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INVESTOR PRESENTATION June 2011

INVESTOR PRESENTATION June 2011. 1. 1. 3. 2. 2. > In the developed economies, final demand is unlikely to demo n strate a strong recovery in the near future. The world needs anchor countries growing at a dynamic pace. These countries should have the following characteristics:

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INVESTOR PRESENTATION June 2011

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  1. INVESTOR PRESENTATION June 2011 1 1

  2. 3 2 2

  3. >In the developed economies, final demand is unlikely to demonstrate a strong recovery in the near future.The world needs anchor countries growing at a dynamic pace. These countries should have the following characteristics: 1.Young population to support growth and spending 2.Low debt burden to feed credit channels 3.Diversified economy to generate employment opportunities and long term growth 4.Capital accumulation to finance high savings or growth >Turkey meets with the first three out of these four criteria 3 3

  4. Economic Highlights Real GDP Growth Fiscal Balances as % of GDP Source: EIU (May 2011) Source: EIU (May 2011) Interest Rates Consumer Price Inflation 4 4 Source: EIU (May 2011)

  5. EconomicHighlights Consumer loans and mortgage loans (bn TRY) Loan Growth (%) Source: Turkish Statistical Institute(January 2011) Source: Turkish Statistical Institute (annualized as of March 25, 2011) 5 5 Source: Central Bank (February 2011) Source: Central Bank (May 2011)

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  8. MCAP & NAV of the REIC Sector 8 8

  9. Relative post-IPO performance of Torunlar REIC’s share 9 9

  10. Turkish economic outlook Listed REIC's Financial review Developmentreview Future outlook Appendix (Portfolio review) 10

  11. Shareholding Structure 11

  12. Strategy highlights • Strategy focus • Primary focus on development of shopping malls • Increased focus on mixed-use projects • Creating ‘life centres’ with extensive leisure and entertainment avenues • Focus investments in urban centres with limited supply • Developing residential neighbourhoods in cities with good connectivity to metro etc. • Opportunistic investments in non shopping mall related projects • Development portfolio • Successful track record of liaising with local municipalities in contributing to and working on urban transformation projects • Leverage the development platform for performing value-addingtasks such as land development, funding and identify potential growth areas of development • Opportunistic development of other asset classes • Leverage track-record of JV development • Access to attractive development opportunities • Diversification of risk • Asset management • Active asset management targeting occupancy optimisation and rent increase • Active refurbishment and extensions in-line with increased demand and evolving consumers and market trends • Tenant rationalisation opportunities • Ensure appropriate shop and tenant mix • Leveraging Torunlar Group’s reputation and network of contacts to attract known Turkish/international  tenants 12

  13. 1977 1996 1999 2004 2005 2007 2008 2009 2010 History of Torunlar REIC–key milestones • Construction for the company’s needs and third party use (small-scale residential units) • Active in the Turkish construction and real estate market since 1977 • Torunlar bought the land to be used for Torun Tower • Delivery of Korupark Residences phases I&II • Torunlar REIC became a listed company as of October 21st, 2010, emerging as one of the biggest listed Turkish real estate companies • Opening of one of the biggest shopping malls in Turkey, Korupark • The residential compound at Korupark was Bursa’s first gated community • Foundation of Toray Construction • Acquisition of the Netsel Marina in Marmaris • Delivery of Nish İstanbul residences and offices • Opening of the biggest outlet of Antalya,Deepo Outlet • Opening of Zafer Plaza; the first shopping mall of Bursa • Conversion to Torunlar REIC • Opening of the biggest mall in Turkey in 1999, Ankamall • Torunlar bought the land for the Mall of Istanbul project, which will be one of Turkey’s largest mixed use projects including a shopping mall, residences, offices and a hotel • Opening of Torium Shopping Mall, October 30th, 2010 • Torium Shopping Mall is the 3rd largest shopping mall in Istanbul 13

  14. Key investment highlights • 2nd largest listed retail property company in Turkey • Included in ISE National XU 100, MSCI Turkey, EPRA indices • Portfolio value: TRY3.2 bn (2011/03) • Gross rental income: TRY 42.0 m(2011/03) • Market capitalisation: TRY1,5 bn(31/03/2011) • Listed on 21.10.2010 on Istanbul Stock Exchange • Diversified investment portfolio • 5 cities, Istanbul added in October 2010 • Portfolio ‘primarily’retail (76% shopping centres) • Resilient operations: 98% occupancy rate (2011/03) • Financial strength • Healthy financial structure with leverage at 25.4 % • Stable shareholder structure with 25.16 % free float 14

