IDEAS home Printed from https://ideas.repec.org/a/gam/jijfss/v11y2023i1p29-d1054506.html
   My bibliography  Save this article

Analyzing the Relationship between the Features of Direct Real Estate Assets and Their Corresponding Australian—REITs

Author

Listed:
  • Xinyi Li

    (School of Architecture and Built Environment, The University of Adelaide, Adelaide, SA 5000, Australia)

  • Yuhong Zhang

    (Faculty of Business, City University of Macau, Macau 999078, China)

  • Xing Zhang

    (School of Management, Guizhou University of Commerce, Guiyang 550001, China)

  • Runtang Gu

    (School of Management, Guizhou University of Commerce, Guiyang 550001, China)

Abstract

This study investigated the relationship between a sector-specific Australian Real Estate Investment Trust (A-REITs) and the underlying property assets in its property portfolio. The existing studies have assessed the connectedness/correlation between the A-REITs market and a variety of other asset markets, including the overall stock, bond, and direct real estate markets. This study applied regression analysis methods and discovered that there exists a certain degree of linear correlation between the underlying property assets and the return of the subject A-REITs. The most significant variable is the occupancy of the offices. The higher the occupancy is, the better the dividend can be. Features of the A-REITs also affect the dividend outcomes, specifically, the total portfolio market value and the capitalization rate. This suggests that the annual valuation outcomes show a positive relation with the performance of the A-REITs.

Suggested Citation

  • Xinyi Li & Yuhong Zhang & Xing Zhang & Runtang Gu, 2023. "Analyzing the Relationship between the Features of Direct Real Estate Assets and Their Corresponding Australian—REITs," IJFS, MDPI, vol. 11(1), pages 1-15, February.
    • Handle: RePEc:gam:jijfss:v:11:y:2023:i:1:p:29-:d:1054506
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7072/11/1/29/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7072/11/1/29/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thi Thu Ha Nguyen & Faruk Balli & Hatice Ozer Balli & Iqbal Syed, 2022. "Direct real estate, securitized real estate, and equity market dynamic connectedness," Applied Economics, Taylor & Francis Journals, vol. 54(23), pages 2658-2677, May.
    2. Anthony J. De Francesco & Luke R Hartigan, 2009. "The impact of changing risk characteristics in the A‐REIT sector," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 27(6), pages 543-562, September.
    3. Sheharyar Bokhari & David Geltner, 2018. "Characteristics of Depreciation in Commercial and Multifamily Property: An Investment Perspective," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 46(4), pages 745-782, December.
    4. Zhu, Zhaobo & Harrison, DavidM. & Seiler, MichaelJ., 2020. "Preference for lottery features in real estate investment trusts," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 599-613.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alan Sage & Mike Langen & Alex van de Minne, 2023. "Where is the opportunity in opportunity zones?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(2), pages 338-371, March.
    2. Marc Francke & Alex Van De Minne, 2022. "Daily appraisal of commercial real estate a new mixed frequency approach," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 50(5), pages 1257-1281, September.
    3. Michiel N Daams & Philip McCann & Paolo Veneri & Richard Barkham & Dennis Schoenmaker, 2024. "Capital shocks and the great urban divide," Journal of Economic Geography, Oxford University Press, vol. 24(1), pages 1-21.
    4. John M. Clapp & Jeffrey P. Cohen & Thies Lindenthal, 2023. "Are Estimates of Rapid Growth in Urban Land Values an Artifact of the Land Residual Model?," The Journal of Real Estate Finance and Economics, Springer, vol. 66(2), pages 373-421, February.
    5. Masatomo Suzuki & Seow Eng Ong & Yasushi Asami & Chihiro Shimizu, 2023. "Long-Run Renewal of REIT Property Portfolio Through Strategic Divestment," The Journal of Real Estate Finance and Economics, Springer, vol. 66(1), pages 1-40, January.
    6. Xin Rang Sophronia Sia, 2022. "Lease Decay and the Prices of Private Residential Properties in Singapore," International Real Estate Review, Global Social Science Institute, vol. 25(3), pages 401-421.
    7. Melisa Ozdamar & Levent Akdeniz & Ahmet Sensoy, 2021. "Lottery-like preferences and the MAX effect in the cryptocurrency market," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-27, December.
    8. David Geltner & Anil Kumar & Alex M. Van de Minne, 2020. "Riskiness of Real Estate Development: A Perspective from Urban Economics and Option Value Theory," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(2), pages 406-445, June.
    9. Marc Francke & Alex Van de Minne, 2021. "Modeling unobserved heterogeneity in hedonic price models," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(4), pages 1315-1339, December.
    10. Propheter, Geoffrey, 2020. "The effect of a new sports facility on property development: Evidence from building permits and a localized synthetic control," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 50(1), December.
    11. Jeremy Gabe & Spenser Robinson & Andrew Sanderford, 2022. "Willingness to Pay for Attributes of Location Efficiency," The Journal of Real Estate Finance and Economics, Springer, vol. 65(3), pages 384-418, October.
    12. Lopez, Luis A. & Yoshida, Jiro, 2022. "Estimating housing rent depreciation for inflation adjustments," Regional Science and Urban Economics, Elsevier, vol. 95(C).
    13. Simon B chler, Alex van de Minne, Olivier Sch ni, 2020. "Redevelopment Option Value for Commercial Real Estate," Diskussionsschriften credresearchpaper26, Universitaet Bern, Departement Volkswirtschaft - CRED.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijfss:v:11:y:2023:i:1:p:29-:d:1054506. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.