Frequently Asked Questions

What is Real Estate Investment Trust REIT

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 this Communique, and which may engage in other activities permitted in this Communiqué, within the limits of activities delineated in Article 48 of the Law.

What legal regulation are REITs subject to?

REICs are subject to the “Principles Pertaining to Real Estate Investment Trusts” of the Capital Markets Board No.III-48.1.

How much of their capital do REITs have to offer to the public?

REITs must offer at least 25% of their capital to the public.

What is the portfolio limitation regarding real estate investments of REITs?

REITs Are under obligation to invest at least 51% of their total assets in real estates, real estate projects and real estate-based rights.

What is the portfolio limitation of REITs regarding money and capital market instruments?

REITs can invest in money and capital market instruments. Investments of REITs in money and capital market instruments cannot exceed 49% of their total asset size.

What is the corporation tax rate applicable on earnings of REITs?

As a Turkish joint stock company, a REIT is subject to Turkish income tax regulations. However, all profits of a REIT become exempt from Turkish corporate income tax under the Turkish Corporate Tax Law once it is recognized as REIT under Capital Markets Law and rules introduced by the Capital Markets Board and remain exempt as long as the REIT status is maintained. Pursuant to Article 5/1-d-4 of the Corporate Tax Law ("CTL"), revenues of REITs are exempted from the corporate tax. The withholding tax rate imposed pursuant to the CTL 15/3 on such revenues which are exempted from the corporate tax is 0%. The purchase and sale agreements of REITs exclusively for real estate portfolios and their real estate off-plan presales contracts are exempted from stamp duty. The original copies of all other written and signed contracts (including lease contracts) which are not exempted shall be subject to stamp duty. There is no general charge exemption for REITs. Therefore, they are subject to title deed and cadastral charges in particular

What is the portfolio limitation regarding the land investments of REITs?

The proportion of lands in the portfolio of REITs, on which no planning have been made for the development of projects even after five years have passed, cannot exceed 20% of the total assets.

Can REITs do the construction work of their projects themselves?

REITs cannot undertake the construction works of real estates themselves, and cannot acquire personnel and equipment in this context. If the control works of the projects carried out will be carried out internally, the personnel employed for this purpose are out of the scope. The construction works of the projects are done by the contractor companies.

What is the borrowing limit of REITs?

REITs may obtain loans up to five times their non-consolidated equity stated in their year-end financial statements.

 

Do Real Estate Investment Trusts have an obligation to distribute dividends?

There is no such obligation. According to Communiqué on Principles Regarding Real Estate Investment Companies, Capital Markets Board may place an obligation for REITs regarding distribution of cash dividends.

What is the corporate tax rate for REITs?

REITs are exempt from the corporation tax.

What values do REITs use when buying, selling or renting real estate?

REITs; sell, buy or rent real estates based on the appraisal values determined by property valuation companies.

Can REITs trade with a value above their appraisal value when buying real estate, and below their appraisal value when selling or renting?

REITs can trade with a value above their appraisal value when buying real estate, and below their appraisal value when selling or renting. However, if the sales or leasing transactions are carried out over values lower than appraised values, such transactions must be publicly announced as material event disclosures and included in the agenda of the first general assembly meeting to inform the shareholders.

When was Ziraat REIT founded?

Ziraat REIT was founded on 01.11.2016.

When did Ziraat REIT go public?

Ziraat REIT started to be traded on Borsa Istanbul on May 6, 2021.

Ziraat GYO hangi borsada, hangi pazarda işlem görmektedir?

Ziraat GYO hangi borsa endekslerinde yer almaktadır?

How many members does Ziraat REIT's Board of Directors consist of and how many independent members are there?

The board of directors of Ziraat REIT consists of 5 people, including 2 independent members

What is Ziraat REIT's paid-in capital?

Ziraat REIT has a capital size of TL 4.693.620.000

What is the core business of Ziraat REIT?

The core business of Ziraat REIT is to invest in real estate, real asset backed rights and develop real estate projects to acquire real estate income or lease income.

The income resources of Ziraat REIT are lease income from real estate portfolio, real estate sales and from financial assets.

What is Ziraat REIT's dividend policy?

Company dividend policy and other policy texts can be accessed from the link below:

https://www.ziraatgyo.com.tr/en/policies

What is Ziraat REIT's fiscal year and how often does it disclose its financial statements?

The fiscal year of Ziraat REIT is a 12-month calendar year. (January-December)

Ziraat REIT discloses its financial results at quarterly intervals.

Who is Ziraat REIT's independent audit firm?

Ziraat REIT's independent audit firm is PwC.

Who can Ziraat REIT investors contact with their questions?

For your questions, you can contact the Investor Relations Department.

yatirimciiliskileri@ziraatgyo.com.tr

investorrelations@ziraatgyo.com.tr

Tel: +90 216 369 77 72-73