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| Performance Evaluation of Finite-Life
Real Estate Investment Trusts Author: Paul H. Goebel and Kee S. Kim Start Page: 57 Abstract: This study analyzes
the investment performance of real estate investment trusts, comparing the finite-life
trusts (FREIT) with traditional REITs and stock returns. The results indicate that the
FREITs performed more poorly than the REITs, with both the FREITs and REITs
underperforming the market index over the period studied. It was also found that while
portfolio risk diversification benefits may exist for the REITs and FREITs, it is not
clear that the reduced risk is warranted by the large reduction in returns. Finally, this
research shows that little total or unanticipated inflation hedging capability exists for
the REITs or FREITs over the period studied, although anticipated inflation hedging
capabilities were found. |
