The Role of Public REITs in Financialization and Industry Restructuring

Rosemary Batt (), Eileen Appelbaum () and Tamar Katz ()
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Rosemary Batt: Cornell University
Eileen Appelbaum: Center for Economic and Policy Research
Tamar Katz: Columbia Law School

No inetwp189, Working Papers Series from Institute for New Economic Thinking

Abstract: Real Estate Investment Trusts (REITs) are important but little studied financial actors that control over $3.5 trillion in gross assets and over 500,000 properties in the U.S. Yet they have been largely ignored because tax rules define them as 'passive investors'. The evidence in this report shows that they are actually financial actors that aggressively buy up property assets and manage them to extract wealth at taxpayers' expense. This study identifies the powerful impact that REITs, as owners of the real estate that houses productive enterprises, have had on operating companies and on the US economy more generally. It draws on case study evidence from markets where REITs have a major presence: nursing homes, hospitals, and hotels. The tax treatment of REITs has facilitated a growing and worrying influence on health care markets in particular at taxpayer expense.

Keywords: Real Estate Investment Trusts (REITs); financialization and organizational structure; mergers and acquisitions (M&A); consolidation; healthcare markets; hotel market; tax policy. (search for similar items in EconPapers)
JEL-codes: G23 G28 G38 I11 (search for similar items in EconPapers)
Pages: 81 pages
Date: 2022-07-09
New Economics Papers: this item is included in nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:thk:wpaper:inetwp189

DOI: 10.36687/inetwp189

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