Effectiveness of rent recovery strategies on residential real estate in Ibadan, Nigeria

PurposeThe upward rise of the prolonged payback period and the inability of the project to generate estimated income that has been linked with the irregular rent payments has been a major problem confronting real estate investment. Given the fact that real estate investment is a risky investment venture with a highly uncertain future stream of income, this paper examines the effectiveness of rent recovery strategies in the emerging Nigeria residential real estate practice.Design/methodology/approachThe study employed an exploratory research design. The study identified the five recovery strategies adopted by the estate surveying and valuation firms in Ibadan Metropolis, Nigeria. The study adopts a purposive sampling method to select 52 registered estate firms in the study area and a questionnaire using a five-point Likert scale was used to elicit information. The data obtained were analyzed using descriptive and inferential statistics.FindingsThe result showed that the rent recovery strategies adopted by the respondents include email approach, rent reminder notice, adequate maintenance, eviction notice and dialogue approach. The perceived top-rated strategies that could influence estimated income were dialogue and rent reminder notice. Also, the findings showed the factors that influence the choice of strategy are property type, company policy and the proportion of rent to the tenant's income.Practical implicationsThe study has an implication for real estate investors and property practitioners regarding the willingness of the investors to invest in real estate investment.Originality/valueThis paper is relevant given the fact that the rental property market is prone to risk that could impede the regular streamflow of income. This serves as a need for examination of the effectiveness of adopted rent recovery strategies as it relates to real estate property management practice and investment viability.

Property development activities: value creation or distraction for REITs?

PurposeThis paper examines the evolution and impact of property development activities on REIT performance. The paper provides insights on whether REITs should venture into property development in addition to their core-business of holding income producing properties.Design/methodology/approachThis paper charts and highlights the evolution of development activities of US REITs from 1992 to 2020. The Tobin's Q of property developing REITs and non-property developing REITs are compared using univariate analysis.FindingsDevelopment activities of US REITs grew dramatically during the run up to global financial crisis (GFC) in 2008. The level of development activities has dropped since the GFC and it has not return to its pre-crisis peak. In comparison, development activities of listed property investment companies and homebuilders are less volatile over the same period. The data reveals that property developing REITs enjoy significantly higher Tobin's Q as compared to their non-developing counterparts.Practical implicationsOur graphical evidence from a market without development restriction suggests that development restriction in other REIT regimes has it value in limit REITs' excessive risk-taking tendency during a booming property market. The positive relationship between Tobin's Q and the existence of property development activity support the value creation of this business activity to REITs.Originality/valueThis paper raises overbuilding as a potential cause of the underperformance of the REIT sector during the GFC.

Supply Chain Management in Real Estate Practices: The Estate Surveyor and Valuers’ Perspective

Real estate practice is a strategic and multi-faceted vocation that connects the clients/owners of real estate projects or products with end users in the building industry. Different aspects of real estate practices require collaboration of real estate practitioners who are professional estate surveyors and valuers, with the built environment professionals and other stakeholders at different levels in order to achieve the transaction objectives. This study, therefore, examined the practice with a view to uncovering the preparedness of the estate surveyors and valuers with respect to the knowledge and application of supply chain management in real estate practices. Empirical data were collected with the aide of questionnaires administered to respondents from the 373 estate firms in Lagos State, Nigeria of which 291 were duly completed and returned constituting 78% rate of response. The Readiness Assessment Model was adapted to determine the operational preparedness of the estate surveying and valuation firms to implement supply chain management with regards to management readiness, employee readiness, services/processes readiness and logistic/ICT readiness on a 5-point Likert scale and the corresponding mean score and relative importance was determined. The Kolmogorov Smirnov Test of Normality was performed and showed that the data was normally distributed. Hence, the Pearson Product Moment Correlation analysis was used to determine the relationship between knowledge and application of supply chain management in real estate businesses. It was observed, among others, that the knowledge of supply chain management is generally low among estate valuers and does not necessarily translate to application in the property market transactions of real estate firms. The study further observed that management and employees of estate surveying and valuation firms do not have adequate knowledge of the principles and practices of supply chain management for productive engagement in property market transactions. This was further identified alongside others such as confidentiality, stiff rivalry and economic instability as critical factors resisting the adoption of supply chain management in the property market. The study therefore suggested capacity building programmes on supply chain management for the estate surveyors and valuers to improve the knowledge of the strategy and harness the benefits.

