 |
| Activities of REITs |
REIT companies are publicly offered incorporated companies that are accepted as a capital market corporation in the Capital Market legislation, and despite generally operating with the investment trust logic, they invest in real estate that is specially regulated with the Communiqué of CMB Serial VI, No. 11. When we look at in this sense, REIT companies are companies of a combined nature taking place in both the real estate, and the finance sector.
REIT companies are obliged to be at least 49% open to public, and they are prohibited from involvement in real estate agents, consultancy, and construction work. The work they can perform is set out in detail with the Communiqué, and exemption from corporate tax has been provided for these companies within the context of the Corporate Tax Law to encourage public offering, dematerialization and institutionalization.
REIT companies pool the funds they collect from many investors through public offerings, and realize valuable and large-scale real estate investments using such funds. Thus, individual investors are given the chance to take part indirectly in big real estate investments which they could not do with their own savings, while investment risk is reduced because investments can be made in different projects through a diversified portfolio. Thus, REIT companies allow individual investors to benefit from an appraisal which they do not possess by themselves through a professional investment in real estate projects on the basis of corporate principles, and facilitate liquidity, which is not easy in the real estate investments, through stocks sold at the stock market.
REIT companies provide their investors with benefits through appreciation of stocks they hold and through distribution of dividends. Such companies acquire revenues at different term and risk structures, such as sale of real estates from their portfolio, leasing revenues and interest returns from securities. REIT companies may invest in completed or leased real estates or development projects, or a combination of them, depending upon their different management strategies. Real estates included in the portfolio of the companies are appraised by experts licensed by Capital Market Board, and made public. Thereby, investors are able to learn the value of the assets within the portfolio of the companies in an easy and reliable manner. REIT companies are subject to independent auditing, in addition to the auditing of CMB and Stock Market.
|
|
|
General Assembly Information
