Diversification of Brazilian Real Estate Investment Trusts

Authors

  • Arthur Vieira de Moraes FECAP (Fundação Escola de Comércio Álvares Penteado) / Professor convidado FIA (Fundação Instituto de Administração) / Professor convidado Instituto Educacional BM&FBOVESPA / Professor convidado
  • Ricardo Goulart Serra FECAP (Fundação Escola de Comércio Álvares Penteado); INSPER (Instituto de Ensino e Pesquisa) e USP (Universidade de Sâo Paulo)

Keywords:

Fundo de Investimento Imobiliário, Diversificação, Tamanho

Abstract

Real Estate Investment Trusts (REITs) are a recent class of securities in the Brazilian capital markets, which, notwithstanding the fact that they can be traded in the stock exchange, are very different from stocks. Academics and practitioners should become aware of such particularities. In Brazil research has been devoted to study them just recently. One question that arises, and that guides the objective of this study, is what factors lead the REITs listed on the stock exchange to be more or less diversified, or, have lower or higher diversifiable risk. The research hypotheses are that (i) size of the real estate investment trust, (ii) number of properties or (iii) concentration of the properties explain the greater or lesser diversification of the fund. The 22 multi-properties REITs listed on the stock exchange in December 2015 have been studied. The results indicate that larger funds are more diversified. The number of properties and the concentration of properties are not significant to explain funds’ diversification. The limitations of this study are the small number of analyzed REITs (only 24 of the 127 listed funds are multi-asset, 2 of which considered outliers) and analysis of a single period (due to the brief history of Brazilian REITs).

Keywords: real estate investment trust, diversification, size.

Author Biographies

Arthur Vieira de Moraes, FECAP (Fundação Escola de Comércio Álvares Penteado) / Professor convidado FIA (Fundação Instituto de Administração) / Professor convidado Instituto Educacional BM&FBOVESPA / Professor convidado

Professor de cursos de pós graduação Latu Sensu da FECAP (Fundação Escola de Comércio Álvares Penteado), FIA (Fundação Instituto de Administração) e Instituto Educacional BM&FBOVESPA.

 

Ricardo Goulart Serra, FECAP (Fundação Escola de Comércio Álvares Penteado); INSPER (Instituto de Ensino e Pesquisa) e USP (Universidade de Sâo Paulo)

Professor pesquisador do MPA da FECAP; professor da pós-graduação lato-senso do INSPER; professor de graduação da FEA/USP; pós-doutor pela FEA/USP; doutor pela FEA/USP; engenheiro pela POLI/USP

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Published

2017-04-08

Issue

Vol. 14 No. 1 (2017): Jan/Mar

Section

Articles

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