Net Rental Income Research Articles

Abstract A047: Neighborhood disadvantage and multiple myeloma risk among Black women living in the United States

Abstract Introduction: Multiple myeloma (MM) is a rare cancer of the plasma cells. Black men and women are at a greater than 2-fold increased risk of MM as compared to other racial/ethnic groups. In 2021, Black women living in the United States (U.S.) were diagnosed with MM at a rate of 13.9 per 100,000 women, and incidence has increased by more than 30% since 2000. Factors associated with the neighborhood in which Black women live and work may be one area to consider to disentangle this racial disparity in MM incidence and reduce the burden of disease for Black women. Methods: We evaluated the association between two neighborhood-level indices and MM within the Black Women’s Health Study, a longitudinal cohort of 59,000 self- identified Black women ages 21-69 at enrollment in 1995. Participant addresses at baseline were geocoded and linked with U.S. Census Bureau and American Community Survey data. We conducted a factor analysis to a create neighborhood concentrated disadvantage (nDIS) score, which included 6 variables: percentage of individuals below the poverty line, percentage of individuals on public assistance, percentage of female headed households, percentage unemployed, percentage of individuals ≤18 years, and percentage of Black residents. A neighborhood socioeconomic status (nSES) score included median household income, median housing value, percentage of households receiving interest, dividend or net rental income, percentage of adults aged ≥25 years who completed college, percentage of employed persons aged ≥16 years in occupations classified as managerial, executive or professional, and percentage of families with children that are not headed by a single female. We used Cox proportional hazards regression to calculate hazard ratios (HRs) and 95% confidence intervals (CI) for the association of quartiles of nSES and nDIS in relation to MM risk. Multivariable models were adjusted for age, body mass index, educational attainment, alcohol consumption, physical activity, and cigarette smoking. Results: During follow-up through 2021, we identified 276 incident cases of MM. Multivariable-adjusted HRs were 1.43 (95% CI: 1.00, 2.03) for women living in the highest quartile of neighborhood disadvantage relative to the lowest quartile, and 1.23 (95% CI: 0.86, 1.76) for women living in neighborhoods in the lowest quartiles of nSES compared to the highest. Conclusions: Black women in the U.S. living in neighborhoods of high concentrated disadvantage have an increased risk for MM compared to women who live in more advantaged communities, even after adjustment for individual SES as measured by educational attainment. Future studies to further tease apart specific neighborhood-level factors (e.g., walkability, chronic stress, environmental pollution, opportunities to engage in healthy behaviors) that might influence risk of MM would be beneficial. Ultimately, community reinvestment may offer an opportunity to reduce the increasing burden of MM among Black women. Citation Format: Etienne X. Holder, Julie R. Palmer, Kimberly A. Bertrand. Neighborhood disadvantage and multiple myeloma risk among Black women living in the United States [abstract]. In: Proceedings of the 17th AACR Conference on the Science of Cancer Health Disparities in Racial/Ethnic Minorities and the Medically Underserved; 2024 Sep 21-24; Los Angeles, CA. Philadelphia (PA): AACR; Cancer Epidemiol Biomarkers Prev 2024;33(9 Suppl):Abstract nr A047.

Association of Childhood and Midlife Neighborhood Socioeconomic Position With Cognitive Decline

