FINANCIAL RATIOS AFFECTING PROFITABILITY OF REAL ESTATE INVESTMENT TRUSTS

Year 2020, Volume: 5 Issue: 4, 786 - 794, 31.12.2020

Metin Aktaş , Zabiullah Darwish

https://doi.org/10.29106/fesa.827033

Cited By: 1

Abstract

The pupose of this study is to forecast financial ratios that are related with the profitability of real estate investment trusts in Turkey. In order to get this purpose, Panel Data Analysis is used for the years between 2014-2019 with the yearly data of 32 real estate investment trusts in Turkey. In the analysis, return on asset and return on aquity are used as dependent variables and real estate investment ratio, equity ratio, long term debt ratio, price earning ratio, market value/book value ratio and earnings per share value are used as independent variables. At the end of the panel data analysis, it is concluded that both return on asset and return on equity have negative relationship with the long term debt ratio, but both of the dependent variables have no relationship with the rest of the ratios used in the analysis as independent variables.

Keywords

Real Estate, Profitability, Financial Ratios

FINANCIAL RATIOS AFFECTING PROFITABILITY OF REAL ESTATE INVESTMENT TRUSTS

Abstract

The purpose of this study is to forecast financial ratios that are related with the profitability of real estate investment trusts in Turkey. In order to get this purpose, Panel Data Analysis is used for the years between 2014-2019 with the yearly data of 32 real estate investment trusts in Turkey. In the analysis, return on asset and return on equity are used as dependent variables and real estate investment ratio, equity ratio, long term debt ratio, price earning ratio, market value/book value ratio and earnings per share value are used as independent variables. At the end of the panel data analysis, it is concluded that both return on asset and return on equity have negative relationship with the long term debt ratio, but both of the dependent variables have no relationship with the rest of the ratios used in the analysis as independent variables.

Keywords

Real Estate, Profitability, Financial Ratios

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