investor presentation, september ‘14

Our Projects create unique value for our stock holders… And ultimately for life!

Investor Presentation, September ‘14

Agenda

Projects page8

Appendix page41

Ozak Group page 2

Financial Review page25

Projections page37

Ozak REIT page5

1

2

Ozak Group

3

Ozak Group

Textile • OZAK Textile • Founded in 1995 • 57.000 m2 enclosed space in

separate factories • Competition-driven winning

strategies Design and model development

appropriate to clients’ needs R&D team of specialists adept in

spotting future fashion trends well in advance

Collaboration with local and international authorities when dealing with social responsibility and occupational health and safety issues

• Contract manufacturer for the Armani, Prada,Hugo Boss, Zara, Guess, Massimo Dutti, Replay and Esprit labels

• 2.200 employees • High added-value production, 95%

of which is intended for export • Consistent, stable growth since

inception

Construction • Int-Er Yapi • Founded in 1995 • Undertakes and

carries out the Ozak Group’s construction projects

• Provides project management, procurement management, quality management and cost&process management services in the fullfillment of Ozak REIT projects

• Professional team of 210 specialists

• 1.500 construction site personnel (including subcontractor staff)

Tourism • Entered the tourism

industry 2007 with Ela Quality Resort Hotel through its stakes in the Aktay Turizm and Aktay Otel firms

• Competition-driven winning strategies

- Family/child priority concept; kids’ reception & monitoring systems; teen club - Superior - quality rooms, personalized villas, each villa serviced by a specialized team helicopter and VIP transfer services - 9 separate a la carte and snack restaurants/ food service team directed by celebrated chefs/quality management under the supervision of a full-time staff of food engineers - Up to 100% occupancy during the high season

REIT • OZAK REIT • Founded in 2009 • Real estate and real estate

investment projects, tourism activities

• Team of specialist in business development, zoning laws and regulations, feasibility studies&market research, property appraisals,architectural concept formulation

• Distinguished «down town» projects that have been recognized and cited for awards by leading European organizations

• Independently audited by Earnst & Young

OZAK REIT Subsidiaries • Aktay Tourism (100.0%) • Aktay Otel Isletmesi (95%) • Arstate Yatirim (100%)

Snapshot

Ozak Group

4

History

1995 Int-Er Yapi

construction company established

2009 «Ozak REIT

founded» Ela Resort Hotel moved into REIT portfolio Mahmutbey

Land, Istanbul

2010 Gunesli Is

Istanbul 34 Project, Istanbul

Ikitelli 34 Portall Project,

Istanbul

2011 Bayrampasa Land, Istanbul (Hayattepe and Metro Gross Market Projects)

2012 Ozak REIT

launched its «IPO» and was listed on the BIST

Bulvar 216 Project, Istanbul

Metro Gross Market Project, Istanbul

Hayattepe Project, Istanbul

2013 Izmir

Alsancak Project, Izmir

2014 Kazlicesme

Coastal Road Project, Istanbul

Gokturk Land, Istanbul

Demre Land, Antalya

Didim Land, Aydın

Ozak Group’s

20-year real estate

experience was initiated by Inter-Yapi in 1995

92% NAV

CAGR bw ’09-’14

2007 Ela Resort Hotel, Antalya

5

Ozak REIT

6

Ozak REIT • Profound sector expertise accumulated since

1995 and further enhanced by Int-Er Yapi (Ozak Group construction company)

• Portfolio of Grade A office assets, leased to established corporate tenants across various business sectors

• Predictable and well-diversified cash flow via mixed-use projects (industry, commercial, tourism)

• Average 18.9% steady rental yield and TL43.6mn annual rent income in 2014

• Ongoing projects located in the prime CBDs of Istanbul promising to increase NAV by 48% in a year

