Enhancing returns, reducing volatility, hedging inflation, and complying with Shariah law are among the many benefits associated with unleveraged real estate investment trusts (REITs), according to new research conducted at The British University in Dubai (BUiD). REITs are commonly regarded as close-ended companies or trusts that hold, manage and maintain real estate for investment purposes which is leased to tenants. Based upon analysis of property price data provided by two of the city's leading property management firms - Colliers and Landmark Properties - a BUiD graduate student has found that the performance of REITs outperformed equities and bond, and that the inclusion of unleveraged REITs, as an asset class in a portfolio, provides increased returns while reducing overall risk. “It gives me great pleasure to see such an accomplishment in research-based study. The applications of these findings can have a strong effect on local business practice and investment,” said Dr. Abdullah Alshamsi, vice-chancellor, The British University in Dubai. Using knowledge gained through research, data and methodology, as well as business courses at BUiD, Danny Di Nardo's findings outlined the advantages and growing popularity of REITs in Dubai. “This REIT research is just the type of graduate-level research we encourage at BUiD - thorough, well-documented, and, above all else, immediately applicable to challenges faced in today's business world,” said Di Nardo's supervisor, Dr. John A Anderson, senior Lecturer for Finance and Banking, Faculty of Business, The British University in Dubai. “Based on the research presented, unleveraged REITs remain a smart tool for investors in the region, particularly since it complies with Shariah law,” said Di Nardo. Dubai as a major REIT hub for the Middle East and attract investors worldwide.” added Di Nardo. BUiD is the Middle East's leading research-based postgraduate university. It provides an important and growing community and resource for young professionals, leading academic, corporate managers and aspiring leaders of all description. __
