Research Article
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Year 2022, Volume: 11 Issue: 3, 122 - 129, 30.09.2022
https://doi.org/10.17261/Pressacademia.2022.1632

Abstract

References

  • Acorn Holdings. (2021). Official launch of the acorn student accommodation REITs. https://acornholdingsafrica.com/wpcontent/uploads /2021/03/Press-Release.pdf
  • Africa Business Communities. (2015). Real estate building the future of Africa. https://www.africanbusinesscentral.com/wp content/uploads /2015/05 Real-estate-Building-the-future-of-Africa-PwC.pdf
  • Bloomberg. (2020). China takes first steps toward $3 trillion REIT market. https://www.bloomberg.com/news/articles/2020-06- 02/china-takes-first-steps-toward-launching-3-trillion-reit-market
  • Bobade, P., Nakhate, V., Malkar,V., Bhayani, M. (2020). An empirical study on awareness and acceptability of mutual fund in Pune City. Journal of Information and Computational Science, 10(3), 808-816.
  • Bryman, R. (2012). Social Research Methods. New York: Oxford University Press Inc.
  • Byrne, B. M. (2006). Structural equation modelling with EQS: Basic concepts, applications, and programming. Mahwah, New Jersey, USA.
  • Crested Capital. (2016). Fusion Capital extends D-REIT sale. http://crestedcapital.com/2016/07/19/fusion-capital-extends-d-reitsale-to-july-26/
  • Cytonn Investments. (2019). Real estate investment trusts, REITs, as an investment alternative. https://cytonnreport. com/ topicals/real-estate-investment
  • EPRA (2012). Global REIT survey, South Africa PUT and PLS company EPRA reporting. South Africa: Ernst and Young.
  • Gall, M. D., Gall, J. P., Borg, W. R. (2007). Educational research: An introduction. Boston, USA: Pearson Education.
  • Global Ethical Banking. (2019). Gulf’s REITs bring IPO receipts, but investor returns not neat. https://www.globalethical banking.com/gulfs-reits-bring-ipo-receipts-investor-returns-not-neat/
  • Guiso, L., Jappelli, T. (2005). Awareness and stock market participation. Review of Finance, 9(4), 537–567.
  • Hair, J., Black, W., Babin, B., Anderson, R., Tatham, R. (2006). Multivariate data analysis. (6th ed). Upper Saddle River, New Jersey: Pearson Education Inc.
  • Hair, J.F., Black, W. C., Babin, B. J., Anderson, R. E. (2010). Multivariate data analysis. Upper Saddle River, New Jersey, Prentice Hall.
  • Jakpar, S., Tinggi, M., Tak, A. H., Ruzlan, N. A., (2018). Determinant factors of profitability in Malaysia’s Real Estate Investment Trusts (M-REITS). UNIMAS Review of Accounting and Finance, 1(1), 72-84.
  • Jiang, F., Cai, W., Wang, X. and Zhu, B. (2018). Multiple large shareholders and corporate investment: Evidence from China. Journal of Corporate Finance, 50, 66-83.
  • Kaur, S. J. and Bharucha, J. (2021). The emerging mutual fund industry in India: an impact analysis of investors' awareness on investment behaviour. International Journal of Business and Globalisation, 27 (1), 51-69.
  • Khusoko. (2020). Property developer, Accorn to sell Qwetu and qejani students hostels stake through D-REIT. https://khusoko.com/ 2020/03/09/property-developer-acorn-to-sell-qwetu-and-qejani-student-hostels-stake-through-d-reit/
  • Macrotrends. (2020). American tower (REIT) market cap. https://www.macrotrends.net/stocks/charts/AMT/american-towerreit/market-cap.
  • Malathy, M. and Saranya, J. (2017). A study on factors influencing investors’ perception towards stock market decision. International Journal of Management & Business Studies, 7(3), 16-18.
  • Naidoo, H. (2014). The introduction of REITs to the South African property market: Opportunities for fund managers. Unpublished Master’s thesis, Wits Business School, Johannesburg, South Africa.
  • Nariet. (2019). REITs: A look back at 2018 and a look forward to 2019. https://www.reit.com/data-research/research/nareitresearch/ 2019-reit-outlooklook-back-2018-and-look-forward-2019
  • Ndung’u, D. T. and Onyuma, S. O. (2020). Financing affordable housing in Africa through real estate investment trusts. Africa Growth Agenda, 17 (2), 14-15.
  • Olanrele, O. O. (2014). REIT performance analysis: Are other factor determinants constant? Asian Economic and Financial Review, 4(4), 492-502.
  • Oreagba, F. (2010). Seminar paper on implementation of REIT in Nigeria (N-REIT): A seminar on real estate investment trust (REIT). Nigerian Stock Exchange, Lagos, Nigeria.
  • Oxford Business Group. (2019). Real estate: Although real estate in Ghana has slowed down, REITs hold potential. https://oxfordbusinessgroup.com/analysis/real-estate-although-real-estate-has-slowed-down-reits-hold-potential
  • Pallant, J. (2011). Multivariate Analysis of Variance. SPSS survival manual. Crow’s Nest, Australia: Allen & Unwin.
  • Pham, A. K. (2013). An empirical analysis of real estate investment trusts in Asia: Structure, performance and strategic investment implications. Unpublished PhD thesis, University of Western Sydney, Sydney, Australia.
  • Prabakaran, V. (2018). A Study on investors’ awareness about the stock market using variance based structural equation modelling. International Journal of Scientific Research and Reviews, 7 (2), 642 -651.
  • Press Reader. (2019). Why time is now for REITs investors to reconsider residential properties. https://www.pressreader com/nigeria/business-day-nigeria/20191231/281977494540509
  • Price water House Coopers. (2019). Global REIT regimes. https://www.pwc.com/gx/en/assetmanagement/assets/pdf/worldwide-reit-regimes nov-2019.pdf
  • Rana, S. B. (2019). Investor awareness, risk perception and investor behavior in stock market of Nepal. IOSR Journal of Economics and Finance, 10(5), 56-63.
  • Ricciardi, V. (2008). The Psychology of Risk: The behavioral finance perspective. Hoboken, New Jersey, John Wiley & Sons.
  • Saini, S., Anjum, B. and Saini, R. (2011). Investors awareness and perception about mutual funds. Zenith International Journal of Multidisciplinary Research, 1(1),14-29.
  • Sarkar, A. K. and Sahu, T. N. (2018). Analysis of investment behaviour of individual investors of stock market: a study in selected districts of West Bengal. Pacific Business Review International, 10(7), 7-17.
  • Savills Research. (2019). REIT market 101. https://pdf.savills.asia/selected-international-research/reits-en-1111.pdf
  • Shefrin, H. and Statman, M. (2000). Behavioral portfolio theory. Journal of Financial and Quantitative Analysis, 35 (2), 127-151.
  • Sofyan, R., Putra, D. G. and Aprayuda, R. (2020). Does the information on the internet media respond to the stock market? In The fifth Padang international conference on Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020) (pp. 510-520), Atlantis Press.
  • Statista. (2019). Market capitalization of real estate investment trusts (REITs) in the United States 1975 to 2018. https://www.statista.com /statistics/916665/market-cap-reits-usa/
  • Vreeker, J. (2020). Asia pacific listed property sector surges 22.8% in 2019, despite marginal loss in December 2019. https://www.reitasiapac.com/
  • Watumishi Housing Company. (2020). WHC-REIT. https://www.whc.go.tz/

