R E I T Organizational Structure and Operating Characteristics

Topics:
Real Estate Portfolio Management
Tags:
Business Operations,
Finance,
Investment,
Organizational Structure,
Real Estate,
REIT
Source:
California State University, Fullerton - College of Business and Economics

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Overview: The article asserts that as a corporate organizational form, real estate investment trusts (REITs) fall into two competing property management structures: internally advised and externally advised. This study tests the hypothesis that, due to their superior ability to resolve conflicts of interests between REIT management and shareholders, internally-advised REITs will dominate the externally-advised REITs. We also test the hypothesis that larger REITs will come to dominate the market and find support for this hypothesis. The results confirm that externally-advised REITs are responding to market pressure to conform to the performance standards set by newer, internally-advised REITs.

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Format: PDF | Size: 107KB | Date: Jan 2001 | Pages: 22


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