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The viability of the REIT structure as a vehicle for real estate development

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dc.contributor.advisor William C. Wheaton. en_US
dc.contributor.author Gumbs, Byron (Byron Terence), 1970- en_US
dc.contributor.other Massachusetts Institute of Technology. Dept. of Urban Studies and Planning. en_US
dc.date.accessioned 2006-03-29T18:24:49Z
dc.date.available 2006-03-29T18:24:49Z
dc.date.issued 2001 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/32215
dc.description Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2001. en_US
dc.description "September 2001." en_US
dc.description Includes bibliographical references (p. 97-100). en_US
dc.description.abstract Little, if any, research has been published on development-oriented real estate investment trusts (REITs), as a category. This thesis examines the viability of the REIT format for the real estate development process. Capital is the life-blood of any development concern, and, as such, particular attention is paid to the processes pertaining to the access of funds, the subsequent allocation of funds, and the underlying logic governing these decisions. This paper reviews industry articles, past studies on the effects of development on REIT performance, and interviews with key personnel of the REITs and private development firms profiled in this thesis. I conclude that the REIT format is an effective vehicle for real estate development although skilled management is vital to exploiting its inherent potential. Development-oriented REITs are distinguished from their conservative REIT brethren by their objectives. REITs that shun development add value for shareholders through the active management of property holdings, whereas REIT-developers adopt strategies that are focused on creating and adding value through real estate development. Additionally, some of the strategies adopted by development-oriented REITs are unrelated to development but related to value-creation. Development-oriented REITs may engage in development, joint ventures with capital providers or private developers with specific expertise, the disposition or acquisition of assets, share repurchases, and lastly, the solicitation of capital. The REITs profiled in this thesis are manufacturers of real estate assets, which are focused on value creation through development. This paper will: 1. focus on the application of the REIT structure by development firms and the factors governing their decisions regarding investment and the generation of shareholder value; and 2. investigate the potential of the REIT structure beyond passive real estate ownership and determine its value to development-oriented public companies with aggressive value-creation agendas. en_US
dc.description.statementofresponsibility by Byron Gumbs. en_US
dc.format.extent 100 p. en_US
dc.format.extent 5065583 bytes
dc.format.extent 5075563 bytes
dc.format.mimetype application/pdf
dc.format.mimetype application/pdf
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.rights.uri http://dspace.mit.edu/handle/1721.1/7582
dc.subject Urban Studies and Planning. en_US
dc.title The viability of the REIT structure as a vehicle for real estate development en_US
dc.title.alternative Viability of the real estate investment trusts structure as a vehicle for real estate development en_US
dc.type Thesis en_US
dc.description.degree S.M. en_US
dc.contributor.department Massachusetts Institute of Technology. Dept. of Urban Studies and Planning. en_US
dc.identifier.oclc 50335403 en_US


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