• Total portfolio value of TL 1,5 bn as of Q3’14

Snapshot

7

Ozak REIT Shareholder Structure

8.5% 31,4%

54.0%

5.0%

1%

Ozak Tekstil Urfi Akbalık

Ahmet Akbalık Effective Free Float

Other Family Members

Shareholders Nominal Share (mn) Share

Ahmet Akbalık 84.8 54.0%

Urfi Akbalık 49.3 31.4%

Other Family Members 1.7 1.0%

Ozak Tekstil 13.4 8.5%

Effective Free Float 7.8 5.0%

Total 157.0 100.0%

TL 300 mn Capital Ceiling

8

Projects

Ozak REIT

9

Izmir, Alsancak

Ela Hotel Resort, Antalya, Belek

Projects in Istanbul

Projects in Turkey

Project Spread in Turkey

Marmara Sea

34 Portall Ikitelli

Is Istanbul 34 Gunesli

Kazlıcesme Coastal Road

Hayattepe, Bayrampasa

Metro Gross, Bayrampasa

Bulvar 216, Atasehir

Completed Projects Newly Completed Ongoing Projects Upcoming Projects

10

3Q 2014 Key Portfolio Highlights Ozak REIT

Ongoing Projects

Completed Projects &

Hayattepe Residence, Istanbul, TL335mn expected income

Bulvar 216, Istanbul, TL275mn expected income

Total Portfolio Value of TL1.5 bn as of 3Q’14

Current Portfolio Average Occupancy Rate remained at 96%

Completed Bulvar 216 Project -Robust revenue generation of USD45mn from newly sold office units -Proactive leasing strategy with 90% of occupancy ratio with average 5 year tenants in retail shopping area -Recently received the Best Office Award by Sign of the City Awards

Completed Hayattepe Residence Project, pre-sales ratio increased to %72 from 57% in1H’14 and started to deliver first units

Applied to CMB for merging procedure of subsidiary company Aktay Tourism

Ozak REIT

11

53,0

188,7

Land &Development

Cost

AppraisalValue

21,8

86,9

Land &Development

Cost

AppraisalValue

34,5

82,4

Land &Development

Cost

AppraisalValue

123,9

297,7

Land &Development

Cost

Appraisal Value

Facts and Figures

Completion Date 2010

Occupancy Rate 100%

Annual Rent Income TL11.5mn

Rental Yield Ratio 21.7%

Completed Projects

Facts and Figures


Occupancy Rate 85%



Facts and Figures


Occupancy Rate 100%



Facts and Figures


Occupancy Rate 65%



34 Portall Plaza, Istanbul Is Istanbul 34, Istanbul

Metro Gross Market, Istanbul Ela Quality Resort Hotel , Antalya

Value Creation Value Creation

Value Creation Value Creation

3.6X 4.0X

2.4X 2.7X

TLm

n

TLm

n

TLm

n

TLm

n

*90% of rent contracts are based on foreign currency **Appraisal values as of December 21,2013, US$/TL rate @2.03

Ozak REIT

12

34 Portall Plaza, Istanbul Project Details

Ownership Ozak REIT (100%)

Project Type Industrial Office Building

Location Istanbul, Ikitelli

Distance to Major Locations

• Istanbul Ataturk Airport - 16 km

• Levent - 24 km

• Taksim - 23 km

Aquisition & Development Cost

TL53.0mn

Appraisal Value TL188.7mn


Occupancy Rate 100%

Annual Rent Increase LIBOR+2%

Operational Date 2010

Land Area 25,371 m²

Leasable Area 77,291 m²

Major Tenants Aras Kargo, LC Waikiki, Coats Turkiye

Ozak Tekstil, Intem Triko

Ataturk Airport

TL11.5mn

Annual Rent Income

3.6x

Value Creation

• Located strategicaly in Ikitelli Industry Zone

• Long-term renting method

• Reputable tenant portfolio

Ozak REIT

13

Is Istanbul 34, Istanbul Project Details


Project Type Office and Commercial

Location Istanbul, Gunesli



• Levent - 23 km

• Taksim - 22 km


TL21.8mn



Occupancy Rate 85%

Annual Rent Increase LIBOR+3%


Land Area 6,586 m²


Major Tenants SGS Supervise, TDS Dis Ticaret

Odeabank

• Located strategicaly in Gunesli, at the center of a sprawling business and industrial district of Istanbul

• Very close to Ataturk Airport

TL4.7mn

Annual Rent Income

4.0x Value Creation

Ataturk Airport

Ozak REIT

14

Metro Gross Market, Istanbul Project Details


Project Type Retail

Location Istanbul, Bayrampasa



• Levent - 14 km

• Taksim - 11 km


TL34.5mn



Occupancy Rate 100%

Annual Rent Increase Euro CPI




Store Area 8,470 m²

Major Tenants Metro Gross Market

• Consistent cash flow guaranteed via 30-year unbreakable contract signed w/global retail giant; Metro Gross Market

Ataturk Airport

TL5.1mn Annual Rent Income

2.4x Value

Creation

Ozak REIT

15

Ela Resort Hotel, Antalya Project Details

Ownership Tru Affiliates (Aktay Otel & Aktay Turizm)

