• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.6
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• pp.676-686
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• 2016

This study analyzed the long term relationship between the K-REITs' lending rate and interest rate variables based on ARDL (autoregressive distributed lag) and also examined the short term relationship based on the ARDL-ECM model. In the results of the empirical test, there is a co-integration relationship among the K-REITs' lending rate, 3 year government bond (rate), 3 year government bond (rate), corporation bond (rate) (AA-, 3year) and general fund loan rate. This means that the K-REITs' lending rate is related to the long term interest rate. The corporate general fund loan rate has a significant correlation with the K-REITs' lending rate in the long term relation and short term adjustment process. The establishment of a management plan by the REITs considering the trends in the corporate general fund loan rate in the decision making process for finance sector borrowings can be practically helpful for the K-REITs.

• Journal of the Economic Geographical Society of Korea
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• v.14 no.4
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• pp.524-539
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• 2011

This paper aims to analyze the characteristics of hotel REITs' performance and operation, and to examine their use for activating the hotel industries in Korea. The results of this study are as follows. First, hotel REITs underperformed average REITs and investment proportion of hotel REITs compared to total REITs has been curtailed after 1998. This is because performance of hotel REITs is sensitive to business fluctuations. Second, hotel REITs have mainly invested chain hotels, and shared their role with professional hotel management companies. Third, hotel REITs are to be useful for activating the hotel industries in Korea. In this context, major implications are presented to use healthcare REITs effectively.

• Journal of the Economic Geographical Society of Korea
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• v.14 no.2
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• pp.157-175
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• 2011

This paper aims to analyze the characteristics of healthcare REITs' performance and operation, and to examine their use for activating the silver industries in Korea. The results of this study are as follows. First, according to the results of analyzing healthcare REITs' performance, healthcare REITs outperformed average REITs and extended investment proportion compared to total REITs after 2007. This outperforming came from not only rapid growth of silver industries, but also REITs strategy using the structure of sale-and-leaseback and triple-net lease. Second, healthcare REITs use selection and concentration strategy in terms of asset sector, but use portfolio diversification strategy in terms of investment region. Third, according to the analysis results, healthcare REITs are to be useful for activating the silver industries in Korea. In this context, major implications are presented to use healthcare REITs effectively.

• Journal of the Korean Geographical Society
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• v.49 no.3
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• pp.357-370
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• 2014

This paper aims at analyzing the use of REITs for developing student housing. To do this, firstly, the case studies of student housing REITs in U.S. are analyzed, and secondly, possibility and schemes of using REITs in Korea for the expansion of student housing. REITs are actively participated in the investment and management of student housing in U.S. and they are vertically integrated real estate investment operating companies which play a role of design-development-investment-managementconsulting. Student housing REITs can be fully used in Korea. To do this, special strategy integrating investment and management strategy should be examined. In these context, joint-venture model and PPP-conbined model are suggested to use REITs effectively.

• Journal of Distribution Science
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• v.13 no.12
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• pp.85-94
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• 2015

Purpose - The purpose of this paper is to provide a political registration point for analyzing the economic impacts on the national economy from the REITs distribution industry in our country. The REITs distribution industry was introduced in 2001 to accelerate the corporate restructuring process and advance the real estate market. During its establishment, the REITs distribution industry faced difficulties; however, the industry grew rapidly through interest from institutional investors, thus mitigating the establishment problems by 2006. In Korea, more than 108 REITs were operating as of the end of June 2015. REITs contribute significantly to the national economy. The economic impacts on the national economy of the REITs distribution industry was analyzed using input-output (I-O) analysis with respect to production, imports, value-added, and employment. Research design, data, and methodology - The research used an I-O analysis of the activities of the REITs distribution industry in the national economy. The I-O analysis methodology analyzes the economic effects that influence other industries with respect to one unit of external investment. The data for this analysis were the I-O table of 2013 as published by the Bank of Korea in 2014. Results - The findings of this study are as follows. First, if an external input to the REITs distribution industry is 1 won, the overall impact of the product is 1.3869 won, the import induction is 0.0002 won, and the value-added induction is 0.7656 won. A new investment of 659.9 billion won into the REITs industry was estimated to produce a gross effect of 915.2 billion won. Second, if an external input to the REITs distribution industry is 1 billion won, the employment-inducing effects are estimated at 19.6394 individuals. The employment-inducing coefficient of 19.6394 for the REITs distribution industry indicates that the industry created significant employment-more than other industries-because the coefficient was 2.2 times the 2013 industry average employment-inducing coefficient of 8.8. Third, the investment effects of the REITs distribution industry on production induction, value-added induction, and employment induction are assumed to be large in business support services, financing, communications and broadcasting, and professional, scientific, and technical services. Conclusions - The REITs distribution industry was analyzed as having a strong employment inducing, high value added effect. The REITs distribution industry is an excellent alternative for the government authority to create multilateral jobs. Because the REITs distribution industry has a significant positive impact on the national economy, it should be developed. However, the I-O methodology has restrictions with respect to the fixation and timing of the input coefficient. Follow-up research is expected to supplement the analysis method at a specific point in time.

