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Akiş REIT 1Q18 Performance Presentation

May 2018

Breaking News

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Akiş REIT has been included in FTSE EPRA/NAREIT Global Emerging Markets Index as of 19 March 2018.

On 10/04/2018, European Bank for Reconstruction and Development (EBRD) invested c.TL102mn (US$25.2mn equivalent) to Akiş REIT along with some other

individual/institutional investors during the ‘’Accelerated Book Building Process’’ to sell 17.39% shares bought back during the merger process with SAF REIT.

This is the first time the EBRD is investing in a publicly-listed real estate company in Turkey and it is also the Bank’s first equity capital market transaction in

the country.

The EBRD acted as an anchor investor and helped attract TL 243,679,050, or equivalent of US$ 60 million, from domestic and foreign investors with demand for shares

exceeding the offering. This transaction will result in c. TL50mn other income in the statutory tax financials.

EBRD’s investment will help to support sustainable retail and residential developments and will result in concrete strategic action plan that involves the following;

Current dividend policy will be amended not later than 1 April 2019 so that, in respect of

each of the 2018-2021 Financial Years, in an aggregate amount at least equal to the lower of

(i) an amount representing 100% of the Company's distributable profits for the relevant

Financial Year and (ii) the Turkish Lira equivalent of USD 20,000,000.00 will be declared and

paid to shareholders

The investment will support the development of environmentally friendly and sustainable real

estate projects in retail and residential sectors as follows;

-> Akiş REIT is aiming to achieve a minimum LEED Silver certification for the Beykoz

residential development which will be financed with the proceeds of the Bank’s investment.

EBRD has obtained a letter of undertaking

from its shareholders holding shares

corresponding to 50.75% of its share

capital to ensure that:

Details of the Share Sales

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Ali Raif Dinçkök;

24,19%

Akkök Holding A.Ş.;

14,66%

Nilüfer Çiftçi; 9,21%

Emniyet Ticaret ve

Sanayi A.Ş. ; 8,99%

European Bank for

Reconstruction and

Development; 7,36%

Raif Ali Dinçkök;

6,56%

Others; 29,03%

Current Shareholder Structure

EBRD; 42,31%

Foreign Funds;

2,59%

Local Funds/Brokerage

Houses; 5,82%

Local

Individual/Institutional;

49,29%

Percentage of Shares Sold by type of investor

61,9%

23,4%

4,8%

0,7%

9,2%

Akasya Shopping Center Akbati Shopping Center Suadiye Beymen Other Assets Inventories

Breakdown of Portfolio

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Turkey Shopping Mall Market Overview

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345363

379

415

463 465

2014 2015 2016 2017/09 2018E 2019E

103,8

119,2

137,5

150,4

2016 2017 2018E 2019E

15.4%

9.4%

Number of Shopping Malls Shopping Malls Turnover (TLbn)

8.600.000; Local;

72,9%

2.722.001;

Foreign; 23,1%

471.750; Mix; 4,0%

Source: https://assets.kpmg.com/content/dam/kpmg/tr/pdf/2018/01/sektorel-bakis-2018-perakende.pdf

Breakdown of Investments by Investor (sqm) Competition is getting more intense every year

Planned supply and demand dynamics should be more carefully

analysed than ever

Shopping Malls are not just malls but living spaces where

technology and social media intersect

Location; closeness to customer is more important than ever

İstanbul is home to c.40% of Gross Leasable Area

Akasya Shopping Mall still holds its title as the only almost fully

let A+ shopping mall status on the Anatolian side of Istanbul

whereas Akbatı Shopping Mall is still the very first and only

attraction centre in its hinterland

14.8%

Overview of Our Commercial Portfolio

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Akasya Commercial Center Akbatı Commercial Center Suadiye Beymen

Opening Date 2014

Number of Shops 261

Gross Leasable Area (sqm) 80.000

Occupancy Rate 98%

Rent per sqm US$66/month

Rent for last Full Year US$57mn

International Awards 91

Opening Date 2011

Number of Shops 173

Gross Leasable Area (sqm) 65.500

Occupancy Rate 99%

Rent per sqm US$32/month

Rent for last Full Year US$23mn

International Awards 87

Opening Date 2017

Number of Shops 1

Gross Leasable Area (sqm) c.5.000

Occupancy Rate 100%

Rent per sqm US$60/month

Rent for last Full Year n.a.