Project Type Tourism

Location Antalya, Belek


• Antalya Airport - 25 km

• Antalya City Center - 35 km

• Belek - 2 km

Hotel Capacity 1500 Beds / 650 Rooms


TL123.9mn



Annual Avg.Occupancy Rate

65%

Occupancy Rate 100%

Annual Rent Increase CPI Turkey



• Premium segment services w high occupancy rates

• Certificate of Excellence 2014 winner

• Agreements signed w/globally well-known travel groups; TUI, TEZ, Odeon

TL22.3mn

Annual Rent Income

2.7x Value

Creation

Ozak REIT Newly Completed Ongoing Projects

16

Facts and Figures

Start Date 2012

Location Bayrampasa

Saleable Area 78,533 m²

Pre-Sales TL172.0mn

Pre-Sales Ratio 71%

IRR 34%

Hayattepe Residences, Istanbul

210,0

335,0

Land &Development

Cost

Expected TotalIncome

Facts and Figures Office Retail

Start Date 2012 2012

Location Atasehir Atasehir

Saleable/Leaseable Area 10,650 m² 11,250 m²

Pre-Sales/Pre-Lease TL95.4mn TL13.0mn

Pre-Sales/Pre-Lease Ratio 100% 90%

IRR 69%

125,0

275,0

Land & DevelopmentCost

Expected TotalIncome

Bulvar 216, Istanbul

‘’ Revenues Promising to Contribute P&L as of 2014’’

Value Creation

Value Creation

TLm

n

TLm

n

1.6X

2.2X

Ozak REIT Hayattepe Residences, Istanbul

17

Project Details


Project Type Residence

Location Istanbul, Bayrampasa

Distance to Major Locations • Istanbul Ataturk Airport - 23 km

• Levent - 14 km

• Taksim - 11 km


TL210.0mn

Total Expected Sales Income TL335.0mn

Portfolio Value TL174.7mn

Average Sale Price per m² TL4,265

Project Start Date 2013

Project Completion Date November,2014

Project Completion Ratio 98%


Saleable Area 78,533 m²

Total Housing Units 614

TL335mn Expected Sales Income

34% IRR

• Expected Sales Income to be realized in Q4 2014

• 34% IRR

Atatürk Airport

71% Pre-Sales

Ratio

Ozak REIT Bulvar 216, Istanbul Project Details


Project Type Office & Retail

Location Istanbul, Atasehir

Distance to Major Locations • Sabiha Gokcen Airport - 27 km

• Levent - 18 km

• Taksim - 20 km

Appraisal Value (Retail Area) TL126.0mn

Total Expected Sales Income TL275.0mn

Average Sale Price per m² TL8,970

Avg.Rent Income TL13.0mn (Starting to be realized in Q4’14)

Average Rental Price per m² TL92.0

Project Start Date 2013

Project Completion Date October, 2014

Project Completion Ratio 100%

Land Area 5,873m²

Leaseable/Saleable Area 34,300 m²

Office (Saleable ) Area 10,650 m²

Retail (Leaseable ) Area 11,250m²

18

TL266.0mn Expected Sale Income

69% IRR

• Expected Sales Income to be realized in Q4' 2014

• Aquisition & Development Costs already covered

• Winner of ‘’European Property Awards’’ in 6 different areas*

100% Office

Pre-Sales Ratio

90% Retail

Pre-Lease Ratio

*Best Office Architecture Turkey, Highly Commended Retail Architecture Turkey, Highly Commended Office Development Turkey, Highly Commended Retail Development Turkey

Ozak REIT Upcoming Projects

19

Facts and Figures

Start Date 2015



Expected Avg. Sale Price per m² TL13,370

IRR 48%

Kazlicesme Coastal Road, Istanbul

Facts and Figures

Start Date 2015




IRR 35%

2.768

4.240

Land &Development Cost

Total ExpectedIncome

1.755

2.200

Land &Development Cost

Total ExpectedIncome

TLm

n

TLm

n

Value Creation

Value Creation

1.5x

1.3X

‘’Forthcoming Projects to Uplift NAV Significantly’’

Izmir Alsancak, Izmir

20

Ozak REIT Kazlicesme Coastal Road Project, Istanbul Project Details


Ziylan Gayrimenkul (30%)

Yenigun Insaat (15%)

Project Type Mixed Use

Location Istanbul, Kazlicesme

Distance to Major Locations • Istanbul Ataturk Airport - 14 km

• Levent - 16 km

• Taksim -11 km

Expected Start Date 2015

Expected Completion Date 2019


Leaseable / Saleable Area 315,000 m² • 185,000 m² Residence • 85,000 m² Office & Home Office • 20,000 m² Hotel • 25,000 m² Retail

Expected Project Development Cost TL1.2bn

Expected Sale Income TL4.2bn

Expected Profit (Ozak REIT Share) TL800.0mn


TL4.2bn Expected Sale Income

48% IRR

• Revenue Sharing Model (RSM) project w/Emlak Konut REIT (EKGYO) - Emlak Konut REIT holds 37% stake

• 37% of expected sale income (approx. TL1.6bn) will be paid to Emlak Konut REIT

• Peer Projects Sale Price per m²

• Yali Atakoy - TL20,900 - TL24,200 • Sea Pearl - TL15,950 - TL23,100 • Ottomare - TL12,320 - TL17,150

