Real estate investment trusts in Turkey: Structure, analysis, and strategy

Abstract

Purpose-Aim of this study is to make the determinations related to the problems mentioned in the REIT sector in Turkey, to offer a solution for this issue, and to ensure the classification in the sector by adhering to the financial data of the REITs Methodology-Financial data set of the REITs was firstly standardized by using median instead of mean. Then, the scoring was performed according to defined coefficients. After that normality test of the obtained scores was performed, the area of each score under standard normal distribution curve was calculated and the scores were moved to the 0-100range.Finally,scoreswerecollectedunder5groupsas"Verygood, Good,NotBad,BadandVeryBad"byusingk-means algorithm. Clustering were made on R Studio. Findings-Our analyses conducted that REITs traded on the Istanbul Stock Exchange are divided into two subgroups depending on their financial data. Conclusion-It will be important the REITs, in the sub-group especially in terms of the score distribution, to diversify their portfolio by extending their asset investments, to stabilize dividend payments and to take steps on institutionalization so that they are equivalent to REITs in the supergroup.

Financial Ratios Affecting Profitability of Real Estate Investment Trusts

“…Moreover, they analyze the relation of no listed real estate funds with the performance of the whole economy and that of competing asset classes and find that lagged Gross Domestic Product (GDP) growth and stock market returns as well as contemporaneous government bond rates were significant and positive predictors of annual fund performance. Hepsen, Berberoglu and Aydin (2017), in their study, aimed to determine factors related with the problems of REITs sector in Turkey. By using financial data of the REITs and performing analysis, it is concluded that it will be important the REITs, in the sub-group especially in terms of the score distribution, to diversify their portfolio by extending their asset investments to stabilize dividend payments and to take steps on institutionalization so that they are equivalent to REITs in the super group.…”