Abstract
A-REITs have previously been highly successful indirect property investment vehicles in Australia. However, the global financial crisis has had a significant impact on the performance of A-REITs in 2007-09. This has seen the factors of international property exposure, high debt levels and stapled securities structures having an impact on A-REIT performance. This paper assesses the changing risk profile and portfolio diversification benefits of A-REITs over 1996-2008, specifically identifying the impact of international property, high gearing and property development activities on the performance and risk profile of A-REITs in the current global credit crisis. The impact of high gearing is seen to be the most critical factor in recent A-REIT under-performance.
| Original language | English |
|---|---|
| Pages (from-to) | 453-471 |
| Number of pages | 19 |
| Journal | Pacific Rim Property Research Journal |
| Volume | 15 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2009 |
Keywords
- Australia
- Global Financial Crisis, 2008-2009
- impact analysis
- portfolio diversification
- real estate investment
- real estate investment trusts
- securities