Ozak REIT Kazlicesme Coastal Road Project, Istanbul

21

Izmir Alsancak Project, Izmir Ozak REIT

22

Project Details


Project Type Mixed Use

Location Izmir, City Center -Alsancak

Distance to Major Locations • Izmir Adnan Menderes Airport - 21 km

• Izmir Port - 6 km

• Izmir International Fair Center - 3 km

Expected Start Date 2015

Expected Completion Date Phase 1 in 2008- Phase 2 in 2020


Leaseable / Saleable Area 330,000 m² • 120,000 m² Residence • 110,000 m² Office & Home Office • 15,000 m² Hotel • 80,000 m² Shopping Mall • 5,000 m² Retail

Expected Project Development Cost TL941mn

Expected Sale Income TL2.2bn

Expected Profit (Ozak REIT Share) TL450.0mn


• Revenue Sharing Model (RSM) project w/state-owned Emlak Planlama Proje (EPP)

- EPP holds 37% stake • 37% of expected sale income (approx.

TL814mn) will be paid to EPP • Peer Projects Sale Price per m² • Ege Perla - TL5,500 – TL8,400 • Mistral - TL6,600 – TL8,800 • Folkart Towers - TL5,900 – TL7,000

Ozak REIT

23

Izmir Alsancak Project, Izmir

Ozak REIT Other Upcoming Projects

24

Facts and Figures

Location Istanbul

Project Type Hotel & Residence

Land Area 8,349 m²

Appraisal Value TL76.4mn*

Balmumcu Land

Facts and Figures

Location Aydin

Project Type Hotel


Appraisal Value -

Facts and Figures

Location Antalya

Project Type Hotel


Appraisal Value -

Facts and Figures

Location Istanbul

Project Type Residence



Facts and Figures

Location Istanbul

Project Type Business Center

Land Area 6,680 m²

Appraisal Value TL22.7mn Gokturk Land

Didim Land Demre Land

Mahmutbey Land

‘’At the high-end residential

convergence point’’

‘’At a vantage point right at the city center, nearby Park Hotel, with full Bosphorus view’’

‘’Ozak REIT retains its portfolio of valuable assets, benefiting from their steady capital appreciation; and paving the way for other value-added projects’’

*Appraisal value through full-owned subsidiary Arstate

Financial Review

25

26

Financial Review Net Asset Value

30,0%

28,0%

27,0%

8,0% 7,0%

Tourism

Office

Project

Retail

Land

Portfolio Breakdown by NAV

TL460.0mn MCAP

41% Discount

TLmn Portfolio Value June. 30, 2014 Sep.30,2014 2015 Year-end

Lands

Mahmutbey, Istanbul 22.7 22.7 24.7

Gokturk, Istanbul 35.6 35.6 38.8

Balmumcu, Istanbul 6.8 6.8 7.4

Total 65.1 65.1 70.9

Buildings

34 Portall, Istanbul 188.7 188.7 205.7

Is Istanbul 34, Istanbul 86.9 86.9 94.7

Metro Gross Market, Istanbul 82.4 82.4 84.9

Bulvar 216, Istanbul - 126.0 157.5

Total 358.0 484.0 542.8

Ongoing Projects

Hayattepe, Istanbul 167.0 - -

Hayattepe - Residance, Istanbul - 12.7 -

Bulvar 216, Istanbul 100.4 - -

Other - 15.9 -

(-)Pre Sales 180.4 - -

Total 87.0 28.6 -

Completed Projects (Inventory)

Hayattepe, Istanbul - 174.7 102.0

Hayattepe - Residance, Istanbul - - 8.5

(-)Pre Sales - 172.0 -

Total - 2.7 110.5

Subsidiaries

421.0 432.1 437.8

Total Portfolio Value 931.1 1,012.5 1.162,0

(+)Cash 48.9 73.8 15.3

(+)Other Assets 292.5 284.7 256.7

(-)Other Liabilities 204.2 215.8 204.2

(-)Loans 399.4 373.2 242.8

Net Asset Value 668.9 782.0 987.0

27

3Q 2014 Key Financial Highlights Ozak REIT

Positive contribution of total TL15.7mn achieved over preceeding contracted rental rates and TL73.7mn from tourism operations

Revenue generation of TL192.7mn -TL95.4mn from Bulvar 216 office area -TL8mn from Hayattepe Residence units’ sales figures

TL144.8mn Operating Profit, 134% Gross Margin based on TL93mn other income.. -TL61.9mn Bulvar 216 & TL6.3mn Gokturk Land revaluation

Net Income of TL124.0mn -TL49.7mn Bulvar 216 & TL3.2mn Hayattepe Residence sales’ contribution

Strong EBITDA figure of TL79.3mn with 41% EBITDA Margin

Net Debt of TL297.5mn

Weighted Average Term to Maturity of Loans unchanged at 1.4 years

Net FX position decreased by 49% to TL70.2mn

28

Financial Review Income Statement Summary

TLmn 2012 2013 09/13 09/14 % Change

Revenues 77.0 92.9 77.3 192.7 149%

Sales - - - 103.3 n.a.

