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On The Direct Costs Of Reit Seos


  • Sinan Gokkaya

    () (Ohio University)

  • Matthew D. Hill

    () (University of Mississippi)

  • G. Wayne Kelly

    () (University of Southern Mississippi)


This study examines the determinants of direct costs for REIT seasoned equity offerings. These costs are not related to information asymmetries, unlike non-REIT firms. Gross spreads vary inversely with stock liquidity, price, and industry activity. Concerning REIT-specific heterogeneity, gross spreads are generally insensitive to property type and operating partnership structure. Still, the findings suggest managers can influence costs as higher fees are directly related to the use of underwriting syndicates and more reputable investment banks. Finally, a test for differences in direct costs across REIT and comparable industrials shows significantly lower direct issuance costs for REITs.

Suggested Citation

  • Sinan Gokkaya & Matthew D. Hill & G. Wayne Kelly, 2013. "On The Direct Costs Of Reit Seos," Journal of Real Estate Research, American Real Estate Society, vol. 35(4), pages 407-444.
  • Handle: RePEc:jre:issued:v:35:n:4:2013:p:407-444

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    Cited by:

    1. Elizabeth Devos & Erik Devos & Seow Eng Ong & Andrew C. Spieler, 2016. "Who Follows REITs?," Journal of Real Estate Research, American Real Estate Society, vol. 38(1), pages 129-164.

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services


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