Integration between real estate equity and non-real estate equity

Olaleye, Abel; Ekemode, Benjamin Gbolahan

doi:10.1108/jpif-10-2013-0063

Cited by 15 publications

(19 citation statements)

References 24 publications

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“…The findings were reported in literatures and past studies (Hamzah and Rozali, 2010;Liow and Adair, 2009;Newell et al, 2013;Newell and Osmadi, 2009;Ong et al, 2012). Few studies have investigated Nigerian real estate securities and property market (Amidu and Aluko, 2006;Amidu et al, 2008;Olaleye and Ekemode, 2014).…”

Section: Introductionsupporting

confidence: 52%

“…The study could not assess the N-REIT performance due to lack of trading data to compute index series for the Nigeria REIT. Other studies that has studied real estate securities in Nigeria did not include REIT in their studies (Amidu et al, 2008 andOlaleye andEkemode, 2014). The Nigerian economy is the largest in the African continent with growth rate of 8.5% and has established REIT regime for 8 years.…”

Section: Introductionmentioning

confidence: 99%

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Comparison of REIT Dividend Performance in Nigeria and Malaysia

Olanrele

Said²,

Daud³

2015

Afr. J. Bus. Manage.

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The global survey of Real Estate Investment Trusts (REITs) has indicated a high performance nature of REIT as an investment vehicle for the real estate sector. Studies have been conducted across the REIT markets of America, Europe and Asia-Pacific with similar result of high income yield to the investors. However, there have been no report of the Africa REIT except South Africa Property Unit Trust and Property Loans Stock that features in the EPRA Global REIT survey. In an attempt to assess performance of Nigeria REIT and bring it to global awareness, this paper investigates the performance of Nigeria REIT (N-REIT) in its 7 years of existence (2007 to 2014) using Malaysia REIT (M-REIT) as a benchmark and possible improvement. The study adopted risk adjustment return analysis of the dividend distribution over the period of the REITs establishment. The study found that Nigeria REIT underperforms the benchmark, Malaysia REIT, both in terms of average return 4.8% and risk adjusted return-6.77% per annum against the Malaysia REIT 7.5% and 2.47% respectively. There is no significant differences in the risk return ratio for the two REITs. The underperformance of the Nigeria REIT suggest that the superior performance of REIT does not apply across all REIT markets, suggesting that differences in REIT structure and features can be a determining factor(s) in investment performance. The study recommends an increased capitalisation, market transparency and external management option for N-REITs performance enhancement. The non-evaluation of multivariate effect of these factors in this study is considered to be a limiting factor. Such study could be a future research focus.

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Section: Introductionsupporting

confidence: 52%

Section: Introductionmentioning

confidence: 99%

Comparison of REIT Dividend Performance in Nigeria and Malaysia

Olanrele

Said²,

Daud³

2015

Afr. J. Bus. Manage.

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“…The study noted that indirect real estate asset underperformed most other assets on the basis of mean variance ratio and showed no diversification benefits when combined with other assets. While Olaleye and Ekemode (2014) investigated the long run association between public real estate and common stocks in the Nigerian capital market from 1999 to 2011. The study showed that SP outperformed stocks with a corresponding higher risk level.…”

Section: Review Of Relevant Literaturementioning

confidence: 99%

Impact of Adding Securitised Property Into Mixed-Asset Portfolio in Emerging Markets: Evidence From Nigeria

Ayodele¹,

Olaleye²

2016

Sustainable Multi-Sectoral Real Estate Development in Emerging Economies - The 16th African Real Estate Society Conference

