The investment attributes of Mexico REITs as a listed property investment vehicle

IF 1.6 Q3 BUSINESS, FINANCE Journal of Property Investment & Finance Pub Date : 2020-09-04 DOI:10.1108/jpif-05-2020-0048
M. Marzuki, G. Newell
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引用次数: 4

Abstract

PurposeMexico REITs are a significant and important REIT market, both in a regional and in emerging property market context. As one of the few emerging economies in the world with an active REIT market, Mexico REITs are specifically designed to provide an effective pathway to participate in the investment opportunities offered by the Mexico commercial property market for both domestic and international investors. Importantly, Mexico REITs provide additional property investment benefits such as a high degree of transparency, governance and liquidity. The main focus of this research is to highlight the significance of Mexico REITs and assess their performance dynamics, as well as the added-value benefits of Mexico REITs in mixed-asset investment portfolios.Design/methodology/approachUsing monthly total returns, the risk-adjusted performance and portfolio diversification potential of Mexico REITs over April 2011–December 2019 were assessed. A constrained mean-variance portfolio optimisation framework was used to develop a three-asset portfolio scenario using the historical returns, risk and correlation of Mexico REITs and the other two major financial assets.FindingsDespite being more volatile than the mainstream asset classes, Mexico REITs delivered the strongest risk-adjusted performance versus stocks and bonds over April 2011–December 2019, which was made possible by the high premium of their total return performance. Notably, Mexico REITs offered excellent diversification potential with bonds, whilst demonstrating a marginal positive correlation with the stock market. These investment attributes of Mexico REITs have brought immediate benefits towards their ability to add value to the Mexico mixed-asset portfolio fabric across a wide portfolio risk–return spectrum.Practical implicationsWhilst their initial establishment in 2004 was considered unsuccessful, the ongoing regulatory improvements have been pivotal in providing a supportive investment environment to nurture the organic growth of Mexico REITs. This now sees the Mexico REIT market as an exemplar of success for REIT establishments amongst its peers in the Latin American region, as well as for emerging economies worldwide. Mexico REITs are now an important REIT market, as the second largest emerging REIT market in the world. The empirical investigation of this research has established the investment attributes of Mexico REITs as a listed property investment vehicle. The strong risk-adjusted performance of Mexico REITs compared to stocks and bonds sees Mexico REITs contributing to the mixed-asset portfolio across the portfolio risk–return spectrum. This is particularly important as it provides insights into the broader strategic implications of Mexico REITs as an effective, transparent and tax-efficient conduit for high-quality Latin American property exposure in a liquid format.Originality/valueThis paper is the first published empirical research that elucidates the investment attributes of Mexico REITs, highlighting their significance, risk-adjusted and portfolio performance enhancement role as an emerging REIT market. The main outcome of this research enables empirically validated, more informed and practical property investment decision-making regarding the strategic role of Mexico REITs in an investment portfolio.
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墨西哥房地产投资信托基金作为上市房地产投资工具的投资属性
目的墨西哥房地产投资信托基金在区域和新兴房地产市场中都是一个重要的房地产投资市场。作为世界上为数不多的房地产投资信托市场活跃的新兴经济体之一,墨西哥房地产投资基金旨在为国内外投资者提供一条参与墨西哥商业地产市场投资机会的有效途径。重要的是,墨西哥房地产投资信托基金提供了额外的房地产投资收益,如高度的透明度、治理和流动性。本研究的主要重点是强调墨西哥REITs的重要性,评估其业绩动态,以及墨西哥REITs在混合资产投资组合中的附加值收益。设计/方法/方法使用月度总回报率,评估了2011年4月至2019年12月墨西哥REITs的风险调整后业绩和投资组合多元化潜力。使用约束均值方差投资组合优化框架,利用墨西哥REITs和其他两种主要金融资产的历史回报、风险和相关性,开发了一个三资产投资组合场景。发现尽管墨西哥REITs的波动性比主流资产类别更大,但在2011年4月至2019年12月期间,墨西哥REITs相对于股票和债券的风险调整后表现最为强劲,这得益于其总回报表现的高溢价。值得注意的是,墨西哥房地产投资信托基金通过债券提供了极好的多元化潜力,同时与股市表现出边际正相关。墨西哥房地产投资信托基金的这些投资属性为其在广泛的投资组合风险-回报范围内为墨西哥混合资产投资组合结构增值的能力带来了立竿见影的好处。实际意义虽然它们在2004年的首次成立被认为是不成功的,但持续的监管改进在提供支持性投资环境以培育墨西哥REITs的有机增长方面发挥了关键作用。现在,墨西哥房地产投资信托市场成为拉丁美洲地区房地产投资基金机构以及全球新兴经济体成功的典范。墨西哥房地产投资信托现在是一个重要的房地产投资基金市场,是世界上第二大新兴房地产投资市场。本研究的实证研究确立了墨西哥房地产投资信托基金作为上市房地产投资工具的投资属性。与股票和债券相比,墨西哥REITs在风险调整后的表现强劲,这表明墨西哥REITs为整个投资组合风险回报范围的混合资产投资组合做出了贡献。这一点尤为重要,因为它深入了解了墨西哥房地产投资信托基金作为一种有效、透明和节税的渠道,以流动的形式为拉丁美洲的高质量房地产敞口提供了更广泛的战略影响。原创性/价值本文是首次发表的实证研究,阐述了墨西哥REITs的投资属性,强调了其作为新兴REIT市场的重要性、风险调整和投资组合绩效提升作用。这项研究的主要成果使人们能够就墨西哥房地产投资信托基金在投资组合中的战略作用做出经验验证、更知情和更实用的房地产投资决策。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
3.50
自引率
23.10%
发文量
33
期刊介绍: Fully refereed papers on practice and methodology in the UK, continental Western Europe, emerging markets of Eastern Europe, China, Australasia, Africa and the USA, in the following areas: ■Academic papers on the latest research, thinking and developments ■Law reports assessing new legislation ■Market data for a comprehensive review of current research ■Practice papers - a forum for the exchange of ideas and experiences
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