Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/219857
Title: Market's evaluation on REITs rate of growth at different ages
Authors: TEO WEI LUN SHAWN
Keywords: Real Estate
RE
Masaki Mori
2016/2017 RE
Age of REITs
Old REITs
Total Asset Growth
Total Returns
US Equity REITs
Young REITs
US REITs
Issue Date: 11-May-2017
Citation: TEO WEI LUN SHAWN (2017-05-11). Market's evaluation on REITs rate of growth at different ages. ScholarBank@NUS Repository.
Abstract: This paper examines the performance of United States (US) Real Estate Investment Trusts (REITs), in relation with growth as well as age. Specifically, it aims to find out if the market has a preference for growth when REITs are of a certain age. This is firstly analysed using Bivariate Return Sort, classifying REITs into groups by age and rate of growth. Thereafter, the REITs are compared with their returns. The results of this analysis show no significant trends. As such, a Cross-Sectional Panel Regression is employed in order to ascertain if the age and growth are an explanatory variables for returns. The results of the first model, which takes into account all REITs, show that age is not significant in explaining returns. However, when this portfolio is broken down into age groups as well as sectors, the results show otherwise. For the age group regression, only the middle-aged REITs show significant results, and that they are penalised by the market for growth. As for the sector regressions, age and growth for Industrial and Office REITs also show a significant relationship with returns, indicating that the older ones that pursue growth tend to underperform their counter parts. Generally, the results from all three models verify the presence of asset growth anomaly. This age related study concludes with evidence that age can be a predictor of future stock performance of REITs. This will serve as crucial information for REIT managers and investors as they can benefit from such information going forward.
URI: https://scholarbank.nus.edu.sg/handle/10635/219857
Appears in Collections:Bachelor's Theses

Show full item record
Files in This Item:
File Description SizeFormatAccess SettingsVersion 
Teo Wei Lun Shawn 2016-2017.pdf1.81 MBAdobe PDF

RESTRICTED

NoneLog In

Page view(s)

25
checked on Sep 29, 2022

Download(s)

20
checked on Sep 29, 2022

Google ScholarTM

Check


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.