IDEAS home Printed from https://ideas.repec.org/a/taf/repmxx/v17y2011i1p15-25.html
   My bibliography  Save this article

Do REITs Have an Advantage When Credit is Tight?

Author

Listed:
  • Greg MacKinnon

Abstract

Executive Summary. Real estate investment trusts (REITs) have access to capital sources that other real estate investors do not: public markets for equity and debt. Access to capital may give REITs an advantage over other commercial real estate investors when credit is tight. This paper examines whether markets perceive this to be true and show that REITs' premia to net asset value (NAV) increase when credit is tight. Thus, it appears that the markets do see REITs as having an advantage when credit is tight, although there is a lag between credit tightening and markets reacting. In Japan, where J-REITs are far more passive than in the United States, the relationship between credit conditions and REIT premia to NAV is exactly the opposite.

Suggested Citation

  • Greg MacKinnon, 2011. "Do REITs Have an Advantage When Credit is Tight?," Journal of Real Estate Portfolio Management, Taylor & Francis Journals, vol. 17(1), pages 15-25, January.
    • Handle: RePEc:taf:repmxx:v:17:y:2011:i:1:p:15-25
    DOI: 10.1080/10835547.2011.12089889
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10835547.2011.12089889
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10835547.2011.12089889?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:17:y:2011:i:1:p:15-25. 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.