Download or read book The Effects of Rental Growth Expectation on Real Estate Return written by Yishuang Xu and published by Open Dissertation Press. This book was released on 2017-01-26 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation, "The Effects of Rental Growth Expectation on Real Estate Return: a Term Structure Model and an Empirical Test in Hong Kong" by Yishuang, Xu, 徐怡爽, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: The investor's expectation is instinctively to be linked to the asset's return by the finance experts and analysts. However why and how it affects the return are poorly understood and explained. Can the investor's expectation really move the market? How much the influence does it have? This study looks at this well-known puzzle between real estate returns and investors' expectations on rental income growth of real estate assets. Based on the theoretical model in this study, the questions whether, why and how the investors' expected rental income growth has effects on the real estate returns are answered. The study focuses on both private and public real estate (REITs) returns and examines whether they can be explained by the facts in Hong Kong. The theoretical model is derived from the Gordon Growth Model. The novelty of the model is to define the term structure of interest rate on the expected rental income. Empirically, the linkage between the two markets is identified through the REIT's dividend, which is specified to be distributed from 90% of the real estate asset's income. Under this specification, strong evidence is found for expected rental income growth predictive power. In this study, the relationship between the monthly end-of-period REIT's return and monthly expected rental income growth of corresponded real estate asset is tested by panel model, which does the superb job in fitting both cross-sectional and time-varied return patterns of REITs. As the REITs in Hong Kong had just launched since the end of year 2005, the sample period of this study is from November, 2005 to April, 2010. Unlike the standard asset pricing model, this study adds the investor's expectation as one of the factors which determine the REIT's return to adjust the out-performance tendency of certain asset. The study also confirms the hypothesis in private real estate market by finding that investors' expectation on rental growth imposes a positive and significant impact on the real estate return in Hong Kong. The quarterly data series of macro-economic factors, such as Gross Domestic Production, Inflation rate, Interest rate, Employment rate are tested to confirm their effects on the real estate return together with the investor's expectations on both future rental income and inflation. All four real estate sectors, including residential, office, retail and industrial property sectors, are inclusively tested in this study. For both private and public real estate markets in Hong Kong, the investor's expectation has positive effects on the corresponding asset's return. The evidence in this study shows that the change of investor's expectation would cause positive change of REIT's return. It reveals that the investors' expectation plays a vital role in the movement of both private and public real estate markets. When most investors expect a tendency of increasing earning, the real estate return tends to rise with controlling of other economic factors. Though the conclusion of this study is well-known and frequently used to explain or predict the movement of real estate market, the theory behind it is commonly ignored. This study looks deeper into it by improving Gordon Growth Model to capture the investor's expected rental income growth without econometric forecasting or questionnaire investigation. The series...

Download or read book Expected Returns and the Expected Growth in Rents of Commercial Real Estate written by Walter N. Torous and published by . This book was released on 2016 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: Commercial real estate expected returns and expected rent growth rates are time-varying. Relying on transactions data from a cross-section of U.S. metropolitan areas, we find that up to 30% of the variability of realized returns to commercial real estate can be accounted for by expected return variability, while expected rent growth rate variability explains up to 45% of the variability of realized rent growth rates. The cap rate -- that is, the rent-price ratio in commercial real estate -- captures fluctuations in expected returns for apartments, retail properties, as well as industrial properties. For offices, by contrast, cap rates do not forecast (in-sample) returns even though expected returns on offices are also time-varying. As implied by the present value relation, cap rates marginally forecast office rent growth but not rent growth of apartments, retail properties, and industrial properties. We link these differences in in-sample predictability to differences in the stochastic properties of the underlying commercial real estate data-generating processes. Also, rent growth predictability is observed mostly in locations characterized by higher population density and stringent land use restrictions. The opposite is true for return predictability. The dynamic portfolio implications of time-varying commercial real estate returns are also explored in the context of a portfolio manager investing in the aggregate stock market, Treasury bills, as well as commercial real estate.

Download or read book Federal Rental Housing Production Incentives written by United States. General Accounting Office and published by . This book was released on 1985 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Endowment Asset Management written by Shanta Acharya and published by Oxford University Press, USA. This book was released on 2007-04-19 with total page 385 pages. Available in PDF, EPUB and Kindle. Book excerpt: This unique study focuses on how the endowment assets of Oxford and Cambridge colleges are invested. Despite their shared missions, each interprets its investment objective differently, often resulting in remarkably dissimilar strategies. This thought provoking study provides new insights for all investors with a long-term investment horizon.