INFLUENCE OF INVESTOR AWARENESS ON PERFORMANCE OF REAL ESTATE INVESTMENT TRUSTS IN KENYA

Year 2022, Volume: 11 Issue: 3, 122 - 129, 30.09.2022
https://doi.org/10.17261/Pressacademia.2022.1632

Abstract

Purpose- The performance of the listed REITs has not been as expected and efforts by REIT managers to issue more real estate securities have
been slow. This posed the concern of whether the unexpected performance of REITs in Kenya was due to external factors, such as investor
awareness, which is not under the control of the investment market. Thus the study sought to examine how investor awareness influences
performance of REITs in Kenya.
Methodology- Predictive correlational research design was employed while target population comprised of Fund Managers, Stock Brokers and
Investment Banks and Property Developers. Structural Equation Modelling was used to test the hypothesized relationships at 5% significance level.
Findings-The results indicate that investor awareness have no significant influence on performance of REITs in Kenya. Majority of the respondents
agreed that they were knowledgeable about Kenya's real estate market, and their membership in the REITs Association of Kenya has provided
insightful market research and databases. Such investors can access with ease reports of the REITs issuing firm. Further, although investors usually
follow and update themselves on the REITs markets through the online platform, such awareness does not influence the level of performance of
REITs in Kenya.
Conclusions- It can be concluded that although efforts have been put in place to ensure investors' awareness of real estate securities, such efforts
have not boosted the uptake of REITs among investors. Investor awareness efforts employed by Capital Markets Authority in conjunction with the
REITs Association of Kenya are not likely to enhance the performance of REITs in Kenya. The results indicate that REITs uptake has not attained a
critical mass necessary to create liquidity in the capital market. Based on the findings, there is minimal publicity campaigns carried on by the
Capital Markets Authority to sensitize potential investors on REITs.

