Performance Analysis of Diversified REITs: The Role of the Logistic Exposure

Chapter

Abstract

Diversified REITs invests in assets with performance not significantly correlated in order to obtain the advantages related to a diversification strategy. Logistics does not represent the main asset class in the portfolio of diversified real estate investment vehicles but a lot a REITs have an exposure on such asset class. This chapter considers diversified REITs and evaluates the impact of different exposure to logistics on the performance and the risk of the real estate investment vehicle. Results show that the size of the exposure on this segment of real estate affect the performance and the risk of the REIT and also the persistence over time of the results achieved.

Keywords

REITs Diversitied REITs Logistics exposure Return Persistence Capital asset pricing model Fama & french model Carhart model 

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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

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