The correlation between market fundamentals and apartment REIT performance
Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2001.
| Main Authors: | , |
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| Format: | Thesis |
| Language: | eng |
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Massachusetts Institute of Technology
2006
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| Online Access: | http://hdl.handle.net/1721.1/32214 |
| _version_ | 1826190326841212928 |
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| author | Friestedt, Andrew A. (Andrew Adams), 1974- Tusa, Brian J. 1971- |
| author2 | William C. Wheaton. |
| author_facet | William C. Wheaton. Friestedt, Andrew A. (Andrew Adams), 1974- Tusa, Brian J. 1971- |
| author_sort | Friestedt, Andrew A. (Andrew Adams), 1974- |
| collection | MIT |
| description | Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2001. |
| first_indexed | 2024-09-23T08:38:13Z |
| format | Thesis |
| id | mit-1721.1/32214 |
| institution | Massachusetts Institute of Technology |
| language | eng |
| last_indexed | 2024-09-23T08:38:13Z |
| publishDate | 2006 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/322142019-04-09T18:56:16Z The correlation between market fundamentals and apartment REIT performance Friestedt, Andrew A. (Andrew Adams), 1974- Tusa, Brian J. 1971- William C. Wheaton. Massachusetts Institute of Technology. Dept. of Urban Studies and Planning. Massachusetts Institute of Technology. Dept. of Urban Studies and Planning. Urban Studies and Planning. Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2001. "September 2001." Includes bibliographical references (leaves 64-66). This paper empirically examines the correlation between apartment REIT performance (as measured by Funds from Operations, Net Operating Income, Gross Rental Revenue, Net Income, Market Capitalization and CAP Rate) and market fundamentals (as measured by weighted average rent growth, weighted average employment growth, weighted average stock growth and weighted average excess demand). The objective of this paper is to explain the variance in historical apartment REIT performance based on historical market fundamentals. Market fundamentals are broadly defined as the employment growth, population growth, stock growth and rent growth. More detailed definitions of market fundamentals are provided within the paper. Independent variables are developed from market data collected from 57 MSAs. Using these data, weighted averages are generated in order to isolate geographical effects. These independent variables are regressed against measures of financial performance of apartment REITs as of December 31, 2000. The results show that weighted average rent growth (given NREI rent data) and growth in apartment units explain 37.1% of the variance in the percent change in FFO per unit and 37.8% of the variance in the percent change in market capitalization per unit across the sample of selected apartment REITs. Furthermore, weighted average rent growth (given government rent data) does a relatively poor job of explaining the variance in the percent change in FFO per unit. by Andrew A. Friestedt and Brina J. Tusa. S.M. 2006-03-29T18:24:42Z 2006-03-29T18:24:42Z 2001 Thesis http://hdl.handle.net/1721.1/32214 50335322 eng M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 146 leaves 16487482 bytes 16504260 bytes application/pdf application/pdf application/pdf Massachusetts Institute of Technology |
| spellingShingle | Urban Studies and Planning. Friestedt, Andrew A. (Andrew Adams), 1974- Tusa, Brian J. 1971- The correlation between market fundamentals and apartment REIT performance |
| title | The correlation between market fundamentals and apartment REIT performance |
| title_full | The correlation between market fundamentals and apartment REIT performance |
| title_fullStr | The correlation between market fundamentals and apartment REIT performance |
| title_full_unstemmed | The correlation between market fundamentals and apartment REIT performance |
| title_short | The correlation between market fundamentals and apartment REIT performance |
| title_sort | correlation between market fundamentals and apartment reit performance |
| topic | Urban Studies and Planning. |
| url | http://hdl.handle.net/1721.1/32214 |
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