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This study examines the capital structure decisions of Turkish REITs.The introduction and still-ongoing growth of REITs has been an important change in and for the Turkish real estate markets since 1998.The improving economic conditions have revived Turkey s real estate markets within the last few years and Turkish REITs stand to be the highest beneficiaries of this resurgence,especially attracting the attention and the interest of institutional investors.Using semi-annual data on thirteen Real Estate Investment Trusts (REITs) between 1998 and 2007,I document cross-sectionally for every period that REITs employ very small long-term debt in their capital structure.This is because Turkish REITs do not have to pay out dividends to the shareholders on an annual basis.Further,employing Pooled OLS regressions,I find that the amount of long-term debt is positively related to firm size and,negatively related to profitability and asset tangibility.I also document that REITs with high market-to-book value ratios have significantly lower total debt than REITs with low market-to-book ratios.There is no evidence that REITs with high market-to-book ratios (increasing growth opportunities) have high long-term debt ratios.Because Turkish REITs do not have to pay out dividends to the shareholders on an annual basis,they are able to finance their growth relatively cheaply through 100 percent plow back of profits into new investments.