  15. Breakdown of Portfolio Value 15

  16. Shopping Mall Portfolio Zafer Plaza (SM) Korupark (SM) Ankamall+ Crowne Plaza (SM+Hotel) Deepo Outlet Centre (SM) Occupancy 99% Occupancy 97% Occupancy 100% Occupancy 100% Occupancy 99% Istanbul Black Sea Region (Karadeniz Bölgesi) Samsun Bursa Ankara Marmara Region (Marmara Bölgesi) Eastern Analtolia Region (Doğu Anadolu Bölgesi) Kutahya Izmir Central Anatolia Region (Iç Anadolu Bölgesi) Aegean Region (Ege Region) Southeastern Anatolia Region (Güneydoğu Anadolu Bölgesi) Mugla Antalya Key portfolio information Mediterranean Region (Akdeniz Bölgesi) Torunlar REIC’s presence Additional target cities Torium Istanbul (SM) 16

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  18. TURKEY SHOPPING MALL SALES TURNOVER AND FOOTFALL 19

  19. Footfall and turnover(March 2011) *Ankamall and newly opened Torium excluded Source: Council of Shopping Centers Turkey 20

  20. Resilient retail operations through active hands-on management. (1)72,26% share. Receives rental income. 21 21

  21. Shopping centers by value 22 22

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  23. Financial highlights

  24. Financial highlights 25 25

  25. Maturity of Financial Loans (TRY m) 63%USD, 35%€, 2%TRY *The graph excludes TRY 516.4 m of cash and cash deposits and long-term financial investments as of March 2011. 26 26

  26. 1 2 3 4 Income statement Rental revenues relate to the rental income from operating shopping malls. Other revenue consists of electricity sales income, excavation site rent income, construction site rent income and sales of other services and goods. 2 1 Share of profits of associates are minority stakes in assets held by Torunlar REIC. The latter in counterparty receives dividends from those assets. The split is into ‘dividends from associates’ which are considered as recurring item and the gain in fair value adj. of Investment Properties’ are considered non recurring. 3 3 Financial income includes gains and loss of financial instruments as well as the sale of share of profits from associates. 4 Note: Sales are accounted when properties are physically transferred to buyers1 EBIT includes operating profit and share of profits from associates excluding any effect of fair value changes2 EBITDA = EBIT + Depreciation expenses ³ Excludes fair value gains/losses from “Investment Properties” and financial instruments 27 27

  27. 1 1 2 2 Balance sheet (‘000 TL) Inventories consist of construction cost of housing units (completed and in progress) as well as the cost of land used for these residential projects. In addition lands for future development of residential projects are also included in this line-item 1 Investment properties are properties held for long-term rental yields and/or for capital appreciation. This also includes landbank on which asset to be held for long term usage is planned. 28 28

  28. Financing ratios‘Strong financing ratios’ 29 29

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  30. Evolution of the Projects (m2) 31

  31. GLA Breakdown by City İstanbul grasps a larger share by 2014, overtaking Bursa. 32 32

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  33. Future Outlook • The company will capitalise on its expertise to further extract operational efficiency from its shopping malls under its management. • All the projects in the pipeline will start this year and be completed by 2013-2014. • Total sales in 2011 are expected to reach TRY 150 million with 40% derived from residential sales. • No new opening or delivery will take place in 2011. The major part of sales revenue will come from shopping malls including Torium which will operate full year. • As EBITDA of shopping malls is at around 80%, company EBITDA is expected to be higher than in 2010 at TRY 90 million. • For the upcoming years, 10% annual LFL growth is forecast in rental revenues. • The company will chase further acquisition opportunities with its favorable cash position. 34 34

