US REIT INTERNATIONALIZATION AND FIRM VALUE

Investment in U.S. real estate is becoming increasingly competitive due to increased capital flows and improving industry fundamentals. U.S. Real Estate Investment Trusts (REITs) are seeking new investment opportunities through international investments. This paper reviews the research literature to...

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Bibliographic Details
Published in:Journal of international business research 2010-01, Vol.9 (1), p.1
Main Authors: Holshouser, Jesse, Baek, H Young
Format: Article
Language:English
Subjects:
Abnormal returns
Capital markets
Commercial real estate
Competition
Discounts
Diversification
Equity funds
Institutional investments
International finance
Investment policy
Joint ventures
Multinational corporations
Portfolio diversification
Portfolio management
Real estate financing
REITs
Stockholders
Studies
Trends
Trusts
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Summary:Investment in U.S. real estate is becoming increasingly competitive due to increased capital flows and improving industry fundamentals. U.S. Real Estate Investment Trusts (REITs) are seeking new investment opportunities through international investments. This paper reviews the research literature to determine possible investor reaction to international diversification strategies by U.S. REITs and identifies recent diversification trends. We find that the US REITs that specialize in corporate real estate are beginning to diversify internationally through joint ventures with local firms. Empirical evidence shows that Tobin's Q ratios are positively related to international investment in 2003 when asset size and property types are controlled for. The relationship, however, disappeared in a 2006 sample. [PUBLICATION ABSTRACT]
ISSN:1544-0222
1544-0230