Sensitivity of Real Estate Investment Return to Market Return Index: The Case of Nigerian Real Estate Investment Trusts

2020
Chibuikem Adilieme, Obinna Umeh

The level of sensitivity of every investment option to a market index is crucial to investors. Sensitivity analysis of individual or a set of returns on investments to market return index predicts the reaction of the investment(s) to changes in the market index; informs investors of prospective performance of different investments types; as well as assists the investors in making appropriate decisions on investment selections. This paper assessed how sensitive indirect real estate investments in Nigeria were to market index. The three companies whose asset returns were considered in this study were real estate investment trusts listed in the Nigerian Stock Exchange. The data used in this study were sourced from annual reports of the listed companies, and reports of the Nigerian Stock Exchange. The beta coefficients were used to determine the sensitivity of the selected stocks to market return index. The study found a very low and insignificant beta coefficient among various real estate investments and market return index. Hence, there is no relationship between the market return index and the returns on the Real Estate Investment Trusts listed in the Nigerian Stock Exchange.

Atslēgas vārdi
Market index; real estate investment; real estate investment trusts; returns; sensitivity analysis
DOI
10.2478/bjreecm-2020-0014
Hipersaite
https://content.sciendo.com/view/journals/bjreecm/8/1/article-p197.xml

Adilieme, C., Umeh, O. Sensitivity of Real Estate Investment Return to Market Return Index: The Case of Nigerian Real Estate Investment Trusts. Baltic Journal of Real Estate Economics and Construction Management, 2020, Vol. 8, 197.-207. lpp. e-ISSN 2255-9671. Pieejams: doi:10.2478/bjreecm-2020-0014

Publikācijas valoda
English (en)