Listed Property Trusts in Malaysia

Newell, Graeme; Hwa, Ting Kien; Acheampong, Peter

doi:10.1080/10835547.2002.12090104

Cited by 30 publications

(1 citation statement)

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“…Real estate investment trust (REIT) is an investment vehicle or a unit trust scheme that invests in income-producing properties, which range from office or commercial buildings, shopping malls, industrial properties, resorts or hotels, healthcare facilities to specialty-built buildings (Chuweni, Ali, Ismail & Ahmad, 2015;Low & Johari, 2014). REIT market started to grow in Asia since the first decade of the 21st century (Newell et al, 2012). The continuous development of REIT markets in Asia not only contribute to growth in GDP, but also help to develop related sectors such as retail, hospitality and tourism.…”

Section: Introductionmentioning

confidence: 99%

Determinants of Malaysian Real Estate Investment Trusts (M-REITs) Risk-Adjusted Performance during the Period of Property Oversupply

Tee,

Choong

2022

JCIT

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After the remarkable property surge in the first half of 2010s decade (2010-2014), the Malaysian property market has then moved into a period of oversupply and price overhang, which pose more challenges for REIT managers. Unlike most previous research that mainly compared various risk-adjusted performance measures among REITs, this research looks into whether size of portfolio, fundamental performance measures (net property income and dividend yield) and types of property managed by REITs influence their risk-adjusted performance measure of Jensen alpha. Based on a sample of 16 Malaysian REITs over the period 2015-2017, regression results generally show that there is no significant relationship between any of these determinants and Jensen alpha. Furthermore, only one out of the 16 M-REITs has a positive Jensen alpha and outperforms the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index. Investors who prefer a high and certain dividend yield can consider to invest in M-REITs that mainly focused in the hospitality sector. Based on the rankings of Jensen alpha, M-REIT fund managers can consider to diversify their property portfolios to include more retail and hospitality properties during the period of property oversupply.

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Section: Introductionmentioning

confidence: 99%

Determinants of Malaysian Real Estate Investment Trusts (M-REITs) Risk-Adjusted Performance during the Period of Property Oversupply

Tee,

Choong

2022

JCIT

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Exploring Malaysian Mall Manager's KSAOs

Arif

Yusof

Abdullah

2012

Procedia - Social and Behavioral Sciences

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REIT Performance and Option of Financing Real Estate Project in Developing Countries - (A Case of M-REIT and NREIT)

Olanrele

Said

Daud

2014

MATEC Web of Conferences

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Abstract. Performance of REITs have been largely measured using benchmark from the stock market indices (S&P500, Sharpe ratio, KLCI, etc) or correlation studies. The real world of REIT shows that both economic and environmental factors exert influence on REIT performance on a simultaneous nature. Adopting quantitative method, where secondary data were statistically analysed. We proposed the use of multivariate regression where REIT performance (Y) is the independent variable to be predicted by predictor variables of internal and external factors (X 1 -X n ). We equally proposed a possibility of REIT financing real estate project, against the existing regulations which prohibit such, using average return method of portfolio analysis on assumed numerical data. The study finds that economic factors jointly have a significant effect on REIT performance at P = 0.044 while none of the factors has significant contribution individually. A benchmark REIT return of 5.3% is predicted. The study recommends a linear regression model analysis for REITs benchmark based on past performance for return measurement. REIT can only finance real estate project in the countries where there is acute shortage of fund and property stock. We suggest a modification of REIT laws to accommodate real estate financing by REITs.

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Listed Property Trusts in Malaysia

Cited by 30 publications

References 0 publications

Determinants of Malaysian Real Estate Investment Trusts (M-REITs) Risk-Adjusted Performance during the Period of Property Oversupply

Determinants of Malaysian Real Estate Investment Trusts (M-REITs) Risk-Adjusted Performance during the Period of Property Oversupply

Exploring Malaysian Mall Manager's KSAOs

REIT Performance and Option of Financing Real Estate Project in Developing Countries - (A Case of M-REIT and NREIT)

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