Please use this identifier to cite or link to this item: https://scholarbank.nus.edu.sg/handle/10635/234426
Title: A COMPARATIVE ANALYSIS OF THE PERFORMANCE OF PIONEER AND NEW REITS AND CROSS SECTOR
Authors: GUE WEI TECK
Issue Date: 2007
Citation: GUE WEI TECK (2007). A COMPARATIVE ANALYSIS OF THE PERFORMANCE OF PIONEER AND NEW REITS AND CROSS SECTOR. ScholarBank@NUS Repository.
Abstract: Singapore had witnessed our very own Real Estate Investment Trust (REIT) listed on the SGX since July 2002. This was followed by a steady listing of 1 to 2 REITs annually until December 2005. The avalanche of S-REITs began in 2006, with a total of 9 listed that year. With increased influx, we also observed wider representation of different sectors of securitized properties and these properties form the backbone of a REIT. For this study, only the first 6 REITs listed in 2006 (labeled new REITs) are examined. Their performance is compared to the 7 REITs launched before 2006 (labeled pioneer REITs). The parameters for performance in this study are: balance sheet analysis (change in its components), leverage analysis (leverage ratios and WACC), profitability analysis (profitability ratios and shareholder's ratios), share price (NAV and Book value), risk-returns (CV, SR and TR) and lastly shareholder investment decision (IRR). The study concludes that new REITs outperform their pioneers in their first 6 months of listing in changes to balance sheet components and book value vs share price. However, pioneer REITs had performed better overall in other parameters when the effect of the extra buoyant stock market in the last quarter of 2006 was intentionally negated and when both the new and pioneer REITs' differences in launch dates were adjusted. A stationarity test on the share price and underlying book value of FCT (a new REIT and on which the demand drivers for REITs and portfolio analysis was elaborated from its perspective) further confirms the finding. For the performance of S-REIT sectors, retail is not the best performer. It was hospitality sector that outperformed all other sectors due to the best performing REIT (CDL trust and an optimistic tourism and hospitality sector in 2006).
URI: https://scholarbank.nus.edu.sg/handle/10635/234426
Appears in Collections:Bachelor's Theses

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