Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Comparing The Quality Of Alternative Summary Performance Measures In The Real Estate Investment Trust Reit Industry PDF full book. Access full book title Comparing The Quality Of Alternative Summary Performance Measures In The Real Estate Investment Trust Reit Industry.
| Author | : Desmond Tsang |
| Publisher | : |
| Total Pages | : 214 |
| Release | : 2006 |
| Genre | : |
| ISBN | : |
| Author | : Desmond Tsang |
| Publisher | : |
| Total Pages | : 59 |
| Release | : 2006 |
| Genre | : |
| ISBN | : |
This study examines Funds from Operations (FFO), a non-GAAP summary performance measure used extensively by the Real Estate Investment Trust (REIT) industry, by comparing the quality of accruals in FFO and in net income. Accrual quality is empirically evaluated from regressions relating accruals to past, present, future cash flows and changes in revenue, with larger residuals implying lower accrual quality. Results show that the accruals component of FFO is of higher quality than the accruals component of net income. The study then considers how the individual accrual items excluded from FFO, but included in net income contribute to the accrual quality differences of the two measures. I show that all these accrual items (including depreciation and some non-recurring accruals) are of low quality and are insignificant in predicting future cash flows. Since accounting depreciation is supposed to help match revenue with expenses, it is surprising to find that depreciation accruals are of low quality for the REIT industry. Further analysis on depreciation shows that the low quality of depreciation accruals for REIT firms is due to estimation errors and managerial manipulation and, to some extent, extreme changes in market inflation.
| Author | : Richard Gore |
| Publisher | : |
| Total Pages | : |
| Release | : 1999 |
| Genre | : |
| ISBN | : |
This paper examines the value relevance and information content of alternative measures of operating performance in the Real Estate Investment Trust (REIT) industry. The National Association of Real Estate Investment Trusts (NAREIT) has suggested that Net Income (NI) is a misleading measure of operating performance for REITs. They asset that historical cost depreciation is inappropriate for income-producing real estate because it is not correlated with changes in the value of those assets. Accordingly the industry has promoted Funds From Operations (FFO) as a supplemental measure of operating performance. FFO is calculated as net income before depreciation expense and realized gains/losses from the sale of real estate. NAREIT asserts that FFO is a more informative measure of firm performance in the REIT industry. We test the industry?s proposal by comparing the association of NI and FFO with REIT stock returns. In addition, we also examine specific components of NI that differ from FFO to assess their value-relevance.The results suggest that FFO is more closely associated with stock returns than NI. In particular, the association of returns with the components of NI indicates that FFO and gains/losses from the sale of investments are significantly related to stock returns while depreciation expense is not. These results generally support the industry?s claim that GAAP-based depreciation expense does not provide value-relevant information. However, the fact that gains/losses form the sale of investments are associated with returns indicates that FFO excludes value-relevant accounting data. Therefore, this study provides evidence regarding which components of NI are considered most information by investors in REITs.
| Author | : H. Kent Baker |
| Publisher | : John Wiley & Sons |
| Total Pages | : 660 |
| Release | : 2013-03-25 |
| Genre | : Business & Economics |
| ISBN | : 1118241126 |
A comprehensive guide to alternative investments that reveals today's latest research and strategies Historically low interest rates and bear markets in world stock markets have generated intense interest in alternative investments. With returns in traditional investment vehicles relatively low, many professional investors view alternative investments as a means of meeting their return objectives. Alternative Investments: Instruments, Performance, Benchmarks, and Strategies, can put you in a better position to achieve this difficult goal. Part of the Robert W. Kolb Series in Finance, Alternative Investments provides an in-depth discussion of the historic performance, benchmarks, and strategies of every major alternative investment market. With contributions from professionals and academics around the world, it offers valuable insights on the latest trends, research, and thinking in each major area. Empirical evidence about each type of alternative investment is featured, with research presented in a straightforward manner. Examines a variety of major alternative asset classes, from real estate, private equity, and commodities to managed futures, hedge funds, and distressed securities Provides detailed insights on the latest research and strategies, and offers a thorough explanation of historical performance, benchmarks, and other critical information Blends knowledge from the conceptual world of scholars with the pragmatic view of practitioners in this field Alternative investments provide a means of diversification, risk control, and return enhancement and, as such, are attractive to many professional investors. If you're looking for an effective way to hone your skills in this dynamic area of finance, look no further than this book.
