Froemel, Pascal and Wagner, Dominik and Woltering, Rene-Ojas and Downs, David H. and Sebastian, Steffen (2022) Strategic Transactions around REIT Conversions. JOURNAL OF REAL ESTATE RESEARCH, 44 (4). pp. 473-490. ISSN 0896-5803, 2691-1175
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This article examines the conversion-related mergers and acquisitions (M&A) activity and post-conversion performance of 80 international Real Estate Operating Companies (REOCs) that adopted Real Estate Investment Trust (REIT) status. In the years prior to the conversion, we document an increased M&A deal activity that is in part driven to fulfill regulatory REIT requirements. We find that REOCs are willing to pay a premium above the market valuation to acquire desired portfolios. Moreover, we document that the REIT status enhances equity inflows, driving increased M&A transaction activities and deal volume. While converted REITs outperform their peers over the long run, we find that a lower (higher) level of restructuring activity is associated with even higher (risk-adjusted) performance.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | LIQUIDITY MANAGEMENT; CORPORATE-CONTROL; ACQUISITIONS; DETERMINANTS; MERGERS; Mergers and acquisitions; REITs; REIT-conversions |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Betriebswirtschaftslehre > Lehrstuhl für Immobilienfinanzierung (Prof. Dr. Steffen Sebastian) Business, Economics and Information Systems > Institut für Immobilienenwirtschaft / IRE|BS > Lehrstuhl für Immobilienfinanzierung (Prof. Dr. Steffen Sebastian) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 08 Feb 2024 11:53 |
| Last Modified: | 08 Feb 2024 11:53 |
| URI: | https://pred.uni-regensburg.de/id/eprint/57494 |
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