47 research outputs found
A comparison of UK equity and property duration
No full textThis paper considers the duration of property and equity. A general formula for duration of asset classes is derived. It is shown that calculations which assume, usually implicitly, that the flow-through of inflation to cash flow is zero, produce misleadingly high durations for property and equities. These are typically in the range 15 to 25 years. Simulations using the formulae show that property has some bond-like characteristics. The results indicate that, for realistic flow-through rates, equities have a higher duration than property. The flow-through rate is the most important variable in the estimation of equities. Using historical data, equity duration is estimated at 8.65 years and property’s at 3.15 years. These are substantially lower than those commonly cited. If these values can be substantiated, and if higher values are used in practice, portfolio immunisation strategies may need to be reconsidered
Crop residues with fodder trees to produce good quality silage
No full textSilage is the compressed and fermented green forage crops under anaerobic
condition, usually in a silo. Crop residues can be used as feed for cattle during the dry season
by ensiling them as silage. The aim of this study is to identify the combination of various crop
residues to produce good quality silage. Samples of silage produced from individual crop
residues and different combinations of crop residues were collected from farmers who
produced silage in the Northern Province of Sri Lanka from January to March 2017. Twenty
samples of silage from ten different individual and combinations of crop residues with fodder
trees in two replicates were analyzed for sensory evaluation, pH, ammonium-N, lactic acid and
total acidity of silage in the field itself using silage quality detection field test kit and the crude
protein content was measured using standard procedure in the laboratory. Based on the
results, though the silage made from the combination of Sorghum bicolor (sugargraze) +
Oryza sativa (paddy) straw + Gliricidia sepium (gliricidia) leaves showed the highest
percentage of crude protein of 21%, the fermentation quality was reported to be low. When
considering fermentation quality, the silage made from Pennisetum purpureum (hybrid
napier grass (co-3)), Zea mays (maize), Sorghum bicolor (sugargraze), and from the
combinations of Sorghum bicolor (sugargraze)+ Borassus flabellifer (palmyra) leaves,
Sorghum bicolor (sugargraze) + Oriza sativa (paddy) straw + Gliricidia sepium (gliricidia)
leaves, Sorghum bicolor (sugargraze) + Thespesia populnea leaves + Borassus flabellifer
(palmyra) leaves+ Gliricidia sepium (gliricidia) leaves and Zea mays (maize) + Gliricidia
sepium (gliricidia) leaves showed the excellent quality while the silage made from Oriza sativa
(paddy) straw+ urea with poor quality. The highest lactic acid concentration was recorded in
the silage made from the combinations of Sorghum bicolor (sugargraze) + Borassus flabellifer
(palmyra) leaves and Sorghum bicolor (sugargraze) + Thespesia populnea leaves+ Borassus
flabellifer (palmyra) leaves + Gliricidia sepium (gliricidia) leaves. The results revealed that the
silage produced with the combinations of crop residues consisting of Borassus flabellifer
(palmyra) leaves was with excellent fermentation quality. Further investigation is
recommended to find out the quantified proportion of Barassus flabellifer (palmyra) leaves with
other crop residues and fodder trees that could yield the best quality of silage
Investor Rationality: Evidence from UK Property Capitalization Rates
No full textRecent analyses have suggested the irrationality of investors in Australian and U.S. office properties. More specifically, investors have failed to raise capitalization rates sufficiently at rental cyclical peaks to account for the obvious mean reversion in real rents and thus have significantly overvalued properties. In this paper we analyze the determination of UK office and retail capitalization rates and provide evidence that these rates reflect rational expectations of mean reversion in future real cash flows. Moreover, these rates are linked to capitalization rates (dividend/price ratio) and expected dividend earnings growth as expected.
Diversification as a Value-Adding Strategy for Asian REITs: A Myth or Reality?
