Diversification in the Real Estate Portfolio

Miles, Michael V.; McCue, Tom

doi:10.1111/j.1475-6803.1984.tb00354.x

Cited by 36 publications

(5 citation statements)

References 15 publications

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“…This result is consistent with the views of Jaffe and Sirmans (1984) and Miles and McCue (1984) that specialized managerial expertise increases value, and it provides evidence that JVs of this sort are an effective way to capture these managerial synergies.…”

Section: Abnormal Returnssupporting

confidence: 91%

Domestic and International Equity REIT Joint Ventures: Structuring Corporate Options

Campbell

White-Huckins

Sirmans

2006

J Real Estate Finan Econ

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We examine a sample of 185 Joint Ventures parented by publicly-traded Equity Real Estate Investment Trusts 1994–2001. These transactions are found to be motivated by a wide variety of corporate strategies. Shareholder returns for REIT parents are significantly positive, which is consistent with wealth effects previously reported for joint ventures formed by non-REIT real estate firms. In a subsample of joint ventures formed to structure partial dispositions of property, however, abnormal returns are significantly negative, which is consistent with the free cash flow theory of Jensen. REIT joint venture experience in Asia has been neutral for value, but may improve in the future if early ventures have created options for more efficient partnerships later. Copyright Springer Science + Business Media, Inc. 2006Real Estate, Joint Ventures, Internationa investment, REITS, Real options, Property diversification,

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Section: Abnormal Returnssupporting

confidence: 91%

Domestic and International Equity REIT Joint Ventures: Structuring Corporate Options

Campbell

White-Huckins

Sirmans

2006

J Real Estate Finan Econ

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“…Since the lower risk and the chance to benefit from economies of scale and scope may represent an incentive for creating a broad real estate portfolio (i.e. carrying out frequent hotel-related business transactions) we extend our models by adding a continuous variable measuring the number of hotels an owner/investor holds, to our models (NUMBERH), serving as a proxy to explain frequency (Byrne and Lee, 2001; Miles and McCue, 1984). The broader the portfolio, the more frequent the owner undertakes and negotiates hotel-related transactions, and the higher is the frequency.…”

Section: Methodsmentioning

confidence: 99%

To affiliate, or not to affiliate. Transaction costs and governance choices in luxury hotels in Germany

Pedrini

Bernardi

2019

Tourism and Hospitality Research

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This paper examines the choice of affiliation or no affiliation to a large hotel chain from the viewpoint of luxury hotel property owners in Germany. Grounded in transaction cost theory, this study identifies how uncertainty and frequency influence the owners’ choice of unaffiliated operation and affiliation. The study augments the traditional governance literature in the field of the hotel by shedding light on the market/hierarchy decision of property owners rather than on the market entry strategies of international hotels firm. Through a multiple regression analysis on a sample of 122 existing five-star hotels in Germany, this study provides new empirical evidence that a frequent contract conclusion with the same hotel chain and a “hotel unrelated” background of the owner increases the likelihood of affiliation. In contrast to what transaction cost theory traditionally predicts, our results reveal that uncertainty is not influencing the owners’ market/hierarchy decision.

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“…As our measure of asset allocation to real estate, we use the reported proportion of total life insurance company assets invested in real estate, either directly or indirectly through commingled funds. A priori, we might expect institutional investors to invest between 15 to 20% of their assets (or higher) in real estate (see Firstenberg, Ross, andZisler (1988), Fogler (1984), Hartzell, Heckman, and Miles (1986), Ibbotson and Siegel (1984), Miles and McCue (1984), and most recently LaSalle Advisors (1997)).…”

Section: Institutional Real Estate Ownership Patternsmentioning

confidence: 99%

The Impact of Commitment on Pending Home Sales in Entrapping Situations

Chun¹

2024

IRER

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In this paper we examine the institutional real estate ownership patterns of life insurance companies for 10 countries over the period 1986-96. The countries included are ustralia, Austria, Belgium, France, Italy, the Netherlands, Spain, Sweden, the United Kingdom, and the United States. We find that most institutional investors worldwide have shifted out of real estate assets and into stocks and bonds over the last decade. We then investigate whether this behavior is the result of changing investor perceptions or a shift in stock market apitalization. To test this hypothesis, the paper derives measures of ex ante real estate returns following previous empirical work in finance. The results indicate that only a small proportion of what is driving institutional investors' real estate portfolio decisions is actually explained by changing investor perceptions and lagged unexpected excess returns.

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Diversification in the Real Estate Portfolio

Cited by 36 publications

References 15 publications

Domestic and International Equity REIT Joint Ventures: Structuring Corporate Options

Domestic and International Equity REIT Joint Ventures: Structuring Corporate Options

To affiliate, or not to affiliate. Transaction costs and governance choices in luxury hotels in Germany

The Impact of Commitment on Pending Home Sales in Entrapping Situations

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