International Awards -

Akasya Shopping Mall

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Akasya Shopping Mall

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97,3%

96,4% 96,5%

96,0% 95,9%

96,7%

95,9%

96,4%

95,4% 95,3%

98,5%

97,7%97,9%

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Occupancy Ratio ~ Near All Times High

8,46

10,85 10,71 10,44

3,96

2014 (9M) 2015 2016 2017 2018 (4M)

Average Store Tenure (month)

Akasya Shopping Mall turnover rose by c.16% in 1Q18 (YoY)

1Q15 1Q16 1Q17 1Q18

Income breakdown

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Rental Revenue Revenue on Turnover Turnover Top-Up Revenue Other Revenue

Akasya Shopping Mall – Store Mix by Size (sqm)

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49,5% 49,7% 50,8% 49,0%

7,5% 7,5% 7,2% 9,1%

14,9% 14,3% 14,0% 14,3%

21,0% 20,8% 20,5% 20,1%

5,2% 5,7% 5,7% 5,7%

1Q15 1Q16 1Q17 1Q18

1,000 – 10,000 500 - 1,000 250 - 500 100 -250 50 - 100 0 - 50

Akasya Shopping Mall

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Akasya Shopping Mall posted significant turnover increase (c.16%) YoY despite flat # of visitors

Yet, there has been slight increase in car entrance figure

Thus, core Akasya visitors remained almost unchanged

Net Operational Margin stood out at c.82% vs. c.77% average over the last three years due mainly to;

Effective cost management

Rise in complimentary income

Income yield

Akasya Shopping Mall (US$mn) 2015 2016 2017 1Q18

Revenue 58,4 58,9 57,5 15,5

NOI 44,5 45,0 45,3 12,7

EBITDA 45,5 45,9 46,0 12,9

Latest Appraisal Value 603,8 627,6 631,0 631,0

Yield 7,54% 7,31% 7,30% 7,58%

Akbatı Shopping Mall

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Akbatı Shopping Mall

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Occupancy Ratio ~ Near All Times High Average Store Tenure (month)

Akbatı Shopping Mall turnover rose by c.20% in 1Q18 (YoY)

98,5%98,3%

98,0%

97,6% 97,6%

98,3%98,6%

98,4%

96,3%

97,9% 98,0%

99,1%

98,7%

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

11,2210,60 10,85

10,4810,99

10,64

3,77

2012 2013 2014 2015 2016 2017 2018 (4M)

1Q15 1Q16 1Q17 1Q18

Income breakdown

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Rental Revenue Revenue on Turnover Turnover Top-Up Revenue Other Revenue

Akbatı Shopping Mall– Store Mix by Size

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58,3% 57,2% 58,7% 57,3%

10,6% 11,4% 11,2% 11,9%

9,0% 10,0%10,2% 10,7%

15,2% 14,4% 13,6% 13,7%

5,6% 5,8% 4,8% 5,1%

1Q15 1Q16 1Q17 1Q18

1,000 – 10,000 500 - 1,000 250 - 500 100 -250 50 - 100 0 - 50

Akbatı Shopping Mall

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Akbatı Shopping Mall posted significant turnover increase (c.20%) YoY coupled with c.3% rise in the # of visitors due to;

Akbatı’s unique shopping mall status in its hinterland

Net Operational Margin stood out at c.73% vs. c.71% average over the last three years due mainly to;

