Real Estate Investment Trusts (REITs)

Goddard, G. Jason; Marcum, Bill

doi:10.1007/978-3-642-23527-6_12

Cited by 3 publications

(2 citation statements)

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“…This is partly due to the strong encouragement and attractive inducement from wellestablished trade associations related to REITs, such as the U.S. National Association of Real Estate Investment Trusts (NAREIT), International Real Estate Society (IRES), American Real Estate and Urban Economics Association (AREUEA), European Public Real Estate Association (EPRA) and Asia Pacific Real Estate Association (APREA). Goddard and Marcum (2012), who have recorded the global development of REITs, trace the origin of REITs to as far as the early 19 th century in the U.S. in the form of the Massachusetts Trust, but also acknowledged that the first modern REIT was not created until 1961.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Nevertheless, the U.S. REIT market only experienced robust growth in the early 1990s upon the passage of the Tax Reform Act 1986 (Stevenson, 2013;Goddard and Marcum, 2012). In seeing the benefits of REITs to the property market and the general health of the economy, many countries started to develop a REIT market in their respective jurisdictions.…”

Section: Literature Reviewmentioning

confidence: 99%

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International Real Estate Review

Wong¹

2016

IRER

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Real estate investment trusts (REITs) are a niche alternative investment class. Since their introduction in Asia at the turn of the millennium, the REIT market in the region has experienced phenomenal growth. In particular, the Malaysia REIT (M-REIT ) market capitalisation has seen a spectacular growth of close to 20 folds from its inception in 2005 until the end of 2013. This paper chronicles the development of the M-REIT market which is rather unique as it provides a common platform for the existence of both conventional and Islamic REITs. Empirical tests are also conducted to uncover the returns characteristics of the M-REIT market. M-REIT returns are significantly correlated with domestic stock markets but only weakly correlated with changes in interest rate, with long-term proxies having a stronger impact than short-term proxies. The results from a correlation analysis are further confirmed by regression testing which shows that M-REIT returns are most significantly driven by domestic stock market returns while only mildly by changes in interest rates and not significantly driven by returns in regional REIT markets. These findings possibly imply that M-REITs (i) subscribe more to the characteristics of equity than those of bonds, (ii) are not 'pure' yield-play instruments, (iii) are often regarded as long-term investment, and (iv) may not be fully integrated with global and regional REIT markets.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%