IDEAS home Printed from
   My bibliography  Save this paper

Pricing of IPOs: The Unique Case of Turkish REITs


  • Isil Erol
  • Dogan Tirtiroglu


The legal foundation of the Turkish Real Estate Investment Trust (REIT) structure, put in place in 1995, is considerably different and more complex than those observed elsewhere and predates those in Singapore, Japan, France, and the UK. Our paper builds on the unique legal and institutional details about Turkish REITs, as elaborated in Erol and Tirtiroglu (2011), and studies the pricing of their initial public offerings (IPO) between 1996 and September 2014. Turkish REITs enjoy complete flexibility in their dividend policy while being exempted from corporate taxes and also exhibit a legally mandated concentrated ownership structure. Further, they have some legally allowed flexibility in the asset allocation of their portfolios. While Turkey exhibits substantial macroeconomic uncertainty early on, it abates quite visibly, even during the Global Financial Crisis, since mid-2000s. We document empirically underpricing in the late 1990s and early 2000s and then fair or overpricing in late 2000s and early 2010s. This finding differs from those of no underpricing for REIT IPOs from the US market beyond the late 1990s. As a control sample, we also focus on all non-REIT Turkish IPOs issued during the same sample period and offer comparative evidence on the pricing of REIT and non-REIT IPOs.

Suggested Citation

  • Isil Erol & Dogan Tirtiroglu, 2015. "Pricing of IPOs: The Unique Case of Turkish REITs," ERES eres2015_21, European Real Estate Society (ERES).
  • Handle: RePEc:arz:wpaper:eres2015_21

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2015_21. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.