Location identification for real estate investment using data analytics

In recent years, most emerging economies have experienced large foreign real estate investment (FREI) and an appreciation of house prices. The purpose of this study is to empirically investigate the effects of FREI on house prices by employing a panel VAR model. Using data from 21 emerging economies over the period 2000–2008, our empirical results show that FREI contributes to house price increases. Moreover, the results indicate that the dominant source of house price fluctuations in emerging economies come from the housing market itself.

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Analyst Forecasts during the COVID-19 Pandemic: Evidence from REITs

Journal of Risk and Financial Management ◽

10.3390/jrfm14100457 ◽

2021 ◽

Vol 14 (10) ◽

pp. 457

Author(s):

Paul Anglin ◽

Jianxin Cui ◽

Yanmin Gao ◽

Li Zhang

Keyword(s):

Real Estate ◽

Forecast Error ◽

Analyst Forecasts ◽

The United States ◽

Decision Makers ◽

Real Estate Investment ◽

Government Interventions ◽

The Real Estate ◽

Real Estate Sector ◽

Using Data

The COVID-19 pandemic disrupts capital markets and confuses decision makers. This event represents an opportunity to better understand how financial analysts forecast earnings. We focus on forecasts for Real Estate Investment Trusts (REITs) in the United States, since REITs are relatively transparent during normal times, and since the real estate sector, as a whole, displays wide variations in forecasts during the pandemic. Using data between October 2018 and November 2020, our regression analysis finds that the severity of the pandemic increases analysts’ forecast error and dispersion. Government interventions have an offsetting effect, which is relevant during the more severe times. These results are robust to various measures of the severity of the pandemic. We also find that the pandemic has differential effects across property types, where forecast error rises by more, for REITs, when focusing on Hospitality and Industrial properties, and dispersion rises by more, for REITs, when focusing on Hospitality, Retail, and Technology properties.

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International Real Estate Review

International Real Estate Review ◽

10.53383/100221 ◽

2016 ◽

Vol 19 (2) ◽

pp. 223-248

Author(s):

Mamoru Nagano ◽

Keyword(s):

Real Estate ◽

Stock Price ◽

Real Estate Investment Trusts ◽

Real Estate Investment ◽

Price Trend ◽

Asset Liquidity ◽

Using Data ◽

High Degree ◽

Real Estate Assets ◽

Stock Issuance

By using data on 51 real estate investment trusts (REITs) and 755 real estate deals from 2003¡V2011 in Japan, this study presents evidence that the funding approach decisions of a sponsor-backed REIT differ from those of a REIT without a sponsor. The implications derived from the presented empirical analyses are threefold. First, with regard to the determinants of the choice of the funding approach, under a continuous high stock price trend or a rise in the stock price of a REIT, the probability of choosing stock issuance increases when the REIT and sponsor firm strike real estate deals. Second, the literature asserts that real estate asset liquidity and debt choice are positively related. However, our results suggest that under a high stock price trend, a REIT chooses stock issuance even when it purchases real estate assets that have a high degree of liquidity. Third, debt issuance is chosen when a REIT and its sponsor firm make numerous and large real estate deals when the stock price of the REIT falls.

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International Real Estate Review

International Real Estate Review ◽

10.53383/100246 ◽

2017 ◽

Vol 20 (3) ◽

pp. 349-374

Author(s):

Changha Jin ◽

◽

Kwanyoung Kim ◽

Keyword(s):

Real Estate ◽

Economies Of Scale ◽

Academic Research ◽

Real Estate Investment Trusts ◽

Real Estate Investment ◽

Baseline Measure ◽

Investment Trusts ◽

Private And Public ◽

Growth Prospects ◽

Using Data

Although real estate investment trusts (REITs) in Korea (K-REITs) have a history of over a decade, little related academic research exists due to many constraints, including the lack of available data. This research is the first attempt to examine a total of 74 REIT companies by using data from the Korea Association of Real Estate Investment Trusts. In this study, we explore the economies of scale of both private and public REITs in Korea. Initially, we construct an equivalent baseline measure for growth prospects, revenue and expenses, and profitability, and thereby compare private and public K-REITs. This study further explores the return determinants for K-REITs with a range of firm-specific and property-specific variables. The results show that the asset size of K-REITs matters in determining growth prospects, wherein revenue and expenses and profitability are interrelated. Furthermore, the ownership structure of K-REITs influences the return measure.

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Characteristics of Rental Real Estate Investors During the 2000s

Journal of Financial Counseling and Planning ◽

10.1891/1052-3073.29.2.369 ◽

2018 ◽

Vol 29 (2) ◽

pp. 369-382 ◽

Cited By ~ 1

Author(s):

Martin C. Seay ◽

Somer G. Anderson ◽

Andy T. Carswell ◽

Robert B. Nielsen

Keyword(s):

Real Estate ◽

Investment Decision ◽

Housing Markets ◽

Real Estate Market ◽

Program Participation ◽

Real Estate Investment ◽

Real Estate Education ◽

Financial Characteristics ◽

Using Data

Using data from the 2001, 2004, and 2008 panels of the Survey of Income and Program Participation (SIPP), this research examines the characteristics of households that invested in rental real estate during the 2000s. Given the tumultuous real estate market during that decade, rental real estate investment was investigated during the early part of the housing market boom (2001), the height of the boom (2004), and after the market began to decline (2008). Results reveal relative stability with slight investment increases in rental real estate (4.57% in 2001 to 5.00% in 2004 to 5.08% in 2008), and several investor demographic and financial characteristics consistently associated with the investment decision. Evidence of potential over-reliance on real estate investment by some households indicates that financial planners should work to educate clients who invest, or are seeking to invest, in real estate. Education would emphasize that overweighting portfolios with real estate could be deleterious to client’s wealth goals in times of slow rental or depreciating housing markets.

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