• Corpus ID: 53643111

The Relative Value of Public Non-listed REITS

@article{Seguin2016TheRV,
  title={The Relative Value of Public Non-listed REITS},
  author={Paul J. Seguin},
  journal={Journal of Real Estate Research},
  year={2016},
  volume={38},
  pages={59-92}
}
  • Paul J. Seguin
  • Published 1 April 2016
  • Economics
  • Journal of Real Estate Research
We evaluate equity claims to publicly registered, non-listed Real Estate Investment Trusts (REITs). Although market-determined equity prices for public non-listed REITs (PNLRs) are unavailable, we demonstrate that such equity claims are worth between 23% and 80% less than equity claims to identical underlying assets organized as listed REITs. Sources for losses include illiquidity, high transactions costs and sub-optimal capital, and organizational structures. An alleged advantage of PNLRs… 

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