FREQUENTLY ASKED QUESTIONS

What is the main legal arrangement on REITs?

REITs are subject to “Communique on Principles of Real Estate Investment Companies” of the Capital Markets Board No. III-48.1

How much of the capital of REITs should be publicly listed?

At least 25% of the capital of REITs should be publicly listed.

How much of the investments of REITs should be in real estate sector as a minimum?

REITs are required to invest in real estates, rights based on real estates and projects based on real estates by 51% of their total assets as a minimum.

Can the REITs invest in money and capital market instruments?

The REITs can invest in money and capital market instruments. The investments of REITs in money and capital market instruments cannot exceed 49% of the total asset size.

Can the REITs invest in foreign real estates or companies established abroad?

REITs can invest in foreign real estates, foreign capital market instruments and companies which are established abroad and of which the sole activity is on real estates by 49% of their total assets as maximum.

Is there a limit concerning the land investments of REITs?

The ratio of the lands which are included in the portfolio of the REITs and about which there is no disposition for developing a project despite the fact that that five years have passed cannot exceed 20% of the total assets.

Can the REITs be engaged in the construction of their own projects?

The REITs cannot undertake the construction work of their real estates in any way; they cannot hire personnel or equipment in this scope. If the control of the projects that are carried out will be realized internally, the personnel employed for this purpose out of the scope. The construction of the projects is realized by contractors.

What is the borrowing limit for REITs?

REITs can utilize credits up to 5 times of their unconsolidated equity included in their financial statements announced at the end of accounting period..

Is there a rule for the REITs to diversify their portfolios?

REITs are not required to diversify their portfolios on region or real estate basis.

Is there an obligation for the REITs to distribute profit?

REITs are not obliged to distribute profit. However, as per REIT Communique, the Capital Markets Board may introduce the liability of distribution of cash profit for REITs.

What is the corporate tax ratio paid by the REITs?

The earnings of the REITs obtained from their activities are exempt from corporate tax, and the income tax withholding ratio is 0%. In this scope, REITs do not pay corporate tax over their portfolio earnings.

Which values do the REITs use in buying, selling or renting real estates?

The buying transactions for the portfolio, selling transactions from the portfolio and renting to be realized by the REITs are all realized by taking into consideration the appraisal values determined by real estate valuation companies authorized by CMB.

Can the REITs buy the real estate above the appraisal value or sell or rent the real estate below the appraisal value?

Although the REITs should take into consideration the appraisal values while buying, selling or renting real estate, they can buy above the appraisal value, sell or rent below the appraisal values. However in case of buying above the appraisal value, selling or renting below the appraisal value, the material event should be disclosed to public and this should be included in the agenda of the first general assembly meeting and shareholders should be informed.

When was Deniz REIT established?

Deniz REIT was established on 05/05/1995.

In which stock exchange and market are the shares of Deniz REIT traded?

The shares of Deniz REIT are traded in Istanbul Stock Exchange, Corporate Products Market with “DZGYO” share code.

In which stock indexes are Deniz REIT included?

Deniz REIT is included in BIST Real Estate Investment Trust Index (XGMYO), BIST 100 Index (XU100) and BIST ALL Index.

What is the main activity of Deniz REIT?

The main activity of Deniz REIT is investing in the real estates and rights based on real estates and developing real estate projects to obtain income from increase in value or rent.

Which investments does Deniz REIT portfolio consist of?

Deniz REIT portfolio consists of real estate investments from which rent income is obtained and investments in money and capital market instruments.

What are the income sources of Deniz REIT?

The income sources of Deniz REIT consist of the rent income obtained from the real estate portfolio, income obtained from the sale of the real estates and income obtained from financial assets.

What is the capital size of Deniz REIT?

The capital size of Deniz REIT is 50.000.000 TL.

What is the number of shares representing the capital of Deniz REIT? Do the shares include any privilege?

The issued capital of Deniz REIT consists of 50.000.000 shares, with an individual nominal value of 1 TL and all of the shares are registered. 5.000 TL of the shares belongs to A Group, 49.995.000 TL of them belongs to B Group. A Group shares include the privilege of nominating a candidate for the selection of Board Members. All of the Board Members are selected among the candidates nominated by A Group shareholders. Apart from this, there is no privilege on voting in the Articles of Association.

What is the current shareholding structure of Deniz REIT?

While 91% of the capital of Deniz REIT is represented by Deniz Yatırım Menkul Kıymetler A.Ş., company of Deniz Financial Services Group, 9% of the capital is publicly listed.

How many board members are included in the Board of Deniz REIT? What is the number of independent board members?

The Board of Directors of Deniz REIT consists of 5 members and the number of the independent board members is 2.

How often does Deniz REIT release its financial results?

Deniz REIT releases its financial results quarterly.

When are the General Assembly Meetings of Deniz REIT held?

The General Assembly Meetings are held within three months as of the end of the accounting period in line with the Articles of Association. The Extraordinary General Assembly Meetings are held in cases which require a meeting to be held for the company.

Who is the independent auditor of Deniz REIT?

The independent auditor of Deniz REIT is Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (A Member of Ernst&Young Global Limited).

Which real estate valuation companies provide service to Deniz REIT?

REITs are required to work with the real estate valuation companies authorized by CMB for any asset included in the company portfolio or any asset that may be included in the portfolio within the year and may require valuation. In this scope, concerning the existing real estates in our portfolio, we receive service from “Harmoni Gayrimenkul Değerleme ve Danışmanlık A.Ş.” among the real estate valuation companies authorized by CMB.

We receive valuation service from “Harmoni Gayrimenkul Değerleme ve Danışmanlık A.Ş.” or “Ekol Gayrimenkul Değerleme ve Danışmanlık A.Ş.” for assets that may be included in the portfolio in 2014 and may require valuation.

With whom Deniz REIT investors can contact regarding their questions?

For your questions, please contact Investor Relations and Corporate Compliance Department.
Phone Number: 0212 348 57 45 – 0212 348 57 46
Fax : 0212 336 61 84
E-mail : denizgyo@denizbank.com