A-Reits Value Relevance of Performance Measures: Net Income, Funds from Operations and Fair Value of Investment Property

Sarpong-Oti William, Gholipour Hassan F., Marzuki Jufri and Chege Fredrick ()
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Sarpong-Oti William: School of Business, Western Sydney University, Parramatta NSW 2150, Australia
Gholipour Hassan F.: School of Business, Western Sydney University, Parramatta NSW 2150, Australia
Marzuki Jufri: School of Business, Western Sydney University, Parramatta NSW 2150, Australia
Chege Fredrick: School of Business, Western Sydney University, Parramatta NSW 2150, Australia

Real Estate Management and Valuation, 2025, vol. 33, issue 3, 1-10

Abstract: This study investigates value relevance of three-performance measures (net income (NI), funds from operations (FFO), and fair values on investment property (FVIP) on stock prices of Australian Real Estate Investment Trusts (A-REITs). Using data from A-REITs over the period 2012–2021 and estimating a panel system Generalized Method of Moments (GMM), results suggest that of the three, only net income is significantly and positively related to the stock prices of A-REITs. The implication of this study for investors and fund managers is that net income is the most important accounting number that investors look for in the financial statements of A-REITs.

Keywords: Australian Real Estate Investment Trusts (A-REITs); funds from operations; net Income; fair value of investment property (search for similar items in EconPapers)
JEL-codes: G15 G30 M40 M41 N27 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:remava:v:33:y:2025:i:3:p:1-10:n:1001

DOI: 10.2478/remav-2025-0021

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