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The paper examined the performance of securitised property and analysed its diversification benefits when added into domestic mixed-asset portfolios constructed using Naïve and MPT optimization techniques. The paper also tested the hypothesis that the performance of naïve portfolios with securitised properties is better than naïve portfolios without securitised property. Design/methods: The data comprised quarterly returns of securitised property, all share, Federal bonds, State bonds, Debentures and Treasury bills for years 2000 to 2013. Return-risk analysis was compared using mean return, standard deviation, Sharpe ratio and correlation coefficient. Preliminary analysis was conducted on the data sets to examine the stationarity using the Philip Perron unit root test. In assessing securitised property return enhancements and risk reduction benefits in mixed-asset portfolio, 24 naïve portfolios (18 with securitised property and 6 without securitised property) were constructed and the effectiveness of diversification was assessed for each portfolio. This is in addition to examining the impact of securitised property on optimal portfolios using Markowitz quadratic function. Findings: The results showed that securitised property did not offer superior returns and underperformed most other assets on risk adjusted basis. While the results of the naïve portfolio showed no statistically significant difference in portfolio performance when securitised property was included; the effect was however dependent on the percentage weightings of assets and the asset class being replaced. The MPT analysis showed that along the efficient frontier, securitised property has no percentage allocation in the mixed-asset portfolio. Practi al Implication The study has implications for investors interested in emerging markets like the Nigerian investment market. Originality: It is one of the few attempts within the context of Africa's emerging market and Nigeria in particular.

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“…In the same vein, Ntuli and Akinsomi (2017) found that South African REITs are good returnenhancers. In Nigeria, relevant performance studies on real estate investments included the studies carried out by Ogunba (2013), Olaleye and Ekemode (2014) among others. However, no study so far to be best of the authors' knowledge have looked at the impact of inflation on Nigerian indirect real estate investments such as Nigerian REITs and non REITs equities.…”

Section: Introductionmentioning

confidence: 99%

Impact of Inflation on Indirect Real Estate Investments in Nigeria

Dabara¹,

Chiwuzie²,

Omotehinshe³

et al. 2019

26th Annual European Real Estate Society Conference

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The study aims at investigating the impact of inflation on securitized real estate investments in Nigeria with a view to providing information to aid real estate investors in making informed investment decisions. The timeframe for the study covers between 2007 and 2016. All the securitized real estate investments including both REITs and non REITs were captured in the study. The population for the study comprised of all securitized real estate companies in Nigeria namely: Skye Shelter Fund REITs, Union Home REITs, UPDC REITs and UACN properties. Data for the study were collected from the databases of the securitized real estate companies covering the study period. The data collected comprised of share prices and dividends of the respective companies as well as inflation rates obtained from the Nigerian National Bureau of Statistics (NBS). The data were analyzed by means of both descriptive statistical tools such as frequencies, mean scores and percentages; and inferential statistical tools such as regression models. Findings from the study revealed that the return profile of REITs and non REITs equities in Nigeria from 2007 to 2016 had experienced some level of volatility with the non REITs outperforming the REITs investment asset (the highest returns obtained from REITs investment was 5.43%, while the highest returns for the non REITs was 41.79%). Inflation was seen to be mostly in double digits and had kept increasing throughout the study period, ranging between 4.37 and 18.45. Analysis of the relationship between indirect real estate investment returns and inflation in the study area revealed negative Beta coefficients for both REITs and non REITs investments in the study area. This was indicated by a beta coefficient of -0.127 and -0.225 for REITs and non REITs asset classes respectively. This results suggested a perverse hedging characteristics for all the securitized real estate investments in the study area. This study have implications for individual and institutional real estate investors. The result of this study can be useful for investment forecast and investment decisions as regards to the type of asset to include in an investor's portfolio, taking to consideration the impact of inflation on such asset(s).

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Integration between real estate equity and non-real estate equity

Cited by 15 publications

References 24 publications

Comparison of REIT Dividend Performance in Nigeria and Malaysia

Comparison of REIT Dividend Performance in Nigeria and Malaysia

Impact of Adding Securitised Property Into Mixed-Asset Portfolio in Emerging Markets: Evidence From Nigeria

Impact of Inflation on Indirect Real Estate Investments in Nigeria

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