Technology and REITs
More REITs are now integrating technology into many aspects of their businesses, both to optimize their internally focused operations as well as customer-facing operations. By way of example, companies focused on a customer experience are harnessing the power of technology and using data and analytics to adapt to the needs of their customers based on data collected in real time.
Understanding how to adapt traditional business models to the changing technology landscape has been a worthy exercise for companies willing to make the investment. In some cases, technology is enabling business models that were not previously viable. For those who don’t embrace these advances in technology, it may become a competitive disadvantage.
Global REIT Markets
Globally, the real estate and investment trust (REIT) concept is gathering pace. There are now 37 REIT markets with a total market cap of approximately US$1.7t. In all jurisdictions, REITs are creatures of the tax code, with aspects unique to each country. Many commonalities do exist; however, many of the younger jurisdictions are still in their early stages of organization, which means further developments are necessary to make use of the legislation. As part of this evolution, we have seen significant interest from delegates associated with new regimes looking to expand their knowledge of the REIT concept by better understanding both market developments and various financing and structuring alternatives utilized by more mature REIT markets, in effect, offering a shortcut to a fully functional market.
EY’s REIT jurisdiction maturity assessment is an attempt to group REIT markets around their evolution and identify themes common to many. Australia and the UK, among others, are edging closer to being considered mature markets.
Internal vs. External Management Structures EY January 2018 The recent trend toward management and fee structures that better mirror global best practice in the real estate funds’ world will likely make externally managed REITs a more competitive alternative than they have been in the past.
Two emerging trends will have important consequences for many REIT markets:
As the REIT concept has gained global traction, there are more markets where the external concept is either a requirement or considered the default structure — Japan, India (required), Singapore, Hong Kong (default). Externally managed structures are evolving by addressing fee, conflicts of interest and, where appropriate, liquidity issues by mirroring successful fund models.
ASX Funds Monthly Update
A comprehensive report on the following sectors, A-REITs, infrastructure funds, listed investment companies and trusts and exchange traded products. The report provides performance matrix and trading activity for A-REITs.
BDO A-REIT Survey 2015
Australian real estate investment trusts (A-REITs) have delivered a strong performance in the 12 months to 30 June 2015, up 9.2% on last year’s annual returns, to 20.2%.
BDO’s 21st annual A-REIT Survey has examined and ranked the performance of A-REITs, and looked at why the sector is currently delivering such strong returns.
The Role Of Sponsor And External Management On The Capital Structure Of Asian-Pacific REITs: The Case Of Australia, Japan, And Singapore
Dong Chen, Yanmin Gao, Mayank Kaul, Charles K. Leung, Desmond Tsang
This paper studies how the presence of sponsor and external management affect leverage and debt maturity decisions in three major Asian-Pacific REIT markets: Australia, Japan and Singapore. The results indicate that sponsored REITs opt for higher levels of leverage and loans with longer maturity. On the contrary, externally managed REITs are associated with lower leverage and loans with shorter maturity. The results are robust to the inclusion of other firm variables and to alternative specifications. Subsequent to the financial crisis, the impact of sponsorship on debt financing decisions has diminished, and borrowing of externally managed REITs is further constrained.
BDO A-REIT Survey
The 20th annual BDO A-REIT Survey examines and ranks the performance of ASX listed A-REITs, over the 12-month period ending 30 June 2014 based a range of financial criteria ( Yield, NTA, Tax deferred etc) and investment criteria (total returns 1 and 3 years etc). BDO also interview key personnel within the top performing A-REITs, and ask them to share their outlook for the year ahead, as well as outline the challenges they see for the sector.
Insights On Real Estate Investment Trusts – A Global Overview Of The REIT Regimes
The popularity of Real Estate Investment Trusts (REITs) and similar vehicles demonstrates the strong and still growing demand for tax efficient, liquid and transparent vehicles for investing in real estate. This document aims to summarize the key regulatory, tax and legal rules for the establishment and operation of REITs or their local equivalent in all of the major jurisdictions of the world that have introduced such a regime. The information is intended to be a guide only and should not be relied on for investment decisions, as the rules are liable to regular amendment and local interpretation. It is intended to be an overview of the position in each country, enabling a quick understanding of the type of regime in operation and how it compares to other regimes in the region or more widely. The information contained in this report was current as of 30 November 2014.
Asia Pacific Listed Real Estate: A Contextual Performance Analysis
Alex Moss & D R Annisa Dian Prima
This paper seeks to provide a better understanding of the performance of listed Asia Pacific real estate, the factors which determine this performance and current and potential roles and applications within portfolio management. Throughout this paper we focus primarily on the Asia Pacific region, that is Asia plus Australia and New Zealand.
Compare And Contrast: Worldwide Real Estate Investment Trust (REIT) Regimes
This publication keeps you up to speed and lets you compare the key attributes of selected REIT regimes across the globe. The information contained in this report was current as of May 2013.
The Investment Characteristics And Benefits Of Asian REITs For Retail Investors
Professor Graeme Newell
The report explains what a REIT is, the investment characteristics and benefits of Asian REITs, what distinguishes REITs from stocks and bonds, and how Asian REITs have performed.
How To Choose Listed Or Unlisted Commercial Property
Pooled investments via either listed or unlisted vehicles are the most direct ways to invest in commercial property, but which is better? Well, the unlisted versus listed commercial property trust contest is no cage match where two trusts enter and only one leaves. Instead, the one you pick depends on your circumstances and risk profile. The AFR SmartInvestor puts both forms of real estate investing under the spotlight.