Decomposing Value Effects of Sustainable Real Estate Investment: International Evidence
Project Manager:
Erkan Yönder
Section:
Finance
Research Areas:
Real estate financing (real estate investment trusts, commercial real estate), corporate finance, behavioral finance, green buildings and corporate sustainability
Project Start Year:
2016
Project End Year:
2018
Phone:
0 (216) 564 95 15
E-Mail:
About the Project:
This project aims to demonstrate the profitability of building investments with green building certificates, which are based on reducing the negative impacts of the real estate on the environment, in order to promote clean energy use along with sustainable city and environment and also to guide real estate companies towards these types of investments. The effects of the investors' orientation towards these companies for investment after observing their sensitivity on the environment are examined in this study. The aim of the project is to investigate the impact of more investments to be realized by real estate companies in the buildings with green building certification, which is a sustainability criterion in the US, on the companies' performances.
Project Finding:
According to the project findings, as the rate of green buildings in the real estate portfolio increases, the companies' performances also increase and these companies cooperate with more corporate investors that are more loyal to their stocks. They also trade at a premium above market values, which is explained through the image of the company developed by these types of investments.