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Corporate Real Estate Holdings: Fool' s Gold or Crown Jewel?


  • Takanori Fukushima

    (Mizuho Securities, Strategic Solutions Department)

  • Nobuyuki Isagawa

    (Graduate School of Business Administration, Kobe University)

  • Tomohiro Mae

    (Sumitomo Mitsui Trust Bank, Alternative Assets Investment Department)

  • Satoru Yamaguchi

    (Hiroshima University of Economics)

  • Takashi Yamasaki

    (Graduate School of Business Administration, Kobe University)


This paper aims to introduce new evidence of consistently negative impacts on enterprise value when corporations increase real estate holdings. Adopting a different approach from previous studies, our data analysis shows that corporate real estate portfolios and enterprise value share an inverse relationship. Surprisingly, this trend was seen during the Japanese real estate bubble in the late 1980' s. Previous reports from the United States and Singapore show that only in the retail sector do increases in corporate real estate holdings have a positive influence on stock performance. However, our research indicates that the stock performance of Japanese firms in the retail sector was negative across the board for firms in other sectors.

Suggested Citation

  • Takanori Fukushima & Nobuyuki Isagawa & Tomohiro Mae & Satoru Yamaguchi & Takashi Yamasaki, 2013. "Corporate Real Estate Holdings: Fool' s Gold or Crown Jewel?," Discussion Papers 2013-03, Kobe University, Graduate School of Business Administration.
  • Handle: RePEc:kbb:dpaper:2013-03

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    References listed on IDEAS

    1. Shi Ming Yu & Kim Hiang Liow, 2009. "Do retail firms benefit from real estate ownership?," Journal of Property Research, Taylor & Francis Journals, vol. 26(1), pages 25-60, February.
    2. Dirk Brounen & Piet Eichholtz, 2005. "Corporate Real Estate Ownership Implications: International Performance Evidence," The Journal of Real Estate Finance and Economics, Springer, vol. 30(4), pages 429-445, June.
    3. Michael J. Seiler & Arjun Chatrath & James R. Webb, 2001. "Real Asset Ownership and the Risk and Return to Stockholders," Journal of Real Estate Research, American Real Estate Society, vol. 22(1/2), pages 199-212.
    4. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    5. Fama, Eugene F. & French, Kenneth R., 1993. "Common risk factors in the returns on stocks and bonds," Journal of Financial Economics, Elsevier, vol. 33(1), pages 3-56, February.
    6. Eun Sun Hwang & Vicky L. Seiler & Michael J. Seiler, 2005. "Multinational Companies Real Asset Ownership and its Impact on Diversification," ERES eres2005_204, European Real Estate Society (ERES).
    7. Kim Hiang Liow, 2004. "Corporate Real Estate and Stock Market Performance," The Journal of Real Estate Finance and Economics, Springer, vol. 29(1), pages 119-140, July.
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    Corporate real estate; Stock performance; Systematic risk; Stock market;

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