Tourism Revenue 65.6 74.9 64.2 73.7 15%

Rental Revenue 11.4 18.0 13.1 15.7 20%

Office 11.4 13.7 9.9 12.1 22%

Retail - 4.3 3.2 3.6 13%

Gross Profit 27.9 38.7 34.3 86.8 153%

Gross Margin 36% 42% 44% 45% 2%

Operating Profit 9.7 17.9 24.8 144.8 484%

Operating Margin 13% 19% 32% 75% 134%

Ebitda 18.7 26.6 29.0 79.3 173%

Ebitda Margin 24% 29% 38% 41% 10%

Net Financial Income/Expense 1.3 (38.1) (23.2) (18.0) (22%)

Net Income 16.1 0.04 1.5 124.2 n.a.

Net Income Margin 21% n.a 2% 64% n.a

‘’%173 growth in EBITDA and 41% EBITDA Margin due to Bulvar 216 office sales and Hayattepe Residence deliveries’’

29

Financial Review Balance Sheet Summary

TLmn 2012 2013 09/13 09/14 % Change

Cash&Cash Equivalents 41.9 125.2 45.4 98.9 118.0%

Total Assets 872.3 1,277.9 1,124.7 1,511.5 34.4%

Current Assets 140.0 412.9 280.8 360.7 28.5%

Non-Current Assets 732.4 865.0 843.9 1,150.8 36.4%

Total Liabilities 202.7 610.8 467.2 803.1 71.9%

ST Liabilities* 63.6 339.8 213.5 501.5 134.9%

LT Liabilities 139.1 271.0 253.7 301.6 18.9%

Total Financial Debt 109.8 303.3 259.0 395.3 52.6%

ST Financial Debt 38.2 150.3 112.1 256.3 128.6%

LT Financial Debt 71.6 153.1 146.9 140.0 (4.7%)

Net Debt 67.9 178.1 213.7 297.5 39.2%

Shareholders' Equity 539.4 532.8 528.8 707.2 33.7%

Net Debt/Equity 13% 33% 40% 42% 4.1%

Net Debt/Total Assets 8% 14% 19% 20% 3.6%

*including TL172mn Hayattepe Residence Pre-Sales Worth to note that ST liabilities should be considered as TL329mn inQ4’14 following the deliveries…

Financial Review

30

Revenue vs.EBITDA

66.0 65.6 74.9 91.0

10.5 11.4 13.7

377.0

4.3

2011 2012 2013 2014E

Retail Real Estate Tourism

76.5

5.0X

77.0 92.9

468.1 Revenues (Yearly)

TLm

n

20.0 10.0 18.0 32.0

8.0 9.0 5.0

144.0

4.0

2011 2012 2013 2014E

Retail Real Estate Tourism

TLm

n

28.0

6.5X

19.0 27.0

176.0 EBITDA (Yearly)

TLm

n

‘’Expected impact of Bulvar 216 and Hayattepe Projects deliveries’’

150%

77.2

192.7

TLm

n

09/14 09/13

Revenues (09/14 vs 09/13)

29.0

79.3 173%

09/14 09/13

EBITDA (09/14 vs 09/13)

‘’Strong steady growth in all segments ’’

Financial Review

31

EBITDA & EBITDA Margin

18.7

15.9

Margin 24%

Margin 28%

(5.2)

1.7 (4.5)

26.6

2013 vs. 2012

EBITDA 2012

in Revenue

in COGS*

in G&A*

in S&M*

EBITDA 2013

EBITDA 42%

116

(62.8)

(4.4)

(0.6)

79.3

29.0

09/14 vs 09/13

Margin 38%

Margin 41%

EBITDA 09/13

in Revenue

in COGS*

in G&A*

in S&M*

EBITDA 09/14

EBITDA 173%

TLm

n

TLm

n

*Excluding depreciation and amortization

32

Net Income & Net Income Margin

Margin 2%

Margin 64%

Net Income 09/13

in Operating Profit

in Other Expense

in Financial Expense

in Other Income

Net Income 09/14

Net Income & Net Income Margin (09/14 vs 09/13)

in Financial Income

in Taxation

Ozak REIT

1.5

47.3

(5.3)

124.2

(1.9) 10.4

-Bulvar 216 & Gokturk Land revaluation of TL68mn -Izmir Project downpayment’s İnterest

