Ting_Listed_Property_Trusts_In_Malaysia_A_Comparative_Performance_Analysis

Ting_Listed_Property_Trusts_In_Malaysia_A_Comparative_Performance_Analysis

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International Real Estate Society Conference ’99 Co-sponsors : Pacific Rim Real Estate Society (PRRES) Asian Real Estate Society (AsRES) 26 – 29 January 1999 Mandarin Oriental Hotel, Kuala Lumpur LISTED PROPERTY TRUSTS IN MALAYSIA : A COMPARATIVE PERFORMANCE ANALYSIS Ting Kien Hwa Department of Estate Management Faculty of Architecture, Planning & Surveying MARA Institute of Technology 40450 Shah Alam, Selangor Malaysia Telephone : 03 - 5563697, Fax : 03 - 5596641, e-mail : [email protected] Keywords : Listed property trusts, risk-return analysis, Malaysian House Price Index, KLSE Composite Index
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2 LISTED PROPERTY TRUSTS IN MALAYSIA : A COMPARATIVE PERFORMANCE ANALYSIS Ting Kien Hwa Department of Estate Management Faculty of Architecture, Planning & Surveying MARA Institute of Technology 40450 Shah Alam, Selangor Malaysia Abstract This paper measures and analyses the investment performance of listed property trusts for the 1991 to 1997 period. The investment performance is compared with shares (represented by Kuala Lumpur Composite Index, the Property and Plantation Sector Sub-indices) and direct residential property investment in Malaysia. The Kuala Lumpur Composite Index is used as a proxy to the performance of the Kuala Lumpur Stock Exchange. Direct residential property investment is represented by the Malaysian House Price Index published by INSPEN (National Institute of Valuation). The aims of this study are to determine :- (a) whether listed property trusts achieved higher risk adjusted return than shares and direct investment in residential properties; (b) whether listed property trusts could offer portfolio diversification potential when included in an investment portfolio; (c) whether listed property trusts could act as substitute for direct residential property investments. AHP and FMPT had achieved higher risk adjusted returns than shares but lower than direct residential investment. AMFPT has the lowest risk adjusted ranking among the investment options. Listed property trusts could not offer diversification possibilities nor to act as substitutes to direct residential investment.
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3 1.0 Introduction Property trust is a new property investment vehicle in Malaysia. It was first introduced in March 1989 when Amanah Hartanah PNB (AHP), an unlisted property trust was launched. The first listed property trust on the Kuala Lumpur Stock Exchange was Arab Malaysian First Property Trust when it made its debut on 28 September 1989. There are now four listed property trusts in Malaysia :- (a) Arab Malaysian First Property Trust (AMFPT); (b) First Malaysia Property Trust (FMPT); (c) Amanah Hartanah PNB (AHP); (d) Mayban Property Trust Fund One (MPT). The initial size of the listed property trust funds are as follows :-
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This note was uploaded on 10/09/2011 for the course 323 3232 taught by Professor 3232 during the Spring '11 term at Apex College.

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Ting_Listed_Property_Trusts_In_Malaysia_A_Comparative_Performance_Analysis

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