Are REITs more resilient than non-REITs? Evidence from natural experiments

Jain, Pawan; Upadhyay, Arun

doi:10.1016/j.japwor.2021.101069

Cited by 5 publications

(7 citation statements)

References 65 publications

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“…From another perspective, REITs are a financing tool that can effectively revitalize the stock of assets and realize the exit of original capital through the real sale of assets, thus reducing the investment risk burden of investors. Therefore, urban regeneration REITs have shown great potential in attracting participation of investment from both individual and institutional investors, facilitating the marketization of urban regeneration and its sustainable development (Allen and Sirmans, 1987;Jain and Upadhyay, 2021). As a result, REITs have been adopted in some large urban regeneration projects in France (Wijburg, 2019), while some scholars suggest to promote the application of REITs to urban regeneration projects in Turkey (Erol and Ozuturk, 2011) and Korea (Song et al, 2021).…”

Section: Csfs For Urban Regeneration Reits In China 363mentioning

confidence: 99%

Critical success factors for the implementation of urban regeneration REITs in China: a TISM–MICMAC based approach

Xiahou

Zuo

et al. 2022

ECAM

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PurposeReal estate investment trusts (REITs) have shown great potential in addressing the current contradiction between underinvestment and sustainable development of urban regeneration in China, as well as in further facilitating the transformation and upgrading of China's urban development. In this regard, this study aims to investigate critical success factors (CSFs) and explore the relationships among these factors, and serve as a reference to provide recommendations and strategies for the successful implementation and sustainable development of urban regeneration REITs.Design/methodology/approachIn this study, an integrated total interpretive structural modeling–matriced impact croises multiplication applique (TISM–MICMAC) approach using the TISM technique and MICMAC analysis is then implemented to explore the relationships among CSFs, demonstrate the hierarchical structure and classify these factors into clusters based on calculated driving powers and dependence.FindingsThis study has determined a final list of 11 CSFs through literature review and expert survey. The TISM model demonstrates a six-level hierarchical structure encompassing the influence transmission paths of CSFs, in which the most significant factors and links are established, while the MICMAC analysis further classifies CSFs into four clusters as a complement for the findings of the TISM technique.Practical implicationsThis study offers practical implications for governments, individual and institutional investors, REITs and property managers, and other stakeholders concluded in urban regeneration REITs. The final list of determined CSFs can serve as the decision points for management and control of the implementation processes, while the findings of the TISM–MICMAC approach can be a significant reference to provide strategies for optimization and enhancement of urban regeneration REITs.Originality/valueThis study is a novel attempt to use both the TISM technique and MICMAC analysis to investigate CSFs for the implementation of urban regeneration REITs, and to address the theoretical and methodological research gaps in the existing literature.

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Section: Csfs For Urban Regeneration Reits In China 363mentioning

confidence: 99%

Critical success factors for the implementation of urban regeneration REITs in China: a TISM–MICMAC based approach

Xiahou

Zuo

et al. 2022

ECAM

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show abstract

“…Our finding of increased dividend yield is consistent with Landsman et al ( 2017) and Jain and Upadhyay (2021). REITs have greater cash-flow certainty because of long-term leases than non-REITs; hence, REITs are able to afford greater dividends (Jain & Upadhyay, 2021).…”

Section: Cash Holdings and Dividend Yieldmentioning

confidence: 99%

“…Panel D shows that REIT CDS firms hold less cash and pay out more dividends than non-REIT CDS firms. REITs have greater cash-flow certainty due to long-term leases than do non-REITs (Jain & Upadhyay, 2021). Hence, REITs can afford greater dividends and invest greater cash in value-enhancing projects as compared to non-REITs.…”

Section: Performancementioning

confidence: 99%

“…Furthermore, because of the forced payout under the 90% dividend payout, REITs must frequently return to capital markets for new external funds. This provides institutional investors with an opportunity to collect information and scrutinize the firm, its prospects, and its performance (Almazan et al, 2005; Hartzell et al, 2006; Jain & Upadhyay, 2021). Thus, REITs’ frequent capital market activities lower institutional investors’ monitoring costs.…”

Section: Related Literature and Hypothesis Developmentmentioning

confidence: 99%

“…This makes REITs, post‐CDS initiation, more vulnerable to income and investment shocks, intensifying the need for CDS REITs to hold more cash and provide higher returns to equity holders to compensate for the increased risk. REITs are able to afford greater dividends and invest greater cash in value‐enhancing projects as compared to non‐REITs, as REITs have greater cash‐flow certainty due to long‐term leases than do non‐REITs (Jain & Upadhyay, 2021). This is further facilitated by reduced bondholder resistance to increased dividends and investments post‐CDS initiation.…”

Section: Related Literature and Hypothesis Developmentmentioning

confidence: 99%

See 2 more Smart Citations

CDS contract initiations: REIT board monitoring and corporate decision outcomes

Baulkaran

Jain

2022

J of Financial Research

Self Cite

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In this article, we investigate whether the negative creditor governance shock due to the initiation of credit default swap (CDS) contracts results in monitoring substitution effects between bondholders and shareholders. Using several mechanisms to test increased shareholder monitoring such as board structure, CEO–chair duality, and institutional ownership, we show that shareholder monitoring increases post‐CDS contract initiation. We examine board decision outcomes and show that incentive compensation is higher for real estate investment trusts (REITs) post‐CDS initiation. Furthermore, we find that post‐CDS initiation, REITs undertake more acquisitions that are more likely to be paid for with stocks and take longer to complete than non‐REITs. Finally, we find that REITs industry‐adjusted cash holdings and dividend yield increases post‐CDS initiation.

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A fuzzy model for financial performance measurement of real estate investment trusts: comparison of investment areas

Kazanci,

Ulubeyli,

Dogan

2023

ECAM

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PurposeThis study aims to present the financial performance of companies and investment areas in the real estate investment trust (REIT) industry.Design/methodology/approachA fuzzy model for financial performance measurement (FM-FPM) was proposed through the collaboration of fuzzy axiomatic design (FAD) and fuzzy entropy weighting (FEW). For the data, financial ratios were used, and their importance and functional requirements were collected via a questionnaire survey.FindingsThe FM-FPM is a beneficial model to be used for a REIT industry based on the structured procedures of FAD and FEW techniques. It can be suitable to regularly evaluate the performance of REITs and their investment areas in financial means, especially in today’s turbulent business environment. The Turkish market that was considered to show the practical applicability of the FM-FPM demonstrated specifically that diversified real estate was found to rank first, followed by mixed-buildings, warehouses, shopping malls and hotels, respectively.Research limitations/implicationsThe FM-FPM can be employed for REIT industries in other countries and adapted to different industries. However, more respondents or a different set of criteria might lead to different outputs.Practical implicationsThe FM-FPM may guide REIT managers and investors while making their decisions and controlling the performance of REITs and investment areas.Social implicationsThe FM-FPM may encourage low- and middle-income investors to make good use of their savings.Originality/valueThe research is first (1) to offer a FPM model in order to determine investable areas in a REIT industry and (2) to employ multiple criteria decision-making tools in order to measure the financial performance of individual companies and investment areas in a REIT industry.

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Are REITs more resilient than non-REITs? Evidence from natural experiments

Cited by 5 publications

References 65 publications

Critical success factors for the implementation of urban regeneration REITs in China: a TISM–MICMAC based approach

Critical success factors for the implementation of urban regeneration REITs in China: a TISM–MICMAC based approach

CDS contract initiations: REIT board monitoring and corporate decision outcomes

A fuzzy model for financial performance measurement of real estate investment trusts: comparison of investment areas

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