Ownership Structure, Property Performance, Multifamily Properties, and REITs

Hardin, William G.; Hill, Matthew D.; Hopper, James

doi:10.1080/10835547.2009.12091256

Cited by 24 publications

(10 citation statements)

References 13 publications

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“…This contradicts earlier findings (see, e.g. Hardin et al, 2009;or Benjamin et al, 2006). However, it could be argued that if there are external management companies that care about their reputation, then using an external company may be a signal of high quality instead of a signal of low quality.…”

contrasting

confidence: 75%

“…An et al conclude that firms which are able to signal, or which are more transparent, are more likely to receive bank credit. Hardin et al (2009) study concerning the performance of REIT-owned properties concludes the structure of property ownership positively impacts property performance when there is an operational of scale. In addition, they support the hypothesis that a local organisational structure positively affects the property performance.…”

mentioning

confidence: 99%

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The office market: a lemon market? A study of the Malmö CBD office market

Palm

2015

Journal of Property Investment &Amp; Finance

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Purpose – The purpose of this paper is to test whether bad real estate owners drive out good real estate owners from the online marketplace for offices. Design/methodology/approach – This research is based on a statistical analysis of the advertisement of offices in Malmö CBD, collected weekly during a period of one year. Findings – The hypothesis that the market for advertisement of office properties is a lemons market cannot be rejected. The result that owners who have appeared in court more than once in the last two years being more inclined to advertise supports this. Research limitations/implications – The research in this paper is limited to the Malmö CBD office market. Practical implications – It provides an insight in how the online marketplace for offices works as a marketplace and how quality signals influences advertisement. Originality/value – This paper is a direct test of Akerlof’s classical lemon model.

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contrasting

confidence: 75%

mentioning

confidence: 99%

The office market: a lemon market? A study of the Malmö CBD office market

Palm

2015

Journal of Property Investment &Amp; Finance

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“…There are benefits that extend beyond the day-to-day expense savings experienced by some of these groups. The ability to manage these properties better through effective cost control can be realized through a premium with the eventual sale of the property (Carswell and Smith, 2009;Hardin et al, 2009). Because the US property management industry stresses property valuation as its prime function (Kuperberg, 1999), the focus on cost minimization toward achieving that goal takes on added focus.…”

Section: Discussionmentioning

confidence: 99%

“…Similarly, Benjamin et al (2007) demonstrated the higher profitability of larger enterprises and companies, specifically through higher rents. Hardin et al (2009) suggested that the real estate investment trust (REIT) business model leads to enhanced rents and income, when compared to non-REIT properties. went a step further by stating that REITs with brand identity show higher residential satisfaction, which can have positive effects on NOI.…”

Section: Background Literaturementioning

confidence: 99%

An analysis of operating expense control within US multifamily properties

Carswell

2017

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Purpose The purpose of this paper is to determine the effect that ownership and management structures have on ability to control operating expenses. For individual investors, intensity of management experience is also explored as a possible explanatory variable for operating expenses. For property management services that are contracted out, the level of the fee is investigated as a possible cause for movements in operating expenses as well. Finally, operating expenses are used as a possible explanatory variable for a property’s lease-up performance during the year. Design/methodology/approach The analysis consists of a series of regression models performed on data provided by the 2012 Rental Housing Finance Survey (RHFS) in the USA. The RHFS is a unique data set that covers a wide degree of information on multifamily properties. The RHFS represents 2,260 properties in total, and covers various aspects of the apartment industry, including financing and operational cost measures. Control variables used as independent variables include number of units, year of property acquisition, and age of building. Findings Individual ownership and self-management proved to be statistically significant drivers in driving down log operating expenses. Hours spent by individuals performing property management roles on their own properties had a slightly positive association with operating expenses. For professional managers, the fees devoted solely to the manager or management company had a highly significant and positive effect on other operating costs. Finally, when separating out the individual components of operating expenses, only two variables had significant effects on tenant lease-ups: management expenses (positive) and security expenses (negative). Research limitations/implications The data set is potentially biased toward those properties with less than 100 units, and thus it would be problematic to assume that these findings are generalizable to the population at large. There are also no geographic coding indicators within the RHFS data set, which eliminates the potential to control for various market factors and rural/urban differences. Practical implications The research provides an understanding of some of the basic factors behind increases in operating expenses, which ultimately has implications for performance benchmarks such as net operating income and property market value. Social implications The reasonable controlling of operating expenses ultimately has potentially positive implications for low- to moderate-income populations, who would ultimately experience lower rents as a result. Originality/value This research represents one of the first known uses of the RHFS database.

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“…This adeptness has been recognized as a requisite for socioeconomically sustainable housing delivery due to investment management issues encumbering such investments (Muyingo, 2016). Hardin III et al (2009) presented a vivid elucidation of this strength to affordable housing with a comparative analysis of the "impact of ownership and management structure on property level performance amongst traded and direct real estate". The study found that "multifamily properties owned and managed by REITs generated higher effective rents at the property level than non-REIT operated properties".…”

Section: Reviewmentioning

confidence: 99%

Affordable Housing Ambidexterity of Real Estate Investment Trusts: SWOT Analysis for N-REITs

2021

EJBM

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Symmetric movements of real estate investment trust (REIT) capitalization and affordable housing deficit in Nigeria fuelled the motivation of the study on analyzing the implications of an affordable housing ambidexterity of REITs in Nigeria (N-REITs). The focus on REITs was informed by the unsustainable growth in the deficit statistics of affordable housing in Nigeria which implies a think-outside-the-box search for financing panacea. Indeed, there seems a paucity of empirical and practical evidence of such ambidextrous diversification for N-REITs, so the study was aimed at conducting a strength, weakness, opportunity and threat (SWOT) analysis of affordable housing ambidexterity of N-REITs. Survey research method was employed on a sample frame of housing delivery stakeholders. Sample size of 369 was determined using Freund and Williams formula, while the research instrument was a self-administered e-questionnaire. Data was obtained from primary sources, and further subjected to descriptive analysis. The study found that professional investment management competency was the most dominant strength, 10% investable income was the most significant weakness, significant room for rise in market share was the most significant opportunity, while effect of systematic risk on sustainability planning was the most significant threat to N-REIT ambidexterity towards affordable housing investment in Nigeria. The study concluded that the professional investment management quality of REITs, in comparison with non-listed direct real estate companies would envisage a robust and sustainable contribution to increase in affordable housing stock in the country. It was recommended that management of N-REITs should leverage on their professional investment management strengths to explore blue ocean strategies for an ambidextrous attitude that enhances the growth and sustainability of affordable housing units, in addition to the employment of risk analysis, management and mitigation strategies to limit the effect of volatilities from macroeconomic risks.

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Ownership Structure, Property Performance, Multifamily Properties, and REITs

Cited by 24 publications

References 13 publications

The office market: a lemon market? A study of the Malmö CBD office market

The office market: a lemon market? A study of the Malmö CBD office market

An analysis of operating expense control within US multifamily properties

Affordable Housing Ambidexterity of Real Estate Investment Trusts: SWOT Analysis for N-REITs

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