Are REIT Investors Overly Optimistic after Equity Offerings?: Evidence from Analyst Forecast Errors

Elizabeth Devos (), Erik Devos, Seow Eng Ong () and Andrew C. Spieler ()
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Elizabeth Devos: Eastern Michigan University, College of Business
Seow Eng Ong: National University Singapore
Andrew C. Spieler: Frank G. Zarb School of Business

The Journal of Real Estate Finance and Economics, 2019, vol. 59, issue 2, No 2, 148-165

Abstract: Abstract Optimism around Initial Public Offerings is well documented. However, Seasoned Equity Offerings are often surrounded by less optimism. Based on analyst forecast properties for a large number of REITs, we find that REIT analysts tend to be relatively optimistic after IPOs, whereas this tends not to be the case surrounding SEOs. Our results are more pronounced when REITs are bigger and have more analysts following them. Our results are robust for a number of multivariate specifications. Our findings suggest that possible underperformance of REITs after the IPO may be caused by over-optimistic investors.

Keywords: REIT; Over-optimism; IPO; SEO; Analyst behavior (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Working Paper: Are REIT Investors Overly Optimistic after Equity Offerings?: Evidence from Analyst Forecast Errors (2017)
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DOI: 10.1007/s11146-017-9608-1

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