Explaining Deviations From NAV In UK Property Companies: Rationality And Sentimentality

One of the most vexing issues for analysts and managers of property companies across Europe has been the existence and persistence of deviations of Net Asset Values of property companies from their market capitalisation. The issue has clear links to similar discounts and premiums in closed-end funds. The closed end fund puzzle is regarded as an important unsolved problem in financial economics undermining theories of market efficiency and the Law of One Price. Consequently, it has generated a huge body of research. Although it can be tempting to focus on the particular inefficiencies of real estate markets in attempting to explain deviations from NAV, the closed end fund discount puzzle indicates that divergences between underlying asset values and market capitalisation are not a ‘pure’ real estate phenomenon. When examining potential explanations, two recurring factors stand out in the closed end fund literature as often undermining the economic rationale for a discount – the existence of premiums and cross-sectional and periodic fluctuations in the level of discount/premium. These need to be borne in mind when considering potential explanations for real estate markets. There are two approaches to investigating the discount to net asset value in closed-end funds: the ‘rational’ approach and the ‘noise trader’ or ‘sentiment’ approach. The ‘rational’ approach hypothesizes the discount to net asset value as being the result of company specific factors relating to such factors as management quality, tax liability and the type of stocks held by the fund. Despite the intuitive appeal of the ‘rational’ approach to closed-end fund discounts the studies have not successfully explained the variance in closed-end fund discounts or why the discount to net asset value in closed-end funds varies so much over time. The variation over time in the average sector discount is not only a feature of closed-end funds but also property companies. This paper analyses changes in the deviations from NAV for UK property companies between 2000 and 2003. The paper present a new way to study the phenomenon ‘cleaning’ the gearing effect by introducing a new way of calculating the discount itself. We call it “ungeared discount”. It is calculated by assuming that a firm issues new equity to repurchase outstanding debt without any variation on asset side. In this way discount does not depend on an accounting effect and the analysis should better explain the effect of other independent variables.NAV, Net Asset Value, Discount, Property Company, Price Equilibrium

Agoraphilia o claustrofobia? A partire da una breve introduzione a “All’inizio di un viaggio dantesco” di Giulio Ferroni

Starting from the geographic tale of Ferroni along Dante’s journey in Italy, it is possible to underline a lack of representations in this Issue, although the Spatial Turn is the main subject. Author puts this feature in relation to a waek will of Italian geography in order to define itself, that generates several problems especially concerning university and professional geographic education

Introduzione. Riviste e multidisciplinarità. Tra teoria e prassi

Il fascicolo 2/2015 del Semestrale di Studi e Ricerche di Geografia è il primo concepito per intero con il vigente status di rivista scientifica di Classe A, attribuito, come reso noto attraverso i consueti canali d’informazione della comunità dei geografi, dall’ANVUR nel maggio 2015, al termine di un generale processo di revisione dell’accreditamento delle riviste scientifiche, nell’ambito del quale il periodico della Sapienza aveva avanzato richiesta di upgrading. Così come messo volutamente in evidenza nella scelta del titolo del fascicolo, la connotazione è stata fortemente e volutamente trasversale, non solo in senso disciplinare, ma anche per genere (se avessero partecipato solo autori maschi sarebbe stato sicuramente notato, quindi perché tacere del fatto che non sia così) e per anagrafe1

Cibo, memoria e territorio

Il presente contributo mira a mettere in evidenza il ruolo che si può assegnare al cibo, tanto nella sua dimensione materiale quanto in quella immateriale, nei processi di valorizzazione del territorio basati su prassi e percorsi di patrimonializzazione del rapporto originale di una determinata comunità con il proprio contesto geografico di riferimento

Le rapppresentazioni "sincere" . Un'opportunità per la geografia o una nuova forma di rivoluzionismo?

