Liquidity Management at REITs: Listed &amp; Public Non-traded

Soyeh, Kenneth W.; Wiley, Jonathan A.

doi:10.1080/10835547.2019.12091520

Cited by 13 publications

(4 citation statements)

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“…There is also a positive correlation between the liquidity of the real estate market and the liquidity of REIT shares. Another study on REITs and liquidity examined liquidity between public and nonpublic REITs (Soyeh & Wiley, 2019). The results show that public, non-listed REITs tend to accumulate a significant amount of cash from issuing shares, resulting in higher liquidity ratios compared to a sample of listed REITs.…”

Section: Literature Reviewmentioning

confidence: 99%

The influence of financial indicators on liquidity: An empirical analysis of profitability, leverage, and fund age

Cicmil

2023

Ekonomika

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Financial leverage, profitability, and liquidity are crucial metrics used to evaluate the financial health and stability of a firm. This study aims to investigate the relationship between leverage ratios (debt-to-equity and debt-to-asset), profitability ratio( ROE), Fund Age and liquidity ratios (cash ratio and quick ratio) for Residential Real Estate Investment Trusts (REITs) listed on the New York Stock Exchange (NYSE) over the period of 2009-2021. A multiple linear regression analysis was conducted to model the relationship between the independent variables and the dependent variables. The findings suggest that ROE has a significant positive relationship with liquidity ratios, while Debt to Equity and Fund Age have a significant negative relationship. Debt to Assets is found to be not statistically significant in explaining liquidity, further highlighting the complex nature of the relationship between financial metrics and the financial stability of a firm.

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Section: Literature Reviewmentioning

confidence: 99%

The influence of financial indicators on liquidity: An empirical analysis of profitability, leverage, and fund age

Cicmil

2023

Ekonomika

View full text Add to dashboard Cite

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“…The importance of liquidity risk in the pricing of real estate securities has been addressed by Soyeh and Wiley (2019) and Hoesli et al (2017). None of the above benchmarks explicitly considers liquidity.…”

Section: Literature Reviewmentioning

confidence: 99%

Performance and Market Maturity in Mutual Funds: Is Real Estate Different?

Macgregor

Schulz

Zhao

2020

J Real Estate Finan Econ

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Despite the lack of convincing evidence that active investment fund managers add value, the number of actively-managed US mutual funds has increased substantially over the last 25 years. While non-sector diversified mutual funds have received much attention, sector funds, except real estate mutual funds (REMFs), have not. In this paper, we provide new and more robust evidence on the performance of active REMFs compared to all actively managed mutual funds. We use the Carhart four-factor model with an additional liquidity factor as a risk-adjusted benchmark. We use wild bootstrap methods to deal with small samples, non-normality and heteroscedasticity, and we control for the false discovery of significant results. For portfolios of fund types, we find evidence of both significant outperformance and underperformance, net of fees, during 1992-2016. We consider non-overlapping five-year and three-year periods and find very limited evidence of persistent outperformance. For individual funds, we find that, for both sector and diversified funds, net of fees, only 0.79% are skilled. We find persistence in skills for only two individual fund managers of diversified funds. We investigate the effects of the outsourcing of management and of team versus individual management. Outsourcing has no effect on performance of non-RE sector funds but, for cap-based funds and style-based funds, it has a negative effect. There is some evidence that this may also be true for REMFs. Team management has no effect for any types of funds. Overall, we conclude that REMFs are generally no different from other sector funds.

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“…Other control variables used in the regression analysis include firm size (Size), defined as the natural logarithm of total assets; leverage ratio (Leverage), defined as the ratio of total assets to total equity; firm age (Age), defined as the natural logarithm of one plus firms' years since IPO; 17 and it is replaced by the estimation calculated from this formula: Value 𝑥 𝑖,𝑡 = (Value 𝑥 𝑖,𝑡+1 + Value 𝑥 𝑖,𝑡−1 )∕2, where Value 𝑥 𝑖,𝑡 is the value of 𝑥 (e.g., total assets) of REIT 𝑖 in year 𝑡. 13 We focus on publicly traded equity REITs as there are operating and financing differences related to nontraded REITs that are highlighted by Soyeh and Wiley (2019). 14 Total revenue or sales is commonly used as production outputs in industrial firms (Brynjolfsson and Hitt, 2003;Eisfeldt and Papanikolaou, 2013).…”

Section: Data Sources and Summary Statisticsmentioning

confidence: 99%

Employee productivity and REIT performance

Feng

Hardin

2020

Real Estate Economics

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The impact of employee productivity on real estate investment trust (REIT) performance is examined. Using a sample of U.S. equity REITs from 2003 to 2017, we first estimate parameters of a firm-level production function correcting for endogenous input choices. The coefficient for labor input is statistically significant, indicating that labor productivity is an important component of overall REIT productivity. More importantly, REIT operating efficiency and financial performance are found to be negatively correlated with previous-year employee instability (a proxy for employee turnover), but positively correlated with several lagged employee productivity measures, suggesting that a stable, motivated workforce improves a REIT's operating efficiency and performance. These findings suggest that employees play an important role in REIT operations and that managing employees properly and creating an effective corporate culture are essential to REIT performance.

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Liquidity Management at REITs: Listed & Public Non-traded

Cited by 13 publications

References 0 publications

The influence of financial indicators on liquidity: An empirical analysis of profitability, leverage, and fund age

The influence of financial indicators on liquidity: An empirical analysis of profitability, leverage, and fund age

Performance and Market Maturity in Mutual Funds: Is Real Estate Different?

Employee productivity and REIT performance

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