Listed real estate companies can be divided into two categories: real estate operating companies (REOCs) and real estate investment trusts (REITs). RE-OCs have been around for quite a while, whereas REITs are a somewhat new phenomenon in Europe. The main differences between REITs and REOCs are management regulations and taxation. However, is the REIT investment form actually preferable to REOCs when considering the factors that influence the performance? These questions have served as motivation for the preparation of this thesis and will be examined and answered in more detail within the scope of this thesis The research objective of this paper is to examine the main differences between European REITs and REOCs in terms of management regulations and taxation, and to compare their performance individually and in correlation with each other. Thus, various characteristics of the two forms of investment are examined and compared. On the one hand, an extensive literature review is conducted to examine the main differences between REITs and REOCs in terms of their respective types of governance as well as regulation. On the other hand, a quantitative analysis of the performance of both markets is conducted in order to make relevant statements about the differences in various factors of REITs and REOCs. For this purpose, a comprehensive regression analysis is used to examine various factors that influence the performance of the two markets, namely stock returns, market beta, liquidity and volatility. After conducting the corresponding analyses, it can be concluded that there are significant differences in the sensitivity of systematic risk, with a greater sensitivity of REOC market risk. Based on the results, it could be observed that the REIT market performs more efficiently in selling shares and generates a higher level of liquidity. In contrast, the volatility results indicate a greater risk for the REIT market, but this is offset by high returns, confirming the hypothesis that potential return is associated with greater risk.      «

Listed real estate companies can be divided into two categories: real estate operating companies (REOCs) and real estate investment trusts (REITs). RE-OCs have been around for quite a while, whereas REITs are a somewhat new phenomenon in Europe. The main differences between REITs and REOCs are management regulations and taxation. However, is the REIT investment form actually preferable to REOCs when considering the factors that influence the performance? These questions have served as motiva...     »