Press Release

August 19th 2014

RECORD PROFIT BY TORUNLAR REIC IN 1H 2014 Torunlar REIC increased its net profit by 965% in the first six months of the year 2014 over the same period of last year and reported a net profit of 271 million TL. Torunlar REIC closed this period with a net asset value of 3.229 million TL and a portfolio value of 5.282 million TL. The company raised its sales to 458 million TL, up 372% compared to the previous year. Aziz Torun, Chairman and CEO, Torunlar REIC said: "As Torunlar REIC, during the first half of the year 2014, we have drawn a successful graphic despite the current political and economic situation in our country. By means of accurate planning and foresights, our Company broke its own record, achieved such a great net profit in the first half for the first time since its IPO in 2010 and undersigned an amazing success. Furthermore, we have reached 389 million TL of CAPEX in the first six months. We are going to carry on with our steady growth also in the remaining part of the year".

Torunlar REIC, one of the most prominent representatives of the Turkish Real Estate sector, announced its financial results for the first six months of 2014 and its expectations for the upcoming period. According to the consolidated financial statements issued as per the standards of the Capital Markets Board; during the period of January-June 2014, Torunlar REIC increased its sales by 372% to 457.8 million TL, its earnings before tax, depreciation and interest (EBITDA) by 341% to 283.3 million TL and its net profit by 965% to 271 million TL as compared to the same period of last year.

Leaving a successful period of six months behind with a performance above Turkey's average on the shopping mall side of the business, Torunlar REIC generated a rental revenue of 65.9 million TL from 5 shopping malls. Despite the currency cap, rental revenue picked up by 12.1% on a like-for-like basis compared to the same period of last year. The footfall was up 4.2% and retail sales up 12% respectively in the first six months and broke the records. With the contribution of the Mall of Istanbul project on the residential side, the company recognized a sales revenue of

372.4 million TL from the residences and overall generated 81% of its sales revenues from the residences and offices and 19% from the shopping malls.

Mr.Torun: "Torunlar REIC broke its own record and undersigned an amazing success"

Providing information on the company's figures for the first half of the year, Aziz Torun, Chairman and CEO, Torunlar REIC said; "As Torunlar REIC, during the first half of the year

2014, despite the current political and economic situation in our country we have drawn a successful graphic . In this half year, our Company increased its net profit by 965% compared to the
same period of last year and achieved 271 million TL. By means of accurate planning and foresights, Torunlar REIC broke its own record, achieved such a great net profit in the first half for
the first time since its IPO in 2010 and undersigned an amazing success. Furthermore, again in this half year, we have achieved 73% of our 526.8 million TL annual budgeted capex target with a record CAPEX amount of 388.7 million TL. Among this, we spent 225.9 million TL for Mall of

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Istanbul. In this project where we have received a committed pre-sales revenue of 591.6 million TL (including VAT) as of today, we generated 30% of the sales revenue from the foreigners. We are going to carry on with our steady growth also in the remaining part of the year".

Briefing about the projects within the portfolio of Torunlar REIC Mr.Torun said; "The greatest shopping, entertainment and life center of Turkey - Mall of Istanbul - opened its doors to the visitors in May. At the end of June, we have completed Torun Tower, which brings a different perspective to the office concept with its location, architecture and A+ grade, and delivered it to our tenant DenizBank. With another prestigious project - Torun Center - we achieved a pre-sales volume of 387 million (including VAT) and managed to sell 30% of the project within a short period like one year. We are going to start the construction and sales of our Kiptas project, which is located in Eyup-Alibeykoy - one of the oldest and most valuable residential areas of Istanbul - by the end of this year. Furthermore, another project, which is exciting very much for us; is our new project to be undertaken on our land located in Pasabahce attracting attention for its proximity to the Bosphorus. In addition to these, we aim to invest a CAPEX of 2 billion TL between the years

2014-2017".

İsmail Kazanç, CFO, Torunlar REIC, who briefed on the 2014 figures and forecasts of Torunlar REIC, said; "In addition to the residential sales and shopping mall rental revenue performance within the first six months, the full consolidation of the Torun Center project partnership, falling interest rates and appreciation of Turkish Lira had positive impact on our profit. We are closing this period with the highest profit record ever generated in the first six months since our IPO. As Torunlar REIC, we aim to achieve a sales revenue of 781 million TL and EBITDA of 427 million TL in the full year 2014." TORUNLAR REIC FINANCIAL INFORMATION (000 TL)

Financial Data

30 June 2014

31 December 2013

Variance

%

Portfolio Value

5,282,227

5,796,976

(8.8)

Market Cap

1,715,000

1,380,000

24.2

Total Equity

3,229,026

2,987,591

8.0

Total Assets

6,072,623

6,351,973

(4.3)

June 2014

June 2013

Variance %

Sales

457,853

96,863

372.7

Residence and Office

Sales

372,407

24,677

1,409.1

Mall Rental

65,886

55,206

19.3

EBITDA

283,386

64,240

341.1

Net Profit

271,085

25,438

965.6

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