Quiet Period Reit Returns

Executive Summary Excess returns around the expiration of the IPO quiet period documented for industrial IPOs are minimal for REITs, supporting the argument that REITs are more transparent than other firms. The existence of analyst coverage impacts quiet period returns for REITs only during the pre-bubble period when coverage is less comprehensive. The frequency of analyst recommendations issued immediately after the quiet period for REITs is lower than for industrial IPOs, which again suggests greater REIT transparency since there is an implied lower need for coverage. Recommendations in number and in simple buy or sell categorization have a slight impact on returns. With marginal statistical significance, the small number of firms followed by four or more analysts posts excess returns while the very small number of firms with no buy recommendations posts negative excess returns.