Download or read book Modern Actuarial Theory and Practice written by Philip Booth and published by CRC Press. This book was released on 2020-12-16 with total page 840 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the years since the publication of the best-selling first edition, the incorporation of ideas and theories from the rapidly growing field of financial economics has precipitated considerable development of thinking in the actuarial profession. Modern Actuarial Theory and Practice, Second Edition integrates those changes and presents an up-to-date, comprehensive overview of UK and international actuarial theory, practice and modeling. It describes all of the traditional areas of actuarial activity, but in a manner that highlights the fundamental principles of actuarial theory and practice as well as their economic, financial, and statistical foundations.

Download or read book Real Estate Investment and Finance written by David Hartzell and published by John Wiley & Sons. This book was released on 2021-01-05 with total page 596 pages. Available in PDF, EPUB and Kindle. Book excerpt: The fully revised and updated version of the leading textbook on real estate investment, emphasising real estate cycles and the availability and flow of global capital Real Estate Investment remains the most influential textbook on the subject, used in top-tier colleges and universities worldwide. Its unique, practical perspective on international real estate investment focusses on real-world techniques which measure, benchmark, forecast and manage property investments as an asset class. The text examines global property markets and real estate cycles, outlines market fundamentals and explains asset pricing and portfolio theory in the context of real estate. In the years since the text’s first publication, conditions in global real estate markets have changed considerably following the financial crisis of 2008-2009. Real estate asset prices have increased past pre-crisis levels, signalling a general market recovery. Previously scarce debt and equity capital is now abundant, while many institutions once averse to acquiring property are re-entering the markets. The latest edition – extensively revised and updated to address current market trends and practices as well as reflect feedback from instructors and students – features new content on real estate development, improved practical examples, expanded case studies and more. This seminal textbook: Emphasises practical solutions to real investing problems rather than complex theory Offers substantial new and revised content throughout the text Covers topics such as valuation, leasing, mortgages, real estate funds, underwriting and private and public equity real estate Features up-to-date sections on performance measurement, real estate debt markets and building and managing real estate portfolios Includes access to a re-designed companion website containing numerous problems and solutions, presentation slides and additional instructor and student resources Written by internationally-recognised experts in capital management and institutional property investing strategies, Real Estate Investment, Second Edition: Strategies, Structures, Decisions is an indispensable textbook for instructors and students of real estate fund management, investment management and investment banking, as well as a valuable reference text for analysts, researchers, investment managers, investment bankers and asset managers.

Download or read book Real Estate Investment written by Colin A. Jones and published by Springer Nature. This book was released on 2022-08-18 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: This textbook, aimed at undergraduate and postgraduate real estate programmes, provides an overview of real estate investment and pricing in a global context with special attention to the diversification of asset types in three parts. Designed as a successor to Will Fraser’s successful student-led investment book, Principles of Property Investment and Pricing, it encompasses the microeconomics of real estate markets and context alongside pricing failures of real estate highlighted by the impact of the global financial crisis, especially with regard to irrationality and risk. Part 1 focuses on the microeconomics of the real estate sector, covering the complex nature of real estate and the consequences for economic analysis and the operation of the market, the underlying essential processes and principles of real estate investment decision making, including a pricing model, and the significance of real estate cycles and why they occur. Part 2 begins with the characteristics of real estate as an investment, differentiated between direct and indirect investment, and making comparisons with alternative stock market assets, then examines real estate investors and their objectives, including financial institutions, REITs and other indirect vehicles. Additionally, it sets out the frameworks within which real estate investment decisions are made in relation to other investments and focuses on decision-making processes and the practicalities of performance measurement. Emerging real estate debates are discussed in Part 3. These chapters are primarily forward-looking to the implications and challenges for real estate investment, including the consequences of recent aspects of regulation, changes to occupier demand, partly driven by technology but also sustainability pressures, the logic and difficulties of international investment, with a particular focus on emerging markets.

Download or read book Rental Property Investing How To Create Wealth And Passive Income Through Buying Holding Real Estate Investing written by Brian Smith and published by THE PUBLISHER. This book was released on 2024-03-08 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: Discover the secrets of rental property investing with this comprehensive guide. In "Rental Property Investing: How To Create Wealth And Passive Income Through Buying & Holding Real Estate Investing," you'll learn everything you need to know to successfully build wealth and generate passive income through real estate. From getting started with real estate investing to identifying profitable rental properties, this book covers all aspects of the investment process. You'll learn about financing options, negotiating purchase agreements, and establishing a rental property business. Additionally, the book provides strategies for maximizing investment returns, scaling your real estate portfolio, and mitigating risks in the industry. Furthermore, "Rental Property Investing" explores exit strategies, including selling investment properties and transitioning to retirement and wealth preservation. The book also examines emerging real estate trends, such as technological innovations, sustainable practices, and short-term rentals. If you're looking to create long-term wealth and generate passive income through real estate, "Rental Property Investing" is the ultimate guide to get you started on your journey.

