Diversification and Property Control Impact on the Performance of Brazilian REITs

Autores

DOI:

https://doi.org/10.22478/ufpb.2318-1001.2020v8n1.44848

Resumo

The Brazilian Real Estate Investment Trusts (REITs) had a market capitalization of 20.2 billion dollars on July 31, 2018, and is a constantly growing market, according to the Brazilian Association of Financial and Capital Market Entities (ANBIMA). This paper seeks to analyse property-type diversification and property control management strategies in the performance of Brazilian REITs, measured by Jensen’s Alpha indicator, using a dynamic regression panel data from 110 REITs in the period between 2002 and early 2016. The results suggest that a property control strategy positively affects the performance of Brazilian REITs, indicating that trusts could improve performance by avoiding conflicts of interest with third parties, and perhaps agency problems inside the REIT’s corporate structure by having full control over its properties. When excluding mortgage REITs from the sample, the property-type diversification also presents a positive and statistical relevant impact on performance, surpassing the impacts of a focused strategy. Finally, it is noted that the performance of Brazilian REITs have high persistence, which indicates that managers seek to achieve a target performance and maintain this performance over time.

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Biografia do Autor

Adriana Bruscato Bortoluzzo, Insper Instituto de Ensino e Pesquisa

Doutora em Estatística pela USP, com mestrado e bacharelado também em Estatística pela mesma Universidade. Começou no Insper em 1999 como professora em tempo parcial até 2009, quando se tornou professora assistente e, desde 2016, é professora associada. Leciona Estatística e Econometria (Graduação), Econometria e Multivariada (Mestrado) e Métodos Quantitativos (MBA). Área de Pesquisa : Econometria e Séries Temporais, Estatística Aplicada com ênfase em Análise Multivariada, Fusões e Aquisições e Finanças Corporativas, Modelos para análises na área da saúde (metanálise).

Antonio Reis Silva Neto, CBRE

Consultor de Investimentos; Mestre em Administração com dupla titulação pelo Insper e Nova School of Business and Economics

Maurício Mesquita Bortoluzzo, Saint Paul Escola de Negócios

Professor Doutor em administração (Finanças). Ministra aulas de finanças na Graduação da Saint Paul Escola de Negócios. Área de Pesquisa: Finanças Corporativas; Value Investing; Forecasting

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Publicado

2020-05-01

Como Citar

Bortoluzzo, A. B., Silva Neto, A. R., & Bortoluzzo, M. M. (2020). Diversification and Property Control Impact on the Performance of Brazilian REITs. Revista Evidenciação Contábil &Amp; Finanças, 8(1), 5–20. https://doi.org/10.22478/ufpb.2318-1001.2020v8n1.44848

Edição

v. 8 n. 1 (2020): Jan/Abril

Seção

Seção Nacional

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