REITs’ Cash Holdings Around the Global Financial Crisis
Publication Date
1-31-2026
Document Type
Article
Publication Title
Review of Pacific Basin Financial Markets and Policies
DOI
10.1142/S0219091526500049
Abstract
We examine cash holdings of Real Estate Investment Trusts (REITs) and document that mortgage REITs (MREITs) hold more cash and equivalents than equity REITs, but the difference is reduced after the 2007 Global Financial Crisis. We find evidence indicating that MREITs managers hoard excessive cash, potentially, at a cost of returns to their investors before the Global Financial Crisis and that they reduce their cash holdings after the crisis. Post crisis, the factors determining cash holdings have a weaker effect, consistent with the conservatism motive. REITs hold more cash strategically for their capital investment, dividend payment, and expected shortage in operating cash flows.
Keywords
cash and equivalents, equity REIT, mortgage REIT, REIT
Department
Accounting and Finance
Recommended Citation
Isarin Durongkadej and Stoyu Ivanov. "REITs’ Cash Holdings Around the Global Financial Crisis" Review of Pacific Basin Financial Markets and Policies (2026). https://doi.org/10.1142/S0219091526500049