TL12mn GA and S&M expense for Bulvar 216 & Hayattepe Projects

- TL0.8mn in Interest Expense - TL1.8mn in FX expense

- TL2.7mn in Interest Income

- TL7.8mn in FX Income

(5.5) 78.0

TLm

n

- TL14.3mn in Interest Expense

- TL9.0mn in FX expense

Financial Review

33

Balance Sheet Components

Assets Liabilities

TL1.5bn Total Balance Sheet Size as of 09/2014

Cash&CashEquivalents

Other CurrentAssets

Inventories

Other Fixed Assets

InvestmentProperty

6,5%

3,7%

13,6%

35,2%

40,9%

Other FixedLiabilities

Other CurrentLiabilities

ST FinancialLiabilities

LT FinancialLiabilities

Equity

15,4%

11,5%

17,0%

9,3%

46,9%

Financial Review

34

Debt Profile Bank Loan Repayment Schedule

35%

38.2 38.7 32.9

As of December 31, 2012

35% 30%

1 Year 1-2 Years 2 Year

As of December 31, 2013 As of September 30, 2014

149.6 153.1

1 Year 1-2 Years

51% 49%

TLm

n

TLm

n

TLm

n 255.3 140.0

35% 65%

1 Year 1-2 Years

82.5

178.0 220.0

82.5

135.0

TLm

n

%share

87.0 68.0

302.5

395.3

2011 2012 2013 3Q’14

Total Debt Development Debt Split by Project Type

45%

21%

34%

Other Izmir Project Kazlicesme ProjectOther Izmir Project Kazlicesme Project

35

Net Debt Dynamics

Net Debt QoQ

Change in Net Debt , 09/14 vs 09/13

221.8

213.7

53.6

144.2

297.5

TLm

n

TLm

n

Net Debt 09/13 in S.T. Financial Debt

in Cash Net Debt 09/14

6.8

in L.T. Financial Debt

‘’YoY Net Debt increased mainly due to loans of upcoming projects; Izmir & Kazlicesme’’

1Q’14 2H’14 09/14

361.4 297.5

297.5 213.7

Net Debt 09/14 vs 09/13

TLm

n

‘’QoQ Net Debt decreased 6% due to USD25mn loan down payments of Hayattepe & Bulvar216 ’’

Ozak REIT

6% 18% 39%

09/14 09/13

Financial Review

36

FX Exposure

121.7 USD 94.5 Net USD 74.2 Net USD 32.6 Net

95.8 74.6

27.1 41.9 21.6 1Q’14 3Q’14 1H’14

1Q’14 3Q’14 1H’14

7.4 4.0 1.2

1.4 0.2 0.3

EUR 6.0 Net EUR 3.7 Net EUR 1.0 Net

USD Short Position

Liabilities US$mn

Assets US$mn

Liabilities EURmn

Assets EURmn

EUR Long Position

Balance Sheet Items (in mn) USD EUR USD EUR USD EUR Cash&Cash Equivalents 27.1 1.4 16.5 2.4 31.9 0.2 Trade Receivables - - 5.1 1.6 6.3 1.0

Total Assets 27.1 1.4 21.6 4.0 41.9 1.2

Trade Payebles - 0.2 1.9 0.3 7.3 0.2 S.T. Fin. Liabilities 62.0 - 82.4 - 61.1 - L.T. Fin. Liabilities 36.4 0.7 11.6 - 6.2 -

Other Liabilities 23.2 6.5 - - - - Total Liabilities 121.7 7.4 95.8 0.3 74.6 0.2

Net FX Position (94.5) (6.0) (74.2) 3.7 (32.6) 1.0

Projections

37

38

Cash Flow Projections Projections TLmn 2014 2015 2016 2017 2018 2019 2020 Cash at the Beginning of the Term 83.1 8.5 9.3 244.5 475.1 745.7 988.5

