What is it about?

This paper examines the impacts of private placements by Australian Real Estate Investment Trusts (A-REITs) on existing shareholders. Results show that shareholders suffer negative risk-adjusted returns around the announcement.

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Why is it important?

This is the first study to examine the impact of private placements on existing Australian REIT shareholders. Our results are in contrast to prior studies conducted on industrial firms.

Perspectives

This research further supports the notion put forward by other authors that REITs are a distinctly different investment class when examining the overall listed markets. The importance of an understanding of the operation of REITs is expected to increase as the demand by pension funds for property investments increase.

Dr Chris Joseph Ratcliffe
Deakin University

Read the Original

This page is a summary of: Market discounts and shareholder benefits, Journal of Property Investment & Finance, August 2014, Emerald,
DOI: 10.1108/jpif-05-2014-0031.
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