REITs - The First Fifty Years and Beyond: Financial Analysis in a Triple Case Study

• In Event: Saturday Breakfast with Research Roundtable Forum Session

Abstract

On September 14th, 2010, the REIT industry celebrated its 50th Anniversary. Only three REITs that were there in the beginning still exist today: Washington Real Estate Investment Trust, Pennsylvania Real Estate Investment Trust, and Winthrop Realty Trust (formerly known as First Union Real Estate Equity and Mortgage Investments). This study provides a historical analysis of the three successful companies that have been in the REIT industry throughout its entire existence. Quantitative analysis was performed through the computation of specific ratios relevant to the REIT industry from 1961 through 2014, utilizing data from Compustat, SNL Financial, and hand-collected data. In addition, ANOVA testing was used to identify significant differences in the ratios for the three specific companies and all the other companies in the industry. Qualitative analysis was performed through review of historical documents and interviews with company management. The main finding from this research is that a company that establishes its identity, hires strong management, knows its market, and concentrates its focus on specific financial measures and goals will be the company that will survive while other companies fail.

Authors

• Barbara Sumrall White, University of West Florida - Pensacola

• Dale L Flesher, University of Mississippi

• Michael T Howell, University of West Florida