Are REIT Returns Hedgeable?

Posted: 22 Oct 1998

See all articles by Arjun Chatrath

Arjun Chatrath

University of Portland - Dr. Robert B. Pamplin, Jr. School of Business Administration

Youguo Liang

Prudential Real Estate Investors

Michael J. Seiler

Hawaii Pacific University - Department of Finance

Abstract

This study examines the ability of existing futures contracts to hedge the returns on real estate investment trusts (REITs). The results from various hedging strategies suggest that existing futures contracts do not provide the means to effectively hedge REIT returns. REITs could remain unhedgeable until futures contracts written specifically on REITs are developed.

JEL Classification: G13, G23

Suggested Citation

Chatrath, Arjun and Liang, Youguo and Seiler, Michael J., Are REIT Returns Hedgeable?. Available at SSRN: https://ssrn.com/abstract=126008

Arjun Chatrath

University of Portland - Dr. Robert B. Pamplin, Jr. School of Business Administration ( email )

Portland, OR 97203
United States
503-283-7465 (Phone)

Youguo Liang

Prudential Real Estate Investors ( email )

8 Campus Drive, 4th Floor
Parsippany, NJ 07054
United States
973-683-1765 (Phone)
973-683-1788 (Fax)

Michael J. Seiler (Contact Author)

Hawaii Pacific University - Department of Finance ( email )

1132 Bishop Street, Suite 504
Honolulu, HI 96813
United States
808-544-1827 (Phone)
808-544-9306 (Fax)

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