Analyzing the Relationship between the Features of Direct Real Estate Assets and Their Corresponding Australian—REITs

Xinyi Li, Yuhong Zhang, Xing Zhang () and Runtang Gu
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Xinyi Li: School of Architecture and Built Environment, The University of Adelaide, Adelaide, SA 5000, Australia
Yuhong Zhang: Faculty of Business, City University of Macau, Macau 999078, China
Xing Zhang: School of Management, Guizhou University of Commerce, Guiyang 550001, China
Runtang Gu: School of Management, Guizhou University of Commerce, Guiyang 550001, China

IJFS, 2023, vol. 11, issue 1, 1-15

Abstract: This study investigated the relationship between a sector-specific Australian Real Estate Investment Trust (A-REITs) and the underlying property assets in its property portfolio. The existing studies have assessed the connectedness/correlation between the A-REITs market and a variety of other asset markets, including the overall stock, bond, and direct real estate markets. This study applied regression analysis methods and discovered that there exists a certain degree of linear correlation between the underlying property assets and the return of the subject A-REITs. The most significant variable is the occupancy of the offices. The higher the occupancy is, the better the dividend can be. Features of the A-REITs also affect the dividend outcomes, specifically, the total portfolio market value and the capitalization rate. This suggests that the annual valuation outcomes show a positive relation with the performance of the A-REITs.

Keywords: REITs; property assets; property portfolio; real estate market (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2023
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