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.

International Real Estate Review

2016 ◽  
Vol 19 (2) ◽  
pp. 223-248
Author(s):  
Mamoru Nagano ◽  
Keyword(s):  
Real Estate ◽  
Stock Price ◽  
Real Estate Investment Trusts ◽  
Real Estate Investment ◽  
Price Trend ◽  
Asset Liquidity ◽  
Using Data ◽  
High Degree ◽  
Real Estate Assets ◽  
Stock Issuance

By using data on 51 real estate investment trusts (REITs) and 755 real estate deals from 2003¡V2011 in Japan, this study presents evidence that the funding approach decisions of a sponsor-backed REIT differ from those of a REIT without a sponsor. The implications derived from the presented empirical analyses are threefold. First, with regard to the determinants of the choice of the funding approach, under a continuous high stock price trend or a rise in the stock price of a REIT, the probability of choosing stock issuance increases when the REIT and sponsor firm strike real estate deals. Second, the literature asserts that real estate asset liquidity and debt choice are positively related. However, our results suggest that under a high stock price trend, a REIT chooses stock issuance even when it purchases real estate assets that have a high degree of liquidity. Third, debt issuance is chosen when a REIT and its sponsor firm make numerous and large real estate deals when the stock price of the REIT falls.

scholarly journals International Real Estate Review

2015 ◽  
Vol 18 (4) ◽  
pp. 523-566
Author(s):  
Sanjay Sehgal ◽  
◽  
Mridul Upreti ◽  
Piyush Pandey ◽  
Aakriti Bhatia ◽  
...  
Keyword(s):  
Real Estate ◽  
National Capital Region ◽  
Real Estate Investment ◽  
The Real Estate ◽  
Property Prices ◽  
Long Run ◽  
Equal Importance ◽  
National Capital ◽  
Residential Properties ◽  
Under Construction

The paper studies the residential micromarket of the Gurgaon region of the Delhi National Capital Region in India, to identify the key determinants of real estate investment selection and perform empirical analysis of property prices. A primary survey suggests that the goodwill of the developer is the most important factor for investors in the case of residential properties that are under construction (forward projects). Other factors include location, amenities, project density and construction quality. These factors enjoy almost equal importance in selecting completed projects (spot projects). The factor information can be used to construct property quality rating classes. High risk adjusted returns are provided by high quality spot projects and low quality forward projects. A long run equilibrium relationship is observed between spot projects and forward prices with the former playing the lead role. Gross domestic product and non-food bank credit are the macroeconomic variables that can predict property prices. The highest pre-tax internal rate of return is observed for forward projects in the first quarter holding itself while for spot projects, it is around the eighth quarter. The research has implications for property developers, real estate investors and market regulators. The study contributes to the real estate investment literature on emerging markets.

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.  

Quantification of financial consequences of buildings' ageing: analysis of panel building-level data from the Polish office space market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bolesław Kołodziejczyk ◽  
Dmytro Osiichuk ◽  
Paweł Mielcarz
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Content Type ◽  
Financial Outcomes ◽  
Level Data ◽  
Real Estate Investments ◽  
Occupancy Rates ◽  
The Impact ◽  
Real Estate Assets

PurposeRelying on a unique proprietary Polish office market space database, the paper attempts to quantify the impact of buildings' age on the financial performance of real estate assets.Design/methodology/approachPanel econometric modeling was utilized to disentangle the impact of buildings' functional obsolescence and technical deterioration on their long-term financial performance.FindingsIn line with casual empiricism, our findings show a negative associative link between properties' age and potential lease revenue. The concomitant stickiness of service charges presages a possible long-term deterioration of financial outcomes of real estate investments. While older buildings generally have higher occupancy rates, the absorption rates are found to be negatively affected by the properties' age. On the bright side, the elasticity of vacancy rate with respect to rental rates is found to decrease as buildings get older. Further, the rent differential is confirmed to be more pronounced in higher age properties hinting at an existing potential for price discrimination, which may at least partially compensate for stagnant rents.Originality/valueOur empirical results confirm the properties' age to be a statistically significant factor in shaping the long-term performance of real estate assets, which should be better accounted for in financial projections for real estate developments.

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.

scholarly journals The Analysis of Urban Planning Aspects and Development of Residential Real Estate in Tallinn, Estonia

2020 ◽  
Vol 8 (1) ◽  
pp. 208-226
Author(s):  
İstemi Alp Köse ◽  
Linda Kauškale
Keyword(s):  
Sustainable Development ◽  
Urban Planning ◽  
Real Estate ◽  
Real Estate Market ◽  
Residential Real Estate ◽  
The Real Estate ◽  
Market Participants ◽  
Analysis And Synthesis ◽  
Development Analysis

Abstract At the present time, the world’s population is rapidly increasing, and the existing resources, which are limited, are being significantly consumed. Due to this fact, in order to use these resources more efficiently, the concept of planning day by day gains importance in the framework of sustainable development. Although Estonia is one of the countries that has the fewest number of people in Europe, owing to its economic reliability, high development level and worldwide awareness of the field of software, Estonia has become one of the less affected countries by the crisis. At the same time, Estonia is one of European countries that executes planning for long-term economic development. The aim of the research is to analyse the interrelation aspects between urban planning and residential real estate development on different levels in Tallinn, capital of Estonia, in the context of sustainable development. Analysis and synthesis, comparison, observation, and logical deduction methods are used within the research. According to the research conducted, the price ranges of real estate objects are closer to each other in the condition towards homogeneity in residential settlements which have similar residential and planning features. It can be recommended to build a contemporary system regarding interrelation of urban decisions and tendencies within development of the real estate market, which can help investors and other market participants in sustainable, efficient, and long-term decision making.

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