing projects. Completed Projects TRY Million Base Value of Land at time of the Tender Emlak Konut's Share in Total Tender Value Emlak Konut's Share in Total Realized Value Ongoing Projects TRY Million Base Value of Land at time of Tender Emlak Konut's Share in Total Tender Value 2.32x 8, , x 2.02x 3, x see page 27 for details see page 28 for details EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 13

14 LAND DEVELOPMENT Developments in the right place at the right cost Land Acquisition ( ) Land Purchase ( ) Breakdown of Tendered Plots by Book Value sqm TRY TRY Favourable strategic partnership with TOKİ TOKİ 76% Third Parties 23% Priv. Administration 1% TOKİ 88% Third Parties 6% Priv. Administration 7% Revenue Sharing Model 92% Turn Key 8% EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 14

15 COMPANY TARGETS In 2018, TRY 7.3 billion worth of unit sales targeted 1st Quarter 2nd Quarter Sales Value TRY 1.14 Bn Sales Value TRY 1.51 Bn Gross Saleable Area 144 K sqm Gross Saleable Area 192 K sqm 3rd Quarter Sales Value TRY 1.43 Bn Gross Saleable Area 178 K sqm 4th Quarter Sales Value TRY 3.16 Bn Gross Saleable Area 315 K sqm Total Pre-Sales 2018 Sales Value (TRY) 7.3 Bn Gross Saleable Area (sqm) 830 K 2018 Target Net Profit TRY 1.8 Bn EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 15

16 COMPANY SALES DATAS Total sales revenue is increasing Unit Sales Sales Total value (`mn TRY) Q Q Total Unit Size Sold (`000 sqm) Sales to Foreigners (`mn TRY) Q Q EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 16

17 TURKISH REAL ESTATE MARKET Residential sales continue to increase Residential unit sales in Turkey first sale and second hand ( 000) First Hand ,250 1,342 1,157 1, Second Hand /Oct *TURKSTAT Residential unit sales in İstanbul first sale and second hand ( 000) First Hand Second Hand *TURKSTAT /Oct EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 17

18 TURKISH REAL ESTATE MARKET Year of 2017, It's getting better than 2016 Number of House Sales (Turkey- 000) ,5 119,6 119,4 123,8 127,3 112, , ,1 105, ,4 101,5 128,9 114,4 116,5 97,5 115,9 120,2 140,3 122,9 122,7 132,9 37,5 0 84,5 101,7 117,2 106,3 114, ,3 114,7 108,9 130,3 132,7 142,7 Jan Feb March April May June July August Sep. Oct. Nov. Dec. *TURKSTAT EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 18

19 Jan.11 Mar.11 June.11 Sep.11 Dec.11 Jan.12 Mar.12 June.12 Sep.12 Dec.12 Jan.13 Mar.13 June.13 Sep.13 Dec.13 Jan.14 Mar.14 June.14 Sep.14 Dec.14 Jan.15 Mar.15 June.15 Sep.15 Dec.15 Jan.16 Mar.16 June.16 Sep.16 Dec.16 Jan.17 Mar.17 June.17 Sep.17 Dec 17 Jan.18 Feb.18 Mar.18 Jun.18 Sep.18 HOUSING PRICE INDEX Annual Changes In NHPI for Turkey and the three largest Cities % 30 Istanbul Ankara Izmir Turkey 22,5 15 7,5 0 *CBRT EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 19

20 FINANCIAL TRACK RECORD EBITDA margin is watching at high levels EBITDA Margin (%) ,1 35,6 52,7 43,1 41,5 50,6 55,2 56,8 53, Q Key Financials (mn TRY) Q Net Sales 1, , , , , , , ,5 EBITDA , , , ,1 EBITDA margin(%) ,0 Profit for Period , , , ,2 Total Assets 7, , , , , , , , ,0 Shareholder s equity 3, , , , , , , , ,1 Dividend Per Share (TRY) , Return on Equity(%) ,085 Cash Flow 1, , ,298 1, EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION See page for details 20

21 FINANCIAL TRACK RECORD Return on equity continues to increase Total Assets (TRY mn ) Equity (TRY bn) Q Q Profit for Period (TRY mn ) EBITDA for Period (TRY mn ) Q Q EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 21

