Corporate Governance and Performance of Externally Managed Singapore Reits

Lecomte, Patrick; Ooi, Joseph T. L.

doi:10.1007/s11146-012-9377-9

Cited by 40 publications

(41 citation statements)

References 30 publications

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“…In particular, we are interested in how the characteristics of these Asian-Pacific REITs differ from their U.S. / European counterparts and how these differences could affect capital structure choices. Prior research (e.g., Ooi et al 2006;Wong et al 2013;Lecomte and Ooi 2013) show that Asian-Pacific REITs have several unique features that are substantially different from REITs in other regions, in particular the U.S. 3 We conjecture two factors that could have a significant impact on leverage and maturity of Asian-Pacific REITs: the presence of sponsors and the management structure of REITs.…”

Section: Introductionmentioning

confidence: 79%

The Role of Sponsor and External Management on the Capital Structure of Asian-Pacific REITs: The Case of Australia, Japan, and Singapore

et al. 2014

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This paper studies how the presence of sponsor and external management affect leverage and debt maturity decisions in three major Asian-Pacific REIT markets: Australia, Japan and Singapore. Our empirical results indicate that sponsored REITs opt for higher levels of leverage and loans with longer maturity. On the contrary, externally managed REITs are associated with lower leverage and loans with shorter maturity. Our results are robust to the inclusion of other firm variables and to alternative specifications. Subsequent to the financial crisis, the impact of sponsorship on debt financing decisions has diminished, and borrowing of externally managed REITs is further constrained.

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Section: Introductionmentioning

confidence: 79%

The Role of Sponsor and External Management on the Capital Structure of Asian-Pacific REITs: The Case of Australia, Japan, and Singapore

et al. 2014

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“…US, Australia, Hong Kong, Singapore, Japan and Taiwan as in [10, 29 and 32]. In addition, regulatory and fund structures are deemed to affect their performances in relation with leverage utilization as in [33,35] and guarantee structure as in [30]. Having said these, the property fund asset partly reflects the real estate attributes, e.g.…”

Section: Attributes Of Indirect Real Estate Vehiclementioning

confidence: 99%

Solutions for Thai Property Funds’ Performance Improvements

Jiamchoatpatanakul¹

2017

JIM

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Abstract:A regulatory repeal of Thai property funds has faced limitation of raising capital to acquire new assets for improving the overall performances. Since they can decide not to convert to be a new form of Real Estate Investment Trust (REIT) owing to disincentives of tax benefit loss and conversion cost, it is a cry for discovering workable solutions to enhance existing funds' performances to maintain strong performance without the capital increase approach. Among twenty discussed methods in the research, fourteen workable solutions were proposed by forty one interviewees, some of which are consistent with the other studies. On the contrary, few discussed methods are inconsistent with others, i.e. incentive and management fee in a form of share to the fund manager owing to perception of inactive role of the Thai property fund managers when compared to those of the international REITs. The remaining four approaches were discussed to be unfitting for utilization. Looking forward, Thai funds might grow and increase their performances by utilizing number of workable solutions under the circumstances of non-existence of Thai property fund regulation to support inorganic growth opportunities.

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“…The categories are board matters, audit committee, remuneration matters, REIT organisation, fees, related party transactions (RPTs), gearing and ownership. Lecomte and Ooi (2012) In their empirical analyses, they find that stronger corporate governance helps to align the interests of managers with that of unitholders. Better governed REITs are also subject to less information asymmetry and are positively valued by investors in the capital market as indicated by better stock performance.…”

Section: The Impact Of Corporate Governance On Asian Reitsmentioning

confidence: 99%

“…A contextual performance analysis Source: Lecomte and Ooi (2012) Figure 34 shows that more than 19% of the total Asian REIT unitholding are in the hands of their sponsors. In Malaysia, sponsors hold around 37% of the REIT unitholdings.…”

Section: A S I a Pac I F I C L I S T E D R E A L E S Tat Ementioning

confidence: 99%