Essays on building a REIT managerial competency system

Abstract

Worldwide, over 40 countries have already created and established markets for real estate investment trusts (REITs), with a total global volume more than 2 trillion dollars, and the US, Singapore and Japan being primarily the major markets. The operation and performance of REITs will be determined by numerous factors, such as the macroeconomic environment, asset condition and the operational management of managers, etc. However, compared with other objective factors, the management performance of REITs’ managers is highly subjective. Specifically, the difference in management structures, management levels and the capability to introduce more resources, will all have an impact on the management behavior of the REITs thus affecting the market performance of the REITs managers. This paper will utilize literature reviews, case studies, quantitative analyses, and other research methods to analyze and research major REIT market data and specific global cases. It will explore the influence of REIT managers’ capability characteristics in terms of management models, industry background and asset size under management on the market performance of REITs at different market development stages. Based on this, the composition of the capability system of REIT managers will be analyzed and a suitable capability system built to provide the REIT industry with another perspective to understand and improve the REITs’ market regulation system.