BORSA PERFORMANCE ANALYSIS OF THE FINANCIAL RATIOS OF REAL ESTATE INVESTMENT TRUSTS IN BORSA ISTANBUL INC

Abstract

Real Estate Investment Trusts are institutional structures within the Real Estate and Construction sector. The REITs are the companies that provide funds to Real Estate investments through public offering. Besides of paying dividends, the REITs also, provide opportunities for investors to gain profit from buy and sell activities through the stock exchange platform. These firms are offering significant contributions to the Real Estate sector as well as the National economy as a whole. However, as it can be seen in other sectors, there are some factors and variables that affect the Real Estate sector as well as the REITs performances. The purpose of this study is to measure and demonstrate the effects of financial ratios on the REITs’ stock market performance. The panel regression analysis method is used in this research. 31 Real Estate Investment Trust corporations were selected from the Istanbul Stock Exchange platform as the research samples for the period of 2011-2017. Financial data such as liquidity ratios, financial structure ratios, leverage ratios, profitability and stock market performance ratios were obtained from www.finnet.com data base.