• Journal of Construction Engineering and Project Management
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• v.1 no.3
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• pp.28-37
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• 2011

Domestic construction companies are suffering from financing difficulties in the wake of the economic slump in Korea and abroad. During this economic slump, real estate investment trusts (REITs), facilitators for improving financing and stimulating construction businesses, have increasingly expanded since their introduction in 2001. However, in terms of growth speed and marketing size, Korean REITs are falling behind those of other nations. The purpose of this study is to suggest a method for composing a portfolio using the Markowitz portfolio selection model to stimulate REITs. The main contents are as follows. First, a comparative analysis was conducted of increased REIT profit with the application of the Markowitz model and the average REIT profit rate from July 3, 2007, to July 21, 2008, during the investment analysis periods. The results showed that the total profit rate from the Markowitz model was about 10% higher than the average REIT profit rate. Second, the sensitivity was analyzed according to the portfolio's data-gathering and replacement cycle to measure the optimum cycle and yield. The six-mouth profit data collection period showed about 16% higher profits with the Markowitz model than with the REITs. The two-week portfolio change period resulted in about 11% higher profits with the Markowitz model than with the REITs.

• Journal of the Economic Geographical Society of Korea
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• v.21 no.3
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• pp.231-253
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• 2018

This paper aims at analyzing ways to utilize the capital market for expanding housing welfare, focusing on the case of the affordable housing REITs in the United States. The main results of this study are as follows. First, the United States converts the keynote of its housing welfare policy to the provision of affordable housing, through private operators, and operates various support systems, including the LHITC program for them. Second, under this institutional framework, the use of capital markets for affordable housing is actively carried out, especially through the provision of affordable housing REITs such as CDT and AIMCO. Third, the public- driven housing REITs model and the private-led housing REITs model were proposed as ways to utilize the capital market through affordable housing REITs in Korea. Finally, policy improvement ways were proposed to promote the use of the capital market of affordable housing REITs.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.11
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• pp.66-79
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• 2016

A discussion has recently emerged over the increase of approvals of K-REITs, which is concluded on the basis of how to raise funds for business activity, fulfill the expected rate of return and maximize the management of managing investment funds. In addition, corporations need to acknowledge the necessity of the capital structure reflected in the current economic environment and decision-making processes. This research analyzed the characteristics by investment types and influence factors about the debt ratio of K-REITs. The data were collected from general management about business state, investment, and finance from 2002 to 2015 in K-REITs (except for the GFC period of 2007~2009). The results of the research demonstrated the high ratios of the largest shareholder characteristics, which are corporation, pension funds, mutual funds, banks, securities, insurance, and, recently, the increasing ratio of the largest shareholder and major stockholder. The investment of K-REITs is increasing the role of institutional investors that take a leading development of K-REITs. The behaviors of simultaneous investment of institutional investors were analyzed to show that they received higher interest rates than other financial institutions and ran in parallel with attraction and compensation. The results of the multiple regressions analysis, utilizing variables about debt ratio were as follows. The debt ratio showed a negative (-) relation that profitability is increasing, which matches the pecking order theory and trade off theory. On the other hand, investment opportunities (growth potential) showed a negative (-) relation and assets scale that indicated a positive (+) relation. The research results are reflected as follows. K-REITs focused on private equity REITs more than public offering REITs, and in the case of financing the capital of others, loan capital is operated under the guarantee of tangible assets (most of real estate) more than financing of the stock market. Further, after the GFC, the capital of others was actively utilized in K-REITs business, and the debt ratio showed that the determinant factors by the ratio and characteristics of the largest shareholder and investment products.

• Journal of the Economic Geographical Society of Korea
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• v.16 no.2
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• pp.275-292
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• 2013

This paper aims at analyzing the use REITs for improving housing welfare, especially focusing on affordable housing. To do this, firstly, current state and main problems of domestic housing welfare are analyzed, secondly, housing welfare system involving capital market and case study of affordable housing REITs in United State are examined. and thirdly, utilization schemes of REITs for improving affordable housing are analyzed. In the process of executing housing welfare, various systemic bases for attracting capital market are constructed. Under these systemic basis, affordable housing REITs such as Community Development Trust are operated. This scheme also can be applied in Korea. In the context, the structures of using management on commition REITs and the structure of using real estate fund are proposed.

• Journal of the Economic Geographical Society of Korea
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• v.12 no.4
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• pp.665-680
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• 2009

This study aims at analyzing the performance of Real Estate Investment Trusts(REITs) by Risk Adjustment Model. The main results are as follows. Firstly, most property types of REITs gain positive(+) excess overall returns at first and second period. On the contrary, most property types of REITs gain negative(-) excess overall returns and their standard deviations are larger at financial crisis period. Secondly, lodging, regional mall and commercial mortgage show lower risk-lower return, and freestanding, apartment and specialty show higher risk-higher return than average REITs, according to the CAPM results of . Moreover CAPM results of show the characteristics of REITs as investment commodities changes into higher risk-higher return for financial crisis period. Lastly, risk adjusted demanded returns of REITs are affected positively(+) by systemic risks and negatively(-) by unsystemic risks, according to the Risk Adjustment Model results of both and . Comparing risk adjusted demanded returns of REITs with their realized returns, healthcare reveals the largest outperformance.