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2010 ANNUAL EVALUATION MEETING 07 April 2011

2010 ANNUAL EVALUATION MEETING 07 April 2011. 1. 3. 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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2010 ANNUAL EVALUATION MEETING 07 April 2011

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  1. 2010 ANNUAL EVALUATION MEETING 07 April 2011 1

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  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

  4. Economic Highlights Real GDP Growth Fiscal Balances as % of GDP Source: EIU (February 2011) Source: EIU (December 2010) Interest Rates Consumer Price Inflation Source: Turkish Statistical Institute - Central Bank of Turkey (Feb. 2011) 4

  5. Economic Highlights ConsumerConfidence Industrial Production and Unemployment Source: Turkish Statistical Institute(January 2011) Source: Turkish Statistical Institute (February 2011 Exchange Rate ISE National 100 Index 5 Source: Central Bank (February 2011) Source: CentralBank ( February 2011)

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  7. MCAP & NAV of the REIC Sector 7

  8. Relative post-IPO performance of Torunlar REIC’s share 8

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  10. 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 10

  11. Key investment highlights • 2nd largest listed retail property company in Turkey • Portfolio value: TRY3.1 bn (2010) • Gross rental income: TRY 58.5 m(2010) • 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 (2010) • Financial strength • Healthy financial structure with leverage at 24.4 % • Stable shareholder structure with 25.16 % free float GAV Breakdown (2010) Total GAV:TRY 2.7 bn (USD 1.7 bn) 11

  12. Breakdown of Portfolio Value

  13. Shopping Mall Portfolio Zafer Plaza (SM) Korupark (SM) Ankamall+ Crowne Plaza (SM+Hotel) Deepo Outlet Centre (SM) Occupancy 98% Occupancy 96% Occupancy 100% Occupancy 99% 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)

  14. Footfall and turnoverTorunlar REIC performed stable and strong in 2010’ *Korupark, Deepo, Ankamall figures declared by the tenants. Zafer Plaza and Torium are excluded. **Newly opened Torium excluded Source: Council of Shopping Centers Turkey

  15. Resilient retail operations through active hands-on management. (1)72,26% share. Receives rental income. (2) 14,83% share. Receives dividend income 15

  16. Shopping centers by value 16

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  18. Financial highlights 2010 18

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  20. 1 2 3 4 5 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 Other income/expenses is mainjy driven by the net gains from fair value adjustments on investment property. 3 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. 4 4 5 Financial income includes gains and loss of financial instruments as well as the sale of share of profits from associates. 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 20

  21. 1 2 2.6x 2.8x 2.3x 2009 2008 2010 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 2 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. 1 Interest coverage ratio Net debt / Assets Net debt / EBITDA 27.2% 21.8% 8.4x 7.6x 10.7% 6.2x 2008 2009 2008 2009 2010 2010 *EBITDA Net interest expense 21

  22. Financing ratios‘Strong financing ratios’ 22

  23. 3 • Total revenues are boosted +93% by the residential sales of Nishistanbul project and rental revenues of Torium shopping mall opened in end-October. • EBITDA is 22.8% lower due to one-off IPO, consultancy and donation to Bursa Metropolitan Municipality as well as increasing real estate taxes and advertising expenses. • Net gain from fair value adjustment is 65.8% lower, driven by the significant contribution of Mall of İstanbul land and Torium land in 2009. This item accounts for 77.7% of net profit in 2010 vs 91% in 2009. • Despite the contribution of deposit interest income and declining interest expense, the bottom level is 60% less than in 2009.

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  25. Evolution of the Projects (m2)

  26. GLA Breakdown by City Istanbul grasps a larger share by 2014, overtaking Bursa. 26

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  28. 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. 28

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  31. 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 AMDP, Shopping Centres and Retail Centres Council • Majority of rents (80%) are USD denominated Operational date 1999 Leasable are (m²) 23,449 (REIC share 16,944) Occupancy (m²) (as of date) 98% (as of December 2010) 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 2.0 years Average lease term as of Dec-2010 Kiosk 0.5% Leisure goods 1% Average NOI (per TL/m²/month) TL38.4 Leisure goods 1% Restaurant 2% Restaurant 2% Fashion 37% Leasehold / Freehold status Freehold Kiosk 3% Jewellery 3% Rental income (Dec 2010) TL10.8mm 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% 31 Dept & Anchor 15% Dept & Anchor 33%

