REIT Sector

Actions of Reits

Actions Of Reits

REIT firms are accepted as capital market institution in Capital Market regulations and while generally acting in investment trust frame with the Communique Serial:VI, No:11 of SPK, they are real estate investor public anonym firms. In this perspective REIT firms are mixed quality firms act in both real estate and finance sectors.

REIT firms are obliged to be open to public at least 50% and real estate agency, counseling and construction businesses are not allowed for these firms. Restrictions are explained in detail by related notification and to encourage the institutionalization and openness in real estate business these firms are excused of corporate tax.

REIT can collect money by public offer from multiple investors and make a high priced real estate investment. So while single investor can have a share of a huge real estate investment that he or she can not have alone, with a diverse portfolio structure risk of investment decreases. With this method REITs give the opportunity of benefit of use of an expertise which little investor do not have by investing real estate projects with corporate principles and also makes the liquidation easier by selling its stocks in stock exchange, which is not so easy in real estate investments.

Investors of REIT's benefit the value increase of stocks and financial profits. These firms have incomes like from real estate sale income, rental income and interest income from real estates with different terms and risks. According to different management strategies REIT firms can invest to finished or rental real estates or developing projects or combination of these. Real estates in the portfolios of these firms are evaluated by real estate appraisals certified by Capital Market Board and then make public. So, investors can easily and safely know the value of real estates in the portfolio of these firms. REIT’s are also subject to independent audition as well as SPK (Capital Market Board ) and Stock Exchange.

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