Alternative Ideas in Real Estate Investment (Research Issues in Real Estate, 2)

Arthur L. Schwartz, Jr. and Steven D. Kapplin The focus of this volume of the ARES Monograph Series is new ideas in real estate investment. Within this volume, empiricial studies, literature reviews, and tutorials examine a broad range of important investment issues. Many new and innovative ideas are presented. This volume should be a rich source of real estate investment ideas for many years to come. Kapplin and Schwartz examine the returns of two types of REITs, as well as that of Master Limited Partnerships (MLP), over the 1987-1989 time period. Their sample consisted of 54 real estate securities; they conclude that these entities did not provide an effective inflation hedge. MLP returns exceeded that of the overall stock market, but the two REIT types did not provide rates-of-return in excess of the marked. An extensive review of the commercial real estate return literature is presented by Fletcher. He focuses upon studies that utilize commingled real estate fund (CREF) data. His detailed overview of the subject provides a much needed synthesis of the current literature. Roulac presents an extensive discussion of the differences in the per­ spectives of individual versus institutional investors. In his essay, he considers such factors as scale, diversification, and related issues. Addi­ tionally, he examines a wide range of literature from within academia, 1 INTRODUCTION 2 as well as the opinions of various real estate gurus. He concludes that behavioral factors override economic considerations. Front Matter....Pages i-xiv Introduction....Pages 1-3 Recent Performance of U.S. Real Estate Securities....Pages 5-18 Commercial Real Estate Investments and Returns: A Review of the Literature Using Cref Data....Pages 19-34 Implications of Individual Versus Institutional Real Estate Investing Strategies....Pages 35-58 Superior Real Estate Investment Performance: Enigma or Illusion? A Critical Review of the Literature....Pages 59-82 The Effect of Unbundling Asset Returns on Restricted Mixed-Asset Portfolios....Pages 83-97 Real Estate Portfolio Diversification by Sources of Return....Pages 99-111 An Empirical Analysis of Efficient Real Property Liquidity Premiums....Pages 113-127 Farmland as an Inflation Hedge....Pages 129-142 Performance Measures of Real Estate Firm Common Stock Returns....Pages 143-156 A Tutorial on Partitioning Real Estate Investment Cash Flows Using the Internal Rate of Return....Pages 157-176 Statistical Inference in Event Studies Using Multiple Regression....Pages 177-189 Back Matter....Pages 191-198 "Alternative Ideas in Real Estate Investment focuses on new ideas in real estate investment. Using empirical studies, literature reviews and tutorials, the editors examine a wide range of investment issues including real estate investment trusts, commercial real estate, real estate investment performance, optimal portfolio allocation, risk premium for real property investments, inflation hedging, income property, and event studies on real estate returns."--Jacket This book focuses on new ideas in real estate investment. Using empirical studies, literature reviews and tutorials, the editors examine a wide range of investment issues including, real estate investment trusts, commercial real estate, real estate investment performance, optimal portfolio allocation, risk premium for real property investments, inflation hedging, income property, and event studies on real estate returns