1984 research outputs found
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Alumni Highlight: Dylan Fonseca
Full text linkWe are pleased to recognize Dylan Fonseca as a Cornell alumnus. Dylan Fonseca (MBA ‘12) is a founding member of Fondo Atlas, an owner and operator of real estate in Florida focused on direct asset level investments in retail and residential properties. Fondo Atlas focuses on strategic acquisitions and best-in-class financial reporting to its investors. Since their first acquisition in Q1 2015, Fonseca and his partners have grown the fund to control 300,000 square feet of retail space valued in excess of $70 million
The Dynamics of REIT Pricing Efficiency
No full textWe study the dynamics of pricing efficiency in the equity REIT market from 1993 to 2014. We measure pricing efficiency at the firm level using variance ratios calculated from quote midpoints in the TAQ database. We find four main results. First, on average, the market is efficient, with variance ratios close to one. However, in any given year, there is considerable cross-sectional variation in variance ratios, suggesting at least some firms are priced inefficiently. Second, higher institutional ownership by active institutional investors is related to better pricing efficiency, while passive ownership does not reduce pricing efficiency. Third, REITs that are included in the S&P 500 and S&P 400 are priced more efficiently than other REITs. For the S&P 500 firms, we find evidence that this was purely driven by sample selection, while for S&P 400 firms, we find evidence that it is inclusion in the index that drives efficiency. Finally, we find evidence that firm investment, analyst coverage and debt capital raising activity can influence pricing efficiency
Airbnb Regulations and Hotel Stock Prices
Full text linkUsing a hand-collected dataset of articles from Business Source Complete, I test the effects of news related to Airbnb regulations on hotel stock prices. Interestingly, the positivity of the article content and titles have little effect on the weekly hotel stock prices. Rather, it is the presence of any articles in a week that negatively affects hotel stock prices. Additionally, the number of articles in a week does not intensify the effect on stock prices. Articles from low-profile publications are a much stronger predictor of returns than high-profile publication articles, and newspaper articles are a stronger predictor than non-newspaper articles
Innovating Across Senior Living and Care: Insights from 2017 CIHF Senior Living Roundtable
Full text linkThe second Cornell Institute for Healthy Futures (CIHF) roundtable, held in March 2017, brought together senior-level executives, educators, and leaders in senior housing and care to share experiences and exchange ideas. CIHF roundtables are purposely limited to approximately 25 to 30 participants “at the table” to foster discussion on a more intimate basis than traditional conferences. In addition to the formal participants, students, faculty, and guests observed and interacted during the event and attended a separate panel discussion and reception the evening before. Students, faculty, and industry leaders also met together at a working luncheon session to brainstorm ideas for recruiting and training young talent for careers in the senior housing and care industry
34th Annual Cornell Real Estate Conference Recap
Full text linkEvery October, the Cornell Real Estate Conference draws together the real estate community of Cornell and other significant industry individuals to meet and discuss current issues in real estate. In 2016, the theme of the conference was Disruption in Real Estate. The central discussion was simple: as with many industries, the pace of change in real estate is accelerating. New technologies have affected every sector of real estate including property management, data analytics and investment sourcing
Third Quarter 2017: Bigger Is Not Better: Smaller Hotels Outperform Larger Hotels
Full text linkOur moving average trend lines, supported by our standardized unexpected price (SUP) performance metrics, indicate a positive price momentum for smaller hotels with a decline for larger hotels. The return on invested capital for hotels exceeded total borrowing cost this quarter, resulting in a positive economic value added. This was partly attributable to a slight decline in the cost of debt financing, with no change in the cost of equity financing during the current quarter. The total risk of hotel REITs relative to the total risk of equity REITs as a whole has declined during the recent period. If this trend continues, expect lenders to loosen lending standards, at best, or maintain current lending standards, at worst. Expect the price of large hotels and smaller hotels to rise per our leading indicators of hotel price performance. This is report number 24 of the index series.
Supplemental File: Hotel Valuation Model (HOTVAL) We provide this user friendly hotel valuation model in an excel spreadsheet entitled HOTVAL Toolkit as a complement to this report which is available for download from http://scholarship.sha.cornell.edu/creftools/1
Customer Concentration and Cost Structure
Full text linkThis study examines the effects of customer concentration levels on firm cost structure decisions. Analyzing cost data from a sample of manufacturing firms from 1976 through 2013, we find a negative relationship between customer concentration and cost elasticity whereby firms exhibit lower proportions of variable-to-fixed costs in the presence of higher levels of customer concentration. Additionally, we find that greater customer bargaining power, proxied by supplier industry competition and product market fluidity, leads to lower cost elasticity as customer concentration becomes greater. These results are robust to alternate specifications as well as controlling for endogeneity using a two-stage model. Our results suggest that suppliers respond to customer concentration by pursuing increased mutual dependence and cooperation with customers rather than attempting to reduce the effect of power imbalances within the supplier-customer relationship
Alumni Highlight: Sandeep Chadha
Full text linkSandeep Chadha is a Partner at Milestone Capital Advisors (AUM $800 million) and has 14-plus years of experience in fund raising, investments, asset management and divestments. As a part of senior management at Milestone, he oversees the private REIT portfolio including investments and asset management. Sandeep is responsible for setting up a domestic private REIT focused on investments in commercial assets. His past assignments include managing 25 million square feet of commercial real estate for Unitech and asset management of assets for Everstone Capital and IL&FS Milestone Realty
The Effect of Cost of Living on Employee Wages in the Hospitality Industry
No full textThis study examines the effect of cost of living (COL) on employee wages in the hotel industry. Although prior research clearly indicates that COL and wages are positively related, there is a lack of research explicitly considering the specific nature of the relationship between COL and wages, and potential moderators to the relationship. Using a dataset containing information on 97 jobs over 67 cities, our study shows that while there is a positive effect of COL on wages, the adjustment is not equal in magnitude to the difference that the COL levels would indicate. Furthermore, the effect of COL decreases as the average wage for the given job increases. We also show differences in COL’s effects for full-service versus limited-service hotels. We illustrate the implications of our findings by showing predicted wage rates for four jobs in five different cities, at both full-service and limit-service hotels. The study has implications for research, particularly for future work on COL and compensation. The findings also have important implications for practice, and may be particularly useful when managers need to set pay levels when local market data are unavailable
Option-Implied Systematic Disaster Concern
Full text linkThe covariation of option-implied disaster concern of the market index and individual stocks allows me to estimate the conditional and systematic disaster concern of stocks with respect to the market. The estimated conditional and systematic disaster concern variables can be interpreted in terms of the risk-neutral conditional disaster probabilities, and they strongly predict future realizations of stock-level disasters and stock returns in different market states. This suggests that the comovement of option prices between stocks and the market index carries forward-looking information on their joint tail distributions