How resilient are REITs to a pandemic? The COVID-19 effect

IF 1.6 Q3 BUSINESS, FINANCE Journal of Property Investment & Finance Pub Date : 2020-07-10 DOI:10.1108/jpif-06-2020-0065
O. Akinsomi
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引用次数: 37

Abstract

PurposeReal estate investment trusts (REITs) are historically considered as attractive assets to investors particularly as the underlying assets are properties which are income-producing REITs also distribute substantial amount of profits as dividends to shareholders Stephen and Simon (2005) find that REITs in a mixed asset portfolio of stocks and bonds enhance returns and reduce risk This paper examines the role a pandemic (COVID-19) plays in the performance of global REITs index and REIT sectors Design/methodology/approachTo examine the effects of COVID-19 on REITs, the year-to-date (YTD) returns of global returns index and REITs sectors in the United States are observed and a comparative analysis is employed from January 2020 to May 2020 FindingsBased on a three-month return ending 22 May 2020, FTSE EPRA NAREIT index is the biggest loser at −31 83% whilst the FTSE EPRA Asia–Pacific index has the lowest loss at −23 20% The author examines YTD returns which show disparities on the effect of COVID-19 on REIT sectors The US market is examined;most REIT sectors suffered big losses as at April 2020;the analysis reveals YTD returns for the top three REIT sector losers are lodging/resort REITs (−45 81%), retail REITs (−41 16%) and office REITs (−22 63%) Data centre REITs are the only sector REITs with positive returns at 17 66% Practical implicationsMost sector REITs during the pandemic have lost considerable value based on YTD returns as at May 2020 Flight to quality is expected during this uncertain period to REITs such as data REITs, grocery-anchored REITs and storage REITs These REITs are not as adversely affected by COVID-19 in comparison to other REITs Originality/valueThis paper identified the impact of COVID-19 on the performance of global REITs and US sector REITs during the periods from January 2020 to May 2020
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房地产投资信托基金对疫情的抵御能力如何?新冠肺炎效应
目的房地产投资信托(REITs)历来被认为是对投资者有吸引力的资产,特别是因为基础资产是产生收入的财产。REITs还将大量利润作为股息分配给股东。Stephen和Simon(2005)发现,股票和债券混合资产组合中的REITs提高了回报并降低了风险研究大流行(新冠肺炎)在全球房地产投资信托基金指数和房地产投资基金行业表现中的作用设计/方法论/方法为了研究新冠肺炎对房地产投资投资信托基金的影响,观察了全球回报指数和美国REITs行业的年初至今(YTD)回报,并对2020年1月至2020年5月进行了比较分析,富时EPRA NAEIT指数跌幅最大,为−31 83%,而富时EPRA-Asia–Pacific指数跌幅最低,为−23 20%;截至2020年4月,大多数房地产投资信托行业遭受重大损失;分析显示,房地产投资信托行业前三大输家的年初至今回报率为住宿/度假房地产投资基金(-4581%),零售REITs(-4116%)和办公REITs(-2263%)数据中心REITs是唯一一个正回报率为1766%的行业REITs。实际意义根据截至2020年5月的年初至今回报率,疫情期间的大多数行业REITs都失去了相当大的价值,与其他房地产投资信托基金的创意/价值相比,这些房地产投资基金不会受到新冠肺炎的不利影响本文确定了新冠肺炎对2020年1月至2020年5月期间全球房地产投资投资信托基金和美国房地产投资保险基金业绩的影响
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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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