Financial Performance of Real Estate Investment Trusts: A Case of BIST Enterprises

Ayşegül Ertuğrul Ayrancı and Ceren Aycan Gürel
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Ayşegül Ertuğrul Ayrancı: Istanbul Kültür University
Ceren Aycan Gürel: Istanbul Kültür University

International Journal of Applied Economic and Finance Studies, 2020, vol. 5, issue 1, 1-14

Abstract: Real Estate Investment Trusts (REITs) have recently occupied an important position within Turkish economy. REITs have become the institutions that finance the companies operating in real estate sector for their large scale projects. REITS have tremendous importance due to the facts that they are offered to public and they provide income to their investors in the form of dividends. In this study, the data of total of 18 REITs, which have data for each term and which have no missing data, have been considered for the 2010Q1-2019Q3 period, and a panel data analysis has been performed by calculating 10 financial ratios. Market to book value ratio (MV/BV) has been used as the financial performance indicator and it has been found out that increases in acid-test ratio, equity multiplier, long term debt/assets, equity profitability, return on assets, and operating profit margin are able to increase the businesses’ value; whereas the leverage ratio has been found out to decrease their value. Turnover ratios, moreover, have been concluded to be ineffective on MV/BV.

Keywords: Real estate investment trusts; financial performance; panel data analysis (search for similar items in EconPapers)
Date: 2020
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