Factors That Affect Listed Real Estate Investment Trust Market Capitalization: A Country Level Analysis

Jang, Soon-Woo; Shin, Seung-woo; Yim, Hana

doi:10.1080/10835547.2020.1826839

Cited by 2 publications

(3 citation statements)

References 19 publications

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“…First off, Choi and Shin (2017) and Jang et al (2020) present a general understanding of commercial property markets in Korea, commercial property cross-border transactions and the REITs market [10] and are the framework to understand how the market perform.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Korea is the 10th largest economy globally regarding GDP (IMF, 2021), and the commercial real estate market is quite significant in proportion to it. Second, there is a lack of research findings in Asia (Newell, 2020); furthermore, most of the Korean commercial real estate studies (Choi and Shin (2017) or Jang et al (2020)) were primarily published through Korean journals, and it was difficult for academic audiences to acquire them. Third, the period analysed in this study covers the first wave of the pandemic in a country where no public measures of population controls were applied (other than testing).…”

Section: Introductionmentioning

confidence: 99%

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COVID-19 and the daily rate of return of three major industry sector stock price indices related to real estate

Min

Shin

Paz

2021

JPIF

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PurposeThis paper analyzes how three major industrial stock indices related to South Korean real estate industries are affected by the exogenous shock of the measures taken to control COVID-19, coupled with investor sentiment, which has global impacts.Design/methodology/approachThe paper uses daily stock market indices on three major stock price indices: construction industry sector index, real estate operating company (REOC) industry index and the real estate investment trust (REIT) industry index of the Korea Stock Exchange (KRX), from January 8, 2020, when the World Health Organization (WHO) began to issue official indicators regarding COVID-19, to March 27, 2020, the last trading day of the week during which the South Korean government's stock market stabilisation fund was launched.FindingsResults indicate the REIT sector's stock rate of return to be relatively less sensitive to impacts of COVID-19 compared to those of the two other indices. Impulse response analysis also shows similar results. Impulse response estimations indicate that earlier information of REITs has prominent significance in explaining changes in the time series process itself. Similar to findings of prior studies that have been conducted with long-term perspectives, results of our short-term study indicate that the medium-risk, medium-return characteristic of the real estate industry has significance even in short-term perspectives.Practical implicationsREITs can be an investment vehicle that provides strong benefits of diversified investment for mutual fund investment managers even in the case of short-term exogenous market disruptions.Originality/valueThe analysis run in the empirical exercise is the first to consider the sensibility between international stock exchanges to the effects of measures taken to control COVID-19 impact.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

COVID-19 and the daily rate of return of three major industry sector stock price indices related to real estate

Min

Shin

Paz

2021

JPIF

Self Cite

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“…Jang et al found that REITs market capitalization has been significantly affected by gross domestic product per capita, the overall stock market capitalization, and the stability of the banking sector at the country level (Jang et al 2020). Experiences from the U.S. real estate market have shown that traditional variables, such as return expectation, and risk premiums, and non-traditional variables, such as the degree of unemployment and past capitalization rate, are determinants of the capitalization rate (Larriva and Linneman Supplementary Materials: The following supporting information can be downloaded at: https: //www.mdpi.com/xxx/s1.…”

Section: Discussionmentioning

confidence: 99%

Analyzing the Relationship between the Features of Direct Real Estate Assets and Their Corresponding Australian—REITs

Zhang

2023

IJFS

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This study investigated the relationship between a sector-specific Australian Real Estate Investment Trust (A-REITs) and the underlying property assets in its property portfolio. The existing studies have assessed the connectedness/correlation between the A-REITs market and a variety of other asset markets, including the overall stock, bond, and direct real estate markets. This study applied regression analysis methods and discovered that there exists a certain degree of linear correlation between the underlying property assets and the return of the subject A-REITs. The most significant variable is the occupancy of the offices. The higher the occupancy is, the better the dividend can be. Features of the A-REITs also affect the dividend outcomes, specifically, the total portfolio market value and the capitalization rate. This suggests that the annual valuation outcomes show a positive relation with the performance of the A-REITs.

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Factors That Affect Listed Real Estate Investment Trust Market Capitalization: A Country Level Analysis

Cited by 2 publications

References 19 publications

COVID-19 and the daily rate of return of three major industry sector stock price indices related to real estate

COVID-19 and the daily rate of return of three major industry sector stock price indices related to real estate

Analyzing the Relationship between the Features of Direct Real Estate Assets and Their Corresponding Australian—REITs

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