Managing Corporate Real Estate Assets: Current Executive Attitudes and Prospects for an Emergent Management Discipline

1989 ◽  
Vol 4 (3) ◽  
pp. 1-22
Author(s):  
Peter Veale
Keyword(s):  
Real Estate ◽  
Corporate Real Estate ◽  
Management Discipline ◽  
Executive Attitudes ◽  
Real Estate Assets

Stock Market Reaction to Corporate Real Estate Divestitures and Acquisitions during the Global Financial Crisis

2015 ◽  
Vol 73 (5) ◽  
Author(s):  
Annie Wong Ping Eng ◽  
Janice YM Lee ◽  
Muhammad Najib Mohamed Razali ◽  
Mat Naim Abdullah @ Mohd Asmoni ◽  
Izran Sarrazin Mohammad
Keyword(s):  
Financial Crisis ◽  
Real Estate ◽  
Stock Market ◽  
Global Financial Crisis ◽  
Market Returns ◽  
Stock Market Returns ◽  
Stock Market Reaction ◽  
Corporate Real Estate ◽  
The Global Financial Crisis ◽  
Real Estate Assets

Real estate divestitures and acquisitions (D&A) are conducted as part of corporate restructuring. This study aims to fill the knowledge gap on abnormal stock market returns (AR) toward D&A activities during the Global Financial Crisis (GFC) in a developing country. Malaysian listed non-real estate companies that conducted D&A during the GFC are used as sample. Event study is applied to determine AR surrounding D&A announcements within (-10day, +10day) event window. Results for both D&A announcements shows insignificant AR on and around announcement date (-1 to +1). For pre-announcement, divesting (acquiring) companies obtain negative (positive) AR, signifying that the market does not favor (favor) divestitures (acquisitions) due to leakage of information. The outcome of post-announcement proves that divesting companies continue to experience negative ARs, although most divesting companies were paid premium prices. However, acquiring companies experience significant and negative post-announcement AR. This is probably due to the price premium which most acquiring companies paid exceeding valuation for their acquisitions. In summary, the market disapproves divestitures in general and acquisitions of real estate assets exceeding their valuations during economic recessions.  

scholarly journals EXPLORATION ON THE DEFINITION AND THE REAL MEANING OF CORPORATE REAL ESTATE TERM

2019 ◽  
Vol 17 (9) ◽  
Author(s):  
Farahiyah Fadzil
Keyword(s):  
Real Estate ◽  
Paradigm Shift ◽  
Annual Report ◽  
Annual Reports ◽  
Accounting Standard ◽  
Corporate Real Estate ◽  
Asset Value ◽  
Definition Of ◽  
Real Estate Assets ◽  
A Company

Corporate Real Estate (CRE) is not a new term in the field of property research. In fact, disciplines of CRE research are becoming increasingly widespread nowadays. Consequently, the interpretation of CRE term has undergone a paradigm shift as time goes by. This study explored the definitions of CRE in the eyes of academicians and researchers as well as the meanings of CRE based on Malaysian Accounting Standard Board (MASB). Literatures were chosen to illustrate the breadth of knowledge available regarding the CRE definition. The broad definition of Corporate Real Estate (CRE) term (since 1983 to 2016) has been presented in the form of table. The discussion on the definition of CRE involves four phases, where each phase consists of 10 years. This allowed the researcher to see whether there were any changes or improvements to the definition of CRE in the last 40 years. Then, the CRE meaning was further examined, but from a different perspective. Therefore, content analysis of annual reports prepared by 40 Malaysian non-property public listed companies was conducted in order to identify the CRE term that has been applied in their companies. It was found that the CRE term was not adopted to represent real estate of a particular company. This study managed to identify 29 different terms that represent corporate real estate assets, of which nine (9) are used to represent “building” while six (6) are used to represent “land”. However, to understand the CRE of a company, the terms used in the company annual report are insufficient. What is more important is to recognise the information related to the CRE asset value. The information is not only intended to illustrate the wealth of company CRE assets, but also to pinpoint anything that happens to CRE such as depreciation, disposal, etc.

