Open AccessINVESTMENT STYLES OF REIT PROPERTY PORTFOLIOS
Author(s) -
Chor Heng Tan,
Kien Hwa Ting
Publication year - 2021
Publication title -
planning malaysia
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.232
H-Index - 7
eISSN - 1675-6215
pISSN - 0128-0945
DOI - 10.21837/pm.v19i17.984
Subject(s) - real estate investment trust , diversification (marketing strategy) , investment style , real estate , investment (military) , business , investment management , style investing , risk–return spectrum , portfolio , investment strategy , return on investment , investment performance , style analysis , financial economics , finance , economics , open ended investment company , asset allocation , microeconomics , marketing , production (economics) , politics , political science , market liquidity , law
Investment style, comprising generic-style and specific-style, is the real estate investment management approach adopted by REIT management in guiding the construction of their portfolios. These portfolios would have distinctive return and risk performance reflecting the stated risk and return underlying the investment vision. Using quantitative and qualitative approaches, this study identified the investment style of each M-REIT listed on Bursa Malaysia. Using the generic-style criteria and analysis, M-REITs are found to have pursued passive and value strategies aided by a top-down approach to their property portfolio management. Whilst results of the specific style analysis show that core portfolios have produced a lower risk-return ratio compared to value-added and opportunistic portfolios. These findings will benefit investors by guiding their investment decision making in constructing their investment portfolios and also in deciding ways to achieve diversification.