Evolution of REITs in the Nigerian real estate market

IF 1.6 Q3 BUSINESS, FINANCE
D. Dabara
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引用次数: 7

Abstract

PurposeThis study aims to examine the performance of real estate investment trusts (REITs) in emerging property markets. The paper used the Nigerian REIT (N-REIT) as a case study of an African REIT market, to provide information for investment decisions.Design/methodology/approachSeven years quarterly returns data (from 2013 to 2019) were obtained and used to analyse the holding period returns, return–risk ratio, coefficient of variation and Sharpe ratios of N-REIT, All Share Index of stocks (ASI) and the Federal Government Bonds (FGB) in Nigeria.FindingsThe study reveals that N-REIT outperformed stocks but underperformed bonds. Concerning risk, stocks provided the highest level of risk (7.69), followed by bonds (2.78), while N-REIT provided the lowest risk (2.7). The Sharpe ratios showed that N-REIT is the second-best performing asset, while bond is the first and stocks the last on the risk-adjusted basis.Practical implicationsN-REIT is the second-largest REIT market in Africa with a market capitalisation of about US$136m. The N-REIT market has provided investment benefits to institutional and individual investors such as liquidity, transparency and ease of transaction. This study shows the peculiarity of N-REITs; this can guide investors in making informed investment decisions.Originality/valueThis study is one of the first to empirically analyse in a comparative context, the risk-adjusted performance of N-REITs, ASI and FGB. The study will add to the limited research in this field and equip investors with valuable information for informed investment decisions.
REITs在尼日利亚房地产市场的演变
目的本研究旨在考察房地产投资信托基金(REITs)在新兴房地产市场中的表现。本文使用尼日利亚房地产投资信托基金(N-REIT)作为非洲房地产投资基金市场的案例研究,为投资决策提供信息。设计/方法/方法获得了七年的季度回报数据(2013年至2019年),并用于分析尼日利亚N-REIT、全股票指数(ASI)和联邦政府债券(FGB)的持有期回报、回报风险比、变异系数和夏普比率。在风险方面,股票提供的风险最高(7.69),其次是债券(2.78),而N-REIT提供的风险最低(2.7)。夏普比率显示,在风险调整的基础上,N-REIT是表现第二好的资产,而债券是第一,股票是最后。实际含义N REIT是非洲第二大REIT市场,市值约1.36亿美元。N-REIT市场为机构和个人投资者提供了投资收益,如流动性、透明度和交易便利性。本研究揭示了N-REITs的特殊性;这可以指导投资者做出明智的投资决策。原创性/价值本研究是第一个在比较背景下实证分析N-REITs、ASI和FGB的风险调整绩效的研究之一。这项研究将增加该领域的有限研究,并为投资者提供有价值的信息,以便做出明智的投资决策。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
3.50
自引率
23.10%
发文量
33
期刊介绍: Fully refereed papers on practice and methodology in the UK, continental Western Europe, emerging markets of Eastern Europe, China, Australasia, Africa and the USA, in the following areas: ■Academic papers on the latest research, thinking and developments ■Law reports assessing new legislation ■Market data for a comprehensive review of current research ■Practice papers - a forum for the exchange of ideas and experiences
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