Author: Edward F. Pierzak

Start Page: 105
End Page: 140
Volume: 21
Issue Number: 1/2
Year: 2001
Publication: Journal of Real Estate Research

Abstract: This study examines payment choice in equity real estate investment trust (REIT) property acquisitions. Particular attention is paid to the tax-advantaged medium of exchange available to some REITs (i.e., operating partnership units). The tax argument that is often cited as an underlying rationale for hypotheses relating bidder gains, payment method and acquisitions is empirically tested via the relationship between sales price differentials and the method of payment. The payment signaling hypothesis and other competing medium of exchange hypotheses are also empirically tested using a data set generously provided by the National Association of Real Estate Investment Trusts.