Executive Compensation in EREITs: EREIT Size is But One Determinant

Prior research of senior executive compensation in real estate investment trusts (REITs) has found REIT size as the sole statistically significant determinant of compensation. This research finds that size is only one of several determinants of equity REITs (EREIT) senior executive compensation. In addition to size as measured by EREIT market value, the designation of the EREIT as a retail EREIT, the percentage of stock owned by the senior executive, the dollar amount of dividends paid to the senior executive and the number of years since an EREIT’s initial public offering were found to be significant factors impacting senior executive compensation. The results also contrast with the general executive compensation literature that shows proxies for size as the primary determinants of executive compensation. This research indicates the need for industry specific compensation models to account for variation in executive compensation.

Apartment Security: A Note on Gated Access and Rental Rates

The effect of gated access restrictions on garden apartment rents is empirically evaluated. Garden apartment rents are positively related to the presence of gated access constraints, although the combination of in-unit alarms with gated access is rent neutral. One-bedroom and two-bedroom units garner higher rents with the presence of gated access constraints. The research extends prior research on high-rise units indicating that 24-hour security positively impacts occupancy and gross rental income. Given that the study uses data from only one market, additional research for other cities and regions is warranted.

A new class of random processes with application to helicopter noise

The concept of dividing random processes into classes (e.g., stationary, locally stationary, periodically correlated, and harmonizable) has long been employed. A new class of random processes is introduced which includes many of these processes as well as other interesting processes which fall into none of the above classes. Such random processes are denoted as linearly correlated. This class is shown to include the familiar stationary and periodically correlated processes as well as many other, both harmonizable and non-harmonizable, nonstationary processes. When a process is linearly correlated for all t and harmonizable, its two-dimensional power spectral density S(x)(omega 1, omega 2) is shown to take a particularly simple form, being non-zero only on lines such that omega 1 to omega 2 = + or - r(k) where the r(k's) are (not necessarily equally spaced) roots of a characteristic function. The relationship of such processes to the class of stationary processes is examined. In addition, the application of such processes in the analysis of typical helicopter noise signals is described

On a class of nonstationary stochastic processes

A new class of nonstationary stochastic processes is introduced and some of the essential properties of its members are investigated. This class is richer than the class of stationary processes and has the potential of modeling some nonstationary time series. The relation between these newly defined processes with other important classes of nonstationary processes is investigated. Several examples of linearly correlated processes which are not stationary, periodically correlated, or harmonizable are given

The Relationship between Foreclosure Status and Apartment Price

Empirical studies disclose that foreclosed residential properties sell at a discount from the expected market price for non-foreclosed residences. This investigation shows that prior findings on residential properties can be extended to include income-producing properties. In addition, it employs market rent to control for variation in property quality. An analysis of apartment sales in Phoenix, Arizona, demonstrates that foreclosure-status apartments sell at a 22% discount when compared to non-foreclosure apartment sales. The rationale for accepting discounted process may be atypical seller motivations such as a need to satisfy regulatory capital requirements, to mitigate negative stock price effects, or to protect credit ratings.

Micro-Market Determinants of Neighborhood Center Rental Rate

This investigation expands the limited empirical research on retail rental rates by investigating the determinants of neighborhood shopping center rents. Evidence supports primary trade area and property specific characteristics as the primary determinants of neighborhood center vacancy and rental rates. A positive aggregation effect created by higher order shopping opportunities is also found. Community centers and malls generate positive marginal effects on neighborhood center rental rates. However, the marginal effects diminish greatly after two-tenths mile for community centers and one-half mile for malls. Micro-market factors are important determinants of rental rates and by implication property performance.

Credit Line Availability and Utilization in REITs

Analysis of REIT credit line availability and use under normal conditions and during the recent financial crisis are provided. Descriptive statistics indicate REIT credit lines represent an important component of capital structure, credit line availability and utilization have increased substantially over the sample period, and REITs maintain precautionary liquidity via credit lines rather than holding cash. Multivariate results indicate that credit line availability is directly associated with cash flow uncertainty, dividend distributions, acquisitions, and capital market access and is inversely linked to the market-to-book ratio. Credit line use is unrelated to cash flow volatility and dividends, but is correlated with operating cash flow, acquisitions, and capital market access. Unlike with non-REITs, when setting credit limits lenders focus on dividends and not just operating cash flow. Despite finding that line availability is influenced by dividend payments, REITs do not systematically use lines to pay dividends implying that dividends are paid from operating cash flows.

Equity REIT Property Acquisitions: Do Apartment REITs Pay a Premium?

Negotiation theory and implied agency costs provide the foundation for the research hypothesis that equity real estate investment trusts (EREITs) may have paid premiums when making real property acquisitions during the 1990s REIT boom. Using a simultaneous equations model and data from the Atlanta, Phoenix and Seattle apartment markets, this research finds that apartment EREITs have paid above market prices for property acquisitions. In Atlanta, a 26.1% premium was evident; in Phoenix, a 27.5% premium was evident; while in Seattle, a premium was not evident. At the property level, the returns to EREITs and private sector or non-securitized investors may differ substantially.

Black Power in River City: African American Community Activism in Louisville, Kentucky, 1967-1970

The impact of Black Power rhetoric and ideology in Louisville, Kentucky in 1967-1970 is explored. The role of Black Power in shaping the discourse of Louisville’s black counter-public and civil rights counter-public is analyzed in the context of the 1967 open housing demonstrations, the May, 1968 riot, and the trial of the ‘Black Six’. Black Power played a vital role in community organizing and in displays of black national and cultural pride. It actively challenged the city’s mystique of Southern white paternalism embraced by the mayoral administration of Kenneth Schmied. Despite that administrations allegations, Black power rhetoric in the West End did not play a significant role in the riot that left two African American youth dead

A gauge invariant chiral unitary framework for kaon photo- and electroproduction on the proton

We present a gauge invariant approach to photoproduction of mesons on nucleons within a chiral unitary framework. The interaction kernel for meson-baryon scattering is derived from the chiral effective Lagrangian and iterated in a Bethe-Salpeter equation. Within the leading order approximation to the interaction kernel, data on kaon photoproduction from SAPHIR, CLAS and CBELSA/TAPS are analyzed in the threshold region. The importance of gauge invariance and the precision of various approximations in the interaction kernel utilized in earlier works are discussed.Comment: 23 pages, 13 figs, EPJ A styl