<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The level of sensitivity of every investment option to a market index is crucial to investors. Sensitivity analysis of individual or a set of returns on investments to market return index predicts the reaction of the investment(s) to changes in the market index; informs investors of prospective performance of different investments types; as well as assists the investors in making appropriate decisions on investment selections. This paper assessed how sensitive indirect real estate investments in Nigeria were to market index. The three companies whose asset returns were considered in this study were real estate investment trusts listed in the Nigerian Stock Exchange. The data used in this study were sourced from annual reports of the listed companies, and reports of the Nigerian Stock Exchange. The beta coefficients were used to determine the sensitivity of the selected stocks to market return index. The study found a very low and insignificant beta coefficient among various real estate investments and market return index. Hence, there is no relationship between the market return index and the returns on the Real Estate Investment Trusts listed in the Nigerian Stock Exchange.</p></abstract>

The level of sensitivity of every investment option to a market index is crucial to investors. Sensitivity analysis of individual or a set of returns on investments to market return index predicts the reaction of the investment(s) to changes in the market index; informs investors of prospective performance of different investments types; as well as assists the investors in making appropriate decisions on investment selections. This paper assessed how sensitive indirect real estate investments in Nigeria were to market index. The three companies whose asset returns were considered in this study were real estate investment trusts listed in the Nigerian Stock Exchange. The data used in this study were sourced from annual reports of the listed companies, and reports of the Nigerian Stock Exchange. The beta coefficients were used to determine the sensitivity of the selected stocks to market return index. The study found a very low and insignificant beta coefficient among various real estate investments and market return index. Hence, there is no relationship between the market return index and the returns on the Real Estate Investment Trusts listed in the Nigerian Stock Exchange.

Sensitivity of Real Estate Investment Return to Market Return Index: The Case of Nigerian Real Estate Investment Trusts

Baltic Journal of Real Estate Economics and Construction Management

This work is licensed under the Creative Commons Attribution 4.0 International License.

The level of sensitivity of every investment option to a market index is crucial to investors. Sensitivity analysis of individual or a set of returns on...

Sensitivity of Real Estate Investment Return to Market Return Index: The Case of Nigerian Real Estate Investment Trusts

Published Online: Nov 22, 2020

Page range: 197 - 207

DOI: https://doi.org/10.2478/bjreecm-2020-0014

Keywords
Market index, real estate investment, real estate investment trusts, returns, sensitivity analysis

© 2020 Chibuikem Adilieme et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Sensitivity of Real Estate Investment Return to Market Return Index: The Case of Nigerian Real Estate Investment Trusts

Published Online: Nov 22, 2020

Page range: 197 - 207

DOI: https://doi.org/10.2478/bjreecm-2020-0014

KeywordsMarket index, real estate investment, real estate investment trusts, returns, sensitivity analysis

© 2020 Chibuikem Adilieme et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Market index, real estate investment, real estate investment trusts, returns, sensitivity analysis