Revenues 259.3 422.6 775.6 815.5 653.9 461.4 676.3

Home Sales Revenue 108.9 244.8 160.8 256.3 203.5 99.1 43.8

Office Sales Revenue 116.8 11.1 89.3 91.4 60.4 65.7 26.3

Home-Office Sales Revenue - 6.0 119.1 148.8 168.4 131.4 41.0

Residence Sales Revenue - 99.2 172.1 178.5 90.1 20.3 -

Store and Retail Sales Revenue 31.4 5.0 188.8 83.5 45.1 1.4 448.8

Store and Mall Rental Revenue 2.2 11.0 - - 5.1 49.9 21.7

Office Rental Revenue - 19.5 19.5 19.5 19.5 19.5 19.5

Hotel Rental Revenue - 26.0 26.0 37.5 61.8 74.1 75.2

Loans 137.5 79.2 - - - - -

Hayattepe VAT Receivables - 13.1 - - - - -

Total Cash Inflow 396.8 514.9 775.6 815.5 653.9 461.4 676.3

Construction Costs 114.1 200.3 521.8 713.7 352.4 191.3 16.2

Operational Expenses 13.9 16.1 27.1 30.5 26.3 27.5 23.6

Loan and Interest Payments 144.4 277.7 79.2 - - - -

Other (Payments)/Collections (199.1) (19.9) 87.8 103.2 (4.6) - -

Total Cash Outflow 73.3 474.2 715.9 847.4 374.1 218.8 39.8

Total Cash at the end of the Term 8.5 9.3 244.5 475.1 745.7 988.5 1,625.1

39

CAPEX Projections Projections

TLmn Projects Before 2014 2014 2015 2016 2017 2018 2019 2020

Total Budget

Completed Projects

34 Portall Plaza 53.0 53.0

Is Istanbul 34 21.8 21.8

Metro Gross Market 34.5 34.5

Ela Quality Resort 123.9 123.9

Ongoing Projects

Hayattepe Project 132.1 68.1 9.8 210.0

Bulvar 216 Project 95.1 29.9 125.0

Upcoming Projects

Izmir Project 109.1 183.1 260.8 187.5 184.4 16.1 941.0

Kazlicesme Project 102.7 330.0 471.0 286.1 10.2 1,200.0

Balmumcu Project 1.5 71.7 82.7 155.9

Demre Project 30.4 56.3 86.7

Didim Project 48.4 89.5 137.9

TOTAL 460.4 98.0 223.1 633.2 934.4 529.9 194.6 16.1 3,089.7

98.0 223.1

633.2 934.4

529.9 194.6

16.1

Capex and Capex/Sales Ratio

TLm

n

Capex Capex/Sales

22.0%

101.4%

260.6%

321.1%

23.6%

16.6%

6.9%

• As of 2020, TL3.1bn CAPEX will have been registered since inception

• Starting from 2015, CAPEX will amount to TL2.5bn by 2020

• 54% CAPEX/Sales Ratio bw ‘14-20’

2014 2017 2016 2019 2018 2015 2020

40

Revenue & EBITDA Projections Projections Revenue Projections

EBITDA Projections

EBITDA Margin Projections

2014 2017 2016 2019 2018 2015 2020

377

2,072 91

127

93

147

96

160

131 968

205

24

211

176

Kazlicesme &

Alsancak TL944.2mn

Kazlicesme &

Alsancak TL963.7mn 468

220 243 291

2.248

291

1.173 Real Estate Tourism

Real Estate Tourism

144

911 32

50

32

81

33

72

49 419

75

21

77

65

176

82 114 121

976

98

494

2014 2017 2016 2015 2019 2018 2020

Kazlicesme &

Alsancak TL399.5mn

Kazlicesme &

Alsancak TL857.6mn

2014 2017 2016 2015 2019 2018 2020

38% 37% 47% 42% 34% 43% 42%

‘’Significant jump in 2018 &

2019 stems from the

completion of upcoming

projects; Istanbul

Kazlicesme & Izmir

Alsancak’’

