LONG-TERM INFLATION HEDGING PROPERTIES OF DIRECT REAL ESTATE INVESTMENT: A METHODOLOGY TO STUDY INFLATIONíS PROTECTION GIVEN THE LEASE STRUCTURE AND THE INDEXATION USES

2010 ◽  
Keyword(s):  
Real Estate ◽  
Real Estate Investment ◽  
Inflation Hedging

The long‐term inflation hedging effectiveness of real estate and financial assets

2008 ◽  
Vol 25 (4) ◽  
pp. 267-278 ◽  
Author(s):  
Abeyratna Gunasekarage ◽  
David M. Power ◽  
Ting Ting Zhou
Keyword(s):  
Real Estate ◽  
Financial Assets ◽  
Hedging Effectiveness ◽  
Inflation Hedging

International Real Estate Review

2008 ◽  
Vol 11 (1) ◽  
pp. 65-82
Author(s):  
Kuan Min Wang ◽  
◽  
Yuan-Ming Lee ◽  
Nguyen T.T.Binh ◽  
◽  
...  
Keyword(s):  
Real Estate ◽  
Great Influence ◽  
Threshold Value ◽  
Real Estate Investment ◽  
Correction Model ◽  
Inflation Rates ◽  
Housing Returns ◽  
Nonlinear Vector ◽  
Inflation Hedging ◽  
Robust Evidence

Conclusions of past works on the inflation hedging ability of real estate investment are not consistent. The reason for this perplexity might be the neglect of separation between high and low state of inflation, which has a great influence on empirical results. In order to examine the inflation hedging effectiveness of real estate with Taiwanese monthly housing returns and inflation, this paper uses the inflation as the threshold variable to create the nonlinear vector correction model that divides the inflation rates into high and low regime. We find robust evidence that when inflation rates are higher than 0.83% threshold value, housing returns are able to hedge against inflation, and, otherwise, they are unable. Using new methodology to discover new implications is main contribution of this study.

PORTFOLIO FORMATION MEMORY

2016 ◽  
Vol 11 (02) ◽  
pp. 1650010
Author(s):  
TUMELLANO SEBEHELA
Keyword(s):  
Real Estate ◽  
High Intensity ◽  
Real Estate Investment ◽  
Discrete Variations ◽  
Discrete Nature

Real estate investment trade (REIT) memory as illustrated by variations including their Greeks tend to vary during the [0;[Formula: see text]32] window of portfolio formation, i.e. acquisitions. This is partly due to acquisition activities and intensity which tend to be “higher” during the time to expiration. Prior REIT studies explored variances based on long-term measures without focusing on the discrete nature of variations. This article, empirically presents discrete variations at different points in time. Results illustrate that memory decreases as time to expiration approaches maturity. Given high intensity during acquisitions, one infers that memory illustrated in this paper is likely to be optimal one.

scholarly journals The Dynamic of Location Attributes Toward Malaysian Real Estate Investment Trust Performance

2018 ◽  
Vol 7 (2.29) ◽  
pp. 1121
Author(s):  
Rohaya Abdul Jalil ◽  
Izran Sarrazin Mohammad ◽  
Tiong Chai Ping
Keyword(s):  
Real Estate ◽  
Investment Decision ◽  
Pearson Correlation ◽  
Descriptive Analysis ◽  
Central Business District ◽  
Real Estate Investment Trust ◽  
Real Estate Investment ◽  
Investment Decision Making ◽  
Business District

The Malaysian real estate investment trusts (M-REITs) properties intensive location contributes toward higher rental yield. Nevertheless, the location diversification depends on the type of properties in the portfolio, puzzled shareholder in their investment decision making in M-REITs. This study aim to determine the dynamic of location attributes toward financial performance. The pearson correlation and descriptive analysis of ten years (2006 until 2015) data is used. This study indicate that there is correlation between attributes of economic location with dividend yield(DY) (cor: 0.241). Yet, the market capitalization, have a negative correlation (cor: -0.246), which contradict with prior study on REITs’ location attributes. This study also show that attributes of location of M-REITs properties should located between 5km to 10km from central business district (CBD).This study conclude that in order to ensure M-REITs properties remain competitive for commercial occupancy. The investment on M-REITs proven that dynamic of location attributes is priority, which support that M-REITs design for a long term investment goal.  

