Seasoned Equity Issuance by Japan and Singapore REITs

Ong, Seow Eng; Ooi, Joseph T. L.; Kawaguichi, Yuichiro

doi:10.1007/s11146-010-9285-9

Cited by 27 publications

(19 citation statements)

References 24 publications

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“…Our results are comparable to those presented for REIT SEOs, both Ghosh et al (1999) and Ong et al (2011) find that REITs experience negative and significant excess returns around a SEO announcement. We find strong support for the information hypothesis and suggest that A-REITs face greater information asymmetries than what has been previously suggested (Hartzell et al, 2006;Sah and Seagraves, 2012).…”

supporting

confidence: 89%

“…Ghosh et al (2013) finds negative and significant ARs in the days leading up to the announcement and the five days post and conclude that issuing REITs underperform when compared to non-issuing REITs. Ong et al (2011) also find significant negative ARs of À1.2 per cent over the [0, þ 1] event period for both Japan and Singapore REITs. The authors also find evidence that REIT managers time SEOs with favourable market conditions.…”

Section: Previous Literaturementioning

confidence: 76%

“…Consistent with prior REIT research on private placements and SEO announcements (Higgins et al, 2004;Ong et al, 2011) the event window is 21 days…”

Section: Event Studymentioning

confidence: 85%

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Market discounts and shareholder benefits

Ratcliffe

Dimovski

2014

Journal of Property Investment &Amp; Finance

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Purpose -The purpose of this paper is to examine the impacts of private placement announcements by Australian Real Estate Investment Trusts (A-REITs) on existing shareholders. The study examines 96 A-REIT private placements from January 2000 to December 2012. Design/methodology/approach -Utilising event study methodology the authors examine the impact on existing shareholders wealth by measuring the abnormal returns (AR) around the placement announcement. The authors extend the analysis to model the A-REITs ARs against a number of explanatory variables to investigate the possible drivers for the observed event study results. Findings -The results support the information signalling hypothesis, in that existing investors in A-REITs earn negative and significant cumulative ARs of À1.3 per cent over the three-day event window [À1, þ 1]. This result is in contrast to prior studies conducted on industrial firms, for example; Hertzel and Smith (1993), Krishnamurthy et al. (2005) and Wruck and Wu (2009).Practical implications -Regression analysis shows A-REITs trading at a premium to net tangible assets and A-REITs that use placement funds for their core business have a positive impact on announcement ARs. Originality/value -This paper adds to the existing literature surrounding private placements and is the first paper, to the authors' knowledge, to examine the impact of Australian REITs.

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supporting

confidence: 89%

Section: Previous Literaturementioning

confidence: 76%

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Market discounts and shareholder benefits

Ratcliffe

Dimovski

2014

Journal of Property Investment &Amp; Finance

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“…However, given the recent establishment of REITs in Asia, only limited property research has been conducted in this increasingly important area. In the case of J-REITs, this has involved J-REIT IPO issues (Kutsuna et al, 2008) and equity issuance issues (Ong et al, 2011), as well as J-REITs in a broader pan-Asia REIT context (Cheok et al, 2011;Chiang et al, 2008;Kim, 2009;Kudus and Sing, 2011;Ooi et al, 2006) or in a global REIT context (Su et al, 2010). No property research has been published as yet on the rigorous empirical performance analysis of J-REITs and their role in a portfolio.…”

Section: Development Of Reits In Japanmentioning

confidence: 99%

The Significance and Performance of Japan REITs in a Mixed-Asset Portfolio

Newell

Peng

2012

Pacific Rim Property Research Journal

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REITs in Japan (J-REITs) are the largest REIT market in Asia and the 5 th largest REIT market globally. To examine the attractiveness of J-REITs for investors, this paper assesses the significance, risk-adjusted performance and portfolio diversification benefits of J-REITs in a mixed-asset portfolio context in Japan over 2001-2011. Amongst the major asset classes, J-REITs delivered the best risk-adjusted returns and portfolio diversification benefits over 2001-2011, with enhanced risk-adjusted returns in the post-GFC period. Key strategic issues for the ongoing development of the J-REIT market are also identified.

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“…Studies on the performance of REITs in investment portfolios and their correlations with other financial assets had been executed (Cheok et al, 2001;Chiang et al, 2008;Kutsuna et al, 2008;Quek and Ong, 2008;Su et al, 2010;Ong et al, 2011). Most researchers have documented that change in REIT prices are closely related to stock markets (e.g., (Mengden and Hartzell, 1986;Ross and Zisler, 1987;Goetzmann and Ibbotson, 1990;Ennis and Burik, 1991;Ross and Zisler, 1991;Liu and Mei, 1992;Myer and Webb, 1993;Myer and Webb, 1994).…”

Section: Literature Reviewmentioning

confidence: 99%