  32. Korupark shopping mall Torunlar REIC's porfolio overview • 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 AMDP, Shopping Centres and Retail Centres Council • Majority of rents (80%) are USD denominated Ownership Torunlar REIC (100%) Operational date H2 2007 Leasable are (m²) 71,267 Occupancy (m²) (as of date) 96% (as of December 2010) Number of stores 178 (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 Dec-2010 2.7 years Kiosk 2% Kiosk 0.5% Fashion 41% Dept & Anchor 44% Average NOI (per TL/m²/month) TL34.4 Leisure goods 4% Jewellery 1% Restaurant 4% Storages 2% Leasehold / Freehold status Freehold Health beauty 4% Restaurant 2% Jewellery 4% TL36.8mm Rental income (Dec 2010) 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% 32

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  34. 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$32.6mm)¹ Leasehold / Freehold status Freehold Number of residential units/GSA 643 units / 120.000 m2 resi, 9.659 m2 office • The property, adjacent parcel to Korupark phase I & II, is a luxurious housing settlement that includes residences and office units • For Korupark Residences Phase III, sales will be denominated in Turkish Lira Current status Under project development Map of Korupark Korupark Residences Phase I & II Korupark Residences Phase III Korupark Residences Phase I & II Korupark Residences Phase III Korupark Shopping Mall • Note: Exchange rate US$/TL=1.5460 as of December 31, 2010¹ Prime appraisal report (based on the CMB standards as of December 31, 2010) 34

  35. 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% Torunlar REIC's porfolio overview (cont'd) 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 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) 99% (as of Dec 2010) Antalya Deepo extension project Number of stores 90 Anchor tenants LCW, Ayakkabı Dünyası, Mudo City, Collezione, Sarar, Aydınlı Group Appraisal value TL180.5mm (US$116.7mm)¹ Average lease term as of Dec-2010 3.1 years Average NOI (per TL/m²/month) TL48.2 Leasehold / Freehold status Freehold Rental income (Dec 2010) TL13.3mm Ownership Torunlar REIC + Hastalya Estimated start of construction July 2011 Leasable area (m²) Estimated date of completion March 2012 26,651 35 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

  36. 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

  37. 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.TL479.3mm (US$310mm) Number of residences/ GSA-GLA 1.200 units/ 135.000 m2 GLA ret, 116.000 m2 GSA residence 30.000 m2 GLA office Appraisal value TL637.3mm (US$412.2mm)¹ Leasehold / Freehold status Freehold Current status Under project development Breakdown–Area¹ (GLA/GSA) • 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 Istanbul, rents will be denominated in USD. Sales will be denominated in Turkish Lira 37

  38. Torunlar REIC’s portfolio overview (cont’d) 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 168 Appraisal value* TL556.9mm (US$360.3mm)¹ Leasehold / Freehold status Freehold GLA / GSA 95.280 m2 GLA retail 5.318 m2 GSA resi MSU & small stores35% • 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 at the shopping mall are denominated in EUR • Residential sales are expected to bedenominated in Turkish Lira Residential5% Café/ Rest.5% GLAsplit¹ (‘000m²) GLA/GSA split¹ (‘000m²) Others4% Anchor 25% Hypermarket 10% Retail95% Electronic stores4% Entertainment 15% 38

  39. Torunlar REIC’s portfolio overview (cont’d) 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 • For Torun Tower, leases will be denominated in USD Office96% 39

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  41. Location Istanbul Torunlar REIC (65%), Ascioglu (30%), Kapıcıoğlu (5%) Ownership Estimated start of construction H2 2011 Estimated date of completion H2 2014 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 1,200 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. • For the Mecidiyeköy Project sales will be denominated in Turkish Lira. 41 1.Torunlar share

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  47. Existing property performance Munich once again holds the top spot for performance of existing investments, Istanbul following very close. London and Paris also retain top positions. 2010 was a year of stabilisation, both in terms of valuation and the occupier side. A clear focus on asset management to maintain the value of existing assets. Secondary property is a “ ticking time bomb”. 47

  48. New property acquisitions The answer is stock selection, not markets or cities. All markets have opportunities at the right price. Istanbul ranked top spot. “The biggest challenge is to find “good” new investments, i.e. core assets in top locations with strong tenants” 48

  49. City Development Further signs of recovery in sentiment Istanbul, with strong underlying fundamentals, again, stands out followed by London and Munich 49

  50. Torunlar REIC: COMPETITIVE ADVANTAGES One of the leading real estate developers in Turkey 1 Well established performance track record of development and asset management 2 Excellent growth potential 3 Professional management team with long-term local experience and deal sourcing capability 4 Turkey has strong long term economic fundamentals supporting RE growth 5 Stable financial structure and flexible tax efficient REIC regime 6 50

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