scholarly journals International Real Estate Review

2013 ◽  
Vol 16 (3) ◽  
pp. 252-273
Author(s):  
Mamoru Nagano ◽  
Keyword(s):  
Real Estate ◽  
High Concentration ◽  
Real Estate Investment ◽  
Market Participants ◽  
Concentrated Ownership ◽  
Asset Liquidity ◽  
Residential Properties ◽  
Liability Structure ◽  
Real Estate Assets

This paper investigates the relationship between real estate asset liquidity and the liability structure of Japanese real estate investment trusts (J-REITs). It employs data on the regionality and usage of real estate assets as new proxies for the liquidation value of these assets, and arrives at the following conclusions. First, J-REITs with high ratios of real estate investment assets in highly liquid regions, that is, regions where the trade frequency per unit area is high, have high debt-to- equity ratios and debts of long-term maturity. Second, J-REITs with high concentration ratios of small real estate assets that are traded as residential properties also have high debt-to-equity ratios and debts of long-term maturity. In addition, the above relationships are enhanced when these REIT shave a concentrated ownership structure. In summary, this paper empirically validates the employment of regional characteristics and usage type of real estate assets as proxies for asset liquidation value, and confirms that these proxies are related to the capital and liability structures of J-REITs. This connection is possibly intensified by the perception of block shareholders as sponsor firms by market participants.

scholarly journals International Real Estate Review

2017 ◽  
Vol 20 (3) ◽  
pp. 287-324
Author(s):  
J. Andrew Hansz ◽  
◽  
Wikrom Prombutr ◽  
Ying Zhang ◽  
Tingyu Zhou ◽  
...  
Keyword(s):  
Real Estate ◽  
Causal Relation ◽  
Equity Market ◽  
Real Estate Investment Trusts ◽  
Real Estate Investment ◽  
Short Term ◽  
Macroeconomic Factors ◽  
Equity Reits ◽  
Market Factor

We investigate the long- and short-term interrelationships between equity and mortgage real estate investment trusts (REITs) by focusing on decomposed income and appreciation components. We find that the previously documented long-term cointegration relation between equity and mortgage REIT prices stems exclusively from their income components and subsequently, the appreciation components contribute nothing to such a long-term relationship. We also find that the previously documented short-term causal relation between equity and mortgage REIT returns is due to the causality that runs from the appreciation returns of equity REITs to those of mortgage REITs while their income returns do not lead to causality. Lastly, we show that the income returns of both equity and mortgage REITs are influenced by the same equity market factor while their appreciation returns are responsive to different macroeconomic factors, which explain the heterogeneous performance between them.

Residential Security Maps and Neighborhood Appraisals

2005 ◽  
Vol 29 (2) ◽  
pp. 207-233 ◽  
Author(s):  
Amy E. Hillier
Keyword(s):  
Geographic Information Systems ◽  
Real Estate ◽  
Regression Models ◽  
Spatial Regression ◽  
Real Estate Investment ◽  
Risk Levels ◽  
Housing Characteristics ◽  
Spatial Regression Models ◽  
Loan Corporation

At the request of the Home Loan Bank Board, the Home Owners' Loan Corporation (HOLC) created color-coded maps for cities across the country between 1935 and 1940 that indicated risk levels for long-term real estate investment. Involvement in this City Survey Program marked a departure from the original mission of HOLC to provide new mortgages on an emergency basis to homeowners at risk of losing their homes during the Depression. This article considers why HOLC made these maps, how HOLC created them, and what the basis was for the grades on the maps. Geographic information systems and spatial regression models are used to show that racial composition was a significant predictor of map grades, controlling for housing characteristics.

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