No full textThis study tests the impact of diversification strategies on the cash flows, expenses, risks and returns of REITs in Asia. Hirschman-Herfindahl indices (HHI) are computed based on 2281 properties owned by 63 sample Asian REITs for the periods from 2002 to 2007 to measure the levels of diversification by property type and geographical region. In our empirical tests that use weighted least square regressions, we find no significant effects of diversification by property types on cash flows, expenses and risk premiums of Asian REITs. However, significant variations in expenses and risk premiums of the REITs are explained by a geographical diversification strategy. REITs with assets distributed across different countries incur higher total expenses, interest expenses, general and administrative expenses and capital expenditure. Regionally diversified REITs have higher risk premiums. The results remain unchanged after controlling for country factor and simultaneity between the cash flows, expenses, risk and return variables.Diversification and focus strategies; Asian REITs; Illiquidity premiums
Retail Building Cycles: Evidence from Great Britain
No full textThis study examines the cyclical pattern of retail property development in Great Britain. It develops and estimates an econometric model of the volume of new development starts for retail buildings. Within the theoretical framework proposed, a dynamic specification based on changes in real retail rents and total consumer spending appears to adequately capture the cyclical variation in retail development. Changes in the values of these variables induce new retail construction within two years and an Almon polynomial lag scheme best describes the dynamic distribution of their lagged effects. Investment market influences on retail building development at the national level are not established in this study. There is also some indication of a changing economic relationship between new retail development and retail rents after mid-1995, but this can only be confirmed by appropriate tests when additional observations become available.
Bile vomiting in paediatrics: what do we really know?
No full text Bile vomiting is clinically significant in neonates and children, indicating intestinal obstruction until proven otherwise. The aim of this study was to assess whether nursing staff within a children's hospital were able to accurately identify bilious vomiting and if a deficiency existed, whether educational posters could rectify this problem. A primary audit was conducted in the Royal Aberdeen Children's Hospital evaluating the ability of nursing staff to identify bile vomit and its significance. Educational posters were distributed and a secondary audit was conducted after six months to complete the audit cycle. The second audit also compared the knowledge of different medical professionals. In the primary audit, 41% of nurses selected the colour yellow, compared with 18% of nurses in the second audit with approximately 70% selecting dark-green. Thirty-three percent of nurses in the primary audit confirmed intestinal obstruction as the cause of bile vomiting, compared with 64% of nurses in the secondary audit. In conclusion, this study identified a deficiency in the recognition of bile vomiting among nurses, but demonstrates that the use of educational posters can significantly improve knowledge. This can be beneficial in the early recognition of this potential surgical emergency. </jats:p
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Time-series characteristics of UK commercial property returns: testing for multiple changes in persistence
No full textThe random-walk hypothesis, vis-à-vis asset prices , suggests that prices traded in a market cannot be predicted based on historical information. Employing unsecuritised UK commercial property returns, we analyze this hypothesis, investigating multiple changes in persistence in the series . Our results uncover multiple changes in persistence in both the aggregate and sector-specific data. We highlight some implications for academics, practitioners and regulators
Evaluating the Effectiveness of Common Structures in Property Portfolio Construction
No full textA good portfolio structure enables an investor to diversify more effectively and understand systematic influences on their performance. However, in the property market, the choice of structure is affected by data constraints and convenience. Using individual return data, this study tests the hypothesis that some common structures in the UK do not explain a significant amount about property returns. It is found that, in the periods studied, not all the structures were effective and, for the annual returns, no structures were significant in all periods. The results suggest that the drivers represented by the structures take some time to be reflected in individual property returns. They also confirm the results of other studies in finding property type a much stronger factor in explaining returns than regions.property returns, portfolio structure
Inflation Risk Analysis of European Real Estate Securities
No full textReal estate is an important asset, but as direct investment linked with several difficulties. Shares of public open end funds or of real estate stock corporations represent a possible way for an investor to avoid these problems. The focus of this paper is the inflation risks of European real estate securities. An overview for institutional frameworks regarding these companies is given. The returns from securitised real estate in France, Germany, Switzerland and the United Kingdom are examined for the period 1980:1-1998:12. Besides the classical Fama/Schwert-approach, shortfall risk measurements have been used. In this context, transaction costs in particular have been taken into account.
A Re-Examination of the Inflation-Hedging Ability of Real Estate Securities: Empirical Tests Using International Orthogonalized & Hedged Data
No full textThis study re-examines the relationship between real estate securities and inflation in a total of ten international markets. In addition to the raw data, both the orthogonalized and hedged approaches were adopted in order to strip out the general impact of the domestic equity market. The results revealed that there is minimal evidence of a positive relationship between real estate securities and inflation, which is in line with existing empirical evidence. However, the strong evidence of perverse relationship, noted in previous studies of REITs, is not robust throughout the other nine markets. The hedged and orthogonalized data also provided minimal evidence in favour of a positive relationship, both in the short and long terms.Inflation hedging, International real estate, real estate securities
