The added-value role of industrial and logistics REITs in the Pacific Rim region

IF 1.6 Q3 BUSINESS, FINANCE Journal of Property Investment & Finance Pub Date : 2020-06-18 DOI:10.1108/jpif-09-2019-0129
Yu Cheng Lin, Chyi Lin Lee, G. Newell
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引用次数: 5

Abstract

PurposeAs significant listed property investment vehicles, industrial and logistics REITs (I&L REITs) have recently enhanced their property portfolios, often replacing the traditional industrial properties with logistic properties to gain strategic exposure to recent e-commerce trends. This paper aims to assess the investment performance of I&L REITs by assessing the significance, risk-adjusted performance and portfolio diversification benefits of I&L REITs in the Pacific Rim region from July 2011 to December 2018. The strategic property investment implications for I&L REITs are also identified.Design/methodology/approachMonthly total returns from July 2011 to December 2018 were used to analyse the risk-adjusted performance and portfolio diversification benefits for I&L REITs in the United States, Japan, Australia and Singapore. An asset allocation diagram was employed to assess the strategic role of I&L REITs in a mixed-asset portfolio in each case.FindingsI&L REITs generally possessed superior average annual returns compared with the other sub-sector REITs, stocks and bonds in the United States, Japan, Australia and Singapore between July 2011 and December 2018, with desirable portfolio diversification benefits. Importantly, a more significant role for I&L REITs was generally observed in the mixed-asset portfolio compared to the other sub-sector REITs in each of these four markets across the broad portfolio risk spectrum. This reflects I&L REITs delivering enhanced portfolio returns and offering portfolio diversification benefits in a mixed-asset portfolio in the United States, Japan, Australia and Singapore.Practical implicationsProperty investors, particularly property securities funds (PSFs) and income-oriented investors, should consider including I&L REITs in their mixed-asset portfolios, as Pacific Rim–based I&L REITs provided an attractive REIT investment sub-sector, co-existing alongside the other sub-sector REITs and major asset classes in a mixed-asset portfolio in a Pacific Rim context, as well as being a portfolio diversifier. These results confirm the added-value and strategic role of I&L REITs in a mixed-asset portfolio, seeing I&L REITs as an effective investment pathway for I&L property exposure in the Pacific Rim region.Originality/valueThis is the first study to assess the investment performance of I&L REITs in the Pacific Rim region, evaluating their significance, risk-adjusted performance and portfolio diversification benefits, and the role of I&L REITs in a mixed-asset portfolio in the United States, Japan, Australia and Singapore. More importantly, this research is the first paper to provide empirical evidence on I&L REITs, which have often transformed their traditional industrial property portfolios with increased levels of logistics property to gain exposure to recent e-commerce trends. This research enables more informed and practical property investment decision-making regarding I&L REITs and their added-value and strategic role in a mixed-asset portfolio, as well as delivering effective I&L property exposure in the Pacific Rim region, with the added benefits of liquidity, transparency and fiscal efficiency.
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环太平洋地区工业和物流REITs的附加值作用
目的作为重要的上市房地产投资工具,工业和物流房地产投资信托基金(I&L REITs)最近加强了其房地产投资组合,通常用物流房地产取代传统的工业房地产,以获得对近期电子商务趋势的战略敞口。本文旨在通过评估2011年7月至2018年12月环太平洋地区I&L REITs的显著性、风险调整后的业绩和投资组合多元化收益,来评估I&L REIT的投资业绩。文中还确定了投资及租赁房地产投资信托的战略性房地产投资影响。设计/方法/方法使用2011年7月至2018年12月的月度总回报率来分析美国、日本、澳大利亚和新加坡的I&L REITs的风险调整后业绩和投资组合多元化收益。采用资产配置图来评估I&L REITs在每种情况下的混合资产组合中的战略作用。在2011年7月至2018年12月期间,与美国、日本、澳大利亚和新加坡的其他子行业REITs、股票和债券相比,FindingsI&L REITs通常具有较高的平均年回报率,并具有理想的投资组合多元化优势。重要的是,在广泛的投资组合风险范围内,与这四个市场中的其他子行业REITs相比,I&L REITs在混合资产投资组合中通常发挥着更重要的作用。这反映了I&L REITs在美国、日本、澳大利亚和新加坡的混合资产投资组合中提供了更高的投资组合回报,并提供了投资组合多样化的好处。实际含义房地产投资者,特别是房地产证券基金(PSF)和收益导向型投资者,应考虑将I&L REIT纳入其混合资产组合,由于环太平洋地区的I&L REITs提供了一个有吸引力的REIT投资子行业,与其他子行业REITs和主要资产类别共同存在于环太平洋地区背景下的混合资产投资组合中,并成为投资组合的多样化者。这些结果证实了I&L REITs在混合资产组合中的附加值和战略作用,将I&L REIT视为环太平洋地区I&L房地产风险敞口的有效投资途径。原创性/价值这是第一项评估环太平洋地区I&L REITs投资绩效的研究,评估其重要性、风险调整后的绩效和投资组合多元化效益,以及I&L REIT在美国、日本、澳大利亚和新加坡的混合资产投资组合中的作用。更重要的是,这项研究是第一篇提供I&L REITs实证证据的论文,这些REITs经常通过提高物流物业水平来改变其传统的工业物业投资组合,以了解最近的电子商务趋势。这项研究使人们能够就I&L REITs及其在混合资产组合中的附加值和战略作用做出更明智和实用的房地产投资决策,并在环太平洋地区提供有效的I&L房地产敞口,同时带来流动性、透明度和财政效率的额外好处。
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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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