Performance Evaluation of Real Estate Investment Trusts using a Hybridized Interval Type-2 Fuzzy AHP-DEA Approach: The Case of Borsa Istanbul

Abstract

This study proposes a three-stage holistic methodology combining an interval type-2 fuzzy analytical hierarchy process (IT2F-AHP) and data envelopment analysis (DEA) to deal with the performance evaluation problems encountered in fuzzy decision environments. In the first stage, prospective inputs and outputs are determined by field studies. The second stage employs IT2F-AHP to identify the most appropriate performance indicators based on vague expert judgements. Finally, DEA is applied to the decision-making units (DMUs) based on the selected set of input and output measures. The proposed methodology proves its merit on a case study addressing the performance of real estate investment trusts (REITs) in Turkey during their 10-year journey of trading on Borsa Istanbul (BIST). The results demonstrate that the average scores for technical, pure technical and scale efficiencies are 66%, 80% and 80%, respectively. Considering the technical efficiency scores, Turkish REITs could have reduced their input factors by an average of 34%. The findings also reveal that the majority of Turkish REITs suffer from economies of scale and could have improved their performance by expansion.

An Assessment Model for Wealth Management Banks Based on the Fuzzy Evaluation Method

“…The proposed strategy was used to assess the criteria for wealth management bank selection and rank them according to their importance [91,92]. The TOPSIS is characterized by the comparability to a positive-ideal course of action and the remoteness from a negativeideal course of action [93][94][95][96][97][98][99]. This strategy is appropriate for understanding the decisionmaking issue in a fuzzy environment.…”

An Extended Three-Stage DEA Model with Interval Inputs and Outputs

“…In the second stage, the SFA method is used to correct the effects of environmental variable and random error. In the third stage, the adjusted input data and original output data are used for DEA efficiency measurement again [25,26].…”