| Abstract [eng] |
Real estate market stability is crucial for the well-being of the economy, thus any future innovation in this sector should be due-diligently analyzed before adaptation. One investment vehicle that has been left behind in Europe is “Real estate investment trust” (REIT). In short, it is a company that primarily conducts business in real estate and has unique governing laws. Since real estate market stability is crucial for the economy and the well-being of the society, before recommending adopting “REIT” company type, related risk to such companies should be analyzed. Therefore, the aim of this dissertation is to evaluate how REITs impact the real estate market stability by comparing performance differences between REITs and REOCs. This dissertation uses different modelling techniques like DEA analysis, GJR-GARCH and regression models to better understand firm efficiency, interest rate or market sensitivity and shock persistency on both micro and macro scales. The results of the final stability impact factor indicate that REIT were more liquid than REOC companies, countrywide had better stock returns, gave better dividends, and had less variance in most cases than REOC companies. However, in many cases REIT companies exhibited higher market and interest sensitivity, more severe shock persistency, were less efficient on a firm level and was more correlated with the market movements. This suggests that one investment company type cannot simply be interchanged for all purpose, and that future markets should carefully consider the strengths and weakness of both companies when adopting them. |