Download or read book Global Property Investment written by Andrew E. Baum and published by John Wiley & Sons. This book was released on 2012-01-17 with total page 577 pages. Available in PDF, EPUB and Kindle. Book excerpt: Developments in the sophistication of global real estate markets mean that global real estate investment is now being executed professionally. Thanks to academic enquiry, professional analysis and entrepreneurial activity, backed by the globalisation of all investment activity, there is now an available body of material which forms the basis of this scholarly but practical summary of the new state of this art. The measurement, benchmarking, forecasting and quantitative management techniques applied to property investments are now compatible with those used in other asset classes, and advances in property research have at last put the ongoing debate about the role of real estate onto a footing of solid evidence. The truly global scope and authorship of this book is unique, and both authors here are singularly well qualified to summarise the impact and likely future of global innovations in property research and fund management. Between them, they have experienced three real estate crashes, and have observed at first hand the creation of the real estate debt and equity instruments that led to the global crisis of 2008-9. Global Property Investment: strategies, structure, decisions offers a unique perspective of the international real estate investment industry with: a close focus on solutions to real life investment problems no excessive theoretical padding a target of both students and professionals highly qualified dual-nationality authorship With many cases, problems and solutions presented throughout the book, and a companion website used for deeper analysis and slides presentations (see below), this is a key text for higher-level real estate students on BSc, MSc, MPhil and MBA courses worldwide as well as for practising property professionals worldwide in fund management, investment and asset management, banking and real estate advisory firms.

Download or read book Real Estate Finance in the New Economy written by Piyush Tiwari and published by John Wiley & Sons. This book was released on 2014-01-29 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial deregulation of the last quarter century has meant large flows of funds around the world seeking the highest risk-adjusted return for investors. Real estate is now established as an important asset class and advances in information technology provide the necessary tools to complement global developments in real estate finance and investment. A variety of investment vehicles have emerged, andReal Estate Finance in the New Economy examines these along with financing and risk in the context of globalization, deregulation and an increasingly integrated international world economy by exploring questions like: How have real estate financial structures evolved as economies grow and become internationalised? What role do economic change and financial systems play in the development of real estate investment? Are the risks associated with the ‘new economy’ really new? What is the future direction for real estate financing? The authors develop an economic framework for discussions on individual financial products to examine how real estate financial structures change with economic growth and internationalisation and also to show how developments in real estate finance impact economic growth.

Download or read book Investment Procurement and Performance in Construction written by P.S. Brandon and published by Routledge. This book was released on 2005-07-15 with total page 414 pages. Available in PDF, EPUB and Kindle. Book excerpt: The proceedings of a major conference on the built environment ran by the RICS to examine recent research and development in: investment; building procurement and construction; and building performance analysis.

Download or read book Private Real Estate Markets and Investments written by H. Kent Baker and published by Oxford University Press. This book was released on 2014-08-07 with total page 311 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides an overview of private real estate markets and investments. The 14 chapters are divided into three sections for conventional and alternative real estate investments and regulatory issues. Conventional investable real assets examined are retail spaces, apartments, offices, and industrial facilities owned by corporate entities. Alternative real estate assets are uniquely and extensively addressed. These include healthcare, both for facilities and the pricing to make it an investable asset; infrastructure contains roads, bridges, and public utilities; and resources are in land, agriculture, oil, and gas. The regulatory section includes appraisal and valuation, brokerage and transaction costs, sustainability, and green buildings. Readers should gain a greater appreciation of what is needed to be successful when investing in private real estate markets. The share of real estate in institutional portfolios has risen above a previous 5% target, as investors avoid the risks of low interest rates. The world's wealth is shifting to emerging markets where real estate is already a dominant asset class and public securities markets are limited. Institutions with long horizons avoid publicly traded markets because they want to capture any premium from illiquidity. Real estate involves local and cultural restrictions on land usage, sustainability and on the regulation of the illiquidity. For information about public real estate, read Public Real Estate Markets and Investments.

Download or read book Property Investment Theory written by A Macleary and published by Taylor & Francis. This book was released on 2003-09-02 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: This up-to-date reference on property investment highlights the problems with existing techniques of property valuation and appraisal and identifies possible ways forward for both research and practice.