22 BALANCE SHEET Balance Sheet ( 000) ASSETS Notes 30 Sep 2018 Not Reviewed 31 December 2017 Audited LIABILITIES AND EQUITY Notes 30 Sep 2018 Not Reviewed 31 December 2017 Audited Current Assets Current Liabilities Cash and cash equivalents Short term borrowings Financial Investments Current portion of non-current Borrowings Trade and other receivables Trade and other Payables Inventories Deferred Income Prepaid Expenses Current Provisions Other Current Assets Non - Current Liabilities Non-current Assets Long term Borrowings Trade and other receivables Trade and other Payables Investment Property Deferred Income Property, plant and equipment Long term Provisions Intangible assets Shareholder s Equity Other non-current assets Total Assets Total LiabiIities and Equity EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 22

23 BALANCE SHEET Income Statement ( 000) Summary of Significant Figures ( 000) Notes 1 January- 30 Sep January - 30 Sep Sep 2018 Revenue Cost of Sales(-) Gross Profit General Administrative Expenses(-) Marketing expenses (-) Other income from operating activities Other expenses from operating activities (-) Operating Profit Income from Investing activities Operating profit before financial income / (expense) Financial Income Financial expenses (-) Profit for the period from continued operations Cash flows from operating activities Total Assets 22,950,990 Cost of Land and Residential Unit Inventories -14,911,547 Cost of Investment Property -317,717 Liabilities -10,034,886 Appraisal Value of Land Stock 3,903,128 Appraisal Value of Buildings 2,151,660 Company Share of Total Revenue for RSM 14,550,041 Turn-Key Cost of Purchase + Progress Payments 3,411,942 TOTAL 21,703,611 Cash flows from Investing activities Cash flows from financing activities Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 23

24 RECEIVABLES Strong Receivables from Presales Trade Receivables Off Balance Sheet Deferred Income Total 1 year year year year year and above TOTAL EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 24

25 LAND PORTFOLIO Continue to add high investment value on the lands developed Land Acquisition Breakdown by Cities (sqm) Breakdown of Book Value by Cities Breakdown of Appraisal Values by Cities 0,7% 7,7% 0,5% 3,4% %0,8 %4,2 İstanbul Ankara Other 91,6% İstanbul Ankara Other 96,0% İstanbul Ankara Other %95,0 LAND BANK Land Area Book Value Appraisal Value 3.39 mn sqm TRY 3.38 bn TRY 3.90 bn EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION see page 24 for details 25

26 LAND BANK APPRAISAL SUMMARY TABLE ( TRY ) LINE CITY/DISTRICT SITE AREA(SQM) BOOK VALUE( ) APPRAISAL VALUE( ) 1 Ankara/ Çankaya Mühye Ankara Istanbul/Arnavutköy Istanbul/Ataşehir Istanbul/Başakşehir Hoşdere Istanbul/Başakşehir Ikitelli Istanbul/Esenyurt Istanbul/Büyükçekmece Istanbul/Kartal Istanbul/Küçükçekmece Istanbul/Şile Istanbul/Tuzla Istanbul/Ümraniye Istanbul/Zekeriyaköy Istanbul/Maltepe Istanbul/Sarıyer Istanbul/Bakırköy Şevketiye Istanbul/Başakşehir Istanbul/Başakşehir İstanbul/ Beşiktaş İstanbul/ Zeytinburnu Istanbul Kastamonu/Cide Kocaeli/Gebze Kocaeli/Körfez Tekirdağ/Çorlu Tekirdağ/Çerkezköy Nevşehir Samsun/Canik İzmir Konak Other Cities TOTAL EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 26

27 BUILDINGS APPRAISAL SUMMARY TABLE ( TRY ) LINE CITY/DISTRICT PROJECT NAME NUMBER OF UNITS IN STOCK BOOK VALUE ( ) APPRAISAL VALUE ( ) 1 İstanbul/ Ataşehir Ataşehir, Headquarters Office Building(1) İstanbul/ Ataşehir Varyap Meridian Ankara/ Çankaya Next Level İstanbul/ Kartal İstmarina Headquarters Office and Leased Properties İstanbul/ Sultangazi Batışehir İstanbul/ Esenler Esenler Emlak Konutları İstanbul/ Ataşehir Metropol İstanbul İstanbul/ Ataşehir Sarphan Finanspark Ankara/Yenimahalle Merkez Ankara (2) İstanbul/Zeytinburnu Büyükyalı (3) İstanbul/ Şişli Maslak Kocaeli/ Körfez Körfezkent 4th Stage* Miscellaneous Units Other Total TOTAL Source: Company data (1) One of the office building units is leased with a TRY 425,000 (VAT exc.) rental value monthly. (2) According to tender specifications, these units have been purchased by Emlak Konut. (3) Emlak REIC acquired these units which will be sold. * Provisional Acceptance of this Project has been realized but delivery of units still in progress. That is the reason that these units are being displayed in stock. EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 27

