Evaluation of Price Determination Methods for Malaysian Islamic Real Estate Investment Trusts

Chuweni, Nor Nazihah; Azri, Wan Intan Mastura Wan; Hwa, Ting Kien

doi:10.1007/978-981-10-1452-9_37

Cited by 2 publications

(4 citation statements)

References 7 publications

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“…Studies found that macroeconomic policy and variables have fundamental and long-run relationship with performance of REITs markets, with usually any shocks will tend to lower the REITs returns compared to investors' expectation. There is also a study by (Nazlioglu, Gormus, & Soytaş, 2016) (Chuweni & Ahmad, 2014;Chuweni & Eves, 2017;Mohamad & Saad, 2012;A. Osmadi & Razali, 2014;Teh, Soh, & Yan, 2012;Yahya et al, 2016;Zainuddin & Nordin, 2016), which is not surprising since the first I-REITs in the world, the Al 'Aqar KPJ REIT is based in Malaysia (Najeeb & Vejzagic, 2013).…”

Section: Reits Performance Risk and Volatilitymentioning

confidence: 96%

“…Next category is studies that focus on governance of I-REITs. There are two studies which focusing on Malaysian I-REITs governance and they conclude that current Malaysian I-REITs' governance is in good position because no disputed area between sharia scholars on existing I-REITs as required by the regulatory framework, which means sharia compliant is not a problematic issue (Chuweni & Ahmad, 2014). This condition is also supported by large shareholding which enable good control of management from shareholders and liquid capital market that enhance management's transparency and reduce agency cost (Zainuddin & Nordin, 2016).…”

Section: Reits Performance Risk and Volatilitymentioning

confidence: 99%

“…Although there are many studies that try to analyzed conventional REITs and some studies on I-REITs, such as Chuweni and Ahmad (2014); Nadiah, Ali, Halim, and Noor (2016); ; and Osmadi and Razali, 2014;Hussin, Husaini, Muhammad, Razak, and Hadi(2016), but literature review that on this issue is still lacking. There are some literature review on conventional REITs, such as Corgel, Mcintosh, & Ott (1995), but in author's best knowledge, literature review on both REITs (conventional and Islamic) is none.…”

Section: Introductionmentioning

confidence: 99%

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Literature Review on REITs and Islamic REITs and Lessons Learned for Islamic REITs in Indonesia

Indrawan

Wahyuningsih

2019

ijief

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Real Estate Investment Trusts (REITs) as a new instrument in many capital markets is an interesting topic.Although not yet to be popular globally, REITs has gained popularity as flexible, cost efficient and profitable real estate investment vehicle for investors as well as provide liquidity for real estate sector, especially in advanced markets like in US, Japan and Singapore. The emergence of Islamic Financial Institutions (IFIs) coincided with increasing popularity of REITs open opportunity for development of Islamic REITs (I-REITs) as competitive but sharia compliant REITs compared to the conventional one. The dominance of Malaysia as market player of I-REITs as well as many underresearched areas open opportunity for betterment of the current I-REITs markets. This paper is a literature review with two objectives. First, to compile and review existing articles on REITs, both conventional and Islamic, and second, to gain lesson learned as material for development of I-REITs in Indonesia as ultimate goal. It is expected that this literature review will generate ideas for future development proposals on I-REITs, particularly in Indonesia. This study found that literature on I-REITs is relatively thin compared to its conventional counterparts, and Indonesia is still left behind in I-REITs development despite regulatory framework is already in force. Therefore, further effort to promote supply and demand of I-REITs in Indonesia should be taken as a way to diversify Islamic investment avenues for sharia oriented investors.

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Section: Reits Performance Risk and Volatilitymentioning

confidence: 96%

Section: Reits Performance Risk and Volatilitymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Literature Review on REITs and Islamic REITs and Lessons Learned for Islamic REITs in Indonesia

Indrawan

Wahyuningsih

2019

ijief

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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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Evaluation of Price Determination Methods for Malaysian Islamic Real Estate Investment Trusts

Cited by 2 publications

References 7 publications

Literature Review on REITs and Islamic REITs and Lessons Learned for Islamic REITs in Indonesia

Literature Review on REITs and Islamic REITs and Lessons Learned for Islamic REITs in Indonesia

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

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