Investment Trusts Undertake the Financing Burden of Projects
Capital market institutions that can invest in real estate, real estate projects, and capital market instruments are called real estate investment trusts. The income of these institutions, established to realize specific projects, is exempt from corporate tax. These institutions, established to invest in real estate and projects with high return potential, generate rental income or capital gains from their investments. When they make a profit from the real estate in their portfolio, they distribute the profit share to their partners as dividends. In addition to profit share, they also benefit from price increases on the stock exchange.
The greatest benefit of real estate investment trusts to the economy is that they undertake the financing burden of large-scale real estate projects. Real estate investment trusts, which undertake the economic burden of large investment projects such as business centers or shopping malls, apply for loans if their own equity is insufficient. It is decided how the real estate will be financed, depending on the construction and usage rights of the real estate, the company's profitability potential, the size of the project, and the financing cost. Real estate investment trusts can sell their own shares on the stock exchange and profit from stock market increases.
