NAV Premiums & REIT Property Transactions

40 Pages Posted: 20 Feb 2019

See all articles by Dongshin Kim

Dongshin Kim

Pepperdine Graziadio Business School

Jonathan Wiley

Georgia State University

Date Written: Spring 2019


This study explores the outcome for REIT investment in response to NAV premiums considering (1) the volume of acquisition activity, and (2) relative prices paid for individual assets. Regarding the first, we provide evidence that REIT managers increase real estate investment following positive changes in NAV premiums. Regarding the second, we use a large sample of transactions for retail, office and multifamily property and find that REITs appear to pay significantly higher prices relative to other investors. Transaction prices paid by REIT managers for all three property types are positively and significantly affected by market‐wide NAV premiums.

Suggested Citation

Kim, Dongshin and Wiley, Jonathan, NAV Premiums & REIT Property Transactions (Spring 2019). Real Estate Economics, Vol. 47, Issue 1, pp. 138-177, 2019. Available at SSRN: or

Dongshin Kim (Contact Author)

Pepperdine Graziadio Business School ( email )

Malibu, CA
United States
(310) 506-7406 (Phone)

HOME PAGE: http://

Jonathan Wiley

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

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