1. bookVolume 29 (2021): Issue 1 (March 2021)
Journal Details
License
Format
Journal
First Published
16 May 2013
Publication timeframe
4 times per year
Languages
English
access type Open Access

Real Estate Investment Trusts’ (REITs) Asset Management Strategies Within Global REIT Portfolios

Journal Details
License
Format
Journal
First Published
16 May 2013
Publication timeframe
4 times per year
Languages
English
Abstract

Investment in REITs has become significant in recent years due to the stability and sustainable performance of the investment. A study on the management perspective is very important but this perspective is very limited. Asset management will derive from the profit optimization of the investment. Therefore, it is important to assess asset management strategies to ensure the sustainable performance of the assets. This paper aims to assess asset management strategies among matured REIT companies in developed countries in comparison with Malaysian REIT companies from the perspective of the managers. This research employed qualitative analyses by using content analysis techniques. A total of 41 REIT companies from the United States (US), Japan, Singapore, Australia and Malaysia were assessed. The analyses focused on the similarities and differences between the strategy framework identified in the literature review and the strategies adopted by global REITs and Malaysian REITs under review. The study will enable all REIT stakeholders to become well-informed on global REIT asset management that will derive the maximum profit from the investment. The success of developed countries’ REITs will provide guidelines for Malaysian REITs to adopt the best practice of strategic asset management from REITs in mature markets. Furthermore, this study is one of few papers that have discussed the issue of strategic property investment, particularly focusing on REITs.

Keywords

JEL Classification

Abdelhamid, M., I, B., & M., G. (2014). Strategic asset manaement: Assessment tool for educational building in Egypt. HBRC journal. Search in Google Scholar

Anuar, A., & Soi, T. (2011). Performance analysis of REITs: Comparison between M-REITs and UKREITs. Journal of Surveying, Construction and Property, 2(Special Issue), 38–61. Search in Google Scholar

Anderson, J. L., Jolly, L. D., & Fairhurst, A. E. (2007). Customer relationship management in retailing: A content analaysis of retail trade journals. Journal of Retailing and Consumer Services, 14, 394–399. https://doi.org/10.1016/j.jretconser.2007.02.009 Search in Google Scholar

Al-Turki, U. (2011). A framework for strategic planning in maintenance. Journal of Quality in Maintenance Engineering, 17(2), 150–162. https://doi.org/10.1108/13552511111134583 Search in Google Scholar

APREA. A. P. (2014). Asset Management. Property Investment Analysis Workshop. Kuala Lumpur, Malaysia: PNB Investment Institute Sdn Bhd. Search in Google Scholar

APREA. (2014). Asia Pacific REIT Staistical Compendium. Asia Pacific REIT Quarterly: June 2014. Search in Google Scholar

APREA. (2014). The impact of REITs on Asian Economies. Asia Pacific Asia Pacific Real estate Association Limited. Search in Google Scholar

Bartol, K. M., & Martin, D. C. (1991). Management. United State of America. McGraw-Hill Inc. Search in Google Scholar

Bateman, T. S., & Snell, S. A. (1999). Management Building Competitive Advantage. United State of America: Irwin McGraw-Hill. Search in Google Scholar

Block, R. L ed.. (2012). Investing in REITs. Bloomberg Press. https://doi.org/10.1002/9781119202325 Search in Google Scholar

Bloomberg. (n.d.). Retrieved from http://www.bloomberg.com/quote/AVB:US Search in Google Scholar

Bowen, G. A. (2009). Document anlaysis as a qualitative research method. Qualitative Research Journal, 9(2), 27–40. https://doi.org/10.3316/QRJ0902027 Search in Google Scholar

Brueggeman, W. B., & Fisher, J. D. (2011). Real estate finance and invetsment. Mc/Graw-Hill Irwin. Search in Google Scholar

Certo, C. a. (2012). Management. United State of America. Pearson Education Limited. Search in Google Scholar

Ching, C. (1994). Property management in English local authorities: A corporate approach to the management of operational property. University of Liverpool. Search in Google Scholar

Content Analysis. (1989). In K. Krippendorff. Content Analysia, pp. 403-407). Search in Google Scholar

