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

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. 349-374
Author(s):  
Changha Jin ◽  
◽  
Kwanyoung Kim ◽  
Keyword(s):  
Real Estate ◽  
Economies Of Scale ◽  
Academic Research ◽  
Real Estate Investment Trusts ◽  
Real Estate Investment ◽  
Baseline Measure ◽  
Investment Trusts ◽  
Private And Public ◽  
Growth Prospects ◽  
Using Data

Although real estate investment trusts (REITs) in Korea (K-REITs) have a history of over a decade, little related academic research exists due to many constraints, including the lack of available data. This research is the first attempt to examine a total of 74 REIT companies by using data from the Korea Association of Real Estate Investment Trusts. In this study, we explore the economies of scale of both private and public REITs in Korea. Initially, we construct an equivalent baseline measure for growth prospects, revenue and expenses, and profitability, and thereby compare private and public K-REITs. This study further explores the return determinants for K-REITs with a range of firm-specific and property-specific variables. The results show that the asset size of K-REITs matters in determining growth prospects, wherein revenue and expenses and profitability are interrelated. Furthermore, the ownership structure of K-REITs influences the return measure.

Real Estate Investment Trusts in Mexico

2020 ◽  
Author(s):  
PhD Aurora M. Poó ◽  
Luis Rocha Chíu ◽  
Víctor Lara Poó
Keyword(s):  
Real Estate ◽  
Real Estate Investment Trusts ◽  
Real Estate Investment ◽  
Investment Trusts
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