Early-life socioeconomic adversity may be associated with poor cognitive health over the life course. To examine the association of childhood and midlife neighborhood socioeconomic position (nSEP) with cognitive decline. This cohort study included 5711 men and women enrolled in the community-based Atherosclerosis Risk in Communities (ARIC) Study with repeated cognitive data measured over a median 27.0 years (IQR, 26.0-27.9 years) (1990-2019). Statistical analysis was performed from December 2022 through March 2023. Residence addresses for ARIC Study cohort participants were obtained at midlife (1990-1993) and as recalled addresses at 10 years of age (childhood). A composite nSEP z score was created as a sum of z scores for US Census-based measures of median household income; median value of owner-occupied housing units; percentage of households receiving interest, dividend, or net rental income; percentage of adults with a high school degree; percentage of adults with a college degree; and percentage of adults in professional, managerial, or executive occupations. Childhood nSEP and midlife nSEP were modeled as continuous measures and discretized into tertiles. A factor score for global cognition was derived from a battery of cognitive tests administered at 5 in-person visits from baseline to 2019. The rate of cognitive decline from 50 to 90 years of age was calculated by fitting mixed-effects linear regression models with age as the time scale and adjusted for race, sex, birth decade, educational level, and presence of the apolipoprotein E ε4 allele. Among 5711 ARIC Study participants (mean [SD] baseline age, 55.1 [4.7] years; 3372 women [59.0%]; and 1313 Black participants [23.0%]), the median rate of cognitive decline was -0.33 SDs (IQR, -0.49 to -0.20 SDs) per decade. In adjusted analyses, each 1-SD-higher childhood nSEP score was associated with a slower (β, -9.2%; 95% CI, -12.1% to -6.4%) rate of cognitive decline relative to the sample median. A comparable association was observed when comparing the highest tertile with the lowest tertile of childhood nSEP (β, -17.7%; 95% CI, -24.1% to -11.3%). Midlife nSEP was not associated with the rate of cognitive decline. In this cohort study of contextual factors associated with cognitive decline, childhood nSEP was inversely associated with trajectories of cognitive function throughout adulthood.

Housing Rents and Inflation Rates

AbstractThis paper develops a quality‐adjusted measure of marginal housing rents using a monthly statistic of landlord net rental income. The marginal rent index (MRI) exhibits deflation during recessions and leads the official rent index by 7 months. The modified inflation rate based on MRI suggests that the annual official inflation rate was overestimated by 1.7–4.1% during the Great Recession but underestimated by 0.3–0.7% during the subsequent expansionary period.

Abstract MP65: Occupational Complexity and Childhood Socioeconomic Environment Influence Mid-to-Late-Life 20-year Change in Cognitive Function; The Atherosclerosis Risk in Communities (aric) Study

Background: We tested the hypothesis that lower childhood SES is associated with greater age-and disease-related cognitive decline. We further examined potential protective effects of high adulthood occupational complexity in the association of childhood SES with cognitive decline. Methods: Childhood neighborhood SES (child nSES) was ascertained at midlife among 12440 ARIC participants using retrospective historical county-level census-based measures of median household income, value of owner occupied housing units, percent of households receiving interest, dividend, or net rental income, educational attainment, and proportion of adults in professional, management, or executive occupations. An occupational complexity index (OCI) was derived from self-reported occupational categories at baseline. Cognitive function was assessed at ARIC visits 2 (1990-1993), 4 (1996-1998), and 5 (2011-2013) according to performance on tests of memory, executive function/processing speed and language. A composite global cognition z-score was estimated, with missing data imputed using multiple imputation by chained equations. Linear mixed effects models, adjusted for baseline age, sex, and race-study center, were used to examine the association of distribution-based tertiles of the child nSES summary score with baseline and 20-year change in cognitive function. We further examined interactions by OCI tertiles. Results: Global cognitive z scores in adulthood were persistently higher at baseline among participants with high (Visit 2 β =0.545 (95% CI 0.514, 0.576) as compared to intermediate (Visit 2 β=0.348 (95% CI 0.317, 0.381)) and low (Visit 2 β = 0.007 (95% CI -0.030, 0.044) child nSES. Participants with high,as compared to low, OCI, had higher baseline cognitive function across all tertiles of child nSES (Figure, p<0.01). Conclusion: The positive association of child nSES with adult cognitive function is modified by adulthood occupational complexity. Child nSES is not associated with a 20-year cognitive change.

