scholarly journals The Dynamic of Location Attributes Toward Malaysian Real Estate Investment Trust Performance

2018 ◽  
Vol 7 (2.29) ◽  
pp. 1121
Author(s):  
Rohaya Abdul Jalil ◽  
Izran Sarrazin Mohammad ◽  
Tiong Chai Ping
Keyword(s):  
Real Estate ◽  
Investment Decision ◽  
Pearson Correlation ◽  
Descriptive Analysis ◽  
Central Business District ◽  
Real Estate Investment Trust ◽  
Real Estate Investment ◽  
Investment Decision Making ◽  
Business District

The Malaysian real estate investment trusts (M-REITs) properties intensive location contributes toward higher rental yield. Nevertheless, the location diversification depends on the type of properties in the portfolio, puzzled shareholder in their investment decision making in M-REITs. This study aim to determine the dynamic of location attributes toward financial performance. The pearson correlation and descriptive analysis of ten years (2006 until 2015) data is used. This study indicate that there is correlation between attributes of economic location with dividend yield(DY) (cor: 0.241). Yet, the market capitalization, have a negative correlation (cor: -0.246), which contradict with prior study on REITs’ location attributes. This study also show that attributes of location of M-REITs properties should located between 5km to 10km from central business district (CBD).This study conclude that in order to ensure M-REITs properties remain competitive for commercial occupancy. The investment on M-REITs proven that dynamic of location attributes is priority, which support that M-REITs design for a long term investment goal.  

scholarly journals The embeddedness of sustainability in real estate investment decision-making

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cath Jackson ◽  
Allison Orr
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Investment Decision ◽  
Qualitative Approach ◽  
Real Estate Investment ◽  
Content Type ◽  
Potential Barriers ◽  
Fund Managers ◽  
Investment Decision Making ◽  
Barriers To Implementation

Purpose The importance of real estate’s sustainability rating has increased significantly. Studies undertaken in 2007 and 2016 show that, at acquisition, the rating rose from 7th to 3rd most important attribute. This shift in priorities parallels the RICS embracing the 10 principles of the UN Global Compact (RICS, 2015). However, while sustainability value premia appear common in some international markets, the picture is mixed and drivers and mechanisms lack empirical investigation. The literature reveals potential barriers to investors fulfilling both sustainability and financial objectives. The purpose of this study is explore these potential barriers. Design/methodology/approach Focus groups with real estate fund managers, sustainability managers and acquisitions surveyors are undertaken to explore the adoption and implementation of environmental sustainability policies. This reveals a series of barriers to implementation and these are then explored in greater depth through a series of interviews with fund managers. This layered, qualitative approach is designed to provide detailed knowledge of practical and conceptual sustainability issues within the UK real estate market. Findings Key drivers underpinning the adoption of sustainability policies are revealed and barriers to implementation are found to relate to data on investment performance, valuation methodologies and prohibitive capex. Further, the heterogeneous, opaque and slow-moving nature of the market is prohibitive and intervention is encouraged to overcome the lack of financial viability that hinders improvements. Originality/value Research is dominated by highly aggregated quantitative data on sustainability within commercial real estate markets. The qualitative approach used here adds new insights and value to the understanding of the embeddedness of sustainability in real estate investment decision-making.

scholarly journals Rating in the Assessment of Investment Property

2014 ◽  
Vol 22 (2) ◽  
pp. 98-107
Author(s):  
Katarzyna Śmietana ◽  
Jan Konowalczuk ◽  
Anna Maszczyk
Keyword(s):  
Real Estate ◽  
Investment Decision ◽  
Essential Element ◽  
Cash Flows ◽  
Property Market ◽  
Real Estate Investment ◽  
The Real Estate ◽  
Investment Decision Making ◽  
Market Location ◽  
Decision Making Processes

Abstract The implementation of rating procedures is associated with searching for tools that provide an objective and standardized assessment of investment risk. For this reason, rating is an important and often essential element of investment decision-making processes which determines the development of the capital market, including the real estate investment market. In the investment property market, not only does rating provide transparency of property risk, but it can also be used for real estate portfolio analysis, investment controlling, and the analysis of factors determining investment decisions (ESV 2012). In this article, the authors present an assessment of the suitability of the rating recommended by TEGoVA for properties considered as active investments, namely properties in the course of development and intended for future development projects. The analysis will include criteria affecting the assessment of property quality and risk, taking into account four classes: market, location, property characteristics, and the quality of cash flows. The study will allow to identify assessment parameters and determine a recommended scope for the analysis of real estate investment potential.

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