Performance Analysis of Shariah-Compliant Real Estate Investment Trusts

Chuweni, Nor Nazihah; Ahmad, Saidah Hamizah; Chuweni, Mohd Musyawwir

doi:10.1007/978-981-10-1452-9_39

Cited by 1 publication

(1 citation statement)

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“…Hence, performance analysis and benchmarking are needed to identify the strengths of the firms and to formulate ways to mitigate the weaknesses. Previous studies documented that performance analysis of M-REITs could be measured by various ways, which include the composite measurement of the Sharpe, Treynor and Jensen index (Hamzah et al , 2010; Mohamad and Mohd Saad, 2012; Ong et al , 2012; Yusof and Bin Mohd Nawawi, 2012); financial ratio analysis (Chuweni et al , 2014a, 2014b, 2015, 2016); corporate governance of I-REITs (Chuweni and Ahmad, 2014); financial and management strength of I-REITs (Osmadi and Razali, 2014); DCC-MGARCH model wavelet coherence methodology (Mokhtar and Masih, 2014); qualitative method (Alias and Soi Tho, 2011); and Engle–Granger cointegration and vector autoregression (Nawawi et al , 2010). In terms of diversification benefits, I-REITs have shown a high degree of robustness during the Global Financial Crisis and provide enhanced portfolio diversification, which were not evident in conventional M-REITs (Newell and Osmadi, 2009).…”

Section: Background Of Islamic Real Estate Investment Trusts In Malaysiamentioning

confidence: 99%

A review of efficiency measures for REITS and their specific application for Malaysian Islamic REITS

Chuweni

Eves

2017

JIABR

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Purpose This paper aims to present a conceptual model on the efficiency of Islamic real estate investment trusts (I-REITs) available in Malaysia. The key difference between the Islamic and their conventional investment vehicle part is mainly its own Shariah framework. For instance, I-REITS must comply with the requirement of Securities Commission Act 1993 as well as the Guidelines on Islamic Real Estate Investment Trusts (Islamic REITs Guidelines). Design/methodology/approach The paper reviews and synthesises the relevant literature on the performance analysis and efficiency measurements of REITs. The paper then develops and proposes a conceptual model to measure the efficiency of Malaysian and Islamic REITs. Findings The paper identifies and examines the appropriate methods and instruments to measure the efficiency in relation to the risk and profitability of I-REITs. The efficiency measure is important for the fund managers to maximise the shareholders’ return in an investment of property portfolio as well as proposing the best way to allocate resources efficiently. Research limitations/implications This is a preliminary review of current work that identifies the issues that will be addressed in future empirical research. The authors will be undertaking this future empirical research in measuring the efficiency of Malaysian real estate investment trusts (M-REITs), particularly the I-REITs, using the non-parametric approach of data envelopment analysis. Originality/value To date, there has been very limited research on the efficiency measurement of I-REITs. The current analysis of REIT has been focused on traditional non-Islamic funds. This paper will review and discuss the current literature on efficiency measurement to determine the most appropriate approaches and methodologies for future application in performance analysis of efficiency measure for Malaysian and Islamic REITs.

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