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Real Estate Investment Trust-based Pure-play Portfolios

Real Estate Investment Trust-based Pure-play Portfolios
Author: Eui-Hoe Kim
Publisher:
Total Pages: 120
Release: 2004
Genre:
ISBN:

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Over the last 20 years the REIT industry has made remarkable progress in terms of the magnitude of market capitalization and management performance. However, it is difficult for investors to precisely target their investments because publicly traded REITs diversify their assets across property types and geographic locations. This research has explored the concept and methodology of a REIT-based pure-play portfolio. This portfolio is defined as an optimal combination of long and short positions in publicly traded REITs, such that the portfolio can replicate the investment returns to a specified target sector without any direct exposure to other sectors while minimizing the idiosyncratic risk component of the portfolio. This thesis constructed pure-play portfolios across four property types and four geographic locations using seven years of structural information on publicly traded REITs. For comparison with the privately held property market, NCREIF sub-indices which represent also four property types and four geographic locations are used. In addition to the construction of pure-play portfolios, the performance indices of REIT-based pure-play portfolios and private property-based NCREIF sub-indices are presented.


The Intelligent REIT Investor

The Intelligent REIT Investor
Author: Stephanie Krewson-Kelly
Publisher: John Wiley & Sons
Total Pages: 240
Release: 2016-08-29
Genre: Business & Economics
ISBN: 1119252717

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The go-to guide for smart REIT investing The Intelligent REIT Investor is the definitive guide to real estate investment trusts, providing a clear, concise resource for individual investors, financial planners, and analysts—anyone who prioritizes dividend income and risk management as major components to wealth-building. The REIT industry experienced a watershed event when Standard & Poors created a new Global Industry Classification Standard (GICS) sector called Real Estate. Publicly traded equity REITs have been removed from Financials, where they have been classified since their creation in 1960, and have begun trading as their own S&P Sector. This separation from banks and financial institutions has attracted new investors, but REITs require an industry-specific knowledge that is neither intuitive nor readily accessible to newcomers—until now. Using straightforward language and simple example to illustrate important concepts, this book will enable any reader to quickly learn and understand the lexicon and valuation techniques used in REIT investing, providing a wealth of practical resources that streamline the learning process. The discussion explains terminology, metrics, and other key points, while examples illustrate the calculations used to evaluate opportunities. A comprehensive list of publicly-traded REITs provides key reference, giving you access to an important resource most investors and stockbrokers lack. REITs are companies that own or finance commercial rental properties, such as malls and apartment buildings. Despite historically high total returns relative to other investments, such as the Nasdaq or S&P 500 index, most investors are unfamiliar with the REIT industry, and wary of investing without adequate background. This book gets you up to speed on the essentials of REIT investing so you can make more informed—and profitable—decisions. Understand REITs processes, mechanisms, and industry Calculate key metrics to identify suitable companies Access historical performance tables and industry-specific terminology Identify publicly-traded REITs quickly and easily REITs have consistently outperformed many more widely known investments. Over the past 15-year period, for example, REITs returned an average of 11% per year, better than all other asset classes. Since 2009, REITs have enjoyed positive returns; large cap stocks and cash are the only other classes that paralleled that record. Even in 2015, a 'year of fear' related to rising rates, REITs returned 2.4%, beating most all other asset classes. REITs have a long history (over fifty years) of performance, and have entered the big leagues. If you feel like you've been missing out, don't keep missing out. Prepare yourself, and your portfolio, to benefit from the demand for REITs that have followed the creation of a Real Estate GICS sector. The Intelligent REIT Investor gives you the information you need to invest wisely and manage your real estate risk effectively. By maintaining a tactical exposure in the brick and mortar asset class, investors should benefit from the information contained in The Intelligent REIT Investor. Join the REIT world and look forward to owning stocks that will help you to sleep well at night.


Real Estate Investment Trusts

Real Estate Investment Trusts
Author: Su Han Chan
Publisher: Financial Management Association Survey and Synthesis
Total Pages: 318
Release: 2003
Genre: Business & Economics
ISBN: 0195155343

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This work provides the investing public, real estate practitioners, regulators and real estate and finance academics with up-to-date information on what modern scholarly research tells us about Real Estate Investment Trusts (REITs). REITs are credited to allow institutional and individual investors to invest in real estate via a corporate entity. The increasing interest in REITs as indicated by their growth in market capitalization and institutional holdings in the United States and around the world suggests that REITs are becoming an increasingly important part of investors' diversified portfolio.


