Joint leverage and maturity choices in real estate firms: the role of the REIT status

Alcock, Jamie, Steiner, Eva and Tan, Kelvin Jui Keng (2014) Joint leverage and maturity choices in real estate firms: the role of the REIT status. Journal of Real Estate Finance and Economics, 48 1: 57-78. doi:10.1007/s11146-012-9379-7


Author Alcock, Jamie
Steiner, Eva
Tan, Kelvin Jui Keng
Title Joint leverage and maturity choices in real estate firms: the role of the REIT status
Journal name Journal of Real Estate Finance and Economics   Check publisher's open access policy
ISSN 0895-5638
1573-045X
Publication date 2014
Year available 2012
Sub-type Article (original research)
DOI 10.1007/s11146-012-9379-7
Open Access Status
Volume 48
Issue 1
Start page 57
End page 78
Total pages 22
Place of publication Secaucus, NJ, United States
Publisher Springer
Collection year 2013
Language eng
Abstract We explore the interdependence of leverage and debt maturity choices in Real Estate Investment Trusts (REITs) and unregulated listed real estate investment companies in the U.S. for the period 1973-2011. We find that the leverage and maturity choices of all listed real estate firms are interdependent, but in contrast to industrial firms, they are not made simultaneously. Across the different types of real estate firms considered, we find substantial differences in the nature of the relationship between leverage and maturity. Leverage determines maturity in non-REITs, whereas maturity is a determinant of leverage in REITs. We suggest that the observed differences reflect the effects of the REIT regulation, rather than solely being a function of real estate as the underlying asset class. We also present novel evidence that the relationship between leverage and maturity in both firm types can be used to moderate the effects of other exogenous financing policies.
Keyword Leverage
Debt maturity
Capital structure
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Published online: 22 May 2012

Document type: Journal Article
Sub-type: Article (original research)
Collections: School of Mathematics and Physics
Official 2013 Collection
UQ Business School Publications
 
Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 1 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 2 times in Scopus Article | Citations
Google Scholar Search Google Scholar
Created: Mon, 29 Oct 2012, 16:56:58 EST by Karen Morgan on behalf of UQ Business School