TLm

n

TLm

n

Appendix

41

42

Appendix REIT Sector Benchmarking

REITs’ NAV Breakdown by Business Profile REITs’ NAV Breakdown by Asset Type

Project Developer REITs by Mcap*

TLm

n

1.530 800

510 460 195 150 110 33 63

Torunlar Is Sinpas OZAK Alarko Nurol Ozderici Yapi Kredi Koray

Pera

*As of 09/14

34%

25%

2%

39%

Portfolio REITs

Project DeveloperREITs

OZAK Reit

Emlak Konut

33%

24%

2%

41%

OngoingProjects

Land Bank

Subsidiaries

CompletedProjects

43

Appendix Istanbul Office Market 3Q‘14 2

3.0

%

13

.7%

13

.5%

6.4

%

21

.8%

10

.5%

CBD out of CBD-Europe out of CBD-Asia

General Vacancy Rates

38

.5

33

.1

28

.6

31

.5

33

.5

30

.0

25

.0

15

.6

22

.5

22

.5

18

.0

22

.0

20

.1

23

.2

15

.4

16

.0

19

.6

25

.6

14

.0

11

.0

17

.5

16

.2

13

.1

14

.5

Levent Etiler Maslak Zincirlikuyu/Esentepe/

Gayrettepe

Beşiktaş/Balmumcu

Taksim/Nişantaşı

Şişli/ FulyaOtim

Airport Area Kozyatağı Altunizade Kavacık Ümraniye

CBD Out of CDB-Europe Out of CBD-Asia

Average Rent Rates By Districts

US

$ m

²/ m

on

th

Class A Office Buildings Class B Office Buildings


Besiktas/ Balmumcu

Zincirlikuyu/ Esentepe/ Gayrettepe

Levent Etiler Maslak Taksim/ Nisantasi

Sisli/ Fulya Otim

Airport Area Kozyatagi Altunizade Kavacik Umraniye

CBD Out of CBD-Europe Out of CBD-Asia



Distribution of Total Office Space by Region

33%

8% 40%

19% Out of CBD -Asia

Emerging Districts

CBD

Out of CBD - Europe

Source : Propin

44

Appendix Sector Outlook

İstanbul 20%

Ankara 11%

İzmir 6%

Antalya 5%

Residential Sales Breakdown by Province

141 154 169 167 235 175 162

104

35

105

40

138

72

105

55

95

51

118

45

106

46

2009 09/14 09/13 2013 2012 2011 2010

555 708 702 1157 862 831 607

Istanbul Ankara Izmir Turkey Total

Other 58%

Residential Sales(‘000)

Mortgage Loans (mnTL) and Interest Rates (%)

141 169 167 235

110 115

39 45 61

75 86

2009 2011 2010

32

119

2008 2012 2013 1H’14 09/14 2007

21%

10%

11% 12%

14%

14% 10%

12%

22%

TLm

n

Appendix Income Statement

45

TLmn 2012 2013 09/13 09/14

Net Sales 77.0 93.0 77.3 192.7 Cost of Sales (49.2) (54.2) (42.9) (105.8) Gross Profit/Loss 27.9 38.7 34.3 86.9

Operational Expenses (18.1) (20.8) (13.2) (18.3) G & A (8.1) (6.3) (4.4) (13.3)

S & M (10.0) (14.5) (8.8) (5.0) Operational Income 9.8 17.9 21.1 68.6 Other Income 15.9 29.7 15.2 93.3

Other Expenses (10.1) (5.2) (11.5) (17.0) Net Financial Expenses 1.3 (38.1) (23.2) (18.0)

Profit/Loss Before Tax 16.9 4.4 1.7 126.8 Tax Expenses (0.8) (4.3) 0.3 (2.2) Minority Share 1.7 4.3 3.5 0.2

Net Profit 14.5 (4.2) 1.9 124.2

Earnings per Share 0.092 (0.027) (0.010) 0.79

Appendix Balance Sheet

46

TLmn 2012 2013 09/13 09/14 Cash and Cash Equivalents 41.9 125.2 45.3 98.9

Trade & Other Receivables 6.3 25.6 23.3 23.1

Inventory 83.0 221.4 191.3 205.5 Prepaid Expenses 2.1 7.0 6.6 7.3

Other Current Assets 6.8 33.8 14.1 25.9

Current Assets 140.1 413.0 280.6 360.7

Trade & Other Receivables 0.0 0.1 0.1 0.1 Equity Investments 28.8 0.0 0.0 0.0

Investment Property 374.0 457.3 450.2 618.9

Tangible Fixed Assets 299.9 296.7 282.9 294.4

Intangible Fixed Assets 14.6 23.7 14.4 15.3

Prepaid Expenses 11.0 82.6 75.0 221.5

Other Non-Current Assets 4.1 4.6 5.0 0.3

Non-Current Assets 732.4 864.9 827.5 1,150.4 Total Assets 872.3 1,277.9 1,124.7 1,511.2

Financial Debt 24.6 34.2 37.5 89.2

Short-term proportion of long-term debt 13.6 116.1 74.6 167.2

Trade & Other Payables 12.1 23.6 26.0 69.7 Deferred Revenues 11.9 163.7 73.1 173.7

Other Current Liabilities 1.4 2.2 2.3 1.5

Current Liabilities 63.6 339.8 213.4 501.3

Financial Debt 71.6 153.1 146.9 140.0

Trade & Other Payables 50.2 42.5 92.3

Other Non-Current Liabilities 67.5 67.7 64.3 69.4

Non-Current Liabilities 139.1 271.0 253.7 301.7 Equity 657.8 667.1 657.3 708.2

Total Liabilities 872.3 1,277.9 1,124.7 1,511.2

47

Appendix Share Performance & Data

Stock Data

Price at 09.30.2014 TL2.92

Mcap as of 09.30.14 TL460.0mn

Effective Free Float Mcap TL22.7mn

Price/Book 0.64

Price/Earnings 3.71

1.25

1.50

1.75

2.0

2.25

2.50

2.75

3.0

3.25

Feb

-12

Ap

r-1

2

Jun

-12

Sep

-12

De

c-1

2

Sep

-1

4

Jun

-1

4

Mar

-1

4

De

c -1

3

Sep

-1

3

Jun

-1

3

Mar

-1

3

Ozak REIT

BIST-100

REIT Sector

Appendix Disclaimer

48

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 OZAK 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. Owing to a plethora of variables, therefore, OZAK REIT disclaims any obligation to update such statements, as we also caution against undue reliance on such material.

investor presentation, september ‘14

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