The emergence of data centres as an innovative alternative property sector

Marzuki, Muhammad Jufri; Newell, Graeme

doi:10.1108/jpif-08-2018-0064

Cited by 13 publications

(14 citation statements)

References 12 publications

(11 reference statements)

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“…Further, following Lin et al (2019a, b) and Marzuki and Newell (2019), a constrained portfolio analysis was used to constrain the REIT allocation at a maximum level of 20% in the mixed-asset portfolio. This reflects the typical actual total property allocation in institutional investor portfolios.…”

Section: Methodologiesmentioning

confidence: 99%

“…This is despite the fact that numerous studies have acknowledged the existence of the sectoral effect in which different property sectors feature different property cycles (Benefield et al , 2009; Yavas and Yildirim, 2011; Hoesli et al , 2015; Lin et al , 2019a). Several studies have examined office REITs (Bohjalian, 2018), retail REITs (Newell and Peng, 2007), residential REITs (Newell and Fisher, 2009; Lin et al , 2019b), storage REITs (Bohjalian, 2018), lodging REITs (Jackson, 2009), Islamic REITs (Razali et al , 2015) and alternate REIT sectors (Peng and Newell, 2007; Marzuki and Newell, 2019). However, no comparable study has been devoted to I&L REITs in an international context, notwithstanding the recent rapid growth of Pacific Rim–based I&L REITs and the strong I&L property demand facilitated by e-commerce (Terzi, 2011; Xu et al , 2019), offshore manufacturing (McKinnon, 2009), shifting global distribution patterns (Cidell, 2011), increasing freight transport costs (Christopher, 2016), more intensive high digital technology use (Mathauer and Hofmann, 2019), moves towards the alternate property sectors for diversification (UNGC, 2018), the growth of infrastructure as an asset class (Peng and Newell, 2007) and the emergence of IT-related infrastructure (Marzuki and Newell, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

“…In addition to e-commerce, this strong I&L property demand has been supported by offshore manufacturing (Mangan et al , 2008; McKinnon, 2009), shifting patterns of global distribution (Cidell, 2011), an increasing cost of freight transport (Wagner, 2010; Christopher, 2016), an intensive use of high digital technologies (Lasserre, 2004; Mathauer and Hofmann, 2019), moves towards more alternate property sectors for diversification (IPF, 2015; UNGC, 2018), the growth of infrastructure as an asset class (Peng and Newell, 2007) and the emergence of IT-related infrastructure (e.g. data centres) (Marzuki and Newell, 2019).…”

Section: Introductionmentioning

confidence: 99%

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The added-value role of industrial and logistics REITs in the Pacific Rim region

Lin

Lee

Newell

2020

JPIF

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PurposeAs significant listed property investment vehicles, industrial and logistics REITs (I&L REITs) have recently enhanced their property portfolios, often replacing the traditional industrial properties with logistic properties to gain strategic exposure to recent e-commerce trends. This paper aims to assess the investment performance of I&L REITs by assessing the significance, risk-adjusted performance and portfolio diversification benefits of I&L REITs in the Pacific Rim region from July 2011 to December 2018. The strategic property investment implications for I&L REITs are also identified.Design/methodology/approachMonthly total returns from July 2011 to December 2018 were used to analyse the risk-adjusted performance and portfolio diversification benefits for I&L REITs in the United States, Japan, Australia and Singapore. An asset allocation diagram was employed to assess the strategic role of I&L REITs in a mixed-asset portfolio in each case.FindingsI&L REITs generally possessed superior average annual returns compared with the other sub-sector REITs, stocks and bonds in the United States, Japan, Australia and Singapore between July 2011 and December 2018, with desirable portfolio diversification benefits. Importantly, a more significant role for I&L REITs was generally observed in the mixed-asset portfolio compared to the other sub-sector REITs in each of these four markets across the broad portfolio risk spectrum. This reflects I&L REITs delivering enhanced portfolio returns and offering portfolio diversification benefits in a mixed-asset portfolio in the United States, Japan, Australia and Singapore.Practical implicationsProperty investors, particularly property securities funds (PSFs) and income-oriented investors, should consider including I&L REITs in their mixed-asset portfolios, as Pacific Rim–based I&L REITs provided an attractive REIT investment sub-sector, co-existing alongside the other sub-sector REITs and major asset classes in a mixed-asset portfolio in a Pacific Rim context, as well as being a portfolio diversifier. These results confirm the added-value and strategic role of I&L REITs in a mixed-asset portfolio, seeing I&L REITs as an effective investment pathway for I&L property exposure in the Pacific Rim region.Originality/valueThis is the first study to assess the investment performance of I&L REITs in the Pacific Rim region, evaluating their significance, risk-adjusted performance and portfolio diversification benefits, and the role of I&L REITs in a mixed-asset portfolio in the United States, Japan, Australia and Singapore. More importantly, this research is the first paper to provide empirical evidence on I&L REITs, which have often transformed their traditional industrial property portfolios with increased levels of logistics property to gain exposure to recent e-commerce trends. This research enables more informed and practical property investment decision-making regarding I&L REITs and their added-value and strategic role in a mixed-asset portfolio, as well as delivering effective I&L property exposure in the Pacific Rim region, with the added benefits of liquidity, transparency and fiscal efficiency.

