Eres : Digital Library : Works

Paper eres2015_177:
The Effect of Interest Rates Changes on Listed Real Estate Companies

id eres2015_177
authors Woltering, Rene-Ojas
year 2015
title The Effect of Interest Rates Changes on Listed Real Estate Companies
source 22nd Annual European Real Estate Society Conference in Istanbul, Turkey
summary This paper examines the effect of interest rate changes on the performance of listed real estate companies. The motivation for the analysis is based on the idea that interest rate changes are negatively related to a) the relative attractiveness of equities compared to other asset classes such as fixed income or the money market, b) the prices of the underlying properties of the listed real estate companies, and c) the operating performance of listed real estate companies as the costs of debt rise. The analysis is based on monthly data over the 2000 to 2014 period for a global panel of 9 regions. This rich setting offers substantial heterogeneity in interest rates across time and countries. In additional analysis I investigate the effect of interest rates on relative price measures such as the discount or premium to NAV. Furthermore, I account for foreign currency effects by considering both, the perspective of an unhedged US-investor and the perspective of an investor that only makes hedged investments.
keywords REITS, Real Estate Stocks, International Real Estate, Interest Rates
series ERES:conference
type paper session
discussion No discussions. Post discussion ...
session International Real Estate
last changed 2015/07/08 18:06
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