Real Estate Investment Companies Research Articles

Social and Financial Sustainability of Real Estate Investment: Evaluating Public Perceptions towards Blockchain Technology

Real estate markets play a crucial role in the economy, providing opportunities for investment and housing. However, there are several challenges in both direct and indirect investment mechanisms affecting its social and financial sustainability. These challenges include high costs, lengthy processes, limited transparency, and restricted investor control. Additionally, the dominance of large investors in the market intensifies these issues, creating barriers to smaller investors. This raises concerns around social inequality and sustainability among small investors, that represent, in number, the largest share of investors. Blockchain technology has emerged as a possible solution to address these issues in the real estate sector, with the potential to improve its long term social and financial sustainability. Features such as smart contracts and tokenization can enhance efficiency, transparency, security, and accessibility in property transactions. In the case of smart contracts, these enable self-executing and automated agreements, and tokenization allows for fractional ownership and increased liquidity. To assess the knowledge and perceptions of professionals in the real estate sector and evaluate the possible impact of the technology in the market, a survey-based methodology was followed. It targeted individuals actively involved in the industry, including professionals from real estate investment companies and real estate agencies. The data revealed that most professionals in the Portuguese real estate market have little to no knowledge about blockchain technology. Yet, those who possess knowledge recognize the potential benefits it can bring to the industry. This lack of awareness can be attributed to the relatively recent emergence of blockchain and its limited discussion within the real estate sector.

Analysis of Real Estate Investment Companies Traded in BIST Corporate Governance Index with Integrated MCDM Approach

Gayrimenkul yatırım ortaklıkları (GYO) gayrimenkullere, gayrimenkule dayalı projelere ve gayrimenkule dayalı sermaye piyasası araçlarına yatırım yapmak amacıyla faaliyet gösteren özel bir sermaye piyasası kurumudur. Finansal krizlerin her geçen gün artması ile kurumsal yönetim tüm dünyada önem kazanmıştır. Kurumsal yönetimin etkili bir şekilde gerçekleşmesi ile firmaların performansının arttığı ve daha iyi bir kurumsal yönetime sahip olan firmaların yatırımcıları çektiği düşünülmektedir. Bu çalışmanın amacı, Borsa İstanbul (BİST) Kurumsal Yönetim Endeksi (XKURY)’de yer alan GYO’ların 2020, 2021 ve 2022 yılları için finansal performanslarının Geliştirilmiş IDOCRIW ve MABAC yöntemleri ile ölçülmesidir. Geliştirilmiş IDOCRIW yönteminden elde edilen sonuçlara göre, kriterlerin önem seviyeleri her yıl için farklılaşmaktadır. MABAC yönteminden elde edilen sonuçlar ise AKMGY ve HLGYO’nun diğer GYO firmalarına göre daha istikrarlı ve yüksek performansa sahip olduğunu göstermektedir. Çalışmada elde edilen sonuçlar, önerilen bütünleşik modelin performans değerlendirme ve iyileştirmede kullanılabileceğini ortaya koymaktadır.

Do real estate investment companies profit from house price growth? Evidence from Portugal

PurposeThis study aims to study the sensitivity of nonlisted real estate investment companies’ accounting earnings to house prices. This study evaluates whether house price changes determined these companies’ return on equity (ROE) or if other factors influenced the industry’s profitability beyond house price growth.Design/methodology/approachThe authors collected a ten-year sample with the aggregate ROE of Portugal’s real estate investment companies, split by regions, and data on house prices and the per capita gross domestic product as a control variable. The authors ran a national-level time series with the canonical cointegrating regression estimator, which is robust to a small sample size; the authors also performed a regression on regional-level panel data with the common correlated effects mean group estimator, thus allowing slope coefficient heterogeneity and controlling for cross-sectional dependence. The authors also ran ordinary least squares regressions as a means of comparison.FindingsThis study found that an increase in the house price is not translated into an increase in the aggregate ROE. The results are robust with a reduced survivorship-biased sample, meaning that even the best-succeeded real estate investment companies do not have their accounting ROE dependent on house price growth.Research limitations/implicationsThe sample size is small and specific to one country. This paper did not study the housing market structure to verify whether it operates under monopolistic competition, which could further explain the attained results.Practical implicationsPolicy decision-makers should know that there are no excess profits in the real estate investment companies’ industry because of house price growth that could be subject to windfall taxes.Originality/valueTo the best of the authors’ knowledge, the connections between house prices and real estate investment companies’ accounting earnings have never been studied.

