Factor Affecting the Performance of REITs: An Evidence from Different Markets

Abstract

This paper investigates the factors that can affect the Real Estate Investment Trust (REIT)’s performance, paying particular attention to REITs’ in nascent, emerging, developed markets. Sample of 21 listed REITs are selected from five countries of nascent, emerging, developed markets namely Pakistan, Malaysia, Thailand, Singapore and Hong Kong for 10 years basis from 2008 to 2018 with 350 observations. Study used Net Asset value (NAV) as the proxy for REITs performance while internal factors namely dividend yield, net income and size, the external factors used are stock index, inflation and interest rate. Applying multiple regression analysis, the results provide positive association of NAV with dividend yield, net income, size, inflation and stock index while negative relationship of interest rate with NAV. Results of this study are helpful for the investors and portfolio managers to expand their marketwise understanding of the influential factors that affect the performance of REITs.

Keywords: Net asset value (NAV), Real Estate Investment Trust (REITs), Interest rate and Dividend Yield, inflation, Pakistan