The Predictability of REIT Returns and Market Segmentatio

Darcey D. Terris and F.C. Neil Myer ()
Additional contact information
Darcey D. Terris: Department of Finance and the Real Estate Research Center James J. Nance College of Business Cleveland State University Cleveland, Ohio 44115, http://www.csuohio.edu/finance_department/index.htm
F.C. Neil Myer: Department of Finance and the Real Estate Research Center James J. Nance College of Business Cleveland State University Cleveland, Ohio 44115, http://www.csuohio.edu/finance_department/index.htm

Journal of Real Estate Research, 1995, vol. 10, issue 4, pages 483-494

Abstract: A two-factor regression model was used to examine the relationship between returns on healthcare equity REITs (EREITs) and healthcare stocks from 1985 to 1992. General stock indices were incorporated in the model to account for the influence of the market. Multiple positive contemporaneous relationships were found between six of the seven REITs studied and portfolios of other healthcare stocks. Furthermore, in four of the six REITs with positive results, significant correlations were evident between individual REIT portfolios and the SIC indices with which they showed a significant relationship. These results are consistent with a common factor or factors affecting the returns of both healthcare EREITs and stocks. The relationships found between returns on healthcare EREITs and healthcare stocks, especially the correlation between the classification of the EREIT portfolios and SIC indices, indicate the importance of real estate management for healthcare firms and asset subclassification choice for the real estate manager. Although this study specifically investigated healthcare EREITs and healthcare stocks, the results may be more widely applicable to other single-property-type EREITs.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 1995
View list of references View citations in EconPapers

Downloads: (external link)
http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol10n04/v10p483.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:jre:issued:v:10:n:4:1995:p:483-494

Ordering information: This journal article can be ordered from
Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
http://aux.zicklin.b ... u/jrer/about/get.htm

Access Statistics for this article

Journal of Real Estate Research is edited by Dr. Ko Wang

More articles in Journal of Real Estate Research from American Real Estate Society
Address: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
Series data maintained by JRER Graduate Assistant/Webmaster ().