The significance of property type strategy of malaysian real estate investment trust

The performance of Malaysian Real Estate Investment Trust (M-REIT) companies is linked to the property type strategy adopted by each individual company. M-REIT was established a decade ago, yet the outcome in performance difference between the property type strategies of focused and diversified M-RE...

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Main Author:	Tiong, Chai Ping
Format:	Thesis
Language:	English
Published:	2019
Subjects:	NA Architecture
Online Access:	http://eprints.utm.my/id/eprint/81644/1/TiongChaiPingMFABU2019.pdf
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id	my-utm-ep.81644
record_format	uketd_dc
spelling	my-utm-ep.816442019-09-10T01:53:03Z The significance of property type strategy of malaysian real estate investment trust 2019 Tiong, Chai Ping NA Architecture The performance of Malaysian Real Estate Investment Trust (M-REIT) companies is linked to the property type strategy adopted by each individual company. M-REIT was established a decade ago, yet the outcome in performance difference between the property type strategies of focused and diversified M-REIT is still largely unexplored, thus presenting investment information gap for M-REIT managers and investors. The main aim of this study is to identify the property type strategy adopted by M-REIT companies and the performance difference between focused and diversified M-REIT in a mixed asset portfolio. Investment data from 2010 to 2016 of fourteen M-REIT companies were examined. Multiple regression analysis (MRA) was employed to investigate the significant relationship between the financial performance of focused and diversified M-REIT and REIT determinants. The property type strategy was categorized according to the market value of underlying property in the M-REIT property portfolio. The performance of focused and diversified M-REIT was assessed by employing risk-adjusted performance analysis, portfolio diversification analysis, correlation analysis, efficient frontier analysis, and portfolio optimization analysis. The results indicate there were ten focused M-REIT and four diversified M-REIT companies. The findings on riskadjusted performance analysis revealed the superior performance of the diversified M-REIT over the focused M-REIT. However, the diversification analysis showed that both focused and diversified M-REIT offered diversification benefit in a mixedasset portfolio, with the latter contributed higher returns in the mixed asset portfolio than their focused M-REIT counterparts. The results of MRA indicate that for the focused M-REIT, total return and net asset value (NAV) were significantly related to property market value, while total return was significantly related to total property net income. Conversely, for the diversified M-REIT, total return showed no significant relationship with all the determinant factors. However, NAV for diversified M-REIT exhibited a significant relationship with dividend yield and annual risk. Overall, these findings suggest that property type strategy impacts MREIT performance, while property market value and property net income only exhibit a significant relationship with the financial performance of focused M-REIT. 2019 Thesis http://eprints.utm.my/id/eprint/81644/ http://eprints.utm.my/id/eprint/81644/1/TiongChaiPingMFABU2019.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:12658 masters Universiti Teknologi Malaysia Built Environment
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	NA Architecture
spellingShingle	NA Architecture Tiong, Chai Ping The significance of property type strategy of malaysian real estate investment trust
description	The performance of Malaysian Real Estate Investment Trust (M-REIT) companies is linked to the property type strategy adopted by each individual company. M-REIT was established a decade ago, yet the outcome in performance difference between the property type strategies of focused and diversified M-REIT is still largely unexplored, thus presenting investment information gap for M-REIT managers and investors. The main aim of this study is to identify the property type strategy adopted by M-REIT companies and the performance difference between focused and diversified M-REIT in a mixed asset portfolio. Investment data from 2010 to 2016 of fourteen M-REIT companies were examined. Multiple regression analysis (MRA) was employed to investigate the significant relationship between the financial performance of focused and diversified M-REIT and REIT determinants. The property type strategy was categorized according to the market value of underlying property in the M-REIT property portfolio. The performance of focused and diversified M-REIT was assessed by employing risk-adjusted performance analysis, portfolio diversification analysis, correlation analysis, efficient frontier analysis, and portfolio optimization analysis. The results indicate there were ten focused M-REIT and four diversified M-REIT companies. The findings on riskadjusted performance analysis revealed the superior performance of the diversified M-REIT over the focused M-REIT. However, the diversification analysis showed that both focused and diversified M-REIT offered diversification benefit in a mixedasset portfolio, with the latter contributed higher returns in the mixed asset portfolio than their focused M-REIT counterparts. The results of MRA indicate that for the focused M-REIT, total return and net asset value (NAV) were significantly related to property market value, while total return was significantly related to total property net income. Conversely, for the diversified M-REIT, total return showed no significant relationship with all the determinant factors. However, NAV for diversified M-REIT exhibited a significant relationship with dividend yield and annual risk. Overall, these findings suggest that property type strategy impacts MREIT performance, while property market value and property net income only exhibit a significant relationship with the financial performance of focused M-REIT.
format	Thesis
qualification_level	Master's degree
author	Tiong, Chai Ping
author_facet	Tiong, Chai Ping
author_sort	Tiong, Chai Ping
title	The significance of property type strategy of malaysian real estate investment trust
title_short	The significance of property type strategy of malaysian real estate investment trust
title_full	The significance of property type strategy of malaysian real estate investment trust
title_fullStr	The significance of property type strategy of malaysian real estate investment trust
title_full_unstemmed	The significance of property type strategy of malaysian real estate investment trust
title_sort	significance of property type strategy of malaysian real estate investment trust
granting_institution	Universiti Teknologi Malaysia
granting_department	Built Environment
publishDate	2019
url	http://eprints.utm.my/id/eprint/81644/1/TiongChaiPingMFABU2019.pdf
_version_	1747818378889789440

The significance of property type strategy of malaysian real estate investment trust

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