IDEAS home Printed from https://ideas.repec.org/a/taf/repmxx/v14y2008i3p195-202.html
   My bibliography  Save this article

Investment, Liquidity, and Private Debt: The Case of REIT Credit Facilities

Author

Listed:
  • Robert Campbell
  • Erik Devos
  • Clark Maxam
  • Andrew Spieler

Abstract

Executive Summary. This study examines Real Estate Investment Trusts (REITs) credit facilities with banks. Credit facilities allow flexibility, but may create agency problems due to the potential for misuse. The findings suggest that REITs enter credit facilities when expecting large investments. The net investments to total assets ratio is significantly higher when credit facilities are arranged. Combined with lower year-end liquidity, this suggests that REITs use credit facilities to correct shortfalls caused by large investment needs. The findings do not reveal that REITs are more cash constrained when credit facilities are announced. Rather, the results suggest REITs are constrained in years when no credit facility is formed.

Suggested Citation

  • Robert Campbell & Erik Devos & Clark Maxam & Andrew Spieler, 2008. "Investment, Liquidity, and Private Debt: The Case of REIT Credit Facilities," Journal of Real Estate Portfolio Management, Taylor & Francis Journals, vol. 14(3), pages 195-202, January.
    • Handle: RePEc:taf:repmxx:v:14:y:2008:i:3:p:195-202
    DOI: 10.1080/10835547.2008.12089808
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10835547.2008.12089808
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10835547.2008.12089808?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    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:taf:repmxx:v:14:y:2008:i:3:p:195-202. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/repm20 .

    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.