Dess, G. G., Lumpkin, G., & Eisner, A. (2010). Strategic Management. McGraw-Hill Irwin. Search in Google Scholar

Eden, C., & Ackerman, F. (1998). Making Strategy: The Journey of trategic Management. SAGE Publications Ltd. Search in Google Scholar

El-Akruti, K., Dwight, R., & Zhang, T. (2013). The strategic role of engineering asset management. International Journal of Production Economics, 146, 227–239. https://doi.org/10.1016/j.ijpe.2013.07.002 Search in Google Scholar

Ernst & Young Global Limited. (2013). Global Prospectives 2013 REIT. Search in Google Scholar

Gordon, J., & Louargand, M. A. (1998). The Real Estate Portfolio Manager: DIPs, SIPs and REITs. Journal of Real Estate Portfolio Management, 4(2), 169-172. https://doi.org/10.1080/10835547.1998.12089557 Search in Google Scholar

Gruis, V., & Nieboer, N. (2004). Strategic housing management: An asset management model for social landlords. Property Management, 22(3), 201–213. https://doi.org/10.1108/02637470410544995 Search in Google Scholar

Henderson, K. V., & Cowart, L. B. (2002). Bucking e-commerce trends: A content analsyis comparing commercial real estate brokerage and residential real estate brokerage websites. Journal of Corporate Real Estate, 4(4), 375–385. https://doi.org/10.1108/14630010210811967 Search in Google Scholar

Hepsen, A., Berberoglu, M. G., & Aydın, O. (2017). Real estate investment trusts in Turkey: Structure, analysis, and strategy. Journal of Business, Economics and Finance, 6(2), 191–199. Search in Google Scholar

Industrial Relations and Social Affairs (DG V/A2). WZB Discussion Paper, No. FS I 99-202. Search in Google Scholar

Newell, G., Hwa, T. K., & Achempong, P. (2002). Listed Property Trusts in Malaysia. Journal of Real Estate Literature, 10(1), 109–118. Search in Google Scholar

Jalil, R. A., & Ali, H. M. (2012). Real Estate Allocation Decision of Malaysian Real Estate Investment Trusts. 3rd International Conference on Business And Economic Reseach (3rd ICBER 2012) Proceeding, (pp. 349-373). Bandung Indonesia. Search in Google Scholar

Kaganova, O., McKaller, J., & Peterson, G. (2006). Managing Government Property Assets. The Urban Institute Press. Search in Google Scholar

Krippendorff, K. (2018). Content analysis: An introduction to its methodology. Sage publications. Search in Google Scholar

Lexmoss, A., & Prima, A. D. (2014). Asia Pacific listed real estate: A contextual performance analysis. APREA, Asia Pacific Real Estate Association Limited. Search in Google Scholar

Lezman, S. L. (2013, December). Investment manager role in real estate investments. Benefit Magazine, 40-46. Search in Google Scholar

Lloyd, C., Burns, P., Edwards, R., Johnson, C., Male, S., Pilling, M., & Woodhouse, J. (2010). Asset management : Whole-life management of physical assets. ICE Publishing. https://doi.org/10.1680/amwmps.36536 Search in Google Scholar

Makaranga Ngwira, M. M., Parsa, A., & Manase, D. (2012). Effectiveness of property asset management in Scottish councils. Journal of Corporate Real Estate, 14(2), 105–120. https://doi.org/10.1108/14630011211261704 Search in Google Scholar

Maybank IB. (2014, January 8). M-REITs. Research sector update, pp. 1-13. Search in Google Scholar

Microsoft office. (n.d.). Retrieved from Present your data in a radar chart: http://office.microsoft.com/ Search in Google Scholar

Moss, A., & Prima, A. D. (2014). Asia Pacific Listed Real Estate: A contextual performance analysis. Asia Pacific Real Estate Association Limited. Search in Google Scholar

Mosley, H., & Mayer, A. (1999). Benchmarking national labour market performance: A radar chart approach. European Commission, Directorate-General V, Employment, National Association of Real Estate Investment Trusts. (2014). REIT.com. Retrieved from Investing: http://www.reit.com/investing/reit-industry-data-research Search in Google Scholar

