Turkish REICs background goes back to late 1990s and their portfolio structure diversifies between different assets. Since 2005, REICs became specialized in certain areas, such as retail, residential, logistics and hotel.Residential REICs have a 'develop/sold' strategy while commercial REICs have 'buy/hold' strategy in Turkey. Therefore, residential REICs focus on 'developer's profit' instead of 'rental income and capital gains' and it causes high risk premium due to uncertainty in development projects. Over the period 2005 - 2010, residential investments have delivered higher returns than commercial, while return of commercial investments have been volatile.Turkish REICs present an alternative investment vehicle for both individual and institutional investors. Investors and fund managers search for accurate information on the performance of REITs, so this paper attempt to analyze the underlying drivers of performance of total return for Residential and Commercial REICs of Turkey, over time.This paper is a part of research project titled 'Performance Analysis of Real Estate Investment Companies and Direct Real Estate Investments in Turkey', supported and financed by EPRA.