28 ONGOING TURN KEY PROJECTS TABLE LINE CITY/LOCATION PROJECT NAME BOOK VALUE +PROGRESS PAYMENT( TRY) TOTAL # OF UNITS # OF UNITS SOLD (Sep 2018) 1 İSTANBUL/ AYAZMA AYAZMA EMLAK KONUTLARI İSTANBUL/ AVCILAR 3 İSTANBUL/ AVCILAR EMLAK KONUT ISPARTAKULE EVLERİ 1-1 EMLAK KONUT ISPARTAKULE EVLERİ NEVŞEHİR/ MERKEZ NEVŞEHİR EMLAK KONUTLARI İSTANBUL/ AYAZMA AYAZMA EMLAK KONUTLARI ANKARA/MÜHYE BAŞKENT EMLAK KONUTLARI NİĞDE NİĞDE EMLAK KONUTLARI KOCAELİ/GEBZE GEBZE EMLAK KONUTLARI KOCAELİ/GEBZE GEBZE EMLAK KONUTLARI İSTANBUL/KAYABAŞI KUZEY YAKASI ANKARA/MÜHYE BAŞKENT EMLAK KONUTLARI KOCAELİ/GEBZE GEBZE EMLAK KONUTLARI KOCAELİ/ KÖRFEZ KÖRFEZKENT COMMERCIAL TOTAL EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 28

29 COMPLETED RSM PROJECT TABLE( TRY «PROVISIONAL ACCEPTANCE» APPROVED COMPLETELY) NO. PROJECT NAME BASE VALUE OF LAND AT TIME OF THE TENDER EMLAK KONUT S SHARES IN TOTAL REVENUE REVENUE SHARE RATIO(%) EMLAK KONUT S REALIZED VALUE MULTIPLIER 1 ATAŞEHIR RESIDENCE 3,519,000 10,255, ,181, KENTPLUS ATAŞEHIR 72,748, ,100, ,475, IDEALISTKENT 36,600,740 38,100, ,143, AVRUPA TEM KONUTLARI 162,344, ,000, ,075, KÖRFEZKENT 1ST STAGE 11,380,501 15,253, ,260, UPHILL COURT ATAŞEHIR 57,076, ,400, ,875, MY WORLD ATAŞEHIR 127,236, ,850, ,870, SOYAK MAVIŞEHIR 43,600,000 51,600, ,915, NOVUS RESIDENCE 16,408,600 57,750, ,760, MISSTANBUL 56,779, ,050, ,780, KENTPLUS MIMARSINAN 9,732,640 42,120, ,717, EMLAK KONUT PELIKAN PROJESI 20,849,150 67,515, ,123, ÇERKEZKÖY DREAMCITY 3,990,647 10,065, ,624, BIZIMEVLER 2 48,686,587 48,750, ,270, ERGENE VADISI 23,935,426 31,000, ,405, SPRADON QUARTZ 75,291,059 88,520, ,118, MAVIŞEHIR MODERN 25,145,000 27,001, ,434, MERKEZ KAYAŞEHIR 29,440,000 32,000, ,273, ELITE CITY 54,896,071 56,000, ,317, MY WORLD EUROPE 179,089, ,018, ,449, PARKYAŞAM MAVIŞEHIR 51,186,000 60,000, ,168, AVRUPA KONUTLARI ATAKENT 3 240,000, ,000, ,524, SPRADON VADI 50,291,820 50,310, ,770, BULVAR 216 * 10,860,000 52,200, ,880, STANBUL 102,555, ,000, ,434, ŞEHRIZAR KONAKLARI 105,535, ,700, ,371, VARYAP MERIDIAN 214,793, ,189, ,569, MY TOWERLAND 42,000, ,019, ,766, SOYAK PARK APARTS/ EVOSTAR 72,904, ,312, ,312, EVORA ISTANBUL 47,815, ,903, ,362, EVORA ISTANBUL MARMARA 49,868, ,600, ,077, AVRUPA KONUTLARI TEM 2 42,910,000 73,328, ,925, DUMANKAYA MIKS 37,590,590 82,502, ,610, KUASAR ISTANBUL 237,485, ,337, ,638, BATIŞEHIR 351,665, ,000, ,782, BAHÇETEPE ISTANBUL 110,649, ,100, ,630, SEYRANŞEHIR 23,170,000 51,520, ,365, NIDAKULE ATAŞEHIR 63,551, ,231, ,736, SARPHAN FINANS PARK 51,786,200 61,500, ,015, BULVAR ISTANBUL 128,386, ,440, ,162,918, METROPOL İSTANBUL 290,998, ,971, ,037,156, BAHÇEKENT FLORA 55,245,000 80,832,000 25,26 123,404, PARK MAVERA 124,615, ,000,000 30,00 422,631, SOFALOCA 36,547,140 54,000,000 30,00 54,000, AVRUPA KONUTLARI BAŞAKŞEHİR 115,200, ,400,000 40,00 350,400, GÖL PANORAMA , ,51 TOTAL ,32 The Weighted Average of Emlak REIC Revenue Share Ratio(%) EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION Source: Company data * Bulvar 216 project has been completely sold with its current status. 29

