Decomposing the Value Effects of Sustainable Real Estate Investment - International Evidence 2017 Nick Tyrrell Research Prize




Industry Paper

INREV, IPF and SPR have awarded the 2017 Nick Tyrrell Research Prize to Dr Avis Devine of the Schulich School of Business at York University, Toronto and Dr Erkan Yonder of Ozyegin University, Istanbul for their paper, ‘Decomposing the Value Effects of Sustainable Real Estate Investment: International Evidence’ . The paper (available to download below) considers the effects of sustainable investment on the value and performance of listed real estate investment firms, comparing countries with and without mandatory environmental reporting on investment properties. The findings suggest that environmental reporting requirements may facilitate improvements in the environmental performance of properties and enhance transparency. 

“This paper develops earlier work, which was sponsored by the European Public Real Estate Association (EPRA).  While evidence exists that REITs with a sustainable component to their portfolio outperform the competition, no research has shown how those sustainable properties are impacting firm value and performance,” said Devine.  “We decompose asset and firm-level activities to identify how the sustainable assets are impacting both asset and firm level cash flows, and do so in two countries with highly differentiated environmental reporting requirements.”

Dr Paul McNamara, Chair of the Judging Panel commented, “This is a well-written paper tackling a difficult, topical issue. The authors have taken care to explain the implications of their results and I think the subject matter and findings should prove relevant to many of the sponsors’ members. The paper was selected from a total of 23 submissions and the Judging Panel was unanimous in deciding that it was the worthy winner of the 2017 Prize”.