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Cross-listing of real estate investment trusts (REITs)

Kim Hin David Ho (Department of Real Estate, National University of Singapore, Singapore)
Kwame Addae-Dapaah (The Bartlett School of Planning, University College London, London, UK)
Fang Rui Lina Peck (Department of Investment Sales, Jones Lang LaSalle Ltd, Singapore)

Journal of Property Investment & Finance

ISSN: 1463-578X

Article publication date: 7 August 2017



The purpose of this paper is to examine the common stock price reaction and the changes to the risk exposure of the cross-listing for real estate investment trusts (REITs).


The paper adopts the event study methodology to assess the abnormal returns (ARs). Pre- and post-cross-listing changes in the risk exposure for the domestic and foreign markets are examined, via a modified two-factor international asset pricing model. A comparison is made for two broad cross-listings, namely, the depositary receipts and the dual ordinary listings, to examine the impacts from institutional differences.


Cross-listed REITs generally experience positive and significant ARs throughout the event window, implying significant superior returns associated with the cross-listing for REITs. On systematic risks, REITs exhibit significant decline in their domestic market β coefficients after the cross-listing. However, the foreign market β coefficients do not yield conclusive evidence when compared across the sample.

Research limitations/implications

Results are consistent with prudential asset allocation for potential diversification gains from the cross-listing, as the reduction from the domestic market beta is more significant than changes in the foreign market beta.

Practical implications

The results and findings should incentivise REIT managers to explore viable cross-listing.

Social implications

Such cross-listing for REITs should enhance risk diversification.


This is a pioneer study on cross-listing of REITs. It provides a basis for investment decision making, and could provoke further research and discussion.



Ho, K.H.D., Addae-Dapaah, K. and Peck, F.R.L. (2017), "Cross-listing of real estate investment trusts (REITs)", Journal of Property Investment & Finance, Vol. 35 No. 5, pp. 509-527.



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