30 ONGOING RSM PROJECTS TABLE ( TRY - FIGURES BASED ON THE AGREEMENTS ) LINE PROJECT NAME BASE VALUE OF LAND AT TIME OF EMLAK KONUT S SHARE REVENUE SHARE TENDER IN TOTAL REVENUE RATIO(%) MULTIPLIER 1 AĞAOĞLU MASLAK 1453 İSTANBUL ,50 1,91 2 KÖY ,25 1, and pre ISTMARİNA ,00 2,49 4 FATIH YEDIKULE ,01 1,56 5 EVVEL İSTANBUL ,00 1, BÜYÜKYALI İSTANBUL ,00 2,16 7 AVRUPARK ,00 2,46 8 KOCAELİ, DERİNCE ,61 1,19 9 TUAL ADALAR ,50 1, KARAT ,00 2,70 11 NİDAPARK İSTİNYE ,10 1,77 12 TUAL BAHÇEKENT ,26 2,38 13 TEMAŞEHİR KONYA ,00 2,49 14 AVANGART İSTANBUL ,00 5,49 15 MERKEZ ANKARA ,00 2,02 16 NİDAPARK KAYAŞEHİR ,00 3,47 17 EVORA DENİZLİ ,00 1,24 18 KOORDİNAT ÇAYYOLU ,00 1,89 19 VALİDEBAĞ KONAKLARI ,15 4, OFİS KARAT BAKIRKÖY ,00 1,94 21 YENİKÖY KONAKLARI ,00 3,62 22 EBRULİ ISPARTAKULE ,00 1,83 23 AVRUPARK HAYAT ,00 1,88 24 SEMT BAHÇEKENT ,00 1,74 25 NİDAPARK KÜÇÜKYALI ,00 2,14 26 AVCILAR ISPARTAKULE 6th Stage ,00 1, ZEYTİNBURNU BEŞTELSİZ ,00 1,53 28 BEYKOZ RİVA* ,00 2,40 29 TUZLA İÇMELER ,15 2,18 30 İZMİR KONAK 1st Stage* , İZMİR KONAK 2nd Stage* ,00 2,43 32 ŞİLE ÇAVUŞ ,00 1,50 33 ANTALYA MURATPAŞA ,50 1,59 34 KÜÇÜKÇEKMECE 2nd Stage ,55 1, ANKARA ÇANKAYA ORAN ,00 1,20 36 İSTANBUL TEŞVİKİYE ,00 1,55 37 İSTANBUL BAKIRKÖY FLORYA ,00 3,62 38 İSTANBUL ÇEKMEKÖY TAŞDELEN ,00 1, TOTAL Average Multiplier 2,02 EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION Source: Company data * In these tenders, Emlak REIC owns 20% of the Min. Company Share and 80% will belong to the land owners. 30

31 MEMBERS OF THE BOARD OF DIRECTORS NAME DUTY PROFESSION PRESENCE IN BOARD IN BEHALF OF THE SHAREHOLDER FIRST ELECTED TO POSITION ERTAN KELEŞ CHAIRMAN CIVIL ENGINEER MEHMET ÖZÇELİK VICE CHAIRMAN CIVIL ENGINEER TOKI 2016 HAKAN GEDİKLİ MEMBER, GM SURVEY ENGINEER SAMİ ER MUHTEREM İNCE HAVVANUR YURTSEVER MEMBER MEMBER MECHANICAL ENGINEER PUBLIC ADMINISTRATION TOKI 2015 INDEPENDENT 2017 MEMBER LAWYER INDEPENDENT 2014 SİNAN AKSU MEMBER HISTORY INDEPENDENT 2018 EMLAK KONUT REIC 3Q 2018 INVEST OR PRESENTAT ION 31

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