Adjusted Pure-play Portfolio Real Estate Investment Trust Equity Index

Adjusted Pure-play Portfolio Real Estate Investment Trust Equity Index
Author: Dongwook Kim (S.M.)
Publisher:
Total Pages: 104
Release: 2007
Genre:
ISBN:

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(Cont.) As a proxy for the returns of debts held by REITs, Gilberto-Levy Historical Mortgage Rate will be used as a proxy for the returns of debts held by REITs. Sector-Mix Adjustment according to NCREIF sector weights. REIT index investment cost proxied by Vanguard REIT fund expense (95-05) will be deducted from adjusted REIT equity index. In this thesis, private real estate equity investment performance is represented by the MIT Transaction Based Index (TBI) and NCREIF Property Index (NPI). Both TBI and NPI returns are deducted by asset management fees estimated by the NFI-ODCE index (NCREIF) over the same time period. Purpose of these adjustments is to improve evaluation of publicly and privately held commercial real estate asset investment performances relative to one another. Preliminary comparison between NAREIT equity REIT index and NPI quarterly returns from 1995-2005 was conducted to collect the mean return difference. Then the difference after the treatments was compared to observe the effects of the author's method. The results demonstrate that at the aggregate level the difference between REIT and NPI returns reduced from 1.08% to 0.74%, and the difference between REIT and TBI returns reduced from 1.64% to 0.18%.


Getting Started in Real Estate Investment Trusts

Getting Started in Real Estate Investment Trusts
Author: Richard Imperiale
Publisher: John Wiley & Sons
Total Pages: 256
Release: 2006-10-06
Genre: Business & Economics
ISBN: 0470046244

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EVERYTHING YOU NEED TO KNOW ABOUT REITS GETTING STARTED IN REAL ESTATE INVESTMENT TRUSTS Real Estate Investment Trusts (REITs) offer small investors the chance to participate in a broad range of real estate opportunities across most major property sectors and geographic locations. But to make the most out of this proven investment vehicle, you must first gain a firm understanding of it. Getting Started in Real Estate Investment Trusts provides an accessible introduction to the benefits and performance characteristics of REITs and examines the role they play in a well-diversified investment portfolio. Divided into three comprehensive parts, Getting Started in Real Estate Investment Trusts covers a wide variety of issues within this field, including: * The legal and financial history of REITs * How REITs behave as an investment class and how they are best integrated into an investor's portfolio * The fundamental economic issues that affect real estate and how they impact REITs * Specific methods for analyzing REITs as an investment * Different types of REITs: residential, office, industrial, retail property, and more Filled with in-depth insight and practical advice, Getting Started in Real Estate Investment Trusts is a valuable road map to an investment that can help stabilize and grow your portfolio for years to come.


German REITs

German REITs
Author: Felix Leuschner
Publisher: GRIN Verlag
Total Pages: 59
Release: 2005-12-11
Genre: Business & Economics
ISBN: 3638446816

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Diploma Thesis from the year 2005 in the subject Business economics - Investment and Finance, grade: 1,3, Otto Beisheim School of Management Vallendar (WHU - Dresdner Bank Chair of Finance), language: English, abstract: A Real Estate Investment Trust (REIT) is a property stock that is taxed, not at the corporate but at the investor level, which can lead to tax advantages. The concept of REITs originated in the United States in 1960, allowing smaller investors access to large income-producing real estate, which facilitated the creation of a liquid asset class that has become a core part of institutional portfolio management. REITs have proven attractive to investors because: x Their returns have beaten most major equity benchmarks over three decades, with lower volatility x They have predictable cash flows and high dividend yields x They have a low correlation with other asset classes, aiding portfolio diversification As US-REITs proved successful, other countries have introduced similar property investment vehicles. The Netherlands started in 1969, followed by Australia (1985), Canada (1994), Belgium (1995), Japan (2000) Singapore (2002), Hong Kong (2003) and most recently France (2003). In Germany real estate has been the most popular investment theme of the past three years, despite its significant underperformance compared to European peers during the past 10 years, with open-end funds receiving almost all money inflows. The listed sector, however, is insignificant, both in terms of size and liquidity, and is in desperate need of a catalyst. The introduction of a G-REIT structure could potentially be the long-awaited saviour that could transfer the importance of German real estate into the listed sector. Given the significance of real estate in their respective markets, the German and UK governments are currently considering the introduction of REITs. Depending on the progress of the consultative and parliamentary process, REITs are expected to be enacted by legislation during 2006 in both countries. The REIT discussion in Germany has reached a serious stage, with all the mostinvolved parties seemingly agreed about the usefulness of a REIT structure. The purpose of this paper is to highlight the case for REITs in Germany, to analyse the progress of REITs in countries that have installed these structures, to consider the on-going debate in Germany and what these developments may eventually mean for the German real estate market.


