Page 63 - TURKRptJun20

rental income recovers,” the rating agency said.
In comments on refinancing risk, Fitch stated: “RGY faces refinancing risk in 2021, when around TRY1.8 billion of debt matures. Nevertheless, 33% of this comprises secured debt with Optimum Adana SPV, a performing asset with a long-term partner, while 41% is related to a loan in a JV with GIC that owns 21% of RGY. The refinancing risk of these loans is viewed by Fitch as low.”
Fitch also made a note on the “Challenged Tenant Base”, adding: “With a focus on destination shopping centres, RGY has a good cross-section of domestic and international tenants across multiple retail sectors. Retail tenants, however, were already under pressure owing to a weak economy and lira, but the cessation of most sales will exacerbate many tenants' financial troubles. The ability of weakened tenants to pay rent once malls re-open will vary, but vacancies from failed tenants may be hard to fill or will require significant discounts and incentives, hindering a return to normal rent levels.”
Turkey’s competition board ​is​ investigating 29 retailers, including the country’s largest supermarket and discount chains BIM, Sok and Carrefoursa​, over their pricing practices.
Migros ​reported​ a net loss of TRY 136mn in Q1​ versus a TRY231mn loss a year ago.
9.2.5​ TMT corporate news
Turkey’s largest mobile telecoms operator Turkcell has revised down its revenue growth target for 2020​ to 10-12% y/y from 13-16% due to the impact of travel restrictions and limited mobility seen on several revenue lines, the company ​said​ on April 28.
In Q1, the company’s revenues were up 17% y/y to TRY6.66bn ($947.2mn) while—with the exclusion of TRY772mn of one-off profit recorded in Q1 2019 from the sale of a stake in former subsidiary Fintur—net profit jumped 93% y/y to TRY873mn.
Turk Telekom’s consolidated revenues increased to TRY6.3bn, up by 16.6% y/y​, while consolidated ebitda grew by 12.1% with an ebitda margin of 47.2%.
The company’s net FX exposure decreased from $2.6bn in March last year to $225mn in March 2020. Its investments amounted to TRY896mn in Q1 from TRY637mn a year ago.
The total number of Turk Telekom subscribers reached 48.4mn with 563,000 net additions in the first quarter.
63​ TURKEY Country Report​ June 2020 ​ ​www.intellinews.com