THE RELATIONSHIP BETWEEN LEVERAGE RISK AND PERFORMANCE OF SELECTED REAL ESTATE INVESTMENTS IN MERU COUNTY- KENYA

2021 ◽  
Vol 6 (2) ◽  
pp. 36-42
Author(s):  
Kenneth Mburugu ◽  
Dr. Nancy Rintari ◽  
Fredrick Mutea
Keyword(s):  
Real Estate ◽  
Central Bank ◽  
Sample Size ◽  
Target Population ◽  
Added Value ◽  
Unique Contribution ◽  
Real Estate Investment ◽  
Real Estate Investments ◽  
And Performance ◽  
Sampling Procedures

Purpose:  The purpose of this study was to investigate the Influence of leverage risk on performance of selected real estates in Meru County Kenya.  Methodology: This study employed a descriptive research design. The target population comprised of 390 real estate owners and the sample size was 197 respondents. Stratified random sampling and purposive sampling procedures were used to select the sample size from the target population. Data was analyzed by use of SPSS version 23. Descriptive statistics and inferential statistics such as Regression, and Analysis of variance (ANOVA) were used to present the results in tables and figures. Results: This study revealed statistically significant relationships between leverage risk and performance of real estate investments.  This study established that Leverage risk had a statistically significant influence on real estate investment performance (r=.686, p<0.01), (f=12.29, p<0.01). However, Real estate investments was not affected by market risk since it had the least influence on its performance. Unique contribution to theory, policy and practice: The study added value to Investors on necessity to evaluate leverage risk, as well as maintain a well-balanced capital structure when making real estate investment decisions. There is dire need for central bank of Kenya to amend lending rates specifically on mortgages. The study informed policy decision to the ministry of finance & central bank of Kenya on implementing fiscal and monetary policies that create an enabling environment. A further study on determinants of leverage in real estate investments need to be done.

scholarly journals DEVELOPMENT AND PERFORMANCE OF THE PUBLIC REAL ESTATE INVESTMENT SECTOR IN FINLAND

2013 ◽  
Vol 17 (3) ◽  
pp. 233-247
Author(s):  
Heidi Falkenbach ◽  
Jaakko Niskanen ◽  
Sami Kiehelä
Keyword(s):  
Real Estate ◽  
Commercial Real Estate ◽  
Market Participant ◽  
Real Estate Investment ◽  
The Public ◽  
The Past ◽  
Equity Investments ◽  
Historical Performance ◽  
And Performance

The article studies the development of the public real estate equity sector. The paper describes and analyses the legislative development regarding the sector and the vehicles provided. It discusses the past development of public commercial real estate equity investments in Finland and their role as a market participant. In addition, the paper analyses the historical performance of the sector.

scholarly journals Management Changes And Performance: The Case Of REITs

2011 ◽  
Vol 9 (11) ◽  
pp. 51
Author(s):  
Russell M. Price
Keyword(s):  
Real Estate ◽  
Board Of Directors ◽  
Significant Relationship ◽  
Stock Return ◽  
Real Estate Investment ◽  
Management Change ◽  
And Performance ◽  
Executive Officers ◽  
Management Changes ◽  
Source Of Information

Managements (board of directors or executive officers) contribution to a firm is difficult to directly observe, although stock return performance can be a source of information. This study extends the work of McIntosh et al (1994) and Friday et al (2006) by analyzing management changes involving Real Estate Investment Trusts from 1996 to 2008. I find that there is a significant relationship between negative performance and a management change from a period three months prior to the change in management. REITs specializing in office properties have the largest negative performance prior to management changes. Negative performance prior to management changes was highest during the tech bubble period.

EFFECT OF AGENCY BANKING ON PERFORMANCE OF MICROFINANCE BANKS IN KENYA

2020 ◽  
Vol 5 (2) ◽  
pp. 50
Author(s):  
Eunice Wangari Ndirangu ◽  
David Kiragu ◽  
Antony Ngunyi ◽  
Mohamed Shano
Keyword(s):  
Rural Areas ◽  
Target Population ◽  
Primary Data ◽  
P Value ◽  
Unique Contribution ◽  
Data Set ◽  
Record Keeping ◽  
Customer Care ◽  
The Government ◽  
And Performance

