Performance Analysis of Focused REITs: Logistic vs. Other REITs

  • Gianluca Mattarocci
  • Dilek Pekdemir


Focused REITs represent a significant share of the world REIT market and nowadays managers are moving from the investment only in the key sectors (like office, retail and residential) into new segments of the real estate market. The chapter considers REITs specialized in one type of real estate asset and compares the performance of those focused on logistics with respect to the others. Results show that the risk –return profile related to a portfolio focused on this type of assets are among the best investment opportunities available even if the persistence over time of the results over time is lower than other real estate segments.


REITs Diversification Specialization Return Persistence Capital asset pricing model Fama & french model Carhart model 


  1. Allen, M. T., Madura, J., & Springer, T. M. (2000). REIT characteristics and the sensitivity of REIT returns. Journal of Real Estate Finance & Economics, 21(2), 141–153.CrossRefGoogle Scholar
  2. Benefield, J. D., Anderson, R. I., & Zumpano, L. V. (2009). Performance differences in property-type diversified versus specialized real estate investment trusts (REITs). Review of Financial Economics, 18(2), 70–79.CrossRefGoogle Scholar
  3. Bond, S. A., & Patel, K. (2003). The conditional distribution of real estate returns: Are higher moments time varying? Journal of Real Estate Finance & Economics, 26(2/3), 319–339.CrossRefGoogle Scholar
  4. Brounen, D., & De Koning, S. (2014). 50 years of real estate investment trusts: An international examination of the rise and performance of reits. Journal of Real Estate Literature, 20(2), 197–223.Google Scholar
  5. Capozza, D. R., & Schwann, G. M. (1990). The value of risk in real estate markets. Journal of Real Estate Finance & Economics, 3(2), 117–140.CrossRefGoogle Scholar
  6. Capozza, D. R., & Seguin, P. J. (1999). Focus, transparency and value: The reit evidence. Real Estate Economics, 27(4), 587–619.CrossRefGoogle Scholar
  7. Capozza, D. R., & Lee, S. (1995). Property type, size and reit value. Journal of Real Estate Research, 10(4), 363–379.Google Scholar
  8. Carhart, M. M. (1997). On persistence in mutual fund performance. Journal of Finance, 52(1), 57–82.CrossRefGoogle Scholar
  9. Cronqvist, H., Högfeldt, P., & Nilsson, M. (2001). Why agency costs explain diversification discounts. Real Estate Economics, 29(1), 85–126.CrossRefGoogle Scholar
  10. Chui, A. C. W., Titman, S., & Wei, K. C. J. (2003). The cross section of expected reit returns. Real Estate Economics, 31(3), 451–479.CrossRefGoogle Scholar
  11. Fama, E., & French, K. (1993). Common risk factors in the returns on stocks and bonds. Journal of Financial Economics, 33(1), 3–56.CrossRefGoogle Scholar
  12. Ferris S.P., & Sarin A. (1997). Security Analyst Following, and Corporate Diversification Discount. Purdue University Working Paper.Google Scholar
  13. Geltner, M. D., & Miller, N. G. (2001). Commercial Real Estate Analysis and Investments. Cincinnati: Thompson South-Western.Google Scholar
  14. Graff, R., & Young, M. (1997). Serial persistence in equity reit returns. Journal of Real Estate Research, 14(3), 183–214.Google Scholar
  15. Gyourko, J., & Nelling, E. (1996). Systematic risk and diversification in the equity reit market. Real Estate Economics, 24(4), 493–515.CrossRefGoogle Scholar
  16. Heaton, J. B. (2002). Managerial optimism and corporate finance. Financial Management, 31(2), 33–45.CrossRefGoogle Scholar
  17. Hutson, E., & Stevenson, S. (2008). Asymmetry in reit returns. Journal of Real Estate Portfolio Management, 14(2), 105–123.Google Scholar
  18. Khoo, T., Hatrzell, D., & Hoesli, M. (1993). An investigation of the change in real estate investment trust betas. Journal of the American Real Estate & Urban Economics Association, 21(2), 107–130.CrossRefGoogle Scholar
  19. Myer, F. C. N., & Webb, J. R. (2000). Management styles of reit funds. Journal of Real Estate Portfolio Management, 6(4), 339–348.Google Scholar
  20. Nelling, E., & Gyourko, J. (1998). The predictability of equity reit returns. Journal of Real Estate Research, 16(3), 251–268.Google Scholar
  21. Rotemberg, J. J., & Saloner, G. (1994). Benefits of narrow business strategies. American Economic Review, 84(5), 1330–1349.Google Scholar
  22. Sharpe, W. F. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. Journal of Finance, 19(3), 425–442.Google Scholar
  23. Sivitanides P.S. (1996). “Property-type diversification in real estate portfolios: Multi-period return measures vs single-period return measures”. Journal of Real Estate Portfolio Management.Google Scholar
  24. Zhou, X., & Ziobrowski, A. J. (2009). An investigation into REIT performance persistency. Journal of Property Research, 26(2), 149–170.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2017

Authors and Affiliations

  1. 1.Department of Management and LawUniversity of Rome Tor VergataRomeItaly
  2. 2.Real Estate Development DepartmentIstanbul Technical UniversityTaksim-İstanbulTurkey

Personalised recommendations