TRSM Research Seminar by Sedat Ogeturk

Title: Exploring Operational Efficiency and Valuation of Canadian REITs

Description: This research employs Data Envelopment Analysis (DEA) to assess the operational efficiency of Canadian Real Estate Investment Trusts (C-REITs) as crucial entities in the real estate investment landscape. Evaluating their management proficiency and impact on shareholder wealth, the study explores the potential correlation between C-REIT market valuation and operational efficiency. Given the limited number of C-REITs relative to their US counterparts, a non-parametric approach is favored for its robustness in extracting evidence. The linear programming framework of DEA facilitates the measurement of relative efficiency among decision-making units (DMUs), represented by individual REITs. Scale efficiency, a critical aspect of the analysis, is determined through the ratio of Constant Return to Scale (CRS) and Variable Return to Scale (VRS), providing insight into the operational dynamics of C-REITs. It is assumed that the DMU is scale efficient if the technical efficiency values of CRS and VRS are equal.

Bio: Sedat is a passionate doctoral candidate pursuing a PhD in Management, specializing in Real Estate Management at Toronto Metropolitan University. Sedat’s academic journey has been driven by a robust curiosity about the dynamics of commercial real estate, retail management and Canadian Real Estate Investment Trusts. Sedat acquired his analytical skills during his undergraduate studies in engineering at Istanbul Technical University, Turkey, before completing his Master of Business Administration (MBA) and Master of Science in Management (MScM) at the Toronto Metropolitan University. Sedat’s main research interest is commercial real estate, specifically focusing on Canadian Real Estate Investment Trusts.