Perspective on Debt-and-Equity Decomposition for Investors and Issuers of Real Estate Securities

Richard A. Graff
Additional contact information
Richard A. Graff: Graff Investment Models 222 E. Pearson Street Suite 2308 Chicago, Illinois 60611, http://www.smithbarney.com/

Journal of Real Estate Research, 1992, vol. 7, issue 4, 449-468

Abstract: The separation of commercial real estate into structured investment products as suggested by the debt-and-equity model can enhance property value due to positive net changes in agency costs and tax shields. In many cases this enhancement should be large enough to induce real estate owners to make property available for component separation. The resulting income component has the investment characteristics of a tax-sheltered corporate bond, and should be sold to taxable investors to realize the value enhancement.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 1992
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://pages.jh.edu/jrer/papers/pdf/past/vol07n04/v07p449.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: https://EconPapers.repec.org/RePEc:jre:issued:v:7:n:4:1992:p:449-468

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://pages.jh.edu/jrer/about/get.htm

Access Statistics for this article

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

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