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  36. Ownership Torunlar REIC (72.26%) • The Property is located at the most central part of the city • Close to the metro station, on major public transportation routes and at the junction of intercity roads • The property includes a movie theater with six screens and an amusement park for children and teenagers • In 2000, Zafer Plaza was selected "The Best Shopping Centre" by the AMPD, Trade Council of Shopping Centres and Retailers • Majority of rents (64%) are USD denominated Operational date 1999 Leasable are (m²) 23,449 (REIC share 16,944) Occupancy (m²) (as of date) 98% (as of March 2011) Number ofstores 125 4% anchors (30% of GLA): Migros, YKM, Bimeks and Boyner Anchor tenants Breakdown–tenants (GLA) Breakdown–income Appraisal value TL143.2mm (US$92.6mm)¹ 1.8 years Average lease term as of Mar-2011 Kiosk 0.5% Leisure goods 1% Average LTM NOI (per TL/m²/month) TL42.6 Leisure goods 1% Restaurant 2% Restaurant 2% Fashion 37% Leasehold / Freehold status Freehold Kiosk 3% Jewellery 3% Rental income (Mar 2011), last 12 months TL11.6mm Jewellery 5% Fashion 43% Footwear 3% Health beauty 5% Home 5% Home 5% Service 5% Footwear 5% Food café 6% Service 7% Health beauty 7% Food café 8% 37 37 Dept & Anchor 15% Dept & Anchor 33%

  37. Korupark shopping mall • Korupark is the largest shopping mall in Bursa and is located on the Mudanya Highway in the Nilüfer neighbourhood • The property has three retail floors and two carpark floors with a capacity for 2,500 cars underground and 500 above ground • The property includes a hypermarket (12,000m²), a do-it-yourself store (5,127m²), cinema complex (nine screens) and entertainment area (amusement park, children play centre)totalling 5,317m² • Most of the rents (86%) at the shopping mall are Euro denominated Ownership Torunlar REIC (100%) Operational date H2 2007 Leasable are (m²) 71,267 Occupancy (m²) (as of date) 97% (as of March 2011) Number of stores 181 (39% of GLA): Tesco, Koçtaş, Beymen, C&A, Boyner and Electro World Anchor tenants Breakdown–tenants (Income) Breakdown–tenants (GLA) Appraisal value TL540.5mm (US$349.6mm)¹ Storages 1% Average lease term as of Mar-2011 2.4 years Kiosk 2% Kiosk 0.5% Fashion 41% Dept & Anchor 44% Average LTM NOI (per TL/m²/month) TL36.4 Leisure goods 4% Jewellery 1% Restaurant 4% Storages 2% Leasehold / Freehold status Freehold Health beauty 4% Restaurant 2% Jewellery 4% TL36.8mm Rental income (March 2011), last 12 months Health beauty 2% Home 5% Food 3% Footwear 7% Home 3% Service 7% Footwear 4% Food 8% Fashion 26% Service 4% Dept & Anchor 14% Leisure goods 9% 38 38

  38. Korupark Residences Phase I & II Ownership Torunlar REIC (100%) Startof construction May, 2006 Date of completion Phase 1: January 2008/Phase 2: December 2008 Operational date February 2008 Total investment TL107.3mm (US$74mm) Units sold (%) 87% (as of March 2011) Appraisal value (remaining units)¹ TL50.1mm (US$32.4mm)¹,² Leasehold / Freehold status Freehold • Located on the western side of Bursa (adjacent to Korupark Shopping Mall), the property is a residential settlement of luxurious units with sports and recreation facilities • The project is the first gated community in Bursa • Phase I: 343 units, six blocks • Phase II: 403 units, seven blocks • For Korupark residences I/II, sales are Turkish Lira denominated 39

  39. Korupark Residences Phase III Ownership Torunlar REIC (100%) Estimated start of construction 2011 Estimated date of completion 2012 Estimated operational date 2012-2013 Estimated investment TL87.3mm (US$56.5mm) Appraisal value TL50.4mm (US$32.6mm)¹ Leasehold / Freehold status Freehold Number of residential units/GSA 680 units / 102.000 m2 residence • The property, adjacent parcel to Korupark phase I & II, is a luxurious housing settlement that includes residences and office units • For Korupark Residences Phase III, sales will be denominated in Turkish Lira Current status Under construction Map of Korupark Korupark Residences Phase I & II Korupark Residences Phase III Korupark Residences Phase I & II Korupark Residences Phase III Korupark Shopping Mall • Note: Exchange rate US$/TL=1.5460 as of December 31, 2010¹ Prime appraisal report (based on the CMB standards as of December 31, 2010) 40 40