Assessing House Prices with Prudential and Valuation Measures

In this paper we provide tools for assessing the house prices and housing valuation. Wedevelop two approaches: (i) borrowing capacity approach, and (ii) intrinsic value approach.The borrowing capacity of households, together with their down payment, implies how muchhousing they can attain. In the intrinsic value approach, property value is viewed as adiscounted present value of adjusted net rental income. Our approach does not involve acomplex econometric model and only widely available data are used. The proposedindicators can guide households, financial markets and macroprudential authorities in theirunderstanding of house prices development. To illustrate the concepts, we analyze thehousing prices in the Czech Republic and assess the degree of market over-and undervaluation.

Assessing House Prices with Prudential and Valuation Measures

In this paper we provide tools for assessing the house prices and housing valuation. We develop two approaches: (i) borrowing capacity approach, and (ii) intrinsic value approach. The borrowing capacity of households, together with their down payment, implies how much housing they can attain. In the intrinsic value approach, property value is viewed as a discounted present value of adjusted net rental income. Our approach does not involve a complex econometric model and only widely available data are used. The proposed indicators can guide households, financial markets and macroprudential authorities in their understanding of house prices development. To illustrate the concepts, we analyze the housing prices in the Czech Republic and assess the degree of market over-and undervaluation.

젠트리피케이션 부작용 방지를 위한 상가임대인 조세지원 제도의 경제적 효용에 관한 연구 : 성수동 도시재생활성화지역을 중심으로

The purpose of this study is to provide a logical basis for guarantee the effectiveness of the tax support system, which is one of the main measures to prevent the side effects of commercial gentrification. For this purpose, this study analyzes the combination of tax support to replace the loss of net rental income due to stabilize commercial rents and annual rent increase rate that can be substituted through the tax support system based on economic utility of commercial lessors in Seoung-dong, Seoul. The result of this study shows that the tax support system can be used as an effective means to substitute a considerable portion of the net rental income loss due to stabilize commercial rents of Seongsu-dong. However if the rent price continues to rise every year, the tax support system does not work. In order to guarantee the sustainability of the tax support system, annual rent increase rate should be kept below a certain level.

Socioeconomic Status as a Predictor of Mortality in Patients Admitted With Atrial Fibrillation

Lower socioeconomic status (SES) is associated with a higher risk of cardiovascular disease. However, the association between SES and mortality in patients with atrial fibrillation (AF) is not clear. We examined whether SES predicts all-cause mortality in patients hospitalized with AF. This is a retrospective study of patients aged >18years, admitted with a primary diagnosis of AF to Montefiore Medical Center between 2000 and 2010. Multivariable logistic regression models were used to determine predictors of survival adjusted for age, gender, heart failure, diabetes mellitus, chronic kidney disease, previous myocardial infraction, chronic obstructive pulmonary disease, hypertension, peripheral vascular disease, and SES. SES was determined using the New York City Department of Health Standardized Score (a log composite score of household income, value of housing units, net rental income, household occupations, and educational level). The cohort was divided into quartiles based on SES score, with Q4 the highest and Q1 the lowest SES score. There were 4,503 patients identified with a mean follow up of 4.5years in the following SES quartiles: Q1 (n= 1,132), Q2 (n= 1,119), Q3 (n= 1,126), and Q4 (n= 1,126). The unadjusted mortality varied across quartiles (Q1 to Q4), 54%, 58%, 56%, and 59%, respectively (p= 0.004). After controlling for other variables in the multivariable analysis, patients with the lowest SES (Q1) had a significantly higher mortality than patients in the quartile with the highest (Q4) SES (odds ratio 1.3, CI 1.1 to 1.5). In conclusion, patients admitted to the hospital with AF have varying mortality based on their SES. After controlling for co-morbidities, patients with AF and lower SES scores had higher mortality. Further research studies are warranted to study this risk of increased mortality in AF population.

