Bank Failures and REIT Returns

This study reexamines whether real estate investment trusts (REITs) behave more like equities than direct real estate durint a crisis. Bredin, O'Reilly, and Stevenson (2007) analyze monetary rate increases as external shocks that increase the price of liquidity. This study investigates bank fai...

Full description

Saved in:
Bibliographic Details
Published inThe journal of real estate portfolio management Vol. 18; no. 1; pp. 1 - 22
Main Authors Raudszus, Malte H., Olliges, Jan-Willem, Mueller, Glenn R.
Format Journal Article
LanguageEnglish
Published Boston American Real Estate Society 01.01.2012
Taylor & Francis Ltd
Subjects
Abnormal returns
Bank assets
Bank failures
Bank liquidity
Banking
Banking crises
Economic crisis
Equity
GDP
Gross Domestic Product
Hypotheses
Investigations
Investment risk
Investments
Monetary policy
Portfolio management
Prices
Real estate economics
Real estate investment trusts
Regulation of financial institutions
REITs
Securities markets
Securitization
Stochastic models
Stock exchanges
Studies
T tests
Volatility
United States > US
Online AccessGet full text

Cover

More Information
Summary:This study reexamines whether real estate investment trusts (REITs) behave more like equities than direct real estate durint a crisis. Bredin, O'Reilly, and Stevenson (2007) analyze monetary rate increases as external shocks that increase the price of liquidity. This study investigates bank failures, which can be contagious as an internal shock that may decrease liquidity. The results show that equity REITs in general and especially retail, residential, and healthcare REITs experience positive abnormal returns relative to common equities. This return implies that market participants regard equity REITs more like direct real estate, which may qct as a "safe haven" during turbulent times. In contrast, indirect real estate investments like mortgage REITs devalue.
ISSN:1083-5547
2691-1205
DOI:10.1080/10835547.2012.12089918