Effective cost management

Rise in complimentary income

Income yield

Akbatı Shopping Mall (US$mn) 2015 2016 2017 1Q18

Revenue 23,8 24,1 23,2 6,1

NOI 16,5 16,7 16,9 4,4

EBITDA 16,6 16,8 17,1 4,4

Latest Appraisal Value 267,4 253,5 239,4 239,4

Yield 6,22% 6,64% 7,13% 7,37%

Our Portfolio vs. Market

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Turnover Change YoY

Visitors Change YoY

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec

-16

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

Dec

-17

Jan

-18

Feb

-18

AYD Akasya Akbatı

-10%

-5%

0%

5%

10%

15%

20%

25%

Jan

-16

Feb

-16

Mar-

16

Ap

r-16

May-1

6

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec-

16

Jan

-17

Feb

-17

Mar-

17

Ap

r-17

May-1

7

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

Dec-

17

Jan

-18

Feb

-18

AYD Akasya Akbatı

High Street Retail Projects

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We are developing four retail oriented units that will fit the texture of the city and reflect the company’s vision; in Erenköy, Caddebostan and Suadiye,

located on Bağdat Street, one of the most coveted shopping streets in Istanbul with a total investment value of US$185mn (US$170mn realized).

Expected Opening Dates: 2018-2019

Gross Leasable Area: 12.000 m2

Gross Sellable Area: 2.000 m2

Exp. Yearly Rental Income: USD8.5mn

Expected Sales Revenue: USD27mn

Opened in September 2017, Suadiye Beymen adds to the

prestige of Bağdat Street with its spectacular interior and

exterior architecture

15-year lease contract with a well known retailer: Beymen

USD3.6mn rental income per annum

(7.37% yield based on 2017YE appraisal value)

Our Track Record on High Street Retail

Beykoz Projects

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We plan on developing a residential/commercial project in Beykoz, one the most upmarket districts in Istanbul, seizing the opportunity of supply deficit

in the region. The expected date for the project kick-off is 2019.

Project Kick-Off Date: 2019

Project Area: 45.000 m2

Expected IRR: 25% (in TL terms)

Expected Project Income: TL350mn

Total Investment Value: TL230mn

(TL85mn realized)

Investment Rationale:

• Limited modern residential supply in the area

• Most of the available land plot is protected area

• Residential density one the lowest of Istanbul

• Looking over the forest and the sea

• New and upcoming infrastructure will make commuting easier

Financial Performance Overview

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18,2

65,9

92,1

7,9

39,7

61,6

3,3

203,1

-18,71Q16 1Q17 1Q18

Revenue EBITDA Net Income

65,9%

73,5% 75,8%

43,6%

60,3%

66,9%

1Q16 1Q17 1Q18

Gross margin EBITDA margin

2,5

3,5

1,8

1Q16 1Q17 1Q18

1,5

1,9 1,9

1Q16 1Q17 1Q18

Average Debt Maturity has fallen significantly due to hefty previously long term

payments being now recorded as short term. We target to lengthen average debt

maturity in 2018.

EBITDA/Interest Expense

EBITDA margin improved thanks to c.37%* rise in store rent revenues and

significant jump in other revenues coupled with a good cost management

Net Loss of 1Q18 is mainly due to negative impact of FX volatility

c.TL182mn

stem from

one-off

merger profit

(TLmn)

*unadjusted for last year’s merger, adjusted figure is 20%

Akiş REIT Share Summary

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0,00

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Opening Low High Closing Average

11.8% market capitalization return YoY in 1Q18 closing vs. 1Q17 closing

194.295 112.304 81.482 54.149

801.756346.545 148.478 154.744

1.183.191

2.269.446

1.432.507963.482

1.454.226

0

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Low High Average

22.9% YoY increase in average daily volume to c.TL1.5mn vs. c.TL1.2mn

Communication

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Ozan Hançer

Director

Strategic Planning, Business Development and Investor Relations

E-mail: ozan@akisgyo.com

Telephone: +902123930100

Sercan Uzun, CFA

Assistant Manager

Investor Relations, Strategic Planning and Business Development

E-mail: sercan.uzun@akisgyo.com

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 : investor.relations@akisgyo.com