Inflation Rates are Very Different When Housing Rents are Accurately Measured

One of the largest components of official price indexes is housing services, which account for 16% to 41% of major price indexes in the United States. This paper demonstrates that the current measure of housing rents does not accurately track the actual inflation rate of housing rents. We propose to use an alternative quality-adjusted measure of housing rents that is based on a monthly statistic of landlord net rental income. Using our new rent indexes, we show that the annualized quarterly rate of modified inflation was on average lower than the official rate by 1.4% to 3.4% during the Great Recession but higher by 0.3% to 0.7% during the current expansionary period after the recession. We further demonstrate significant impacts of our improved measurement of inflation rates on the cost of living adjustment to Social Security and real gross domestic product.

Recognition versus disclosure: evidence from fair value of investment property

The application of International Accounting Standard 40, Investment Property, in the European Union created a unique setting to study the implications of a decision to recognize versus disclose financial statements’ items, because in this setting recognized and disclosed investment-property-related amounts share a common measurement base, i.e., fair value. I use this setting to (1) explore a firm’s choice to recognize versus disclose fair values of investment properties, (2) test whether recognized and disclosed amounts are valued equally by investors, and (3) determine whether these amounts exhibit equivalent associations with future financial outcomes. To correct for self-selection concerns and assure I compare analogous amounts, I develop a selection model and construct investment-property-related amounts that differ only in whether their components are recognized or disclosed. I find that (1) contractual and asset-pricing incentives help to explain the recognition versus disclosure choice, (2) investors place smaller valuation weights on disclosed amounts, and (3) recognized and disclosed amounts exhibit statistically equivalent associations with future changes in net rental income and cash flows from operations. Taken together, the evidence suggests that managers are opportunistic in making the recognition versus disclosure choice and that even when recognized and disclosed amounts share an equivalent measurement base and are equally relevant for future financial outcomes, investors weight disclosed information less heavily in determining a firm’s value.

VALUE INFLUENCING MECHANISM OF GREEN CERTIFICATES IN THE DISCOUNTED CASH FLOW VALUATION

The market value of green properties is already acknowledged in scientific literature, but it has still remained unclear how green certificates are incorporated into property valuation. In this study, value influencing mechanism of green certificates in property investment is studied. A widely used discounted cash flow (DCF) model for property valuation was constructed and communicated with spreadsheet to industry professionals for valuing an office property in metropolitan Finland. The goal was to understand the value influencing mechanism and even deeper to identify the differences in DCF parameters between certified properties and non-certified properties. The results show that a green certificate increases on average the property value with 9.0% in the DCF valuation model. Improved yield and net rental income were the main reasons for the higher property value. Interestingly, this is the first known study to empirically open the value influencing mechanisms of green properties presented in earlier theoretical studies.

Recognition Versus Disclosure: Evidence from Fair Value of Investment Property

The application of International Accounting Standard (IAS) 40, Investment Property, in the European Union created a unique setting to study the implications of a decision to recognize versus disclose financial statements’ items because in this setting recognized and disclosed investment-property-related amounts share a common measurement base, i.e., fair value. I utilize this setting to (1) explore factors associated with a firm’s choice to recognize versus disclose fair values of investment properties, (2) test whether recognized and disclosed amounts are valued equally by equity investors, and (3) determine whether these amounts exhibit equivalent associations with future financial outcomes. To correct for self-selection concerns and assure I compare analogous amounts, I develop a selection model and construct investment-property-related amounts that differ only in whether their components are recognized or disclosed. I find that (1) contractual and asset pricing incentives help explain the recognition versus disclosure choice, (2) investors place smaller valuation weights on disclosed amounts, and (3) recognized and disclosed amounts exhibit statistically equivalent associations with future changes in net rental income and cash flows from operations. Taken together, the evidence suggests that managers are opportunistic in making the recognition versus disclosure choice and that even when recognized and disclosed amounts share an equivalent measurement base and are equally relevant for future financial outcomes, investors weight disclosed information less heavily in determining a firm’s value.

