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Consolidation within the Australian real estate investment trust sector : an evaluation of the impact on unitholder returns Ratcliffe, Christopher, Dimovski, William and Keneley, Monica 2010, Consolidation within the Australian real estate investment trust sector : an evaluation of the impact on unitholder returns, Journal of property research, vol. 26, no. 4, pp. 283-307. Title Consolidation within the Australian real estate investment trust sector : an evaluation of the impact on unitholder returns Author(s) Ratcliffe, Christopher Dimovski, William Keneley, Monica Journal name Journal of property research Volume number 26 Issue number 4 Start page 283 End page 307 Total pages 15 Publisher Routledge Place of publication Abingdon, England Publication date 2010-08-13 ISSN 1466-4453 0959-9916 Keyword(s) real estate investment trusts (REITs) A-REITs mergers cumulative abnormal returns abnormal returns acquisitions Summary Mergers and acquisitions within the Australian-real estate investment trusts (A-REITs) sector have become a noticeable trend in the last decade. Utilising event study methodology, 36 successful A-REIT mergers and acquisitions between January 1995 and December 2008 were examined. Both target and bidding shareholders experience positive excess returns of 4.27% and 0.54% respectively over the 41 day event window [−20, +20]. Analysis indicates that the cumulative abnormal returns (CARs) for bidding firms are considerably greater than previous research suggests. This study finds higher bidder CARs when scrip or a combination of scrip and cash is used to finance the acquisition. We also find that the relative size or the size of the acquirer have a positive and significant impact on the excess returns of bidding A-REITs. This suggests that the synergistic benefits from the acquisition are a result of economies of scale and increased market power. There is also some evidence that the relative size and method of payment influence the CARs of target firms during the event window. Language eng Field of Research 150403 Real Estate and Valuation Services Socio Economic Objective 900299 Property, Business Support Services and Trade not elsewhere classified HERDC Research category C1 Refereed article in a scholarly journal HERDC collection year 2010 Copyright notice ©2009, Taylor & Francis Persistent URL http://hdl.handle.net/10536/DRO/DU:30029940 Document type: Journal Article Collections: Faculty of Business and Law School of Accounting, Economics and Finance Related Links Link Description Connect to published version (restricted access) Go to link with your DU access privileges     Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Versions Version Filter Type Tue, 07 Sep 2010, 12:33:27 EST Tue, 07 Sep 2010, 13:30:54 EST Tue, 07 Sep 2010, 17:04:28 EST Tue, 07 Sep 2010, 17:07:25 EST Wed, 30 Nov 2011, 12:51:59 EST Wed, 30 Nov 2011, 12:53:30 EST Filtered Full Access Statistics: 344 Abstract Views, 1 File Downloads  -  Detailed Statistics Created: Tue, 07 Sep 2010, 12:33:24 EST by Katrina Fleming

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