FREQUENTLY ASKED QUESTIONS

REICs are not allowed to engage in construction work of real estate, or hire personnel or acquire equipment for this purpose. The staff employed for the control of the projects are excluded.Construction work of the projects are carried out by the subcontractors.

REICs must invest at least 51% of their total asset value, in real estate, real estate backed rights and real estate backed projects.

REICs are subject to the “Principles Pertaining to Real Estate Investment Trusts” of the Capital Markets Board No.III-48.1

At least 25% of REICs must be publicly held.

REICs can invest in cash and capital market instruments. However, their total investment in cash and capital market instruments cannot exceed 49% of their total asset value.

REICs can invest in foreign capital instruments, real estate and companies established abroad, which exclusively operate in the field of real estate, at a maximum ratio of 49% of its assets.

The ratio of plots and land in the portfolios of REICs, which are not used in any way for development of any projects, despite the fact that it has been more than five years since they have been purchased, to the total assets of the REITs cannot exceed 20%.

REICs may obtain loans up to five times their non-consolidated equity stated in their year-end financial statements.

There is no obligation to diversify their portfolios on sector, region and real estate basis.

Currently there is no such obligation in valid. According to Communiqué on Principles Regarding Real Estate Investment Companies, CMB may place an obligation for REICs regarding distribution of cash dividends.

Earnings acquired by REICs as a result of their activities are exempt from corporation tax and are subject to 0% income tax withholding. Within this scope, they do not pay corporation tax over their portfolio earnings.

Purchases to be included in the portfolio and sales and leasing transactions from the portfolio carried out by REICs are realized by taking into consideration the appraisal values determined by real estate appraisal companies.

Although in principle REICs should take into account the appraisal value of the expert when selling or leasing real estate, they may also transact over values that are lower than the appraisal value in sales and leasing transactions. However, if the sales or leasing transactions are carried out over values lower than appraised values, such transactions must be publicly announced as material event disclosures and included in the agenda of the first general assembly meeting to inform the shareholders.

İş REIC was established on 6 August 1999.

İş REIC’s initial public offering was held on 1-3 December 1999.

Shares of İş REIC are transacted in Borsa İstanbul A.Ş. Collective and Structured Products Market with “ISGYO” ISIN code.

Is REIC is traded in Borsa Istanbul Real Estate Investment Companies Index (XGMYO), Borsa Istanbul 100 Index (XU100) and Borsa Istanbul Corporate Governance Index(XKURY).

The portfolio of İş REIC comprises real estate investments, as well as investments in money and capital markets instruments. Real estate investments of İş REIC comprise of real estate projects and rent generating commercial assets such as office buildings, retail assets and hotel.

The majority shareholder of İş REIC is Türkiye İş Bankası A.Ş.

(The articles regarding majority shareholder have been removed from the new REIT Communique)

Iş REIC has a capital size of TL 958.750.000

Company's issued capital consists of 958,750,000 shares with a par value of TL 1 per share, all of which are registered to name. TL 1,369,642.817 of the capital is comprised of Group A shares and remaining TL 957,380,357.183 is comprised of Group By shares. The Group A shareholders have the privilege to nominate candidates to become members of the Board of Directors. One of the Board of Directors members is elected among the nominees of Group B shareholders and the remaining members are elected from the nominees of Group A shareholders.
Our Company Articles of Association contains no privileges with regard to use of votes. .

İsbank and İsbank Group companies have 44% and 16% shares in the capital respectively, while the remaining 40% of the capital is publicly traded.

The board of directors of ISREIC consists of 9 people, including 3 independent members

The core business of İş REIC is to invest in real estate, real asset backed rights and develop real estate projects to acquire real estate income or lease income.

The income resources of İş REIC are lease income from real estate portfolio, real estate sales and from financial assets.

The average term of lease contracts is 5 years, while this term may vary depending on the term of lease or type of investment model. When we look at the lease contracts of real estate within the portfolio, we see that the term is 20-25 years in turnkey projects and may reach 72 years in B.O.T. models.

When executing lease contracts, the denomination is chosen either in TL or foreign currency, by taking into consideration the business line of the lessee, the investment model, etc. The existing lease contracts have been concluded over TL, USD and Euro.

The fiscal year of iş REIC is a 12-month calendar year. (January-December) 

Iş REIC discloses its financial results at quarterly intervals.

The General Assembly convenes within three months as of the end of the fiscal year, in compliance with the Company articles of association. Extraordinary general assembly meetings may be held whenever an event necessitating a general assembly meeting arises.

The dividend proposal of the Board of Directors is delibrated during the General Meeting of Shareholders in order to decide whether profits will be distributed, and if so, how and when this will be done. Company’s dividend policy is stated below.

Our articles of association states the principle of distributing primary dividend from distributable income at a rate and amount determined by the Capital Markets Board.

In profit distribution proposals presented to General Assembly, Board of Directors take into account:

• Maintaining the fine balance between the expectations of the shareholders and the Company's needs for growth,
• Profitability of the Company,

Accordingly, the Company has adopted a dividend policy to propose to the General Assembly that at least 30% of the distributable profit to be distributed as stock or cash.

There are no privileges concerning participation in the Company's profit, and dividend distribution is carried out within the legally-prescribed period of time.

In case, the Board of Directors proposes not to distribute profits, the reasons of the proposal and the information about how the undistributed profits will be allocated should be submitted to shareholders in the General Meeting of Shareholders, explained in the Annual Report and disclosed to the public.

The subject of advance dividend payment has been included in the Company’s Articles of Association, and advance dividend payment can be made to the shareholders within the framework of the capital market regulations on the subject.

The independent audit company of İş REIC is Güney Bağımsız Denetim ve Mali Müşavirlik A.Ş. (Ernst&Young).

REICs must work with real estate appraisal companies authorized by CMB for assets that are already in the portfolio of the Company or may be included in the portfolio within the year, requiring appraisal. Within this scope, service for the valuation of each asset in ISREIC’s portfolio as of 31.12.2017 will be obtained from the CMB authorized appraisal companies named “Terra Gayrimenkul Değerleme ve Danışmanlık A.Ş.", "Reel Gayrimenkul Değerleme A.Ş.", "Harmoni Gayrimenkul Değerleme ve Danışmanlık A.Ş. " and "Nova Taşınmaz Değerleme ve Danışmanlık A.Ş." Service for the valuation of the assets that will be purchased and require valuation during the year 2018, will be obtained from the appraisal companies named “Nova Gayrimenkul Değerleme ve Danışmanlık A.Ş.” or “Terra Gayrimenkul Değerleme A.Ş.”

You may contact Investor Relations Department for further queries.

Telephone: 0850 724 23 50
Fax : 0212 325 23 80
E-mail: investorrelations@isgyo.com.tr