REIT Organizational Structure, Institutional Ownership, and Stock Performance

Brockman, Paul; French, Dan W.; Tamm, Chris

doi:10.1080/10835547.2014.12089966

“…The increase in institutional ownership leads to an increase in the correlation between REITs and stocks(Glascock, Lu and So, 2000), increases the returns on externally-advised REITs(Brockman, French and Tamm, 2014), and reduces the unsystematic risk(Crain, Cudd and Brown, 2000). The relationship between institutional ownership and the beta in the REITs has not yet been explored thoroughly.…”

mentioning

confidence: 99%

The Beta Anomaly in the REIT Market

Shen

¹

,

Hui

²

,

Fan

³

2020

J Real Estate Finan Econ

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This research examined whether the beta anomaly exists in the REIT market. By analysing a low-minus-high beta strategy and a betting-against-beta strategy in the REIT market, we find that high-beta REITs earn significantly lower risk-adjusted returns than low-beta REITs. This beta anomaly is only significant in the New REIT Era after 1993. The negative relationship between beta and REIT stock return does not disappear after taking into account some firm characteristics, suggesting that the beta anomaly in the REIT market is not driven by beta's correlation with profitability, asset growth, lottery-like return or the skewness of stock returns.We find that institutional investors, whose portfolios increasingly contain a significant proportion of REITs, prefer the high-beta REITs. The exposure of institutional investors to high-beta REITs could explain the beta anomaly in the REIT market.

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“…Previous literature in the REIT industry focus on capital structure, diversification benefits and corporate strategies (see for example Anderson, Benefield, & Hurst, 2015;Bauer, Eichholtz, & Kok, 2010;Brockman, French, & Tamm, 2014;Newell & Marzuki, 2016). However, limited studies explore the issue related to technical and scale efficiencies (see Table 1) particularly in the Malaysian emerging market.…”

Section: Literature Reviewmentioning

confidence: 99%

Technical, Scale and Managerial Efficiencies in Malaysian Reits: A Non-Parametric Approach

Chuweni

¹

,

Ali

²

,

Fauzi

³

et al. 2021

PM

1

0

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The paper examined technical, managerial and scale efficiencies scores of Malaysian Real Estate Investment Trust (M-REITs). A non-parametric approach of VRS-DEA examined the input and output variables to determine REIT efficiency. We examined their determinants using GLS regression in the second stage. On average, the M-REIT industry has faced technical inefficiency, that involves scale and managerial inefficiencies. This paper presents new estimates through discussion on return as REIT output. The empirical results indicate Islamic REITs exhibited higher efficiency scores than their counterparts. The results from GLS regression analysis suggest that efficient REITs are smaller in size with higher concentration in property sector and geographical area. Having examined these values, there is still some catching-up for the inefficient REITs in the sample to be more competitive to stay relevant in the global market.

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“…Previous literature in the REIT industry focus on capital structure, diversification benefits and corporate strategies (see for example Anderson, Benefield, & Hurst, 2015;Bauer, Eichholtz, & Kok, 2010;Brockman, French, & Tamm, 2014;Newell & Marzuki, 2016). However, limited studies explore the issue related to technical and scale efficiencies (see Table 1) particularly in the Malaysian emerging market.…”

Section: Literature Reviewmentioning

confidence: 99%