Reit Dividend Determinants: Excess Dividends and Capital Markets

Real Estate Economics, Vol. 36, Issue 2, pp. 349-369, Summer 2008

21 Pages Posted: 8 May 2008

See all articles by William G. Hardin

William G. Hardin

Florida International University (FIU) - College of Business Administration

Matthew D. Hill

Arkansas State University

Abstract

The determinants of excess dividend payments above mandatory requirements in real estate investment trusts (REITs) are evaluated. Payment of excess dividends is related to factors associated with reduced agency costs, strong operating performance, the implementation of a stock repurchase plan and an ability to access short-term bank debt. Recognizing that access to external capital is essential for long-term growth, REITs manage dividend policy to allow for capital acquisition in the form of both equity and debt. The acquisition and use of short-term bank debt provides REIT management flexibility in determining dividend policy.

Suggested Citation

Hardin, William G. and Hill, Matthew D., Reit Dividend Determinants: Excess Dividends and Capital Markets. Real Estate Economics, Vol. 36, Issue 2, pp. 349-369, Summer 2008, Available at SSRN: https://ssrn.com/abstract=1127948 or http://dx.doi.org/10.1111/j.1540-6229.2008.00216.x

William G. Hardin (Contact Author)

Florida International University (FIU) - College of Business Administration ( email )

Miami, FL 33199
United States

Matthew D. Hill

Arkansas State University ( email )

2713 Pawnee
P.O. Box 1750
Jonesboro, AR 72467-115
United States

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