Investment, Liquidity, and Private Debt: The Case of REIT Credit Facilities

Robert Campbell, Erik Devos, Clark Maxam and Andrew Spieler

Journal of Real Estate Portfolio Management, 2008, vol. 14, issue 3, 195-202

Abstract: Executive Summary. This study examines Real Estate Investment Trusts (REITs) credit facilities with banks. Credit facilities allow flexibility, but may create agency problems due to the potential for misuse. The findings suggest that REITs enter credit facilities when expecting large investments. The net investments to total assets ratio is significantly higher when credit facilities are arranged. Combined with lower year-end liquidity, this suggests that REITs use credit facilities to correct shortfalls caused by large investment needs. The findings do not reveal that REITs are more cash constrained when credit facilities are announced. Rather, the results suggest REITs are constrained in years when no credit facility is formed.

Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/10835547.2008.12089808 (text/html)
Access to full text is restricted to subscribers.

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:taf:repmxx:v:14:y:2008:i:3:p:195-202

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/repm20

DOI: 10.1080/10835547.2008.12089808

Access Statistics for this article

Journal of Real Estate Portfolio Management is currently edited by Peng Liu and Vivek Sah

More articles in Journal of Real Estate Portfolio Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().