The Interactions between Direct and Securitized Infrastructure Investments and Its Relationship to Real Estate

2012 ◽  
Author(s):  
Konrad Finkenzeller ◽  
Benedikt Fleischmann
Keyword(s):  
Real Estate ◽  
Infrastructure Investments

scholarly journals Transport Mode and the Value of Accessibility–A Potential Input for Sustainable Investment Analysis

2020 ◽  
Vol 12 (5) ◽  
pp. 2143 ◽  
Author(s):  
Jonas Eliasson ◽  
Fredrik Kopsch ◽  
Svante Mandell ◽  
Mats Wilhelmsson
Keyword(s):  
Real Estate ◽  
Cost Benefit ◽  
Point Of View ◽  
Single Family ◽  
Railway Stations ◽  
Perceived Safety ◽  
Sustainable Investment ◽  
Infrastructure Investments ◽  
Real Estate Prices

Accessibility plays an essential role in determining real estate prices and land use. An understanding of how accessibility and changes in accessibility influence real estate prices is key to making decisions regarding investments in infrastructure projects. From an accessibility point of view, it is not clear that there should be differences in valuation depending on the mode of public transport, road, or rail. There are, however, other differences that may affect real estate prices differently. For example, railway stations more often than bus stations, tend to be associated with a higher level of service. In addition, an investment in a railway station may signal a long-term decision from the policymaker. A third possible explanation concerns differences in perceived safety, comfort, and security. This paper aims to study if and how capitalization of accessibility differs between modes of transportation. The findings indicate that rail has a higher impact, both for single-family and multifamily houses. The implication of these findings may be of importance for future infrastructure investments and their corresponding cost-benefit analyses. Incorrect valuations of the benefits of infrastructure investments may result in sub-optimal investments.

Inflation hedging and protection characteristics of infrastructure and real estate assets

2015 ◽  
Vol 33 (1) ◽  
pp. 19-44 ◽  
Author(s):  
Daniel Wurstbauer ◽  
Wolfgang Schäfers
Keyword(s):  
Real Estate ◽  
Asset Returns ◽  
Content Type ◽  
Causality Tests ◽  
Short Run ◽  
Short And Long Term ◽  
Infrastructure Investments ◽  
Real Estate Assets ◽  
Inflation Hedging

Purpose – Similar to real estate, infrastructure investments are regarded as providing a good inflation hedge and inflation protection. However, the empirical literature on infrastructure and inflation is scarce. Therefore, the purpose of this paper is to investigate the short- and long-term inflation-hedging characteristics, as well as the inflation protection associated with infrastructure and real estate assets. Design/methodology/approach – Based on a unique data set for direct infrastructure performance, a listed infrastructure index, common direct and listed real estate indices, the authors test for short- and long-term inflation-hedging characteristics of these assets in the USA from 1991-2013. The authors employ the traditional Fama and Schwert (1977) framework, as well as Engle and Granger (1987) co-integration tests. Granger causality tests are further conducted, so as to gain insight into the short-run dynamics. Finally, shortfall risk measures are applied to investigate the inflation protection characteristics of the different assets over increasingly long investment horizons. Findings – The empirical results indicate that in the short run, only direct infrastructure provides a partial hedge against inflation. However, co-integration tests suggest that all series have a long-run co-movement with inflation, implying a long-term hedge. The causality tests reveal reverse unidirectional causality – while real estate asset returns are Granger-caused by inflation, infrastructure asset returns seem to cause inflation. These findings further confirm that both assets represent a distinct asset class. Ultimately, direct infrastructure investments exhibit the most desirable inflation protection characteristics among the set of assets. Research limitations/implications – This study only presents results based on a composite direct infrastructure index, as no sub-indices for sub-sectors are available yet. Practical implications – Investors seeking assets that are sensitive to inflation and mitigate inflation risk should consider direct infrastructure investments in their asset allocation strategy. Originality/value – This is the first study to examine the ability of direct infrastructure to assess inflation risk.

Real Estate Fraud

2008 ◽  
Author(s):  
Daniel Bradley
Keyword(s):  
Real Estate

Overcoming stereotypes in leasing

2017 ◽  
pp. 136-152 ◽  
Author(s):  
V. Gazman
Keyword(s):  
Real Estate ◽  
Traditional Approach ◽  
Critical Assessment ◽  
Variable Character ◽  
New Perspective

If we want securitization to become one of the main channels to attract funding in leasing activity, as the Bank of Russia predicts, one needs to revise some stereotypes. Relying on foreign and domestic research, the author gives a critical assessment of the postulate of the need for uniformity of securitized assets; proves that real estate, contrary to the traditional approach, rather than equipment and transport, prevails in securitization transactions, and explains why this happens. The article presents a new perspective on the behavior of issu- ers concerning the timing of securities circulation; considers feasibility approach to the calculation of variable character of leverage in leasing; explains pro and contra of evaluating the leasing market based on the volume of the portfolio of contracts; reveals the validity of ratings of bonds issued in the course of secu- ritization of leasing assets.

Sign in / Sign up

Export Citation Format

Share Document