| Title |
Is the rest of the EU missing out on REITs? / |
| Authors |
Grybauskas, Andrius ; Pilinkiene, Vaida |
| DOI |
10.1108/EJMBE-06-2019-0092 |
| Full Text |
|
| Is Part of |
European journal of management and business economics.. Bingley : Emerald. 2020, vol. 29, iss. 1, p. 110-122.. ISSN 2444-8451. eISSN 2444-8494 |
| Keywords [eng] |
efficiency ; DEA ; REITs ; real estate ; REOCs |
| Abstract [eng] |
Purpose – The purpose of this paper is to investigate whether real estate investment trusts (REITs) have any significant cost-efficiency advantages over real estate operating companies (REOCs). Design/methodology/approach – The data for listed companies were extracted from the Bloomberg terminal. The authors analyzed financial ratios and conducted a non-parametric data envelope analysis (DEA) for 534 firms in the USA, Canada and some EU member states. Findings – The results suggest that REITs were much more cost-efficient than REOCs by all the parameters in the DEA model during the entire three-year period under consideration. Although the debt-to-equity levels were similar, REOCs were more relying on short-term than long-term maturities, which made them more vulnerable against market corrections or shocks. Being larger in asset size did not necessarily guarantee greater economies of scale. Both – the cases of increasing economies of scale and diseconomies – were detected. The time period 2015–2017 showed the general trend of decreasing efficiency. riginality/value – Very few papers on the topic of REITs have attempted to find out whether a different firm structure displays any differences in efficiency. Because the question of REITs and sustainable growth of the real estate market has become a prominent issue, this research can help EU countries to consider the option of adopting a REIT system. If this system were successfully implemented, the EU member states could benefit from a more sustainable and more rapid growth of their real estate markets. |
| Published |
Bingley : Emerald |
| Type |
Journal article |
| Language |
English |
| Publication date |
2020 |
| CC license |
|