  40. Leisure goods 1% ATM & Kiosks 1% Heath Beauty 1% Heath Beauty 1% ATM & Kiosks 2% Leisure goods 1% Jewellery 2% Jewellery 3% Fashion 62% Fashion 70% Service 2% Service 3% Home 3% Home 3% Restaurants 6% Food 4% Food 8% Restaurants 5% Footwear & Access. 11% Footwear & Access. 10% Antalya Deepo outlet mall–Antalya Breakdown–income Breakdown–tenants (GLA) • Antalya Deepo is the biggestoutlet in the Mediterranean region. • The property is located close to the Antalya Airport • The mall attracts annual foot traffic of c.5 mm • For Antalya Deepo, majority of rents (82%) are denominated in EURO • Zoning of this region is expectedto be approved in 2011. • Deepo Antalya is not directly held by Torunlar REIC, but is instead • held by a subsidiary which is 100% owned by Torunlar REIC Source: Company as of Dec 31, 2010 Ownership Torunlar REIC (100%) Operational date Leasable area (m²) October 24, 2004 18,069 Occupancy (%) (as of date) 100% (as of March 2011) Antalya Deepo extension project Number of stores 81 Anchor tenants LCW, Ayakkabı Dünyası, Mudo City, Collezione, Sarar, Aydınlı Group Appraisal value TL180.5mm (US$116.7mm)¹ Average lease term as of March 2011 2.8 years Average LTMNOI (per TL/m²/month) TL49.8 Leasehold / Freehold status Freehold Rental income (Mar 2011), last 12 months TL13.7mm Ownership Torunlar REIC + Hastalya Estimated start of construction July 2011 Leasable area (m²) Estimated date of completion 26,651 March 2012 41 41 Estimated operational date March 2012 Estimated investment TL31.2mm (US$20.2mm) Leasehold / Freehold status Partially freehold, partially leasehold from Hastalya Current status Under zoning process

  41. Ankamall shopping mall + Crowne Plaza hotel–Ankara • Ankamall is located in Yenimahalle, in the centre of Ankara. The shopping mall is considered to be the largest in Ankara and third largest in Turkey • Ankamall is owned by Yeni Gimat which was formed as a cooperative with over 1000 investors, and in which Torunlar REIC currently has 14.83% stake, making it the largest shareholder as of December 31, 2010 • The property includes the Crowne Plaza Hotel which is a 21–storey building with 263 rooms • For Ankamall, the rents in Phase 1 are denominated in Turkish Lira, while the rents in Phase 2 are denominated in USD Dividends - Torunlar REIC share (TLmm)² Ownership Yeni Gimat in which Torunlar REIC holds (14.83%) Operational date Leasable area (m²) 1999¹ 88,421³ (REIC’s share 13,112) 100% (as of December 2010) Occupancy (%) (as of date) Number of stores 318 Number of rooms 263 Migros, Koçtaş, Tepe Home, Electro World, Boyner, Mudo City, Marks&Spencer, LCW Anchor tenants TL137.9m (US$89.2mm)³ Appraisal value (REIC share) Leasehold / Freehold status Freehold 42

  42. Mall of Istanbul–Istanbul Ownership TorunlarREIC(100%) Estimated start of construction H12011 Estimated date of completion H2 2013 Estimated operational date H1 2013 Estimated investment c.TL500.0mm (US$323mm) Number of residences/ GSA-GLA 135.000 m2 GLA mall, 116.000 m2 GSA residence 30.000 m2 GLA office Appraisal value TL637.1mm (US$411.5mm)¹ Leasehold / Freehold status Freehold Current status Under construction • Mall of Istanbul is a mixed-use project with a large shopping mall development along with residential, officeunits • It is expected to be one of the largest mixed-use projects in Turkey • Planned to be built with 135.000 m² GLA enriched with 16,000 m² kids entertainment, 7,200 m² snowpark, cinema complex and conference / performance hall¹ • Mall of Istanbul is well connected to the city centre through the D100 and TEM highway. In addition, the site is located within 5km of the airport • For the Mall of İstanbul, rents will be denominated in USD. Sales will be denominated in Turkish Lira • Presales commenced on 23.04.2011 and 396 units were presold until 10.05.2011. • On 31.05.2011, the company signed USD 250 million loan agreement with Is Bank of Turkey for a term of 10 years with 3 years grace period. Breakdown–Area¹ (GLA/GSA) 43 43

