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http://dx.doi.org/10.6106/KJCEM.2017.18.3.074

Analysis of Value for Ownership Conversion in the Public Rental Housing REITs According to Real Option Scenarios Reflecting Macroeconomic Variables  

XUAN, Meiyu (Department of Architectural Engineering, Hanyang University)
Jang, Mi Kyoung (NAVER I&S)
QUAN, Junlong (Department of Architectural Engineering, Hanyang University)
Kim, JuHyong (Department of Architectural Engineering, Hanyang University)
Publication Information
Korean Journal of Construction Engineering and Management / v.18, no.3, 2017 , pp. 74-83 More about this Journal
Abstract
The recently introduced public rental housing REITs was just different the business structure from the existing public rental housing system and the basic supply system is the same. So the ownership conversion for public house over 10 years rental duration is possible after half of the obligated rental duration according to the agreement between lessor and lessee. However rental business operators are likely to have a negative attitude to the early ownership conversion because of less expected profit. Thus, there is a need for an analysis of proper early ownership conversion moment that can achieve public purposes while ensuring the profitability of public rental housing REITs. In this study, the characteristics of the ownership conversion rights that can lessee to exercise considered to be options. Also the nature of 'REITs', 'public rental housing REITs' is considered to be affected by the macroeconomic variables. Thus, this study analyzed the value for ownership conversion in the public rental housing REITs according to real option scenarios reflecting macroeconomic variables. As a result, according to the change of the variation rate of the macroeconomic variables, it was found that with adjustable early ownership conversion time using the DCF(Discounted Cash Flow) model. Therefore, it is possible to ensure profitability of early ownership conversion by predicting the variation of variables.
Keywords
Public Rental Housing REITs; Ownership Conversion; Real Option; Binomial Option Value; Macroeconomic Variable;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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