Paper Title
Causal Linkages Between Conduct and Performance of Real Estate Investment Trusts in Nigeria
Abstract
The aim of this study is to examine the linkages between conduct and performance of Real Estate Investment Trusts in Nigeria (N-REITs) from 2008 to 2016 with a view to providing information for investment decisions. The study population comprised all the N-REITs companies namely: Skye Shelter Fund REITs, Union Home REITs and UPDC REITs. A total enumeration survey of all the companies was carried out. Data on conduct indicators such as advertisement, maintenance of property among others as well as data on dividend and share prices of N-REITs were obtained from the annual reports/statement of accounts of the respective companies. These data were analyzed by means of descriptive statistical tools, holding period analysis and Granger Causality Test. Findings from the study revealed that most of the conventional basic conduct indicators as presented in literature such as innovation, marketing strategies and research and development among others were not adopted by N-REITs companies. The holding period returns had a mean value of 4.72% within the study period. The study further showed a significant positive bi-directional causal relationship between conduct and performance in the industry (with P-values as 0.0078 and 0.0045 respectively). It was recommended that the respective N-REITs companies adopt identified basic conventional conduct indicators as this will create awareness about Nigerian REITs and stimulate patronage by investors which can consequently impact on its performance.
Keywords - Conduct, Performance, Real Estate, REITs, Returns.