USF St. Petersburg campus Faculty Publications

The relationship between REIT property types and economic risk factors.

SelectedWorks Author Profiles:

Gary A. Patterson

Document Type

Article

Publication Date

2009

ISSN

2150-1033

Abstract

This study examines the influence of macroeconomic risk factors upon Real Estate Investment Trusts (REITs) that invest in distinct types of properties that represent different economic sectors. Although several studies have explored the impact that economic risk factors have upon Equity REITs, the focus was solely on REITs as a single group. The findings from this analysis reveal strong differences across property types in the influence that macroeconomic risk factors have upon REIT returns. These property-based variations also appear in the pattern of behavior between REIT returns and information shocks originating from changes in the economic risk factors. Test results also show evidence of size-based differences across and within property types in both overall sensitivity and in dynamic responses to changes in the economic risk factors. These findings provide additional insight into the risk exposures of real estate investments and the behavior of REIT returns that may have important implications for portfolio formation and risk management practices.

Comments

Citation only. Full text document is available through the publisher's link provided. Published in Academy of Business Disciplines Journal, 2009, v.1, 19-28.

Language

en_US

Publisher

Shippensburg University. School of Business

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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