Purpose: The purpose of this study was to establish the effect of agency banking on performance of microfinance banks in Kenya Materials and Methods: The study adopted positivism philosophy approach and descriptive research design was used. The study also used census survey. The target population was the thirteen Microfinance Banks regulated by the Central Bank of Kenya. The questionnaires were self-administered and primary data was collected from the thirteen regulated microfinance banks. The data was analyzed using the Statistical Package for Social Science. Descriptive and inferential statistics were used for preliminary analysis. Factor analysis was conducted to reduce the number of factors and Kaiser Mayer Olkin and Barlett’s test of Sphericity were tested and total variance explained, scree plot and rotated component matrix were drawn. Findings: The descriptive statistics findings disclosed that agency banking has a positive effect on performance of MFBs. This was shown by 71.7% of the respondents were in agreement that agency banking influence the performance of MFBs. The findings showed that the relationship between agency and performance was p value was 0.018 and F test of 5.908 showing that the model was statistically significant for the data set. The coefficient table showed that the equation was Y = 2.680 + 0.355AGB. The findings denoted that agency banking has a moderate relationship with performance of MFBs. The MFBs are using agency banking to grow their businesses thus generating profits and capital gain. Unique contribution to theory, practice and policy: The study recommends that MFBs should open more agents especially in the rural areas to facilitate population access near services. In addition, the management team and the policy makers should ensure that policies are elaborated to protect the customers from fraud and also exploitation by the business owners due to higher transaction cost and the business operating the agents should be trained on fraud policies because it is affecting many customers. The government and the MFBs should ensure all those operating the agents are well trained on record keeping, managing of funds, and customer care.

scholarly journals EFFECT OF MACRO-ECONOMIC FACTORS ON FINANCIAL PERFORMANCE IN KENYA OF REGISTERED REAL ESTATE INVESTMENTS TRUSTS

2021 ◽  
Vol 6 (1) ◽  
pp. 72-92
Author(s):  
Sophia Wanjiku ◽  
Joshua Bosire ◽  
Joshua Matanda
Keyword(s):  
Real Estate ◽  
Regression Model ◽  
Financial Performance ◽  
Series Data ◽  
Population Census ◽  
Unique Contribution ◽  
Macroeconomic Variables ◽  
Independent Variables ◽  
Real Estate Investments ◽  
The Government

Purpose: The purpose of the study was to determine the macroeconomic effect on Registered Real Estate Investments Trusts (REITs) financial performance in Kenya. Materials and Methods: Causal research design was used to describe the REITs financial performance. This study used the population comprising of thirteen REITs firms in Kenya. The entire population (census) was used for the study. This study utilized secondary sources of data to get the information required to satisfy the research objectives. Time series data on REITs financial performance was computed for a four-year period as at 1st January 2016 to 31stDecember 2019, thus making use of 4 data points. The process of data analysis entailed preparation of the collected data through cleaning, editing and coding so that statistics could be keyed in the SPSS (statistical package for social sciences) package. The data was presented through tables and figures Results:  The regression model results without the moderating variable showed that R = 0.792, R² = 0.627 indicating that 62.7% of the variance in the REITs financial performance can be accounted for by the independent variables (macroeconomic variables). On the other hand, the regression model results with the moderating variable showed that R = 0.838, R² = 0.703 indicating that 70.3% of the variance in the REITs financial performance can be accounted for by the independent variables (macroeconomic variables) and the moderating variable considered in this study.  Unique contribution to theory, practice and policy: The study recommended that the government and REITs stakeholders should focus on policies and strategies that encourage favorable balance of payment in Kenya. REITs develop and design their products to suit consumers tastes and preferences to ensure their increased as consumption increases. Lastly, the government should expand the money supply to lower the inflation rates through tight fiscal and economic policies.

scholarly journals The Structure, Conduct and Performance of REITs in Emerging Markets: Empirical Evidence from Nigeria

2020 ◽  
Vol 4 (2) ◽  
pp. 76-97
Author(s):  
Daniel Ibrahim Dabara ◽  
◽  
Olusegun Adebayo Ogunba ◽  
Keyword(s):  
Real Estate ◽  
Granger Causality ◽  
Unit Root ◽  
Investment Decisions ◽  
Real Estate Market ◽  
Least Square ◽  
Unit Root Tests ◽  
Real Estate Investment ◽  
Essential Information ◽  
And Performance

Purpose: This study examines the correlations between the structure, conduct and performance of Real Estate Investment Trusts in Nigeria (N-REITs) with a view to providing information that will enhance and guide real estate investment decisions on N-REITs. Design/Approach: The study population consists of all three REIT companies in Nigeria, namely: Skye Shelter Fund, Union Home REIT and UACN Property Development Company (UPDC) REIT. Secondary data on dividends and share prices of N-REITs; Total Business Revenues (TBR) and Total Individual Expenditure (TIE) on conduct variables were sourced from periodicals of the respective companies covering the period from 2008 to 2016. The data series for the study were analyzed by means of the Kwiatkowski-Phillips-Schimidt-Shin (KPSS) unit root tests, Philip-Perron (PP) unit root tests, Granger Causality tests, and the Ordinary Least Square (OLS) regression. Findings: The study shows a Herfindahl Hischman Index (HHI) that ranged between 41.81% (recorded in 2010) and 100% recorded in 2008. This suggests a high concentration in the N-REITs industry. Similarly, the Granger Causality Test conducted reveals a bi-directional causal relationship between the structure, conduct and performance of N-REITs. Practical Implications: The study provides essential information (on the HHI, return performance and causal relationships) for stakeholders in the real estate sector regarding the influence of structure and conduct on the performance of N-REITs. This information will be valuable for equipping asset managers, insurance companies, pension funds and individual real estate investors in making informed investment decisions. Originality/Value: This study is unique as it is the first to draw a link between the structure, conduct and performance of REITs in an African emerging real estate market; something that has not been considered in previous studies.

