Real Estate Investment Company (REIC) Shares

Real Estate Investment Company (REIC) is a type of capital market institution which is founded in order to issue its shares for the purpose of operating and managing a portfolio composed of real estates, real estate projects, real estate-based rights, infrastructural investments and services, capital market instruments, Clearing Bank money market and reverse repurchase transactions, time deposits or participation accounts in Turkish Lira, demand and time deposits or special current and participation accounts in foreign currency, subsidiaries and affiliates, and other assets, rights and instruments to be determined by the Board, in accordance with the procedures and principles set forth in Communiqué on the Principles regarding Real Estate Investment Companies (this Communiqué) , and which may engage in other activities permitted in this Communiqué, within the limits of activities delineated in Article 48 of the Capital Market Law.

REICs may directly be founded as a real estate investment company, or joint-stock companies may be converted into a REIC by amending and adopting their articles of association in accordance with provisions of the Law and this Communiqué. In the case of both foundation and transformation of REICs operating a portfolio consisting solely of infrastructural investments and services, it should clearly be stated in their articles of association that minimum 75% of their total assets will be composed of infrastructural investments and services. However, only infrastructure companies may be transformed and converted into a REIC operating a portfolio consisting solely of infrastructural investments and services.

Investors buy shares of a real estate investment company in the stock exchange. In return they are paid dividends at the end of the year. They may also sell their shares in the exchange and receive capital gains anytime they want.