Abstracts for Vol. All articles listed here are available for download in portable document format. To this end, this study evaluates international real estate securities within the framework of a mixed-asset portfolio consisting of U.S. corporate bonds, U.S. real estate securities, and international common stocks. This study covers a thirteen-year time span from 1984 through 1997. This study explores the diversification opportunities across the U.S. metropolitan apartment markets and attempts to discover the crucial economic factors for determining the relationship of asset performances among different MSAs.
Cluster analysis is used to develop homogeneous groupings of the metropolitan apartment markets.
The results of cluster analysis provide strong evidence for the existence of homogeneous groups in the metropolitan apartment markets, and the discriminant model identified six demand-side factors that are significant in determining the group membership of the individual MSAs. In this study, we utilize a relatively new databse to examine whether small foreign real estate firms have higher returns than large foreign real estate firms. We examine this issue from the perspective of a U.S. investor who forms portfolios of international real estate firms on the basis of U.S. dollar market value of equity. Using eleven years of foreign real estate data for more than 1200 observations in twenty countries, we find that large firms have higher returns and lower risk than small firms. These results hold when returns are denominated in either local currency or dollars.