A Review of Studies on Real Estate Investment Performance in Nigeria

This study has been conducted to review the studies conducted on property investment performance in Nigeria with the aim of providing a clear insight into the trend, authors’ affiliations, performance measurement techniques and the geographical focus of these studies. Published and unpublished research works in this research area were sourced and reviewed. The data and information used were sourced from online databases such as Google, Google Scholar, ScienceDirect, ProQuest, and ResearchGate. Printed journals (local and international), published and unpublished Masters and PhD theses were also among the sources of the data used. Descriptive statistics were used to analyse the authors’ contributions, affiliations, geographical focus and the annual research trend of real estate investment performance in Nigeria and the results reported. The study found that the first study conducted on the performance of real estate investment was Olaleye (2000) followed by Olaleye (2002). Olaleye, A., Oyewole, M. O. and Dabara, D. I. were found to be the most active and leading researchers on this research area with contributory scores of 3.87, 3.61 and 3.21 respectively. On the average, about 2 studies on the subject were carried out annually with focus majorly on the Lagos property market, Southwest Nigeria. The review further revealed that nominal rate of returns, Sharpe index and coefficient of variation were the common performance measurement indices often adopted by majority of the previous authors. This study recommends that collaborative effort should be established among scholars of estate management and practicing estate surveyors and valuers with a view to bridging the gap between theory and practice and boosting property data banking in Nigeria. The geographical scope of real estate investment performance in Nigeria needs to be expanded to adequately cover all the regional property markets.

Modern trends and problems of the global intellectual property market development

It is shown that active processes of digitalization and development of creative industries form new trends of the world economy development. Possession of the right to use IP, in particular the results of the latest scientific research and technological developments (especially in the field of artificial intelligence, the Internet of things, blockchain, processing large databases, quantum computing systems, cloud technologies, etc.) significantly expands the capabilities of the owner of IP rights in world economy, its participation in global value chains. Intellectual property is becoming not only the main instrument of socio-economic development, but also the center of global technological confrontation and a fierce struggle for the right to own it, a significant factor of success in geoeconomic competition. The main long-term trend in the development of world IP markets is the dynamic growth of the volume of commercial transactions with goods and services containing IP objects with a significant expansion of the range of the latter. The IP market is growing at a rate exceeding the rate of growth of “material” markets. The countryleader in the number of valid patents for a long period is the United States. The main competitor for the United States is China. Among the main technological trends, the development of the IP market in terms of assistive technologies should be highlighted, which allow producing products according to digital description anywhere in the world. A large share of the IP markets is occupied by trade in licenses. It is shown that for the further successful and effective development of IP markets, it is necessary to take into account the prospects for the functioning of IP markets and the movement of goods containing IP objects in a new technological order.

Proposed Business Strategy for PT Futura Land (Real Estate Developer) to Compete and Grow Successfully in the Future

Recovery from economic downturn caused by COVID-19 is still considered slow, despite of all the hard work from private sector and stimuluses being issued by central government. Futura Land as one of real estate developer, is not an exception. Facing the fierce competition and challenges in the future, the Company needs to assess and enhanced business strategy in order to prepare for the future of property market and adapt with the possibility of COVID-19 being an endemic. This research wants to uncover the reason of unrecovered sales performance, the effect of several government initiatives on property market and also recommend business strategy including the implementation plan for the Company. This research used qualitative methodology by utilizing both primary and secondary data. Based on data analysis, the root of problem is coming from lack of evaluation system in the Company, low brand awareness among potential customer, low initiatives from sales person, low level of product development and collaboration. From external point of view, low purchasing power caused by endless case of COVID-19 new variant has brought a huge influence of the unrecovered sales performance. In addition, the stimuluses in property market is issued by government a year after the pandemic taken its toll. To win competition and grow further, the Company should increase and shifting their marketing communication activities to online platform while revisit the content of marketing materials, develop product development team to bolster the current product design, intensify the role of banks relationship officer in order to help customer eligible for their mortgage financing and bringing wide variety of banks to propose their financing to. Last, the Company should start develop an enhanced and structured evaluation system within the Company to review the effectiveness and continuity of any program being proposed to the management.