| Author | : Bruno Milani |
| Publisher | : |
| Total Pages | : 14 |
| Release | : 2016 |
| Genre | : |
| ISBN | : |
Real Estate investments have been used to provide diversification without increasing portfolio risk, although direct real estate investment has several disadvantages, such as low liquidity and high transaction costs, and Real Estate Investment Trusts (REITs) are an alternative investment aim to overcome these difficulties. This paper analyzes the REITs performance, comparing it to Ibovespa (proxy of market) and Ifix (Brazilian REITs proxy). For a better analysis we used the wavelet method, that allows to compare the results of different scales of time. Analyzing the wavelet transform, the REITs have significant coefficients when compared to the market, index Ibovespa, but considering the relationship between the REITs and the real estate funds, Ifix, influence happens in the long run. Market volatility has a negative effect in REITs returns in the long run, probably because a REITs investor tries to avoid risk. That's because maybe in the long run, REITs investors can change their investments to direct Real Estate if those are presenting better returns, what would reduce REITs demand and consequently, their price. It was noted that REITs returns are influenced by Real Estate companies returns in different scales, indicating that Brazilian REITs returns depend on market volatility. In a general way, this study showed that the relationships between REITs returns, Real Estate Companies returns and Market returns depend on the time scale analyzed, but they tend to be stronger at large scales. Differently of what was found by Milani and Ceretta (2014), Brazilian REITs returns can be better explained by Real Estate Sector Companies returns than by market returns, in the long run. Also, higher moments influence their returns and should be part of a model that tries to explain REITs returns.
| Author | : |
| Publisher | : |
| Total Pages | : 652 |
| Release | : 2007 |
| Genre | : Dissertations, Academic |
| ISBN | : |
| Author | : Siti Latipah |
| Publisher | : UUM Press |
| Total Pages | : 50 |
| Release | : 2014-10-01 |
| Genre | : Business & Economics |
| ISBN | : 9670474426 |
This book is designed to explain the concepts, issues and method used in measuring efficiency of REITs in Malaysia. Real Estate Investment Trust is a type of investment trust focusing on Real Estate. The best examples of Real Estate are building, office, land and plantations. Therefore, many people including operator, customer, regulator, academicians, university’s students and community as a whole will benefit from it. Its guide readers through the importance of measuring efficiency of REITs and help them in making investment decision. This book had been developing to help people to understand and explain the issue as well as the development of REITs in Malaysia.
| Author | : Hong Zhu |
| Publisher | : |
| Total Pages | : 164 |
| Release | : 2005 |
| Genre | : Asset-liability management |
| ISBN | : |
| Author | : Su Han Chan |
| Publisher | : Oxford University Press |
| Total Pages | : 318 |
| Release | : 2002-11-07 |
| Genre | : Business & Economics |
| ISBN | : 0198035357 |
The book offers broad understanding and unique insights into the REITs industry. Its scope is to analyze and synthesize the existing scholarly research on REITs in a way that will enable managers to improve their investments decisions and the operating performance of their REITs. It also provides up-to-date original research on REITs based on the authors' own database, which is the most extensive data base available on REITs that is free of suvivorship bias. This book helps investors evaluate REITs and identify those with the greatest investment potential. Finally, it provides the reader with a detailed discussion of likely future changes anticipated for this unique invetment vehicle.
| Author | : Michael J. Highfield |
| Publisher | : |
| Total Pages | : 40 |
| Release | : 2020 |
| Genre | : |
| ISBN | : |
Building on past research regarding the operating efficiency of Real Estate Investment Trusts (REITs) and recognizing the substantial changes in this industry since the turn of the millennium, we examine REIT efficiency over the period 2001-2015. Using both time-varying stochastic frontier and linear models of costs, revenues, and performance measures, we find evidence showing that the REIT industry is slowly moving away from both cost and revenue efficiency over time; however, size remains positively correlated with efficiency. Despite the rapid expansion of asset sizes and evidence of diminishing efficiencies of scale, larger REITs still enjoy comparative advantages over smaller REITs in both revenue (production) and costs. We also find evidence that post-recession efficiencies exceed pre-recession efficiencies, and we document modest evidence of the “weeding-out” of inefficient enterprises during the market downturn. The results suggest, through a diverse set of measures, that additional efficiency opportunities for REITs may be achievable through continued growth and consolidation.
