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Paper eres2004_217:
The effects of management structure on the performance of listed property trusts

id eres2004_217
authors Tan Yen Keng
year 2004
title The effects of management structure on the performance of listed property trusts
source 11th European Real Estate Society Conference (2-5 June 2004) Milano, Italy
summary 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.
keywords Listed Property Trust (LPT); Real Estate Investment Trust (REIT); property trust management structure; internally managed structure; externally managed structure; performance analysis
series ERES:conference
email y.tan@uws.edu.au
discussion No discussions. Post discussion ...
ratings
session Performance and Valuation of Real Estate Securities
last changed 2008/12/21 10:41
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