Artikel
Is the rest of the EU missing out on REITs?
Purpose The purpose of this paper is to investigate whether real estate investment trusts (REITs) have any significant cost-efficiency advantages over real estate operating companies (REOCs). Design/methodology/approach The data for listed companies were extracted from the Bloomberg terminal. The authors analyzed financial ratios and conducted a non-parametric data envelope analysis (DEA) for 534 firms in the USA, Canada and some EU member states. Findings The results suggest that REITs were much more cost-efficient than REOCs by all the parameters in the DEA model during the entire three-year period under consideration. Although the debt-to-equity levels were similar, REOCs were more relying on short-term than long-term maturities, which made them more vulnerable against market corrections or shocks. Being larger in asset size did not necessarily guarantee greater economies of scale. Both - the cases of increasing economies of scale and diseconomies - were detected. The time period 2015-2017 showed the general trend of decreasing efficiency. Originality/value Very few papers on the topic of REITs have attempted to find out whether a different firm structure displays any differences in efficiency. Because the question of REITs and sustainable growth of the real estate market has become a prominent issue, this research can help EU countries to consider the option of adopting a REIT system. If this system were successfully implemented, the EU member states could benefit from a more sustainable and more rapid growth of their real estate markets.
- Language
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Englisch
- Bibliographic citation
-
Journal: European Journal of Management and Business Economics (EJM&BE) ; ISSN: 2444-8451 ; Volume: 29 ; Year: 2020 ; Issue: 1 ; Pages: 110-122 ; Bingley: Emerald
- Classification
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Management
- Subject
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Efficiency
DEA
REITs
Real estate
REOCs
- Event
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Geistige Schöpfung
- (who)
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Grybauskas, Andrius
Pilinkiene, Vaida
- Event
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Veröffentlichung
- (who)
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Emerald
- (where)
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Bingley
- (when)
-
2020
- DOI
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doi:10.1108/EJMBE-06-2019-0092
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Grybauskas, Andrius
- Pilinkiene, Vaida
- Emerald
Time of origin
- 2020
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