Real Estate Prices During the Roaring Twenties and the Great Depression

Using new data on market‐based transactions we construct real estate price indexes for Manhattan between 1920 and 1939. During the 1920s prices reached their highest level in the third quarter of 1929 before falling by 67% at the end of 1932 and hovering around that value for most of the Great Depression. The value of high‐end properties strongly co‐moved with the stock market between 1929 and 1932. A typical property bought in 1920 would have retained only 56% of its initial value in nominal terms two decades later. An investment in the stock market index (including dividends) would have outperformed an investment in a typical property (including net rental income) by a factor of 5.2 over our time period.

Explaining the variations in the pedestrian flow values of shopping centres

PurposeThe purpose of this paper is to identify and analyse the crucial variables of pedestrian flow value of the shopping centres in Hong Kong.Design/methodology/approachThe study identifies the key determinants of pedestrian flow value (PFV) which is measured by net rental income per floor area per pedestrian flow. Based on the rental and pedestrian flow survey data of 146 shopping centres along the subway (Mass Transit Railway) stations in Hong Kong, the authors have estimated the marginal effects of these determinants on the PFV. The research explains different variations' impacts of pedestrian flow on the rental value of the shopping centres in Hong Kong.FindingsIt is found that shopping centres owned by the same owners tend to achieve a lower PFV, which suggests that owners of multiple shopping malls may adopt a uniform pedestrian flow management strategy that may not be ideal for each individual mall.Research limitations/implicationsThis study focuses on the shopping centres that are located along the railway stations. Researchers are encouraged to test the shopping centres that are less affected by the railway stations.Practical implicationsIt is useful for shopping centre owners and operators to determine the optimal strategy for managing pedestrian flow in their shopping centres.Originality/valueThe relationship between pedestrian flow and the shopping centre value is coined in the research as pedestrian flow value (PFV) which is to calculate the pedestrian flow effectiveness measured by net rental income per floor area per pedestrian flow.

The Transition from Industrial Capitalism to a Financialized Bubble Economy

For the past decade, the U.S. economy has been driven not by industrial investment but by a real estate bubble. Although the United States may seem to be the leading example of industrial capitalism, its economy is no longer based mainly on investing in capital goods to employ labor to produce output to sell at a profit. The largest sector remains real estate, whose cash flow (EBITDA, or earnings before interest, taxes, depreciation, and amortization) accounts for over a quarter of national income. Financially, mortgages account for 70 percent of the U.S. economy’s interest payments, reflecting the fact that real estate is the financial system’s major customer.As the economy’s largest asset category, real estate generates most of the economy’s capital gains. The gains are the aim of real investors, as the real estate sector normally operates without declaring any profit. Investors agree to pay their net rental income to their mortgage banker, hoping to sell the property at a capital gain (mainly a land-price gain).The tax system encourages this debt pyramiding. Interest and depreciation absorb most of the cash flow, leaving no income tax due for most of the post-1945 period. States and localities have shifted their tax base off property onto labor via income and sales taxes. Most important, capital gains are taxed at a much lower rate than are current earnings. Investors do not have to pay any capital gains tax at all as long as they invest their gains in the purchase of new property.This tax favoritism toward real estate - and behind it, toward bankers as mortgage lenders - has spurred a shift in U.S. investment away from industry and toward speculation, mainly in real estate but also in the stock and bond markets. A postindustrial economy is thus largely a financialized economy that carries its debt burden by borrowing against capital gains to pay the interest and taxes falling due.

Real Estate Prices During the Roaring Twenties and the Great Depression

Using new data on market-based transactions we construct real estate price indexes for Manhattan between 1920 and 1939. During the 1920s prices reached their highest level in the third quarter of 1929 before falling by 67 percent at the end of 1932 and hovering around that value for most of the Great Depression. The value of high-end properties strongly co-moved with the stock market between 1929 and 1932. A typical property bought in 1920 would have retained only 56 percent of its initial value in nominal terms two decades later. An investment in the stock market index (including dividends) would have outperformed an investment in a typical property (including net rental income), by a factor of 5.2 over our time period.

