Affordable Housing Ambidexterity of Real Estate Investment Trusts: SWOT Analysis for N-REITs

Abstract

Symmetric movements of real estate investment trust (REIT) capitalization and affordable housing deficit in Nigeria fuelled the motivation of the study on analyzing the implications of an affordable housing ambidexterity of REITs in Nigeria (N-REITs). The focus on REITs was informed by the unsustainable growth in the deficit statistics of affordable housing in Nigeria which implies a think-outside-the-box search for financing panacea. Indeed, there seems a paucity of empirical and practical evidence of such ambidextrous diversification for N-REITs, so the study was aimed at conducting a strength, weakness, opportunity and threat (SWOT) analysis of affordable housing ambidexterity of N-REITs. Survey research method was employed on a sample frame of housing delivery stakeholders. Sample size of 369 was determined using Freund and Williams formula, while the research instrument was a self-administered e-questionnaire. Data was obtained from primary sources, and further subjected to descriptive analysis. The study found that professional investment management competency was the most dominant strength, 10% investable income was the most significant weakness, significant room for rise in market share was the most significant opportunity, while effect of systematic risk on sustainability planning was the most significant threat to N-REIT ambidexterity towards affordable housing investment in Nigeria. The study concluded that the professional investment management quality of REITs, in comparison with non-listed direct real estate companies would envisage a robust and sustainable contribution to increase in affordable housing stock in the country. It was recommended that management of N-REITs should leverage on their professional investment management strengths to explore blue ocean strategies for an ambidextrous attitude that enhances the growth and sustainability of affordable housing units, in addition to the employment of risk analysis, management and mitigation strategies to limit the effect of volatilities from macroeconomic risks.

The Sustainable Performance of Islamic Reits and Their Social Contributions: Malaysia as Case Study.

“…Real estate investment trusts have different kinds of properties and deal with different society needs that mean, they should have the experience to deal with affordable houses issue properly. The REITs in Nigeria has quality management and professional investment approaches that means they can contribute properly in raise the number affordable houses in Nigeria (Diala et al, 2021). Thus, the capabilities of REITs can be driven toward provide affordable houses but, the returns can be low and the risk may be higher than other investments.…”