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Section: Methodologiesmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The added-value role of industrial and logistics REITs in the Pacific Rim region

Lin

Lee

Newell

2020

JPIF

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“…3. Aim, methodology and scope of research RM in FM, in particular for DC, is a rather new issue that is gaining more and more importance as DCs continue to grow in number and size (Marzuki and Newell, 2019). The aim of this research is to compare current laws, norms, standards and methodologies for RM of DC and to make recommendations for the development of a holistic and integrated RM for this complex type of asset.…”

Section: Literature Reviewmentioning

confidence: 99%

Risk management in facility management for data centres: status and deficits

Bieser

Kurzrock

Batra

2020

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Purpose Data centres (DC) serve as critical infrastructure and require a sustainable and uninterrupted building operation. Effective risk management (RM), as a component of enterprise RM (ERM), is the basis for secure DC operations. The purpose of this paper is to determine, whether holistic and integrated RM solutions already exist or what they might look like. Design/methodology/approach A literature review of laws, norms, standards, methods and certifications combined with transcribed paper and pencil expert interviews with DC, facility service companies and consulting firms has been conducted. The study also investigates RM practices of 23 large international DC and facility service companies. Findings Results of literature research and intensive interviews with experienced DC experts, covering the entire life cycle of buildings, indicate that there are no holistic and integrated RM practice applications for DC on a sound academic basis. Practical implications Findings suggest that there is a need for developing a holistic and integrated RM framework for DC. This paper is a contribution to the expansion of ERM research and can be very valuable for builders and operators. The results of this research form the basis for the development of a structured RM framework for DC that improves performance. Originality/value The study allows professionals to understand the operational state-of-the-art of RM in critical environments and shed light on the wide spectrum of conceptualities and definitions.

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“…Every economic activity basically will always require property products as a factor of production. The development of property activities has a multiplier effect on the development of other sectors that are directly or indirectly related (Marzuki & Newell, 2019). In the case, if there is no demand for property products, it indicates that the economy is in an underdeveloped condition.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Debt to Equity Ratio and Return on Equity on Stock Return with Dividend Policy as Intervening Variables in Subsectors Property and Real Estate on Bei

Nurhikmawaty¹,

Isnurhadi²,

Widiyanti³

2020

OJBM

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The aims of this study are to investigate the effect of Debt to Equity Ratio and Return on Equity on stock returns with dividend policy as an intervening variable on the property and real estate companies in Indonesia. We collected annual data for eighteen property and real estate companies in Indonesia from the Indonesia Stock Exchange over the period of 2014-2018. We applied multiple linear regression model using SPSS and the Sobel test. Our analysis results found that Debt to Equity Ratio (DER), Return on Equity (ROE), and Dividend Payout Ratio (DPR) have a positive and significant affect on stock returns, both partially nor jointly. Furthermore, the result of Sobel test revealed Dividend Payout ratio (DPR) can be mediate the relationship of Debt to Equity Ratio (DER) and and Return on Equity (ROE) on stock returns. Based on these findings, we concluded that Debt to Equity Ratio (DER) and Return on Equity (ROE) have direct and indirect effects on Stock Return in 18 Indonesia's property and real estate companies.

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The emergence of data centres as an innovative alternative property sector

Cited by 13 publications

References 12 publications

The added-value role of industrial and logistics REITs in the Pacific Rim region

The added-value role of industrial and logistics REITs in the Pacific Rim region

Risk management in facility management for data centres: status and deficits

The Effect of Debt to Equity Ratio and Return on Equity on Stock Return with Dividend Policy as Intervening Variables in Subsectors Property and Real Estate on Bei

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