Analyzing the relationship between the features of the direct real
estate assets and their corresponding Australian - REIT
This study has investigated the relationship between a sector-specific
Australian Real Estate Investment Trust (A-REIT) and the underlying
property assets in its property portfolio. Existing studies have
assessed the connectedness / correlation amongst the A-REITs market and
a variety of other asset markets, including the overall stock, bond, and
direct real estate market. This study applies regression analysis
methods and discovered that there exists certain degree of linear
correlation between the underlying property assets and the return of the
subject A-REITs. The most significant variable is the occupancy of the
offices. The higher the occupancy are, the better the dividend can be.
The features at the A-REIT level are also affecting the dividend
outcomes, specifically the total portfolio market value and the
capitalization rate. It suggests that the annual valuation outcomes have
shown positive relation with the performance of the A-REIT.