Download or read book The Cross Sectional Dispersion of Commercial Real Estate Returns and Rent Growth written by Alberto Plazzi and published by . This book was released on 2007 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: We estimate the cross-sectional dispersion of returns and growth in net operating income (NOI) of apartments, industrial, retail and office properties using panel data for U.S. metropolitan areas over the period 1986 to 2002. Cross-sectional dispersion is a measure of the total volatility faced by investors in commercial real estate. To the extent that most of that volatility is difficult to diversify, cross-sectional dispersion may be an appropriate measure of risk. We document that for apartments, industrial, retail, and office properties, the cross-sectional dispersions are time-varying. Interestingly, their time series fluctuations can be explained by macroeconomic variables such as the term spread, default spread, inflation, and the short rate, which capture macroeconomic fluctuations. The total volatilities are counter-cyclical and also exhibit an asymmetrically larger response following negative return shocks, which might be due to leverage and credit channel effects. Finally, we find a positive relation between future returns and their cross-sectional dispersion. This total risk-return trade-off suggests that investors indeed demand compensation for being exposed to total volatility in the commercial real estate market.

Download or read book Real Estate Investment written by Andrew Baum and published by Taylor & Francis. This book was released on 2022-09-06 with total page 455 pages. Available in PDF, EPUB and Kindle. Book excerpt: Real Estate Investment: A Strategic Approach introduces professional and technical approaches to building and managing large real estate portfolios. The new edition has been fully rewritten and reorganised and includes five new chapters, 25 new international case studies and a renewed focus on topics such PropTech (property technology), innovation and ESG. Andrew Baum outlines the market and the players who dominate it; the investment process; the vehicles available for investment; and an approach to global portfolio construction, pricing and performance measurement. The book contains many useful features for students, including numerous boxed examples drawing on international cases, a glossary, and chapter summaries. Ideal for undergraduate and postgraduate students on all real estate and property courses and related business studies and finance courses, Real Estate Investment is designed to provide a foundation for the next generation of investment managers, advisers and analysts. Further resources for lecturers and students are available online at www.andrewbaum.com.

Download or read book Investing Amid Low Expected Returns written by Antti Ilmanen and published by John Wiley & Sons. This book was released on 2022-04-14 with total page 310 pages. Available in PDF, EPUB and Kindle. Book excerpt: Elevate your game in the face of challenging market conditions with this eye-opening guide to portfolio management Investing Amid Low Expected Returns: Making the Most When Markets Offer the Least provides an evidence-based blueprint for successful investing when decades of market tailwinds are turning into headwinds. For a generation, falling yields and soaring asset prices have boosted realized returns. However, this past windfall leaves retirement savers and investors now facing the prospect of record-low future expected returns. Emphasizing this pressing challenge, the book highlights the role that timeless investment practices – discipline, humility, and patience – will play in enabling investment success. It then assesses current investor practices and the body of empirical evidence to illuminate the building blocks for improving long-run returns in today’s environment and beyond. It concludes by reviewing how to put them together through effective portfolio construction, risk management, and cost control practices. In this book, readers will also find: The common investor responses so far to the low expected return challenge Extensive empirical evidence on the critical ingredients of an effective portfolio: major asset class premia, illiquidity premia, style premia, and alpha Discussions of the pros and cons of illiquid investments, factor investing, ESG investing, risk mitigation strategies, and market timing Coverage of the whole top-down investment process – throughout the book endorsing humility in tactical forecasting and boldness in diversification Ideal for institutional and active individual investors, Investing Amid Low Expected Returns is a timeless resource that enables investing with serenity even in harsher financial conditions.

Download or read book Rental Housing written by Ira Gary Peppercorn and published by World Bank Publications. This book was released on 2013-03-20 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt: The discussion of where people live and how people pay for their housing has undergone a significant shift. Until the mortgage crisis erupted in 2008, the housing policy of most nations focused on increasing home ownership. There had been very little discussion about rental housing, less about social housing, and virtually none about public housing. The mortgage crisis showed the challenges inherent in pushing for home ownership for all. With homes going into foreclosure and with credit tightening in many countries, the need for rental housing increased dramatically. However, most countries are only beginning to consider supporting rental housing as a shelter option. This book is an effort to bring rental housing to the forefront of the housing agenda and to provide general guidance to policy makers. The information it provides can assist key players in housing markets--government officials, private rental property owners, financiers, and nongovernmental organizations--in including rental housing as a critical housing option and in having an informed discussion on how best to stimulate this sector.