Briefings in Real Estate Finance最新文献

Mortgage-backed securities (MBS) were introduced into the Canadian financial system in 1987. This paper describes their development and history, and compares these with the situation in other countries, through a brief review of mortgage securitisation in various parts of the world (the UK, Australia and Japan). The primary uses of MBS in Canada and positive aspects of securitisation are explored, both as they have been experienced since the inception of MBS in the late 1980s and as they relate to the basic structure of the mortgage finance system in place before MBS were introduced. The paper also contrasts the MBS markets in the USA and Canada. The proportion of national mortgage debt that is packaged into MBS in both countries is examined, and the paper discusses reasons for the significantly smaller proportion of debt in Canadian MBS versus the numbers for the USA. Future prospects for growth in the Canadian MBS market are explored. Copyright © 2005 Henry Stewart Publications

Low interest rates have played a key role in the recent decline in cap rates over the last three years. Falling interest rates have allowed real estate investors to pay a premium for assets by using leverage to enhance returns. With cap rates near historic lows, and short-term interest rates likely to increase as the US Federal Reserve gradually raises rates, investors are concerned about the effects of higher interest rates on asset values.

It seems obvious that real estate cap rates and interest rates should be related. But the interaction between interest rates and real estate values is complicated. This paper looks at the recent trend in cap rates and uses duration, a concept used in the fixed-income market, to create a model for estimating the impact of higher interest rates on real estate values. Copyright © 2005 Henry Stewart Publications

This paper offers a theoretical overview of the nature of revenue recognition through a literature review and empirical research. This is a pilot study intended to highlight the importance of the issue to property companies and offer a basis for further work, currently being undertaken by the authors. Revenue recognition — the point at which a firm is entitled to claim that a profit has been made — is theoretically and empirically unclear. This lack of clarity has repercussions for the production and interpretation of financial accounts. Property has been particularly affected due to the requirements enforced on certain companies by the regulators to restate published accounts. Moreover, since certain property companies have a stock market capitalisation that is below their net asset value, they are susceptible to any concerns over the accuracy of their reported revenue and turnover. Copyright © 2005 Henry Stewart Publications

Single-purpose entities are commonly required by lenders in commercial real estate financings in the USA. This paper will review the risks against which protection is sought through the single-purpose entity structure, the elements of a ‘single-purpose entity’ and a ‘bankruptcy-remote’ entity, common objections of owners and investors to using these structures, and some key holdings of US courts in this area. Copyright © 2005 Henry Stewart Publications

The purpose of this paper is to provide an overview of Shanghai's real estate market and potential opportunities for new foreign entrants. The paper highlights practical principles for institutional investors seeking quick adaptation to an unfamiliar, fast-growing and potentially rewarding market environment. Copyright © 2005 Henry Stewart Publications

This paper examines international joint ventures (IJVs) by Real Estate Investment Trusts (REITs). Numerous papers have been published regarding international investments as a tool for diversification; however, the real estate industry has not experienced such research. Few researchers have studied the impact of IJVs on the real estate industry and, as a result, it is the authors' hope that this paper becomes a stimulus for further research in this field.

The paper highlights recent IJVs within the real estate industry, including CBL & Associates Properties, Inc.'s JV with Galileo American REIT; Developers Diversified Realty Corporation's JV with Macquarie Bank of Australia; ProLogis' JV with Macquarie Bank of Australia; and Great White Shark Enterprises' JV with Macquarie Bank of Australia. The authors have focused their efforts on foreign investors acquiring US-based properties. The IJVs examined in this study appeared to be motivated by the foreign investors' desire to invest in US property. In this regard, foreign investors perceive US investments to be associated with less political and economic risk.

Several characteristics emerge from the IJVs studied; specifically, IJVs present unique opportunities for global expansion for US firms otherwise prohibited by foreign governments. Further, IJVs allow firms to obtain additional capital resources. In most cases, IJVs are time consuming and messy to design. IJVs are unstable arrangements with, more than likely, one firm seeking to dissolve the arrangement in no more than five years. IJVs generally follow a very structured plan that includes opportunity assessment, evaluation, design and implementation. Copyright © 2005 Henry Stewart Publications

Recent changes in Europe's real estate market will probably help open-end funds become more broadly accepted for pan-European investment. These changes include greater awareness of the benefits of such structures, the growing appetite of institutional investors for a strategic exposure to non-domestic real estate and the globalization of the investment management industry. Copyright © 2005 John Wiley & Sons, Ltd.

Uncertainty and weakness were the prevailing themes for the global economy, even before the events of 11th September. The terrorist attacks on the USA have further clouded the global economic outlook. The authors remain hopeful that a UK recession can be avoided, however, the economic situation may change in response to the nature of the USA's military engagement. Copyright © 2001 Henry Stewart Publications

The aim of this paper is to provide a technical and commercial review of pan-European real estate investment fund vehicles, including a summary of their evolution to date, who their promoters and managers are, where the capital comes from and what type of real estate are they investing in. It goes on to provide detailed guidance on commercial aspects relevant in deciding on which type of investment vehicle to choose, the key attributes of the various vehicles and the specific regulatory and tax issues for major investor groups. The paper concludes by offering a view on progress towards future vehicles such as the ‘EuroREIT’. Copyright © 2003 Henry Stewart Publications