Purpose-The purpose of this paper is to clarify whether value created by real estate (RE) companies (tangible intensive firms) can be evaluated better using intellectual capital (IC) elements (human, structural and physical assets) or traditional accounting measures of efficiency (ROIC and profit margins). Design/methodology/approach-Correlations and cross-sectional OLS regressions with robust standard errors were used to find relationships between variables explaining value creation. Data were collected from 2007 to 2011 for Brazilian RE firms. To measure market risk, the authors used a new approach to deal with low liquidity. VAIC and I j ratios were used as IC proxies even though both have limitations. Findings-IC has a significant inverse relationship with market value. The more valuable companies showed lower levels of IC except for CEE which explains value as much as ROIC. Also, IC does not influence market risk caused by size and leverage and does not explain ROIC. Research limitations/implications-The limitations of this study result from time and proxy variables. IC was measured by a VAIC model using data from a period of intense volatility. To increase the robustness of the conclusions, other variables should be used as proxies for IC and the results compared. The VAIC model has certain deficiencies in measuring IC. Practical implications-Managers and investors in the RE sector need to change the way they create value and measure value creation. The low level of HC explaining either ROIC or market value is a signal of low innovation which, combined with high CEE, induces a short-term outlook. Originality/value-This study opens discussion of IC in the Brazilian RE sector. A new methodology for identifying value creation is necessary for better evaluation and determining the fair value of firms.

No abstract

No abstract

Between 2005 and 2017, investments in Brazilian Real Estate Investment Trusts (FIIs) listed in BM&F increased. During the period of crisis from 2014 to 2017, the investment growth rate decreased, but the volume traded remained relatively high. The objective of this research was to analyze the performance of the FIIs listed on BM&F Bovespa, aiming to verify if this kind of investment is attractive in times of economic crisis. This is a quantitative research using document analysis of data published by BM&F. Indicators for investment return and risk (volatility and liquidity) were calculated for a sample in the period from July 2013 to December 2017. In addition, returns were analyzed segregated by FII segments. As a result, for the period of study, it was obtained a median monthly return rate of 0.56% and a mean monthly return rate, weighted by the traded volume, of 0.33%. In the same period, the monthly rate of IPCA was of 0.12%, the CDI of 0.79% and the Ibovespa of 0.47%. It was observed that the investment return rate varied significantly among the different FII segments. Regarding volatility, the standard deviation of the median monthly return rates was 3.77% for the sample, against 1.14% of the CDI and 11.01% of the Ibovespa. The median traded volume of the FIIs of the sample was R$ 1.9 million per month. It was concluded that the investment in FIIs during the economic crisis was, in terms of risk vs. return, generally more attractive than the Ibovespa and less attractive than the CDI. It should be noted, however, that the indicators presented a significant amplitude in the sample.

There is a growing discussion on the fair value of publicly traded Real Estate due to two factors: the volatility presented since the wave of IPO and the fall in stock prices. It is known that the traditional valuation models are not suitable for assessing some types of assets as the cyclical, case of real estate industry. This article aims to identify an alternative model to assess this typology of company through the value drivers that are intangible assets as business model and know-how. Through a literature review and IPO prospectus analysis a new model of valuation was proposed that identifies and measures the assets of real estate companies through four dimensions: property capital, human capital, market capital and relational capital.