The Analysis of The Performance and Ranking of Investment in Real Estate Investment Trust (REITs)

Abstract

The objectives of this study were to study the rate of return and ranking of the investment in Real Estate Investment Trust (REITs) comparing with the index of Property Development (PROP). Moreover, to analyze the performance of Real Estate Investment Trust (REITs), and to classify operations to decide for investment. It especially studied Real Estate Investment Trust (REITs), which had 43, and the index of Property Development by collecting secondary data from 1 January 2015 to 31 December 2019, analyzing by using five concept rating scale, consisted of Sharpe Ratio, Treynor Ratio, Jensen’s Alpha, Value at Risk, and Sortino Ratio and dividing operations into 3 retrospective periods, 1, 3, and 5 years.

The findings found most of the results had a positive rate of return of the investment in Real Estate Investment Trust (REITs) given the rate of return better than the index of Property Development (PROP). The Real Estate Investment Trust (REITs) mostly had a high risk of investment : however; there were almost half of them which were less risky than the index of Property Development (PROP). The overview ranking based on the comparison of the 5 concepts, dividing into Summary of Real Estate Investment Trust (REITs) operational capabilities, over the past 1 year, it was found the REITs with great performance on the top 5, such as DREIT, WHART, QHOP, FTREIT, and URBNPF, respectively. Besides, it had great performance on top 5 over the past 3 years, such as BKKCP, WHART, LUXF, IMPACT, and CPNREIT, respectively. Ultimately, Trusts had great performance on top 5 over the past 5 years, such as IMPACT, LUXF, LHSC, QHPF, and WHART respectively.