The increasing production of multiple and informal representations generated by large amount of available data and from several new kind of sources, it is the occasion to argue the relationships between the construction process of legitimacy and shared memory. It is underlined the role of geographical knowledge (both from cultural and neurological point of view) and the importance of geographer in order to distinguish different importance of individual representations from shared and common ones

Geography’s preeminence: Italian Commission for the Knowledge and Study of Geography at School

Since on 30 March 2022, by Decree of the Minister Prof. Patrizio Bianchi, the “Commission for the knowledge and study of geography at school” in Italy was established at the Ministry for Education, with an act which owing to its institutional importance not only boasts very few precedents in the history of the relations between Geography (understood as a community of scholars and teachers) and the Institutions called upon to foster and guarantee its teaching, but having the clear political meaning for the goals of such provision and for the moment in time in which it is implemented

Real estate fund active management

Purpose – The purpose of this paper is to analyse the performance of UK property funds using the dual sources of active management, Active Share and tracking error, to distinguish between the types of active management styles used by funds. Design/methodology/approach – The authors use data on 38 UK real estate funds and classify them into five active management categories using the dual sources of active management, Active Share and tracking error. Then, the authors compare their return performance against Active Share, tracking error, fund size and leverage. Therefore the paper is able to answer two of the fundamental questions of investment: does active management add value and what form of active management, stock selection or factor risk, is better at adding value to the fund? Findings – There are three main conclusions. First, the approach of Cremers and Petajisto (2009) and Petajisto (2010) is able to classify real estate funds in the UK on their management activity into categories that makes intuitive sense and seem stable over time. Second, balanced funds show relatively low Active Shares and particularly low tracking errors, due to the benefits of property-type diversification. In contrast, specialists funds display higher Active Shares and both low and high tracking errors depending on their stock-picking approach; diversified or concentrated. Third, an analysis over different time periods confirmed that funds in the sample essentially remained in the same categories within the sample period, even during markedly different market return periods. This implies that investors need to constantly monitor changes in the market and switch between fund management styles, if at all possible. Research limitations/implications – The analysis was only based on 38 funds with complete data over the sample period and the relationship between fees and active management was not examined, even though ultimately investors are concerned with returns after management fee. It would be instructive therefore if the number of funds and time period was expanded to see if the results are robust and to see whether management fees outweigh the benefits of active manager. Practical implications – The findings should enable investors to make a more informed investment decisions in the future. Originality/value – To the best of the author’s knowledge this is the first paper to apply the dual sources of active management, Active Share and tracking error, in the UK real estate market

Ecosystem Services Valuation for the Sustainable Land Use Management by Nature-Based Solution (NbS) in the Common Agricultural Policy Actions: A Case Study on the Foglia River Basin (Marche Region, Italy).

Agricultural land is a very important ecosystem that provides a range of services like food, maintenance of soil structure, and hydrological services with high ecological value to human wellbeing Ecosystem Services (ESs). Understanding the contribution of different agricultural practices to supply ESs would help inform choices about the most beneficial land use management. Naturebased Solutions (NbS) are defined by IUCN (International Union for Conservation of Nature) as actions to protect, sustainably manage and restore natural or modified ecosystems, which address societal challenges (e.g., climate change, food and water security, or natural disasters) effectively and adaptively, while simultaneously providing human wellbeing and biodiversity benefits. Some actions farmers can implement in the new Rural Development Programs (RDP 2021–2022 and 2023–2027) can be considered as NbS and could affect the quantity, quality, and time of some ESs related to water regulation and supply, N adsorption and erosion protection. This study aims to evaluate these ESs in different scenarios in the upper Foglia river basin (Italy) and at a local scale (farming), and to highlight the issue to compensate farmers for the production of public goods which benefit the whole society (ESs) by the implementation of RDP’s actions. These scenarios highlight how actions have positive effects on ecosystem services and their economic value related to land use management, on maintaining agricultural practices by integrating Water Frame Directive (2000/60/EC), Directive 2007/60/EC on the management of flood risks and highlighting the potential role of farmers in a high diversity landscape. This study highlights a new way to evaluate the processes of natural capital in the production of public goods, which benefits the whole society (ESs), by emphasizing the economic and environmental role of farmers in producing them and putting on the table data to trigger a PES (Payment for Ecosystem Services) mechanism. To facilitate decision making, robust decision support tools are needed, underpinned by comprehensive cost-benefit analyses and spatially modeling in which agriculture can be a strategic sector to optimize food production and environmental protection in harmony with the Farm to Fork (F2F) strategy

I luoghi della collettività. Tiburtino III tra residenti e city users

Il presente contributo prende le mosse dai risultati di una lunga ricerca sul campo (circa 7 anni, dal 2005 al 2013) relativa alla borgata di Tiburtino III (Maggioli, Morri, 2006, 2009a, 2011; Morri, Maggioli et al., 2013), un parallelepipedo che, nelle periferia orientale di Roma, si sviluppa nel senso della lunghezza tra via Tiburtina e via Collatina