The nexus between financial failure and stock prices: Panel Pedroni, Panel Kao and Panel AR DL Co-Integration Tests in Turkey REIT s

In today’s globally competitive environment, companies must keep up with these competitive conditions to be successful. Failure of companies to show the expected financial performance, fulfil their financial obligations, or reach their financial targets is considered a financial failure or bankruptcy risk. Real Estate Investment Companies or Trusts (REICs or REITs) are capital market institutions that qualify as legal entities and are partnerships in a joint-stock company that provides financing to all kinds of real estate or real estate projects and bring together many investors for the desired real estate. REITs are an essential investment choice that continues its rapid development in Turkey. This study aims to examine the relationships between the ZScores calculated by periods of REIT companies traded in Borsa Istanbul between 2010–2019 and the stock price performances. In the study, primarily Altman Z-Score and Springate S-Score values of companies traded in Borsa Istanbul were calculated with the help of financial ratios. Then, Pedroni and Kao panel co-integration analysis and Dumitrescu-Hurlin panel causality analysis were performed. According to the analysis results, there is a long-term relationship between the financial failure scores of REIT companies and their stock prices. However, a causality relationship was found between the series.

IT governance in the real estate industry: a framework suggestion

Purpose - Information technology is the core issue that all the companies need to re-evaluate and re-organize to adapt themselves to the digital world. This study investigates the critical IT governance factors for effective and sustainable success and the growth of real estate investment companies and developing a new IT governance framework. Methodology - The common literature about IT governance is searched and by taking into consideration of the dynamics of the industry, the conceptual framework is developed for specifically real estate industry. Findings- The model developed is suggesting the corporate cultures, organizational structures and industry culture as critical IT governance (ITG) existence factors for the real estate industry. Effective IT tool selection and effective data flow and integration are also recommended as IT governance effectiveness parameters. Sustainable growth, asset utilization, cost-effectiveness, and business flexibility are evaluated as the positive and successful business outcomes of ITG effectiveness in the real estate industry. Conclusion- Based on the researches made in past studies, this research seems to be the first in the literature that develops an IT governance framework for real estate investment companies in emerging economies.

不動産投資會社에 있어서 投資者保護에 관한 硏究 - 最近 不動産投資會社法 改正案(의안번호 제17916호)에 대한 意見 -

The Real Estate Investment Trusts(REITs) is an indirect real estate investment institute that is prescribed in the Real Estate Investment Company Law. The Real Estate Investment Company Law, which governs matters relevant to the foundation of real estate investment companies, the way that the real estate investment companies operate their assets, and investor protection, is established for widening the opportunity for individuals to invest in the real estate and fostering sound investment environment in order to make national economic growth. This article examines the validity and necessity of the credit assessment system that is applied to real estate investment companies with regard to investor protection in the Amendment Bill and suggests an alternative one to the credit assessment system. Contrary to the real estate fund that is not controlled by the credit assessment system, the introduction of the credit assessment system to the real estate investment companies is thought to be an excessive regulation. On top of it, there is grave concern that asset management companies(AMC) will shift their interest and investment from the REIT market that is influenced by the credit assessment system to the real estate fund market without the system.BR Based on these reasons, Clause 3 and Clause 4, Article 25 in the Amendment Bill, related to the introduction of credit assessment system to real estate investment companies in order to protect investors, should be revised. It is necessary to include an alternative that can protect investors while encouraging REITs

Collaborative Management Research as a Modality of Action Research

The practice of action research has been an integral element of organization development research since the beginning. Collaborative management research (CMR) is viewed as a modality within the broad family of action research approaches. By design, CMR aims to facilitate collaboration between researchers and practitioners in the investigation of an organizational issue while generating outcomes that are both relevant to practice and scholarly rigorous. This article reports on the nature and outcome of a CMR effort that centers on a complex organizational change—the merger process of two real-estate investment companies. The discussion identifies and explores some of the characteristics of CMR that could enable mergers and acquisitions. Contribution to theory, methodology and practice are then presented, proposing CMR as a managerial tool for framing and leading mergers and acquisitions.

Determinants of Foreign Versus Domestic Real Estate Investment: Property Level Evidence from Listed Real Estate Investment Firms

We examine the determinants of foreign real estate investment relative to the domestic case using the portfolios of a large sample of publicly traded real estate investment companies; where foreign investment is defined as the property owner headquarters being located in a different country than a given asset. The cross-sectional results provide strong evidence that real estate firms are more likely to take a smaller stake in larger assets when investing abroad. The penchant for large assets holds when controlling for economic activity, real estate investment opportunities, depth and sophistication of the capital markets, investor protection and the legal framework, administrative burdens and regulatory limitations, and the socio-cultural and political environment at both the property nation and headquarter nation levels. In general, foreign ownership is less likely with industrial, office, retail, and self-storage properties. Capital market development is consistently negatively related to foreign investment.