References

  • Acorn Holdings. (2021). Official launch of the acorn student accommodation REITs. https://acornholdingsafrica.com/wpcontent/uploads /2021/03/Press-Release.pdf
  • Africa Business Communities. (2015). Real estate building the future of Africa. https://www.africanbusinesscentral.com/wp content/uploads /2015/05 Real-estate-Building-the-future-of-Africa-PwC.pdf
  • Bloomberg. (2020). China takes first steps toward $3 trillion REIT market. https://www.bloomberg.com/news/articles/2020-06- 02/china-takes-first-steps-toward-launching-3-trillion-reit-market
  • Bobade, P., Nakhate, V., Malkar,V., Bhayani, M. (2020). An empirical study on awareness and acceptability of mutual fund in Pune City. Journal of Information and Computational Science, 10(3), 808-816.
  • Bryman, R. (2012). Social Research Methods. New York: Oxford University Press Inc.
  • Byrne, B. M. (2006). Structural equation modelling with EQS: Basic concepts, applications, and programming. Mahwah, New Jersey, USA.
  • Crested Capital. (2016). Fusion Capital extends D-REIT sale. http://crestedcapital.com/2016/07/19/fusion-capital-extends-d-reitsale-to-july-26/
  • Cytonn Investments. (2019). Real estate investment trusts, REITs, as an investment alternative. https://cytonnreport. com/ topicals/real-estate-investment
  • EPRA (2012). Global REIT survey, South Africa PUT and PLS company EPRA reporting. South Africa: Ernst and Young.
  • Gall, M. D., Gall, J. P., Borg, W. R. (2007). Educational research: An introduction. Boston, USA: Pearson Education.
  • Global Ethical Banking. (2019). Gulf’s REITs bring IPO receipts, but investor returns not neat. https://www.globalethical banking.com/gulfs-reits-bring-ipo-receipts-investor-returns-not-neat/
  • Guiso, L., Jappelli, T. (2005). Awareness and stock market participation. Review of Finance, 9(4), 537–567.
  • Hair, J., Black, W., Babin, B., Anderson, R., Tatham, R. (2006). Multivariate data analysis. (6th ed). Upper Saddle River, New Jersey: Pearson Education Inc.
  • Hair, J.F., Black, W. C., Babin, B. J., Anderson, R. E. (2010). Multivariate data analysis. Upper Saddle River, New Jersey, Prentice Hall.
  • Jakpar, S., Tinggi, M., Tak, A. H., Ruzlan, N. A., (2018). Determinant factors of profitability in Malaysia’s Real Estate Investment Trusts (M-REITS). UNIMAS Review of Accounting and Finance, 1(1), 72-84.
  • Jiang, F., Cai, W., Wang, X. and Zhu, B. (2018). Multiple large shareholders and corporate investment: Evidence from China. Journal of Corporate Finance, 50, 66-83.
  • Kaur, S. J. and Bharucha, J. (2021). The emerging mutual fund industry in India: an impact analysis of investors' awareness on investment behaviour. International Journal of Business and Globalisation, 27 (1), 51-69.
  • Khusoko. (2020). Property developer, Accorn to sell Qwetu and qejani students hostels stake through D-REIT. https://khusoko.com/ 2020/03/09/property-developer-acorn-to-sell-qwetu-and-qejani-student-hostels-stake-through-d-reit/
  • Macrotrends. (2020). American tower (REIT) market cap. https://www.macrotrends.net/stocks/charts/AMT/american-towerreit/market-cap.
  • Malathy, M. and Saranya, J. (2017). A study on factors influencing investors’ perception towards stock market decision. International Journal of Management & Business Studies, 7(3), 16-18.
  • Naidoo, H. (2014). The introduction of REITs to the South African property market: Opportunities for fund managers. Unpublished Master’s thesis, Wits Business School, Johannesburg, South Africa.
  • Nariet. (2019). REITs: A look back at 2018 and a look forward to 2019. https://www.reit.com/data-research/research/nareitresearch/ 2019-reit-outlooklook-back-2018-and-look-forward-2019
  • Ndung’u, D. T. and Onyuma, S. O. (2020). Financing affordable housing in Africa through real estate investment trusts. Africa Growth Agenda, 17 (2), 14-15.
  • Olanrele, O. O. (2014). REIT performance analysis: Are other factor determinants constant? Asian Economic and Financial Review, 4(4), 492-502.
  • Oreagba, F. (2010). Seminar paper on implementation of REIT in Nigeria (N-REIT): A seminar on real estate investment trust (REIT). Nigerian Stock Exchange, Lagos, Nigeria.
  • Oxford Business Group. (2019). Real estate: Although real estate in Ghana has slowed down, REITs hold potential. https://oxfordbusinessgroup.com/analysis/real-estate-although-real-estate-has-slowed-down-reits-hold-potential
  • Pallant, J. (2011). Multivariate Analysis of Variance. SPSS survival manual. Crow’s Nest, Australia: Allen & Unwin.
  • Pham, A. K. (2013). An empirical analysis of real estate investment trusts in Asia: Structure, performance and strategic investment implications. Unpublished PhD thesis, University of Western Sydney, Sydney, Australia.
  • Prabakaran, V. (2018). A Study on investors’ awareness about the stock market using variance based structural equation modelling. International Journal of Scientific Research and Reviews, 7 (2), 642 -651.
  • Press Reader. (2019). Why time is now for REITs investors to reconsider residential properties. https://www.pressreader com/nigeria/business-day-nigeria/20191231/281977494540509
  • Price water House Coopers. (2019). Global REIT regimes. https://www.pwc.com/gx/en/assetmanagement/assets/pdf/worldwide-reit-regimes nov-2019.pdf
  • Rana, S. B. (2019). Investor awareness, risk perception and investor behavior in stock market of Nepal. IOSR Journal of Economics and Finance, 10(5), 56-63.
  • Ricciardi, V. (2008). The Psychology of Risk: The behavioral finance perspective. Hoboken, New Jersey, John Wiley & Sons.
  • Saini, S., Anjum, B. and Saini, R. (2011). Investors awareness and perception about mutual funds. Zenith International Journal of Multidisciplinary Research, 1(1),14-29.
  • Sarkar, A. K. and Sahu, T. N. (2018). Analysis of investment behaviour of individual investors of stock market: a study in selected districts of West Bengal. Pacific Business Review International, 10(7), 7-17.
  • Savills Research. (2019). REIT market 101. https://pdf.savills.asia/selected-international-research/reits-en-1111.pdf
  • Shefrin, H. and Statman, M. (2000). Behavioral portfolio theory. Journal of Financial and Quantitative Analysis, 35 (2), 127-151.
  • Sofyan, R., Putra, D. G. and Aprayuda, R. (2020). Does the information on the internet media respond to the stock market? In The fifth Padang international conference on Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020) (pp. 510-520), Atlantis Press.
  • Statista. (2019). Market capitalization of real estate investment trusts (REITs) in the United States 1975 to 2018. https://www.statista.com /statistics/916665/market-cap-reits-usa/
  • Vreeker, J. (2020). Asia pacific listed property sector surges 22.8% in 2019, despite marginal loss in December 2019. https://www.reitasiapac.com/
  • Watumishi Housing Company. (2020). WHC-REIT. https://www.whc.go.tz/
There are 41 citations in total.

Details

Primary Language English
Subjects Economics, Behaviour-Personality Assessment in Psychology, Finance, Business Administration
Journal Section Articles
Authors

Daniel Thuo Ndung’u This is me 0000-0002-5046-5960

James N. Kung’u This is me 0000-0002-3342-0883

Publication Date September 30, 2022
Published in Issue Year 2022 Volume: 11 Issue: 3

Cite

APA Ndung’u, D. T., & Kung’u, J. N. (2022). INFLUENCE OF INVESTOR AWARENESS ON PERFORMANCE OF REAL ESTATE INVESTMENT TRUSTS IN KENYA. Journal of Business Economics and Finance, 11(3), 122-129. https://doi.org/10.17261/Pressacademia.2022.1632

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