  43. Torium Istanbul shopping mall–Istanbul Ownership Torunlar REIC Start of construction H2 2008 Date of completion October 30th, 2010 Operational date October 30th, 2010 Number of stores 180 Appraisal value* TL549.8mm (US$355.1mm)¹ Leasehold / Freehold status Freehold GLA / GSA 95.280 m2 GLA retail 5.318 m2 GSA resi Rental income 2011 F TL 35 mm GLA/GSA split¹ (‘000m²) GLAsplit¹ (‘000m²) • Torium is a mixed-use project of retail and residential use • It is located at the centre of high density residential settlements along one of the two major highways of Istanbul • The shopping mall provides a broad range of leisure and entertainment facilities • Majority of rents (72%) at the shopping mall are denominated in USD • Residential sales are expected to bedenominated in Turkish Lira Residential5% MSU & small stores35% Café/ Rest.5% Anchor 25% Others4% Retail95% Hypermarket 10% Electronic stores4% Entertainment 15% 44 44

  44. Boulevard Samsun Shopping Mall Area breakdown Land : 17.400 m2 Total Construction Area : 37.500 m2 Gross Leasable Area Mall : 14.700 m2 Office : 1.200 m2 Completion date Construction permit : Sept. 2010 Start of construction : Nov. 2010 End of construction : Q1 2012 Capex TRY 10.2mm(US$6.6mm) Appraisal vale TRY 16.1mm(US$10.4mm)

  45. Torun Tower–Istanbul Ownership TorunlarREIC (100%) Estimated start of construction 2011 Estimated date of completion 2013 Estimated operational date 2013 Estimated investment c.TL128.3mm (US$83mm) Appraisal value TL237.7mm (US$153.8mm)¹ Leasehold / Freehold status Freehold Current Status Under project development Breakdown–Area (GLA) Other4% • The property is located at the city centre in one of the most expensive commercial districts of Istanbul • It also has a subway connection • 40 floor high-rise tower is planned • The building is planned to be a landmark for the city with very modern architecture and construction technology • The Property is planned as a mixed-use project with office and retail units and will be leased. • For Torun Tower, leases will be denominated in USD Office96% 46 46

  46. NishIstanbul mixed use project–Istanbul Ownership Torunlar REIC (60%) Start of construction H2 2008 Date of completion November2010 Operational date August2010 Number of residences / Sellable area (m²) 585 / 53,204 Number of offices / Sellable area (m²) 63 / 16,925 Number of retail units / Leasable area (m²) 52 / 10,937 Appraisal value TL32.5mm (US$22.4mm)³ Leasehold / Freehold status Freehold • Located on the west-side of Istanbul in Yenibosna, 1.5 km away from Istanbul Atatürk Airport • Three residential blocks, one office block and retail units • As of March 2011, 58 offices and 574 residences were delivered. Remaining 34 retail units will be leased • For NishIstanbul, sales are denominated in Turkish Lira 47 47

  47. Mecidiyeköy mixed-use project–Istanbul Location Istanbul Torunlar REIC (65%), Ascioglu (30%), Kapıcıoğlu (5%) Ownership Estimated start of construction H2 2011 Estimated date of completion H2 2014 1. Torunlar’s share Estimated operationaldate H22014 Estimated investment c.TL463.8mm (US$300mm) * Land acquired Revenue Share (45%) Land area (m²) 34.640 Sellable area (m²)1 GSA 55.978 m2 resi, 53.771 m2 office GSA 13.870 m2 retail Mixed–useproject Format Name of architect Emre Arolat Architects P O R T F O L I O   O V E R V I E W  Number of residences 593 Appraisal value TL505.4mm (US$326.9mm)¹* Leasehold / Freehold status RevenueShare Current status Under project development • Mecidiyeköy is a mixed-use project with unit residential complex, along with office and retail units. • Its’ location is in the city center, on the land where the ex-stadium of Galatasaray is located. • The project is planned on three high-rise blocks of 40 storey's each. Two of the blocks will be used as residential, one block will be developed as A- Class Office Tower. All of them will be sold. • For the Mecidiyeköy Project sales will be denominated in Turkish Lira. 48 48

  48. Source: Jones Lang LaSalle 49 49

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