Real Estate Investment Trusts: Structure, Performance, and Investment Opportunities (Financial Management Association Survey and Synthesis Series) 
asked by bigwinner on November 10, 2006 12:51 AM
The book offers broad understanding and unique insights into the REITs industry. Its scope is to analyze and synthesize the existing scholarly research on REITs in a way that will enable managers to improve their investments decisions and the operating performance of their REITs. It also provides up-to-date original research on REITs based on the authors' own database, which is the most extensive data base available on REITs that is free of suvivorship bias. This book helps investors evaluate REITs and identify those with the greatest investment potential. Finally, it provides the reader with a detailed discussion of likely future changes anticipated for this unique invetment vehicle.
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This book is the most authoritative analysis and synthesis of modern scholarly research on different complicated issues surrounding REITs. No currently available books can examine this investment vehicle as comprehensive and organised as this one.
This book consists of 12 chapters that provide readers with full understanding on how to manage and invest in REITs. Chan et al suggest that REIT stocks are different from real estate investment because investors should judge the value of a REIT stock not only by the assets it holds but also by its organisational structure (traditional vs UPREITs), management style (externally advised vs internally advised REITs), and growth strategy (diversification vs focus). They conclude that equity and mortgage REITs remain an attractive long-term investment vehicles because of their high dividend-payout ratios that generate a more stable income stream when the overall stock market is down and interest rates are low. However, investors should avoid purchasing stocks in the IPO market because the initial-day return of REIT IPOs is far lower than non-REIT stocks. In other words, REIT stocks seldom perform well in the short run.
Chan et al also suggest that REITs with significant investment from institutional investors and adoption of a focused investment strategy will offer more potential opportunities for investors to earn above-average profits. However, they do not recommend investors to buy captive REIT stocks because the sponsor-shareholder conflict will lower the value of the REIT.
This book has its limitation because it was published in 2003. The REIT concept has been becoming very hot in overseas real estate markets, particularly in Europe and Asia. For instance, US REIT players such as GE Capital, ABM, Morgan Stanley, and Goldman Sachs have undertaken active property investments in Japan, China, and Hong Kong. I highly recommend Chan et al to add 1 or 2 chapters on investment strategy in emerging markets and the laws and regulations that circumscribe activities in these markets to their next edition.
This book consists of 12 chapters that provide readers with full understanding on how to manage and invest in REITs. Chan et al suggest that REIT stocks are different from real estate investment because investors should judge the value of a REIT stock not only by the assets it holds but also by its organisational structure (traditional vs UPREITs), management style (externally advised vs internally advised REITs), and growth strategy (diversification vs focus). They conclude that equity and mortgage REITs remain an attractive long-term investment vehicles because of their high dividend-payout ratios that generate a more stable income stream when the overall stock market is down and interest rates are low. However, investors should avoid purchasing stocks in the IPO market because the initial-day return of REIT IPOs is far lower than non-REIT stocks. In other words, REIT stocks seldom perform well in the short run.
Chan et al also suggest that REITs with significant investment from institutional investors and adoption of a focused investment strategy will offer more potential opportunities for investors to earn above-average profits. However, they do not recommend investors to buy captive REIT stocks because the sponsor-shareholder conflict will lower the value of the REIT.
This book has its limitation because it was published in 2003. The REIT concept has been becoming very hot in overseas real estate markets, particularly in Europe and Asia. For instance, US REIT players such as GE Capital, ABM, Morgan Stanley, and Goldman Sachs have undertaken active property investments in Japan, China, and Hong Kong. I highly recommend Chan et al to add 1 or 2 chapters on investment strategy in emerging markets and the laws and regulations that circumscribe activities in these markets to their next edition.
reviewed by corral on November 11, 2006 6:21 PM