The Factors That Affects the Profitability in Real Estate Investment Trust Companies: Comparison of Turkey and Malaysia

Abstract

It is defined as an investment that individuals use a source or value they own to provide income. Real estate investment trust companies are providing alternative tools to invest in bonds, stocks, etc. by converting real estate holdings from their portfolios into securities. Among the key benefits of real estate investment trust companies are that they have a certain economic cycle, as opposed to bonds, a protective against inflation, and reliable returns. Real estate investment trust companies operate in 41 countries as of 2021, with a market volume of $42 trillion. In Turkey, which is part of the real estate investment trust sector’s category of developing countries, there are 37 real estate investment trust companies and the total mar- ket value is 6860 million euros. The other country included in the study is Malaysia, which also falls under the category of developing countries in the industry. In Malaysia, there are 18 real estate investment trust companies with a total market value of 8519 million euros. The aim of the study is to identify the importance of factors affecting the profitability of the companies of the two countries through the Random Forest Regression method. For this purpose, data from 2013.Q1 to 2022.Q1 were used from the companies of the two countries. As a result of the study, it has been determined that the variables with the most significant impact on the assets and equity profitability of the two countries are total debt total assets rate and logarithm of total assets ratios.

Keywords

• profitability
• random forest regression
• real estate investment trust
• kârlılık
• rassal orman regresyon
• gayrimenkul yatırım ortaklığı