A-REITs value relevance of performance measures: net income, funds from operations and fair value of investment property

William Sarpong-Oti; Hassan F. Gholipour; Jufri Marzuki; Fredrick Chege

doi:10.2478/remav-2025-0021

A-REITs value relevance of performance measures: net income, funds from operations and fair value of investment property

William Sarpong-Oti
, Hassan F. Gholipour
, Jufri Marzuki
, Fredrick Chege

School of Business

Western Sydney University

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

202 Downloads (Pure)

Abstract

This study investigates value relevance of three-performance measures (net income (NI), funds from operations (FFO), and fair values on investment property (FVIP) on stock prices of Australian Real Estate Investment Trusts (A-REITs). Using data from A-REITs over the period 2012-2021 and estimating a panel system Generalized Method of Moments (GMM), results suggest that of the three, only net income is significantly and positively related to the stock prices of A-REITs. The implication of this study for investors and fund managers is that net income is the most important accounting number that investors look for in the financial statements of A-REITs.

Original language	English
Pages (from-to)	1-10
Number of pages	10
Journal	Real Estate Management and Valuation
Volume	33
Issue number	3
DOIs	https://doi.org/10.2478/remav-2025-0021
Publication status	Published - 1 Sept 2025

Bibliographical note

Publisher Copyright:
© 2025 William Sarpong-Oti et al., published by Sciendo.

Keywords

Australian Real Estate Investment Trusts (A-REITs)
fair value of investment property
funds from operations
net Income

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10.2478/remav-2025-0021Licence: CC BY

Full textFinal published version, 454 KBLicence: CC BY

Cite this

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abstract = "This study investigates value relevance of three-performance measures (net income (NI), funds from operations (FFO), and fair values on investment property (FVIP) on stock prices of Australian Real Estate Investment Trusts (A-REITs). Using data from A-REITs over the period 2012-2021 and estimating a panel system Generalized Method of Moments (GMM), results suggest that of the three, only net income is significantly and positively related to the stock prices of A-REITs. The implication of this study for investors and fund managers is that net income is the most important accounting number that investors look for in the financial statements of A-REITs.",

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A-REITs value relevance of performance measures: net income, funds from operations and fair value of investment property

Abstract

Bibliographical note

Keywords

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