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Author:
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ISBN:
Category : Real estate investment trusts
Languages : en
Pages :
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Book Description
"What determines bond ratings?" has been asked since 1860 when Henry V. Poor, of now Standard & Poors, released his first financial and operational analysis of the railroad industry and is still asked today. The determinants of bond rating studies date back to Fisher (1959) and single out various industries (railroad, manufacturing, industrial, and utility) but do not focus on REITs. REITs are different from other industries in various ways. Literature suggest differences between REITs and non-REIT industries including: the regulatory IRS restrictions regarding REITs, the uncertainty regarding the value of REITs, the number of uninformed investors is greater in the REIT market due to valuation uncertainty, REITs securities behave more like mutual fund securities than like industrial firm securities (Wang et al. (1992), (1995)), and the uncertainty about the value of real estate stocks is greater than that for stocks of industrial firms with operating assets, causing REIT advisors to complain that the stock market underestimates their real value more often than the real value of industrial firms (Hite, Owens, and Rodgers (1987)). This study analyzes the determinants of REIT debt ratings. The determinants are analyzed using ordered probit and multinomial logit regression models. The results of the ordered probit regression model reveal that REIT debt ratings are determined by similar financial characteristics used to analyze determinants for non-REIT industries. Similar to the findings in Horrigan (1966), the data also reveals that liquidity is not as significant to REIT debt ratings as S&P analyst claim. The multinomial logit resuts show that leverage, cash, size, interest coverage, and shareholders right plan are significant to downgrades. Overall, the findings presented here are consistent with non-REIT ratings literature.
Author:
Publisher:
ISBN:
Category : Real estate investment trusts
Languages : en
Pages :
Get Book Here
Book Description
"What determines bond ratings?" has been asked since 1860 when Henry V. Poor, of now Standard & Poors, released his first financial and operational analysis of the railroad industry and is still asked today. The determinants of bond rating studies date back to Fisher (1959) and single out various industries (railroad, manufacturing, industrial, and utility) but do not focus on REITs. REITs are different from other industries in various ways. Literature suggest differences between REITs and non-REIT industries including: the regulatory IRS restrictions regarding REITs, the uncertainty regarding the value of REITs, the number of uninformed investors is greater in the REIT market due to valuation uncertainty, REITs securities behave more like mutual fund securities than like industrial firm securities (Wang et al. (1992), (1995)), and the uncertainty about the value of real estate stocks is greater than that for stocks of industrial firms with operating assets, causing REIT advisors to complain that the stock market underestimates their real value more often than the real value of industrial firms (Hite, Owens, and Rodgers (1987)). This study analyzes the determinants of REIT debt ratings. The determinants are analyzed using ordered probit and multinomial logit regression models. The results of the ordered probit regression model reveal that REIT debt ratings are determined by similar financial characteristics used to analyze determinants for non-REIT industries. Similar to the findings in Horrigan (1966), the data also reveals that liquidity is not as significant to REIT debt ratings as S&P analyst claim. The multinomial logit resuts show that leverage, cash, size, interest coverage, and shareholders right plan are significant to downgrades. Overall, the findings presented here are consistent with non-REIT ratings literature.
Author: Charles-Étienne Lawrence
Publisher:
ISBN:
Category :
Languages : fr
Pages : 140
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Book Description
Author: John Y. Campbell
Publisher: University of Chicago Press
ISBN: 0226092127
Category : Business & Economics
Languages : en
Pages : 444
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Book Description
Economic growth, low inflation, and financial stability are among the most important goals of policy makers, and central banks such as the Federal Reserve are key institutions for achieving these goals. In Asset Prices and Monetary Policy, leading scholars and practitioners probe the interaction of central banks, asset markets, and the general economy to forge a new understanding of the challenges facing policy makers as they manage an increasingly complex economic system. The contributors examine how central bankers determine their policy prescriptions with reference to the fluctuating housing market, the balance of debt and credit, changing beliefs of investors, the level of commodity prices, and other factors. At a time when the public has never been more involved in stocks, retirement funds, and real estate investment, this insightful book will be useful to all those concerned with the current state of the economy.
Author: Charles-Etienne Lawrence
Publisher:
ISBN:
Category :
Languages : en
Pages : 140
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Book Description
Author: Yunus Yasin Dogan
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Using a sample of REITs from twelve countries around the world, we examine the determinants of REIT capital structure. We investigate firm-specific and country-specific factors, and account for the unique legal requirements that REITs face in each country. Our results suggest that legal requirements are significant determinants of the capital structure of REITs. Specifically, we find that REITs have the highest book debt ratio in countries where they must pay out most of their operating income. This result implies that REITs prefer debt financing to equity financing. Additionally, we find that in countries with no payment requirement, but leverage restrictions, REITS have lower book leverage, which suggests that internal financing is preferred to external financing. Our findings also indicate that country-specific factors do not have significant impact on REIT leverage.
