Graduation Year
Spring 2012
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
George Batta
Terms of Use & License Information
Rights Information
© 2012 Dana G. Staley
Abstract
This paper will assess the relationship between tenant characteristics and public REIT volatility. Specifically, we focus on the retail REIT subset of the industry. Given that retail REITs are one the most transparent asset classes, they provide an interesting landscape for evaluating the relationship between the firm and the customers, or in this case, the tenants. Specifically, we assess how major tenant ownership, public or private equity owned, impacts the volatility of the REIT’s stock price using 2010 data on 30 retail REITs. Controlling for tenant credit quality, leverage, ROE, book-to-market, size, age, region and property focus, we find that a higher percentage of rental revenue from private equity owned tenants is associated with lower REIT stock volatility, and a higher percentage of rental revenue from publicly owned tenants is associated with higher REIT stock volatility.
Recommended Citation
Staley, Dana G., "Does the REIT Tale Wag the Dog? The Relationship Between Tenant Ownership and the Volatility of Retail REIT Stock Returns" (2012). CMC Senior Theses. 451.
https://scholarship.claremont.edu/cmc_theses/451