Corporate social responsibility and the market valuation of listed real estate investment companies

Abstract This study investigates the relationship between the implementation of a corporate social responsibility (CSR) strategy and the corporate financial performance of listed real estate investment companies. The sustainability of a company is measured using various self-constructed indices based on the Guidelines of the Global Reporting Initiative (GRI). Overall, a positive relationship can be established. An over-reporting of sustainability information dilutes this relationship. Furthermore, investors value initiatives which have a clear and coherent link to the enhancement of future value creation processes such as efforts to mitigate environmental impacts by reducing resource and energy consumption of buildings. A two-stage least squares regression framework is used to account for the problem of endogeneity.

Structure of a Global Network of Financial Companies Based on Transfer Entropy

This work uses the stocks of the 197 largest companies in the world, in terms of market capitalization, in the financial area, from 2003 to 2012. We study the causal relationships between them using Transfer Entropy, which is calculated using the stocks of those companies and their counterparts lagged by one day. With this, we can assess which companies influence others according to sub-areas of the financial sector, which are banks, diversified financial services, savings and loans, insurance, private equity funds, real estate investment companies, and real estate trust funds. We also analyze the exchange of information between those stocks as seen by Transfer Entropy and the network formed by them based on this measure, verifying that they cluster mainly according to countries of origin, and then by industry and sub-industry. Then we use data on the stocks of companies in the financial sector of some countries that are suffering the most with the current credit crisis, namely Greece, Cyprus, Ireland, Spain, Portugal, and Italy, and assess, also using Transfer Entropy, which companies from the largest 197 are most affected by the stocks of these countries in crisis. The aim is to map a network of influences that may be used in the study of possible contagions originating in those countries in financial crisis.

Joint Leverage and Maturity Choices in Real Estate Firms: The Role of the REIT Status

We explore the interdependence of leverage and debt maturity choices in Real Estate Investment Trusts (REITs) and unregulated listed real estate investment companies in the U.S. for the period 1973-2011. We find that the leverage and maturity choices of all listed real estate firms are interdependent, but in contrast to industrial firms, they are not made simultaneously. Across the different types of real estate firms considered, we find substantial differences in the nature of the relationship between leverage and maturity. Leverage determines maturity in non-REITs, whereas maturity is a determinant of leverage in REITs. We suggest that the observed differences reflect the effects of the REIT regulation, rather than solely being a function of real estate as the underlying asset class. We also present novel evidence that the relationship between leverage and maturity in both firm types can be used to moderate the effects of other exogenous financing policies.

The "Bungalow Boom": The Working-Class Housing Industry and the Development and Promotion of Early Twentieth-Century Los Angeles

Civic, railroad, and business leaders in early twentieth-century Los Angeles conspired to draw working-class settlers as a source of cheap labor. A key role was played by real estate investment and cooperative building companies that developed and promoted extensive low-cost bungalow tracts. One of the largest of these was the Los Angeles Investment Company, between 1899 and 1913. By tracing its methods and ists appeal to working-and middle-class homeseekers, this article illustrates an essential element of Los Angeles' transformation from an affluent tourist destination to an industrial center with a significant labor base.

Challenges of the Mexican real estate investment trust tax regime

The use of real estate investment trusts and real estate investment companies has significantly expanded worldwide, and this has led Mexico to enact a tax regime for this form of investment in the hope of facilitating the development of the Mexican real estate market. However, the actual use of these vehicles in Mexico has been limited. This article summarizes the applicable tax provisions and identifies some of the perceived benefits and weaknesses of the regime.

International Asset Allocation with Real Estate Securities in a Shortfall Risk Framework: The Viewpoint of German and U.S. Investors

Executive Summary. This study analyses the diversification potential of integrating indirect real estate investments in international investment portfolios. To this end, monthly index-return time-series for the time-period from January, 1985, through June, 2001, from real estate investment companies, common stocks and bonds in France, Germany, Great Britain, Switzerland and the United States were used. Due to the critical normal distribution assumption, a mean / lower-partial-moment framework was employed. In order to take into account the influence of the currency risk for international investments, the analyses have been undertaken with and without hedging the currency risk. The viewpoint of a German as well as that of a U.S. investor was taken to gain insight into the dependency of the diversification potential on the reference currency of the investor.