Office REIT stocks are overvalued!
Article Abstract:
Institutional investors are attracted to high-rise office buildings, despite the fact that such properties provide disappointing returns. From 1978 to 1994, office buildings provided a mean annual rate of return of 6.6%, a relatively low rate. Economic circumstances in recent decades have masked the fact that, when rents and replacement costs do not rise, high-rise offices depreciate quickly. The shares of REITs that invest in such buildings appear to be overvalued.
Publication Name: Real Estate Review
Subject: Real estate industry
ISSN: 0034-0790
Year: 1998
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The changing wisdom regarding real estate investment strategy
Article Abstract:
Real estate investors and lenders increasingly base their investment decisions on the management and finances of real estate investment trusts (REITs), instead of on the value of actual properties. Managers of pension funds and other investment groups are focusing on REIT management after the approach of diversifying their real estate portfolios turned out to be a disappointment. The decreasing importance of property evaluation needs analysis.
Publication Name: Real Estate Review
Subject: Real estate industry
ISSN: 0034-0790
Year: 1997
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Two growth rout es: joint ventures and combinations
Article Abstract:
The number of joint ventures between real estate investment trusts (REITs) and outside investment partners has grown during the 1990s, due to ready cash, competitive advantages, and greater efficiencies. There has also been an acceleration in the number of mergers and acquisitions among REITS in 1997 and 1998, as well. REIT executive compensation and venture development are two issues which need to be studied under these conditions.
Publication Name: Real Estate Review
Subject: Real estate industry
ISSN: 0034-0790
Year: 1998
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