The Historical Performance of Real Estate Investment Trusts

Han, Jun; Liang, Youguo

doi:10.1080/10835547.1995.12090791

Cited by 88 publications

(27 citation statements)

References 11 publications

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“…Between 1968 and 1975, for example, total REIT assets increased by approximately 2,000% (Haight & Fort, 1987). This growth in REITs was due primarily to the increased demand for construction and development financing and the inability of existing financial institutions to meet this demand (Han & Liang, 1995). In addition, the growth of the REIT industry until 1975 was largely fueled by investments from mortgage REITs (Corgel et al, 1995).…”

Section: Historical Background Of Reitsmentioning

confidence: 99%

“…Because the act eliminated the tax advantage for many taxdriven investments by lengthening depreciation schedules and replacing accelerated depreciation methods by straight-line methods, REITs were treated as a more attractive investment vehicle relative to limited partnership (Corgel et al, 1995). Additionally, the act stipulated that noncash losses from passive investments were no longer allowed as a shelter for earned income (Han & Liang, 1995). However, because REITs are considered income securities and are not used to shelter income, the elimination of tax shelters provided comparative advantages to REITs relative to other investment vehicles (Han & Liang, 1995).…”

Section: Historical Background Of Reitsmentioning

confidence: 99%

“…Additionally, the act stipulated that noncash losses from passive investments were no longer allowed as a shelter for earned income (Han & Liang, 1995). However, because REITs are considered income securities and are not used to shelter income, the elimination of tax shelters provided comparative advantages to REITs relative to other investment vehicles (Han & Liang, 1995).…”

Section: Historical Background Of Reitsmentioning

confidence: 99%

See 2 more Smart Citations

Hotel Real Estate Investment Trusts' Risk Features and Beta Determinants

Kim

Mattila

2002

Journal of Hospitality & Tourism Research

104

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This study examines the risk features of hotel real estate investment trust (REIT) firms. In particular, it investigates the systematic and unsystematic risk of hotel REIT stocks and the determinants of their systematic risk, or beta. Using the financial data of 19 U.S. hotel REIT firms from 1993 through 1999, the authors found that 84% of the firms'total risk was contributed by firm-specific, unsystematic risk. Systematic risk correlated positively with debt leverage and growth but negatively with firm size. These findings suggest that growth via mergers and acquisitions and less reliance on debt financing may help lower systematic risk and enhance hotel REITs'value.

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Section: Historical Background Of Reitsmentioning

confidence: 99%

Section: Historical Background Of Reitsmentioning

confidence: 99%

Section: Historical Background Of Reitsmentioning

confidence: 99%

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Hotel Real Estate Investment Trusts' Risk Features and Beta Determinants

Kim

Mattila

2002

Journal of Hospitality & Tourism Research

104

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“…Benefield et al (2007) rank REITs using several alternative equity market indexes. Han and Liang (1995) find that REITs behave like small capitalization stocks; Peterson and Hsieh (1997) include size and book‐to‐market factors in their pricing model; Buttimer et al (2005) control for Carhart (1997) four factors in their analysis of REIT IPO performance.…”

Section: Empirical Modelsmentioning

confidence: 99%

REIT performance and market timing ability

Buttimer

Chiang

2012

Managerial Finance

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PurposeThe purpose of this paper is to study performance and market timing ability of equity real estate investment trusts (REITs).Design/methodology/approachThe authors use classical regression‐based framework and their multi‐index, multifactor, and conditional extensions to jointly detect asset selectivity and market timing ability of equity REITs and their subcategories. These results are then validated by a nonparametric test.FindingsIt is found that equity REITs in aggregate have some housing market timing ability. Various equity REIT subcategories perform differently: office REITs can discover underpriced properties, while retail, industrial, and office REITs have poor timing ability. Nonparametric tests confirm that equity REITs do not have ability to predict real estate market movements.Originality/valueResearch in REIT performance evaluation is still limited to the asset selectivity aspect. This paper intends to fill this gap by providing empirical evidence of market timing ability of equity REITs using an array of parametric and nonparametric methods.

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“…This view is also supported by Geltner (1993), who concludes that both direct and indirect real estate markets have similar long-run fundamentals. Han and Han (1991) find that returns in the underlying unsecuritised real estate market lead REIT returns, while several others including Gyourko and Keim (1992), Liu and Mei (1992) and Barkham and Geltner (1995) find that price discovery happens in the REIT industry before transmitting to the direct real estate market. More recently, the regression analyses performed by Clayton and MacKinnon (2003) and Lee and Chiang (2010) provide further results that equity REIT returns are very closely linked with the underlying real estate market.…”

Section: Introductionmentioning

confidence: 99%

Commercial Real Estate and Equity Market Bubbles: Are They Contagious to REITs?

Nneji¹,

Brooks²,

Ward³

2013

Urban Studies

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This paper uses a regime-switching approach to determine whether prices in the US stock, direct real estate and indirect real estate markets are driven by the presence of speculative bubbles. The results show significant evidence of the existence of periodically partially collapsing speculative bubbles in all three markets. A multivariate bubble model is then developed and implemented to evaluate whether the stock and real estate bubbles spill over into REITs. The underlying stock market bubble is found to be a stronger influence on the securitised real estate market bubble than that of the property market. Furthermore, the findings suggest a transmission of speculative bubbles from the direct real estate to the stock market, although this link is not present for the returns themselves.

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The Historical Performance of Real Estate Investment Trusts

Cited by 88 publications

References 11 publications

Hotel Real Estate Investment Trusts' Risk Features and Beta Determinants

Hotel Real Estate Investment Trusts' Risk Features and Beta Determinants

REIT performance and market timing ability

Commercial Real Estate and Equity Market Bubbles: Are They Contagious to REITs?

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