scholarly journals THE EFFECT OF FOREIGN REAL ESTATE INVESTMENTS ON HOUSE PRICES: EVIDENCE FROM EMERGING ECONOMIES

2013 ◽  
Vol 17 (1) ◽  
pp. 32-43 ◽  
Author(s):  
Hassan Fereidouni Gholipour
Keyword(s):  
Real Estate ◽  
Emerging Economies ◽  
House Prices ◽  
House Price ◽  
Var Model ◽  
Panel Var ◽  
Real Estate Investment ◽  
Price Increases ◽  
Real Estate Investments ◽  
Using Data

In recent years, most emerging economies have experienced large foreign real estate investment (FREI) and an appreciation of house prices. The purpose of this study is to empirically investigate the effects of FREI on house prices by employing a panel VAR model. Using data from 21 emerging economies over the period 2000–2008, our empirical results show that FREI contributes to house price increases. Moreover, the results indicate that the dominant source of house price fluctuations in emerging economies come from the housing market itself.

scholarly journals THE EFFECT OF PORTFOLIO SIZE ON THE FINANCIAL PERFORMANCE OF PORTFOLIOS OF INVESTMENT FIRMS IN KENYA

2017 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Peter Kimani Mbogo ◽  
Dr. Josiah Aduda ◽  
Mr. Mirie Mwangi
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Sample Size ◽  
Money Market ◽  
Optimal Portfolio ◽  
Survey Study ◽  
Unique Contribution ◽  
Money Market Funds ◽  
Portfolio Size ◽  
Descriptive Survey

Purpose: The purpose of this study was to determine the effect of portfolio size on the financial performance of portfolios of investment firms in Kenya.Methodology: The research design was descriptive survey study in nature since it focused on all investment firms in Kenya. The population of the study was all the investment firms in Kenya. This implied that the total population of this study is 90 firms as given by the Kenya Association of Investment Groups (KAIG). For representativeness purposes, the current study took a sample size of 50% of the population. This was 45 firms. This sample size was justified since this study could not anticipate how good the response rate would be.  The 45 firms must have been in existence for 5 years (2007 to 2011).Results: The finding reveal that investments firms in Kenya had put the biggest allocation of funds in stocks, followed by real estate portfolio and the least holding was in bond and money market funds.  The findings also reveal that that the stocks portfolio generated the highest returns followed by bond and money market returns while real estate portfolio generated the least returns.  The first objective of the study was to establish the optimal portfolio size for investment firms in Kenya. The findings in this study indicated that an optimal portfolio should hold between 16 and 20 stocks. Unique contribution to theory, practice and policy: It was recommended that investment managers should consider increasing the number of stocks from the current average of 13 stocks to between 16 to 20 stocks.  Such a portfolio size would be optimal since approximately 91% of risk would have been diversified.

scholarly journals RISK-RETURN PERFORMANCES OF REAL ESTATE INVESTMENT FUNDS IN TURKEY INCLUDING THE COVID-19 PERIOD

2021 ◽  
Vol 25 (4) ◽  
pp. 267-277
Author(s):  
Mehmet Emre Çamlibel ◽  
Levent Sümer ◽  
Ali Hepşen
Keyword(s):  
Real Estate ◽  
Stock Exchange ◽  
Real Estate Market ◽  
Real Estate Investment ◽  
Investment Funds ◽  
Risk Return ◽  
Tax Exemptions ◽  
Istanbul Stock Exchange ◽  
Real Estate Investments ◽  
Investment Tool

The purpose of this research is to give an insight into the Turkish real estate investment funds (T-REIFs) by comparing their risk-return performances with the main benchmark investment tool Istanbul Stock Exchange-100 (BIST-100) Index. This study evaluated the performance of T-REIFs in four different periods between January 2017 and December 2020 (2017m1–2017m12, 2018m1–2018m12, 2019m1–2019m12 and 2020m1–2020m12) including the Coronavirus Disease (Covid-19) period by applying the Sharpe and Treynor ratios. In a well-diversified portfolio both ratios give the same results, but in the presence of non-systematic risk and the portfolio is poorly diversified, the Treynor ratio is a better indicator than the Sharpe ratio. The findings of this study show that rankings of Sharpe and Treynor ratios may differ for each period. These results also support the fact that the portfolios of funds in the Turkish real estate market are not well diversified. By providing corporate tax exemptions, and by enabling the investors to diversify their investments and reduce their risks, real estate investment funds are important alternatives to direct real estate investments in Turkey. In that context, being one of the pioneer studies in this niche and a new topic in emerging markets, analyzing the return performances of T-REIFs and comparing them with the returns of the BIST-100 index is aimed to contribute to literature as well as provide insight to investors who may consider investing in the Turkish real estate capital market instruments.

Sign in / Sign up

Export Citation Format

Share Document