Volume 29, Number 2, 2007 of the Journal of Real Estate Research
The Determinants of the Debt Maturity Decision for Real Estate Investment
Trusts
Abstract: This research
uses the maturity of incremental bond issues and the weighted-average
maturity of all outstanding debt and tests various theories from the
corporate debt maturity literature to discover if real estate investment
trust (REIT) debt maturity is influenced by liquidity risk, asymmetric
information, personal taxes, and agency problems. The findings reveal
that there is little
to no evidence for the liquidity and asymmetric information hypotheses;
however, there is evidence that personal taxes influence the maturity of
REIT incremental debt issues, and agency problems play a role in
determining the incremental and average debt maturity of REITs.
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