Author: Stephanie Krewson-Kelly
Publisher: John Wiley & Sons
ISBN: 1119708710
Category : Business & Economics
Languages : en
Pages : 304
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Book Description
Learn to invest in REITs with confidence and skill with this powerful resource Educated REIT Investing is the ultimate resource for investors, financial advisors, and students interested in learning how to invest in real estate investment trusts (REITs)—one of the only asset classes to significantly outperform the S&P 500 Index over the last 25 years. Written by Stephanie Krewson-Kelly and Glenn R. Mueller, PhD., both accomplished REIT authors and investors with six decades of accumulated industry experience between them, Educated REIT Investing provides all the basics and history, then blends pragmatic strategies and advice with a thorough exploration of the fundamentals and nuances of the REIT industry. Topics include: Basic information about REITs and the REITs industry Terminology specific to the REIT industry, explained in plain-English Historical REIT industry performance tables and trading perspectives Analysis and equations needed to calculate key metrics used to identify the suitability of companies for investment purposes, illustrated with simple examples This book is perfect for anyone looking for a straightforward, easy-to-understand resource to establish or improve their understanding and analysis of real-estate investment trusts.
Author: Mark Gordon
Publisher: Atlantic Publishing Company
ISBN: 1601382561
Category : Business & Economics
Languages : en
Pages : 290
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Book Description
Currently, there are nearly 200 publicly traded real estate investment trusts (more commonly referred to as REITs) in operation in the United Sates with a combined $500 billion in assets. An estimated two-thirds of REITS are traded on national stock exchanges. A REIT is a real estate company that offers its shares to the public. By doing so, a REIT stock becomes like any other stock that represents the holder s ownership in a business. However, REITs have two distinct features: REITs manage groups of income-producing properties and must distribute 90 percent of profits as dividends. The Complete Guide to Investing in REITs will teach you everything you need to know about REITs and how you can earn high rates of return. In this book, you will learn about publicly and privately held REITs, Net Asset Value (NAV), Adjusted Funds From Operations (AFFO), Cash Available for Distribution (CAD), the benefits associated with REITS, dividend reinvestment programs (DRiPs), capitalization rate, equitization, leverage, positive spread investing, securitization, and straight-lining. You will also learn about equity, mortgage, and hybrid REITs and the more specific types, including residential, office, industrial, and retail. The Complete Guide to Investing in REITs will walk you through finding the appropriate REIT for you. This book will also teach you how to manage your REIT, how to limit your personal risk, how to understand REIT performance, and how to analyze REITs. By reading this book, you will know and understand the pitfalls of investing in REITs, you will know how REITs behave as an investment class and how to best integrate them into your portfolio, and you will know what economic issues affect real estate and the effects these have on REITs. This book is not merely for the novice investor who wants to learn everything possible about real estate investment trusts; professional investors, financial planners, and investment advisors will also find valuable information in this book. Ultimately, The Complete Guide to Investing in REITs will help you stabilize and grow your portfolio and earn high rates of return by providing you with vital information and practical guidance. Atlantic Publishing is a small, independent publishing company based in Ocala, Florida. Founded over twenty years ago in the company president's garage, Atlantic Publishing has grown to become a renowned resource for non-fiction books. Today, over 450 titles are in print covering subjects such as small business, healthy living, management, finance, careers, and real estate. Atlantic Publishing prides itself on producing award winning, high-quality manuals that give readers up-to-date, pertinent information, real-world examples, and case studies with expert advice. Every book has resources, contact information, and web sites of the products or companies discussed.
Author: Su Han Chan
Publisher: Oxford University Press
ISBN: 0198035357
Category : Business & Economics
Languages : en
Pages : 318
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Book Description
The book offers broad understanding and unique insights into the REITs industry. Its scope is to analyze and synthesize the existing scholarly research on REITs in a way that will enable managers to improve their investments decisions and the operating performance of their REITs. It also provides up-to-date original research on REITs based on the authors' own database, which is the most extensive data base available on REITs that is free of suvivorship bias. This book helps investors evaluate REITs and identify those with the greatest investment potential. Finally, it provides the reader with a detailed discussion of likely future changes anticipated for this unique invetment vehicle.
Author: Nick Martin Trefz
Publisher: Springer Nature
ISBN: 3658400498
Category : Business & Economics
Languages : en
Pages : 191
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Book Description
By adopting the ‘REIT laboratory’ and incorporating REIT-specific Fama-French factors, Nick Martin Trefz builds the foundation to appropriately isolate the parameters of interest and to transparently investigate the areas of interest (Short Selling, Covid-19, and ESG) throughout the chapters in this book. He finds that short selling activity measured by short interest correlates with positive excess returns, and that low short interest portfolios have positive and statistically significant alphas. He further identifies that during the Covid-19 pandemic the sources of spillovers among US real estate sectors remain constant compared to before Covid-19. Lodging can be identified as a source of total return as well as tail risk, and Office can be considered a source of volatility. Lastly, he shows that ESG ratings do not affect returns during Covid-19. However, higher ESG ranked REITs show significantly lower volatility during Covid-19.
Author: James Grant Young
Publisher:
ISBN:
Category :
Languages : en
Pages : 138
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Book Description