Long lease real estate – a revised role for real estate in pension fund portfolios

PurposeLong lease real estate funds (over £15bn in Q3 2020) have emerged as an increasingly important part of UK pension fund real estate portfolios. This paper explores the reasons for their dramatic growth, their characteristics and performance.Design/methodology/approachThis study uses data for the period 2004–2020 collected directly from fund managers and from AREF/MSCI and empirical analysis to explore their characteristics and performance.FindingsPension fund de-risking and regulatory guidance have supported the dramatic growth of long lease real estate funds. Long lease real estate funds have delivered strong risk-adjusted returns relative to both balanced property funds (with shorter lease terms) and the wider property market. This relative performance has been particularly strong when wider property market performance has been weak. Long lease funds have objectives aligned with liability matching and their performance suggests they are lower risk (more bond-like) investments. In addition, our analysis highlights they are far less responsive to the wider property market than balanced funds. However, they are not significantly different from balanced property funds in terms of their short-term relationship with gilt yield movements.Practical implicationsFor pension funds and other investors the paper highlights that long lease real estate funds offer a different exposure than balanced property funds. Long lease funds have objectives more closely aligned to the overall objectives for pension fund investment but are not significantly more reliable than balanced property funds in the short-term as a liability hedge. For real estate fund managers, occupiers, developers and others active in the real estate market, the paper highlights why these funds have been (and are likely to remain) attractive to investors leading to substantial demand for long lease real estate investments.Originality/valueThis is the first study to review this increasingly important part of the UK real estate fund universe.

Architectural style spreads its wings: New Zealand Architecture in the 1880s

The 1880s was a period in New Zealand of economic depression. It caused "unemployment, family distress, ragged children and exploited women workers, general business collapse, a crash in the property market, a ten-year banking crisis, bankruptcies and unstable ministries." But despite this Hodgson identifies this period in New Zealand's architectural history as one when: "Architectural style ... started to spread its wings and this period contains some fine examples of building design which was definitely out of the mainstream."

The Use of Land Value Taxation In New Zealand (1891 - 1991)

<p>This thesis examines the historical use of land value taxation by the New Zealand government over the period 1891 – 1991. The study adopts qualitative research methods to explore how land taxation policy progressed over the century and what were the relevant influences on policy direction. The primary aim of the study is to examine how the land value tax policy used in New Zealand developed over time, what drove changes to it and, ultimately, why it was abolished. To this end the study adopts a historical institutionalist framework to analyse the influence of institutional factors on the development of land tax policy. Particular attention is paid to the influence of ideas, path dependency, critical junctures and power. The research itself is an interpretive narrative history, primarily drawing from historical document sources including government records and publications, legislation, parliamentary debate records, court records and media coverage. By addressing this topic, this research informs future debate as to the suitability of land taxation for use as a tool to influence the property market or as a method of wealth taxation. In addition it offers an explanation as to how methods of taxation can become obsolete and eventually be abolished, in a New Zealand context.</p>

The Use of Land Value Taxation In New Zealand (1891 - 1991)

<p>This thesis examines the historical use of land value taxation by the New Zealand government over the period 1891 – 1991. The study adopts qualitative research methods to explore how land taxation policy progressed over the century and what were the relevant influences on policy direction. The primary aim of the study is to examine how the land value tax policy used in New Zealand developed over time, what drove changes to it and, ultimately, why it was abolished. To this end the study adopts a historical institutionalist framework to analyse the influence of institutional factors on the development of land tax policy. Particular attention is paid to the influence of ideas, path dependency, critical junctures and power. The research itself is an interpretive narrative history, primarily drawing from historical document sources including government records and publications, legislation, parliamentary debate records, court records and media coverage. By addressing this topic, this research informs future debate as to the suitability of land taxation for use as a tool to influence the property market or as a method of wealth taxation. In addition it offers an explanation as to how methods of taxation can become obsolete and eventually be abolished, in a New Zealand context.</p>