Ownership Structure, Property Performance, Multifamily Properties and Reits
Posted: 8 Jul 2009 Last revised: 16 Jul 2009
Date Written: July 7, 2009
This research extends literature that empirically evaluates the impact of ownership and management structure on property level performance. The results show that multifamily properties owned and managed by real estate investment trusts (REITs) generate higher effective rents at the property level than non-REIT owned properties. After controlling for positive operating scale and brand effects, REIT property level performance is better than non-REIT property level performance in the market studied. The REIT structure represents diversified scale operators with property management skills. The results imply that the structure of property ownership can impact property performance.
Keywords: REIT, ownership structure, value
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