Management and strategy differentiating the profitability of real estate investment funds

Abstract

The objective of this work was to verify whether strategic management is decisive for the performance of real estate investment funds (FII) in Brazil. This work is descriptive, quantitative, applied and is supported by bibliographic and documentary research. The ANCOVA statistical model was used, which is a mixture of quantitative and qualitative regressors. The data collection for this research covered the year 2019, a period characterized by a positive variation in the country's economic activity (GDP), at 1.1%; (b) Ibovespa appreciation, which represents the average performance of the stock market, by 31.58%; and (c) Appreciation of the IFIX, which represents the average performance of the quotations of real estate funds, by 35.98%. The “management” factor did not differentiate the most profitable funds from the least profitable ones, which contradicts the results obtained by Kaushik and Pennathur (2012), who used FII data from the USA. The “Income” strategy, on the other hand, presented a differential, positive and statistically significant coefficient, similar to the result obtained by Barreto (2016). This demonstrated that the “strategy” factor differentiates more profitable funds from less profitable ones. For future studies, it was suggested to expand the sample, with the addition of other years and the use of the statistical model in the “panel” format.