Newell, G., & Osmadi, A. (2010). Assessing the importance of factors influencing the future development of REITs in Malaysia. Padific Rim Property Research Journal, 16(3), 358–374. https://doi.org/10.1080/14445921.2010.11104309 Search in Google Scholar

Newell, G. (2012). The investment characteristics and benefits if Asian REITs for retail investors. APREA. Search in Google Scholar

Nieboer, N. (2005). How strategic is housing asset management of institutional real estate investors? Property Management, 23(1), 22–32. https://doi.org/10.1108/02637470510580561 Search in Google Scholar

O’Regan, N., & Ghobadian, A. (2002). Formal strategic planning: The key to effective business process management? Business Process Management Journal, 8(5), 416–429. https://doi.org/10.1108/14637150210449102 Search in Google Scholar

Palm, P. (2013). Strategies in real estate management: Two strategic partways. Property Management, 31(4), 311–325. https://doi.org/10.1108/PM-10-2012-0034 Search in Google Scholar

Powel, E. T., & Renner, M. (2003). Program development and evaluation. Retrieved from Analyzing qualitative data: http://learningstore.uwex.edu/ Search in Google Scholar

Ramachandran, J., Chen, K. K., Subramanian, R., Yeoh, K. K., & Khong, K. W. (2018). Corporate governance and performance of REITs. Managerial Auditing Journal, 33, 586– Search in Google Scholar

Reilly, F. K., & Norton, E. A. (2006). Invetment (7th ed.). Thomson South-western. Search in Google Scholar

RICS. (2008). Public Sector Asset Management guidelines-A Guide to Best Practise. Retrieved from RICS: www.publicsectorassetmanagemnt.com Search in Google Scholar

RICS. (2013). Real Estate Management. Royal Institution of Chartered Surveyors. Search in Google Scholar

RICS. (n.d.). RICS i Consult, RICS draft consultation-Public sector property asset management guidelines (2nd edition). Retrieved from rics.org: https://consultations.rics.org Search in Google Scholar

S&P Dow Jones Indices LLC. (2014, July 24). S&P United States REIT. S&P Dow Jones Indices LLC. Search in Google Scholar

Scarret, D. (1983). Pengurusan Harta. Kuala Lumpur: Dewan Bahasa dan Pustaka. Search in Google Scholar

Securities Comission Malaysia. (2012). Capital Market and Service Act 2007. Search in Google Scholar

Securities Commission of Malaysia. (2012). Guidelines on Real Estate Investment Trusts (Issued in 2008). Search in Google Scholar

Shardy, A., Arman, A. R., & Abd Hamid, K. P. (2011). The characteristics of real estate assets management practice in the Malaysian Federal Government. Journal of Corporate Real Estate, •••, 13. Search in Google Scholar

Stapleton, T. (1986). Estate Management Practice. The Estate Gazette. Search in Google Scholar

Ting Sham, H., Foo Sing, T., & Tsai, I.-C. (2009). Are there efficiency gains for larger Asian REITs? Journal of Financial Management of Property and Construction, 14(3), 231–247. https://doi.org/10.1108/13664380911000459 Search in Google Scholar

Ting, K. H. (1999). Listed Property Trusts in Malaysia: A comparative performance analaysis. International Real Estate Sociaty Conference ‘99. Kuala Lumpur. Search in Google Scholar

Thorncroft, M. (1965). Principles of Estate Management. The Estate Gazette. Search in Google Scholar

The Woodhouse Partnership Ltd. (2014). PAS 55: 2008. Retrieved from PAS 55 Asset Management: http://www.pas55.net/ Search in Google Scholar

Wernecke, M., Rottke, N., & Holzmann, C. (2004). Incorporating the real estate cycle into management decisions - Evidence from Germany. Journal of Real Estate Portfolio Management, 10(3), 171–186. Search in Google Scholar

Zailan, M. I. (2001). The management of public property in Malaysia. International Conference FIG Working Week 2001, (pp. Session 29 - Valuation Practice). Seoul, Korea. Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo