• Journal of the Korea Academia-Industrial cooperation Society
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• v.5 no.6
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• pp.562-570
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• 2004

Since 2001, REITs are introduced in Korea as a type of general REITs and CR-REITs. But REITs are not succefully settled down in Korea. The purpose of the study is to propose the way to activate REITs in Korea. We should make up for the weak points in the current REITs system. For the success of REITs the followings are prepared.: first, REITs give a current, stable dividend income. second, disclosure obligations should be satisfied. third, securities are registered with the SEC are required to make regular SEC disclosures. fourth, REIT manager should be skilled, experienced real estate professionals. sixth, REITs must distribute more percent of its taxable income to its shareholders. seventh, Ownership interests be more flexible.

• Journal of the Korean Regional Science Association
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• v.40 no.1
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• pp.89-110
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• 2024

REITs are very closely related to real estate management, but there have been no prior studies analyzing the location of REITs assets. Therefore, this study analyzed the location characteristics of REITs assets in two aspects to clarify the location characteristics by using spatial information of REITs assets. First, the characteristics of the type of city where REITs assets are distributed were analyzed, and second, the characteristics of the zoning where REITs assets are distributed were analyzed. As a result of analyzing the characteristics of the city where REITs assets are distributed by type, it was analyzed that in the case of the capital area, both the ratio of cities with REITs assets location and the intensity of REITs assets location (number of REITs assets per city) have location characteristics by city hierarchy in the order of metropolitan city > big city > small and medium-sized city. In the case of non-capital area's metropolitan and large cities, the ratio of REITs assets location cities is similar to that of the capital area, but the location intensity of REITs assets was analyzed to be significantly lower than that of the capital area. As a result of the analysis of REITs assets by type, housing REITs assets tend to be located in the old downtown commercial zoning and the new downtown residential zoning, office REITs assets are characterized by concentration of location in specific commercial zoning of Seoul, and retail REITs assets are located mainly in the old downtown station area. In addition, it was found that logistics REITs assets tend to be located in management zoning, centering on key logistics hub cities in the region.

• Journal of the Economic Geographical Society of Korea
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• v.14 no.4
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• pp.524-539
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• 2011

This paper aims to analyze the characteristics of hotel REITs' performance and operation, and to examine their use for activating the hotel industries in Korea. The results of this study are as follows. First, hotel REITs underperformed average REITs and investment proportion of hotel REITs compared to total REITs has been curtailed after 1998. This is because performance of hotel REITs is sensitive to business fluctuations. Second, hotel REITs have mainly invested chain hotels, and shared their role with professional hotel management companies. Third, hotel REITs are to be useful for activating the hotel industries in Korea. In this context, major implications are presented to use healthcare REITs effectively.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.6
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• pp.676-686
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• 2016

This study analyzed the long term relationship between the K-REITs' lending rate and interest rate variables based on ARDL (autoregressive distributed lag) and also examined the short term relationship based on the ARDL-ECM model. In the results of the empirical test, there is a co-integration relationship among the K-REITs' lending rate, 3 year government bond (rate), 3 year government bond (rate), corporation bond (rate) (AA-, 3year) and general fund loan rate. This means that the K-REITs' lending rate is related to the long term interest rate. The corporate general fund loan rate has a significant correlation with the K-REITs' lending rate in the long term relation and short term adjustment process. The establishment of a management plan by the REITs considering the trends in the corporate general fund loan rate in the decision making process for finance sector borrowings can be practically helpful for the K-REITs.

• Journal of Distribution Science
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• v.13 no.12
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• pp.85-94
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• 2015

Purpose - The purpose of this paper is to provide a political registration point for analyzing the economic impacts on the national economy from the REITs distribution industry in our country. The REITs distribution industry was introduced in 2001 to accelerate the corporate restructuring process and advance the real estate market. During its establishment, the REITs distribution industry faced difficulties; however, the industry grew rapidly through interest from institutional investors, thus mitigating the establishment problems by 2006. In Korea, more than 108 REITs were operating as of the end of June 2015. REITs contribute significantly to the national economy. The economic impacts on the national economy of the REITs distribution industry was analyzed using input-output (I-O) analysis with respect to production, imports, value-added, and employment. Research design, data, and methodology - The research used an I-O analysis of the activities of the REITs distribution industry in the national economy. The I-O analysis methodology analyzes the economic effects that influence other industries with respect to one unit of external investment. The data for this analysis were the I-O table of 2013 as published by the Bank of Korea in 2014. Results - The findings of this study are as follows. First, if an external input to the REITs distribution industry is 1 won, the overall impact of the product is 1.3869 won, the import induction is 0.0002 won, and the value-added induction is 0.7656 won. A new investment of 659.9 billion won into the REITs industry was estimated to produce a gross effect of 915.2 billion won. Second, if an external input to the REITs distribution industry is 1 billion won, the employment-inducing effects are estimated at 19.6394 individuals. The employment-inducing coefficient of 19.6394 for the REITs distribution industry indicates that the industry created significant employment-more than other industries-because the coefficient was 2.2 times the 2013 industry average employment-inducing coefficient of 8.8. Third, the investment effects of the REITs distribution industry on production induction, value-added induction, and employment induction are assumed to be large in business support services, financing, communications and broadcasting, and professional, scientific, and technical services. Conclusions - The REITs distribution industry was analyzed as having a strong employment inducing, high value added effect. The REITs distribution industry is an excellent alternative for the government authority to create multilateral jobs. Because the REITs distribution industry has a significant positive impact on the national economy, it should be developed. However, the I-O methodology has restrictions with respect to the fixation and timing of the input coefficient. Follow-up research is expected to supplement the analysis method at a specific point in time.

• Journal of the Economic Geographical Society of Korea
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• v.14 no.2
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• pp.157-175
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• 2011

This paper aims to analyze the characteristics of healthcare REITs' performance and operation, and to examine their use for activating the silver industries in Korea. The results of this study are as follows. First, according to the results of analyzing healthcare REITs' performance, healthcare REITs outperformed average REITs and extended investment proportion compared to total REITs after 2007. This outperforming came from not only rapid growth of silver industries, but also REITs strategy using the structure of sale-and-leaseback and triple-net lease. Second, healthcare REITs use selection and concentration strategy in terms of asset sector, but use portfolio diversification strategy in terms of investment region. Third, according to the analysis results, healthcare REITs are to be useful for activating the silver industries in Korea. In this context, major implications are presented to use healthcare REITs effectively.

• Journal of the Economic Geographical Society of Korea
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• v.22 no.1
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• pp.36-51
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• 2019

The purpose of this study is to elucidate the implications for the effective use of rental housing REITs in Korea by analyzing the characteristics of rental housing REITs in Japan, focusing on the operation and asset management of rental housing REITs. The main results of the study are as follows. In the case of Japan, rental housing REITs are invested and operated by profit-based private companies, and are activated with small rental housing in the city center as a niche market. In particular, it has secured the reliability, expertise and permanence of REITs by utilizing the sponsored REITs structure. This is possible because Japan has infrastructure for the supply and operation of corporate rental housing. Based on these analyses, ways to revitalize private investment, and ways to utilize sponsored REITs to enhance REITs' credibility were derived. for the effective use of domestic rental housing REITs.

• Journal of the Korean Geographical Society
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• v.49 no.3
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• pp.357-370
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• 2014

This paper aims at analyzing the use of REITs for developing student housing. To do this, firstly, the case studies of student housing REITs in U.S. are analyzed, and secondly, possibility and schemes of using REITs in Korea for the expansion of student housing. REITs are actively participated in the investment and management of student housing in U.S. and they are vertically integrated real estate investment operating companies which play a role of design-development-investment-managementconsulting. Student housing REITs can be fully used in Korea. To do this, special strategy integrating investment and management strategy should be examined. In these context, joint-venture model and PPP-conbined model are suggested to use REITs effectively.

• Korean Journal of Construction Engineering and Management
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• v.11 no.5
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• pp.41-52
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• 2010

Even though REITs (Real Estate Investment Trusts) are listed on the stock market, REITs have characteristics that allow them to invest in real estate and financing for real estate development. Therefore REITs is related with stock market and construction business and real estate business. Using time-series analysis, this study analyzed REITs in relation to construction businesses, real estate businesses, and the stock market, and derived influence factor of REITs. We used the VAR (vector auto-regression) and the VECM (vector error correction model) for the time-series analysis. This study classified three steps in the analysis. First, we performed the time-series analysis between REITs and construction KOSPI(The Korea composite stock price index) and the result showed that construction KOSPI influenced REITs. Second, we analyzed the relationship between REITs and construction commencement area of the coincident construction composite index, office index and housing price index in real estate business indexes. REITs and the housing price index influence each other, although there is no causal relationship between them. Third, we analyzed the relationship between REITs and the construction permit area of the leading construction composite index. The construction permit area is influenced by REITs, although there is no causal relationship between these two indexes, REITs influenced the stock market and housing price indexes and the construction permit area of the leading composite index in construction businesses, but exerted a relatively small influence in construction starts coincident with the composite office indexes in this study.

• Journal of Construction Engineering and Project Management
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• v.1 no.3
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• pp.28-37
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• 2011

Domestic construction companies are suffering from financing difficulties in the wake of the economic slump in Korea and abroad. During this economic slump, real estate investment trusts (REITs), facilitators for improving financing and stimulating construction businesses, have increasingly expanded since their introduction in 2001. However, in terms of growth speed and marketing size, Korean REITs are falling behind those of other nations. The purpose of this study is to suggest a method for composing a portfolio using the Markowitz portfolio selection model to stimulate REITs. The main contents are as follows. First, a comparative analysis was conducted of increased REIT profit with the application of the Markowitz model and the average REIT profit rate from July 3, 2007, to July 21, 2008, during the investment analysis periods. The results showed that the total profit rate from the Markowitz model was about 10% higher than the average REIT profit rate. Second, the sensitivity was analyzed according to the portfolio's data-gathering and replacement cycle to measure the optimum cycle and yield. The six-mouth profit data collection period showed about 16% higher profits with the Markowitz model than with the REITs. The two-week portfolio change period resulted in about 11% higher profits with the Markowitz model than with the REITs.