Externally advised real estate investment trusts [abstract]

MOspace/Manakin Repository

Breadcrumbs Navigation

Externally advised real estate investment trusts [abstract]

Please use this identifier to cite or link to this item: http://hdl.handle.net/10355/1547

[+] show full item record


Title: Externally advised real estate investment trusts [abstract]
Author: Adams, Bridgette; Howe, John S.
Contributor: University of Missouri-Columbia. Office of Undergraduate Research
Keywords: Real estate investment trusts (REITs)
asset management
compensation schema
Date: 2007
Publisher: University of Missouri--Columbia. Office of Undergraduate Research
Abstract: Real estate investment trusts (REITs) are companies that invest in real estate, which can be commercial, residential, health-related, etc. Because REITs pay out at least 90% of their profit in dividends they do not have to pay corporate tax. In order for REITs to operate efficiently they hire advisors to find, evaluate, and manage their properties. In general, REITs have the option of hiring internal or external advisors. External advisors are separate companies that can manage properties for more than one REIT. On average over the last 30 years, REITs that use external advisors have performed 6% worse per year, compared to REITs with internal advisors. In my research I examined the idea that compensation schemes change depending on the type of assets being managed. In order to do this I looked at quarterly reports for a list of REITs that used external advisors up until November 2006. Then I organized the compensation schemes into seven categories and analyzed this information to find any patterns. I did not find significant evidence that there is a relation between the type of REIT and external advisors' compensation schemes. In conclusion, I failed to reject the null hypothesis: REIT compensation schemes do not depend on the type of assets under management.
URI: http://hdl.handle.net/10355/1547

This item appears in the following Collection(s)

[+] show full item record