Abstract
In this paper, I evaluate equity claims to publicly registered, non-listed real estate investment trusts (REITs). Although market-determined equity prices for public non-listed REITs (PNLRs) are unavailable, I demonstrate that such equity claims are worth between 23% and 80% less than equity claims to identical underlying assets organized as listed REITs. Sources for losses include illiquidity, high transactions costs and sub-optimal capital, and organizational structures. An alleged advantage of PNLRs—higher current income—is unsustainable: REITs frequently reduce levels of promised returns to equity holders, only achieving these lower levels by issuing additional capital.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
