The effects of management structure on the performance of listed property trusts

Tan Yen Keng

ERES from European Real Estate Society (ERES)

Abstract: As originally envisioned, LPTs were to be passive investment vehicles and were mainly managed by external managers. However, with more LPTs adopting an internally managed structure, the capitalisation of internally managed LPTs has increased from less than 8% of the total LPT market value in June 1997 to over 33% in December 2003. The risk-adjusted performance analysis has shown that internally managed structures outperform externally managed structures, and the larger LPTs also outperform their smaller counterparts. Mixed-asset portfolio analysis has provided further evidence for the dominance of the internally managed structure over the externally managed structure. The survey of internal LPT managers has offered some explanations to the outperformance of the internally managed structure.As originally envisioned, LPTs were to be passive investment vehicles and were mainly managed by external managers. However, with more LPTs adopting an internally managed structure, the capitalisation of internally managed LPTs has increased from less than 8% of the total LPT market value in June 1997 to over 33% in December 2003. The risk-adjusted performance analysis has shown that internally managed structures outperform externally managed structures, and the larger LPTs also outperform their smaller counterparts. Mixed-asset portfolio analysis has provided further evidence for the dominance of the internally managed structure over the externally managed structure. The survey of internal LPT managers has offered some explanations to the outperformance of the internally managed structure.

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2004-06-01
References: Add references at CitEc
Citations:

Downloads: (external link)
https://eres.architexturez.net/doc/oai-eres-id-eres2004-217 (text/html)

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:arz:wpaper:eres2004_217

Access Statistics for this paper

More papers in ERES from European Real Estate Society (ERES) Contact information at EDIRC.
Bibliographic data for series maintained by Architexturez Imprints ().