The pricing of corporate real estate holdings on the UK capital market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Julian Seger ◽  
Kristina Stoner ◽  
Andreas Pfnuer
Keyword(s):  
Real Estate ◽  
Capital Market ◽  
Service Industries ◽  
Content Type ◽  
Balance Sheets ◽  
Corporate Real Estate ◽  
The Uk ◽  
Real Estate Assets ◽  
Estate Ownership ◽  
The Capital Market

Purpose The purpose of this study is to find out if corporate real estate ownership is priced into the capital market performance of non-property companies in the UK. This is of particular interest because ownership still represents a significant weight on the balance sheets and is predominantly considered unfavourable due to its bulkiness and difficult revisability in the event of changes in space demand. This draws attention to the UK as one of the most important European economies that have been exposed to strong uncertainties and dynamics, for example, due to the withdrawal voting of the United Kingdom from the European Union (BREXIT). Design/methodology/approach A first look at the real estate assets reported in balance sheets provides insight into possible changes in ownership strategy. This serves as a basis for subdividing companies based on their real estate assets using a portfolio-based approach and that are then analysed using the Fama and French multi-factor model with regard to their influence on capital market returns. Findings In general, the share of real estate assets has fallen over the past 10 years, although coinciding with BREXIT voting, some industries such as manufacturing show a turnaround. At the same time, ownership is priced in as a factor on the capital market, which applies to a sample across industries, as well as to separately considered sectors in the manufacturing and service industries. The pricing also shows a counter-cyclical pattern. Practical implications Corporate real estate management should be aware of the negative influence of ownership, especially against the background of economic fluctuations. The reduction of ownership can reduce the associated cost of capital and increase company success. Originality/value Previous UK-related studies mostly refer to a period before the global economic crisis in 2008, and therefore, are too old to reflect a changed view on corporate real estate ownership because of new corporate environmental conditions, based on inaccurate proxies or mainly refer to the retail segment. This research gap is closed.

Value creation and the impact of corporate real estate assets

2009 ◽  
Vol 11 (2) ◽  
pp. 78-90 ◽  
Author(s):  
Ingrid Nappi‐Choulet ◽  
Franck Missonier‐Piera ◽  
Marion Cancel
Keyword(s):  
Real Estate ◽  
Value Creation ◽  
Corporate Real Estate ◽  
The Impact ◽  
Real Estate Assets

Corporate strategic decision making

2005 ◽  
Vol 23 (4) ◽  
pp. 364-378 ◽  
Author(s):  
Stephen Roulac ◽  
Alastair Adair ◽  
Stanley McGreal ◽  
Jim Berry ◽  
Louise Brown ◽  
...  
Keyword(s):  
Real Estate ◽  
Small Sample Size ◽  
Industrial Sector ◽  
Small Sample ◽  
Strategic Decision ◽  
Content Type ◽  
Balance Sheets ◽  
Corporate Real Estate ◽  
Real Estate Management ◽  
Real Estate Assets

PurposeSeeks to explore recent studies in corporate real estate and to provide a comparative analysis of industrial corporations in Ireland and those in the non‐industrial sector with respect to their corporate real estate management objectives.Design/methodology/approachThe empirical investigation reports on a study undertaken in Ireland and compares results from companies in the industrial sector with companies in the non‐industrial sector. The methodology is based on a behavioural questionnaire targeted at the top 150 companies operating in Ireland and classified on the basis of number of employees.FindingsThe findings indicate that significant differences are apparent between companies in the industrial sector and companies not in the industrial sector in the use of real estate assets. In particular companies in the industrial/manufacturing sectors have weakly developed corporate real estate strategies.Research limitations/implicationsThe main limitations derive from a relatively small sample size, a function of targeting the survey at senior executives. There are implications for companies in the under‐utilisation of real estate assets and the effects of this on corporate balance‐sheets requires further investigation.Originality/valueHighlights that companies in Ireland, notably those in the industrial sector, have some significant way to go in utilising their corporate real estate assets more effectively.

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