Accounting for owner-occupied dwelling services: Aggregates and distributions

Research linking macro and micro statistics of dwelling services is in its infancy in the U.S. including work by the Bureau of Economic Analysis, Bureau of Labor Statistics, and the Census Bureau. Comparisons of aggregated estimates generated from micro-level data to estimates at the macro-level can inform both levels on the accuracy and precision of methods and data sources. In this study, the treatments of housing in the macro statistics of the National Accounts and in the micro statistics of household expenditure and income surveys are examined. Three approaches to value dwelling services using household survey data are compared: capitalization rate, hedonic, and rental equivalence. Estimates are produced using data from the U.S. Consumer Expenditure Survey and American Housing Survey. Estimated aggregates of implicit net rental income from owner-occupied housing are compared to the aggregate value in the National Accounts. Possible sources of differences in the macro- and micro-based aggregates are discussed. The effects of adding net implicit rental income on income distributions are examined, particularly on inferences about the relative well-being by the age of householder. Overall, only marginal reductions in income equality result when net rental incomes are added to before tax money income; this only occurs when reported rental equivalence and return to home equity are used as methods of rent estimation.

Retail properties in Hong Kong: a rental analysis

PurposeThis paper seeks to explore the relationship between market positioning and rents of retail facilities in Hong Kong.Design/methodology/approachRegression analysis is deployed in the paper to find out the impact of various attributes, in terms of a retail facility's physical characteristics, market positions, and location, on the annualized per‐area net rental income. The sample data obtained from the initial public offerings of the Link real estate investment trust (REIT), one of the largest REITs in the world, is used for analysis.FindingsThe study finds that district centers command the highest average rental levels, followed by local and estate centers. As the effects of positive externalities for unorganized shops are smaller, the average rental levels for shops are generally lower. In terms of the impact of individual attributes on rents, a retail property's age and its efficiency ratio have negative relationships with rents, while its size (in terms of gross floor area) and the amount of shops positively affect the facility's rental levels.Research limitations/implicationsAlthough obtaining the largest possible dataset in the Link REIT portfolio for the study, the sample is not considered big enough to detect the impact of the location of a retail facility on its rental adjustments. Further studies are required with regard to this issue.Originality/valueThe results of this study give planners and developers of retail facilities some insights about the effects of market positioning on a retail facility's performance on the leasing market.

Measuring and Analyzing Returns on Aggregate Residential Housing

This paper computes an aggregate real after-tax rate of return on residential real estate in the United States. We account for net rental income, capital gain, and subsidies due to tax provisions for homeowners in constructing a total return measure. We also compute separate returns to owners and rentiers (that is, households who rent to others). Both quarterly and annual data over 1952-2000 period are used in the analysis. We compare our measure of return with that in the literature and analyze how housing compares to other assets in the household portfolio. Our approach provides a more comprehensive measure of return than that found in the literature. We confirm that residential housing provides a high average return and low volatility, has low correlation with other assets such as stocks and bonds, and exhibits high positive correlation with inflation. The efficient frontier analysis shows that the residential housing providing diversification should be an important part of the household portfolio. Our results also indicate that housing may be as good an investment as stocks (S&P 500).

Valuing the refurbishment cycle

This paper presents a simple method to assess the value of a commercial property, considering the cost and timing of refurbishment. It is constructed on the understanding that net rental income tends to decrease as the property ages, while maintenance cost increases with time. As a result, there is a desirable duration of successive leases, at the end of which refurbishment can take place. A suitable choice of this duration could give a higher value to the property. By assessing the value of a property over one refurbishment cycle, values for similar successive cycles can be capitalised. This approach is equivalent to finding the annual equivalent of the discounted cash flow over one cycle, and then capitalising it as if it is a constant income to perpetuity.