Alternative Ideas in Real Estate Investment

Alternative Ideas in Real Estate Investment
Author: Arthur L. Schwartz Jr.
Publisher: Springer Science & Business Media
Total Pages: 206
Release: 2012-12-06
Genre: Business & Economics
ISBN: 9400903677

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Arthur L. Schwartz, Jr. and Steven D. Kapplin The focus of this volume of the ARES Monograph Series is new ideas in real estate investment. Within this volume, empiricial studies, literature reviews, and tutorials examine a broad range of important investment issues. Many new and innovative ideas are presented. This volume should be a rich source of real estate investment ideas for many years to come. Kapplin and Schwartz examine the returns of two types of REITs, as well as that of Master Limited Partnerships (MLP), over the 1987-1989 time period. Their sample consisted of 54 real estate securities; they conclude that these entities did not provide an effective inflation hedge. MLP returns exceeded that of the overall stock market, but the two REIT types did not provide rates-of-return in excess of the marked. An extensive review of the commercial real estate return literature is presented by Fletcher. He focuses upon studies that utilize commingled real estate fund (CREF) data. His detailed overview of the subject provides a much needed synthesis of the current literature. Roulac presents an extensive discussion of the differences in the per spectives of individual versus institutional investors. In his essay, he considers such factors as scale, diversification, and related issues. Addi tionally, he examines a wide range of literature from within academia, 1 INTRODUCTION 2 as well as the opinions of various real estate gurus. He concludes that behavioral factors override economic considerations.


REAL ESTATE INVEST TRUSTS

REAL ESTATE INVEST TRUSTS
Author: Richard T. Garrigan
Publisher: McGraw Hill Professional
Total Pages: 524
Release: 1998
Genre: Business & Economics
ISBN: 9780786300020

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Real estate investment trusts (REITs) make commercial real estate profits available to everyone! REITs are one of the hottest and most potentially lucrative investment vehicles in the market today. Find out how you can take advantage of these increasingly popular securities in the powerful new book Real Estate Investment Trusts. Professionals Richard T. Garrigan and John F.C. Parsons have gathered over 20 of todayÕs most influential opinion leaders to explain how investors both large and small are beating the S&P 500 with REITs, how these REITs combine superior income and growth with relative safety, behind-the-scenes information on how to assemble and launch a successful REIT, and statistical support for market confidence in the long-term appreciation potential of REITs. Whether you are a real estate investment professional seeking comprehensive information on todayÕs REIT operational requirements; an investment professional needing to better understand REITs; or an individual investor interested in diversifying your own portfolio into real estate, Real Estate Investment Trusts will open your eyes to the incredible opportunities available in todayÕs REIT market. Order this well-researched, interesting and informative book today.


Reit-Based Pure Play Portfolios

Reit-Based Pure Play Portfolios
Author: David M. Geltner
Publisher:
Total Pages:
Release: 2001
Genre:
ISBN:

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This paper explores a technique for constructing REIT-based quot;pure playquot; portfolios which replicate the performance of quot;targetquot; real estate sectors without direct exposure to quot;non-targetquot; sectors. The construction of pure play portfolios uses a combination of long and short positions, and does not require time-series data for the target sectors. Pure play portfolios may be useful for hedging, speculation, building custom-designed balanced portfolios, calculating quot;betasquot; for capital budgeting, and developing historical performance indices. Performance indices for the four major commercial property type sectors are presented in this paper. REIT-based sectoral returns are then compared with NCREIF-based returns by property type.


Educated REIT Investing

Educated REIT Investing
Author: Stephanie Krewson-Kelly
Publisher: John Wiley & Sons
Total Pages: 310
Release: 2020-10-06
Genre: Business & Economics
ISBN: 1119708699

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Learn to invest in REITs with confidence and skill with this powerful resource Educated REIT Investing is the ultimate resource for investors, financial advisors, and students interested in learning how to invest in real estate investment trusts (REITs)—one of the only asset classes to significantly outperform the S&P 500 Index over the last 25 years. Written by Stephanie Krewson-Kelly and Glenn R. Mueller, PhD., both accomplished REIT authors and investors with six decades of accumulated industry experience between them, Educated REIT Investing provides all the basics and history, then blends pragmatic strategies and advice with a thorough exploration of the fundamentals and nuances of the REIT industry. Topics include: Basic information about REITs and the REITs industry Terminology specific to the REIT industry, explained in plain-English Historical REIT industry performance tables and trading perspectives Analysis and equations needed to calculate key metrics used to identify the suitability of companies for investment purposes, illustrated with simple examples This book is perfect for anyone looking for a straightforward, easy-to-understand resource to establish or improve their understanding and analysis of real-estate investment trusts.