Long Run Underperformance in REITs Following Seasoned Equity Offerings.
This study examines the long-run performance of real estate investment trusts (REITs) following seasoned equity offerings (SEOs). Over 61% of the 178 REITs examined underperform an index of REITs for the first year after the issue, and over 72% of the firms underperform the index for three years fol...
| Main Authors: | , , |
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| Format: | |
| Language: | English |
| Published: |
2000
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| Online Access: | http://ezproxy.villanova.edu/login?url=https://digital.library.villanova.edu/Item/vudl:177132 |
| Summary: | This study examines the long-run
performance of real estate investment trusts (REITs) following
seasoned equity offerings (SEOs). Over 61% of the
178 REITs examined underperform an index of REITs
for the first year after the issue, and over 72% of the firms
underperform the index for three years following the issue.
The sample is partitioned according to book-tomarket
value of equity ratio, market value of equity and
REIT type. The results reveal that all REIT subsamples
except the highest book-to-market quintile and the lowest
size quintile exhibit the same patterns of underperformance
observed in the full sample. In addition, equity
REITs underperform the index for both one and three
years while non-equity REITs underperform for three
years but exhibit no underperformance for one year following
the SEO. |
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