The Dynamic of Location Attributes Toward Malaysian Real Estate Investment Trust Performance

  • Authors

    • Rohaya Abdul Jalil
    • Izran Sarrazin Mohammad
    • Tiong Chai Ping
    2018-05-22
    https://doi.org/10.14419/ijet.v7i2.29.15140
  • Location, real estate investment trust, performance, investment goal.

  • Abstract

    The Malaysian real estate investment trusts (M-REITs) properties intensive location contributes toward higher rental yield. Nevertheless, the location diversification depends on the type of properties in the portfolio, puzzled shareholder in their investment decision making in M-REITs. This study aim to determine the dynamic of location attributes toward financial performance. The pearson correlation and descriptive analysis of ten years (2006 until 2015) data is used. This study indicate that there is correlation between attributes of economic location with dividend yield(DY) (cor: 0.241). Yet, the market capitalization, have a negative correlation (cor: -0.246), which contradict with prior study on REITs’ location attributes. This study also show that attributes of location of M-REITs properties should located between 5km to 10km from central business district (CBD).This study conclude that in order to ensure M-REITs properties remain competitive for commercial occupancy. The investment on M-REITs proven that dynamic of location attributes is priority, which support that M-REITs design for a long term investment goal.

     

     

  • References

    2. style='font-size:8.0pt;font-family:"Times New Roman","serif";color:black'>
    3. style='mso-element:field-begin'>
    4. style='mso-spacerun:yes'> ADDIN EN.REFLIST
    5. field-separator'>[1] Newell G, Hwa T, Acheampong P. Listed property trusts in Malaysia. Journal of Real Estate Literature. 2002;10(1):109-18.

      [2] Hartzell D, Shulman D, Wurtzebach C. Refining the analysis of regional diversification for income-producing real estate. Journal of Real Estate Research. 1987;2(2):85-95.

      [3] Tuluca SA, Myer FN, Webb JR. Dynamics of private and public real estate markets. The Journal of Real Estate Finance and Economics. 2000;21(3):279-96.

      [4] Kivimäki M, Elovainio M, Vahtera J, Virtanen M, Stansfeld SA. Association between organizational inequity and incidence of psychiatric disorders in female employees. Psychological medicine. 2003;33(02):319-26.

      [5] Iman AHM. Basic Aspects of Property Market Research: Penerbit UTM; 2006.

      [6] Florida P, Roulac S. Measuring the effectiveness of geographical diversification. Journal of Real Estate Portfolio Management. 2007;13(1):29-44.

      [7] Worzala E, Bajtelsmit V. Real estate asset allocation and the decisionmaking framework used by pension fund managers. Journal of Real Estate Portfolio Management. 1997;3(1):47-56.

      [8] Mahoney J, Malpezzi S, Shilling JD. Implications of Income Property Stock Data for Real Estate Investment Portfolio Location. Real Estate Finance. 2000;16(4):53-66.

      [9] Anderson RI, Liang Y, Shain J. Deriving REIT Returns by Economic Location. Real Estate Finance. 2001;18(3):14-9.

      [10] Anderson RI, Fok R, Springer T, Webb J. Technical efficiency and economies of scale: A non-parametric analysis of REIT operating efficiency. European Journal of Operational Research. 2002;139(3):598-612.

      [11] Ambrose B, Linneman P. REIT organizational structure and operating characteristics. Journal of Real Estate Research. 2001;21(3):141-62.

      [12] Capozza D, Korean S. Property type, size and REIT value. Journal of Real Estate Research. 1995;10(4):363-79.

      [13] Linneman P. The forces changing the real estate industry forever: Real Estate Center, Wharton School of the University of Pennsylvania; 1997.

      [14] Below SD, Stansell SR, Coffin M. The determinants of REIT institutional ownership: tests of the CAPM. The Journal of Real Estate Finance and Economics. 2000;21(3):263-78.

      [15] Below S, Stansell S, Coffin M. Institutional investment in REIT common stocks: An examination of the prudent man investment hypothesis. Journal of Real Estate Portfolio Management. 2000;6(2):113-30.

      [16] Brown GR, Matysiak GA, Times F, Hall P. Real Estate Investment: A Capital Markets Approach. Taylor & Francis; 2001.

      [17] Brown GR. Property investment and the capital markets: Routledge; 1991.

      [18] Mueller GR, Laposa SP. REIT returns: a property-type perspective. Real Estate Finance. 1996;13:45-55.

      [19] Anderson RI, Benefield JD, Hurst ME. Property-type diversification and REIT performance: an analysis of operating performance and abnormal returns. Journal of Economics and Finance. 2015;39(1):48-74.

      [20] Pham AK. The dynamics of returns and volatility in the emerging and developed Asian REIT markets. Journal of Real Estate Literature. 2012;20(1):79-96.

      [21] Casey KM, Sumner G, Packer J. REIT capital structure: is it market imposed? Managerial Finance. 2006;32(12):981-7.

      [22] Wang K, Erickson J, Gau GW. Dividend policies and dividend announcement effects for real estate investment trusts. Real Estate Economics. 1993;21(2):185-201.

      [23] Zietz E, Sirmans S, Friday S. The environment and performance of real estate investment trusts. Journal of Real Estate Portfolio Management. 2003;9(2):127-65.

    6. mso-fareast-font-family:Batang;color:black;mso-ansi-language:EN-US;mso-fareast-language:
    7. KO;mso-bidi-language:AR-SA'>

  • Downloads

  • How to Cite

    Abdul Jalil, R., Sarrazin Mohammad, I., & Chai Ping, T. (2018). The Dynamic of Location Attributes Toward Malaysian Real Estate Investment Trust Performance. International Journal of Engineering & Technology, 7(2.29), 1121-1125. https://doi.org/10.14419/ijet.v7i2.29.15140

    Received date: 2018-07-05

    Accepted date: 2018-07-05

    Published date: 2018-05-22