Bekithemba Mpofu, Cletus Moobela and Prisca Simbanegavi
This research aims to ascertain the extent to which the coronavirus disease 2019 (COVID-19) epidemic affected the relationship between inflation and real estate investment trusts…
Abstract
Purpose
This research aims to ascertain the extent to which the coronavirus disease 2019 (COVID-19) epidemic affected the relationship between inflation and real estate investment trusts (REITs) returns in South Africa.
Design/methodology/approach
This research used the Johansen cointegration test and effective test in establishing if there is a long-run cointegrating equation between the variables. To ascertain if COVID-19 resulted in a different relationship regime between inflation and REITs returns, the sequential Bai–Perron method was used.
Findings
Between December 2013 and July 2022, there was no evidence of a long-run relationship between inflation and REITs returns, and a restricted vector autoregressive (VAR) model with a period lag for each variable best describing the relationship. Using the sequential Bai–Perron method, for one break, the results show February 2020 as a structural break in the relationship. A cointegrating equation is also found for the period before the structural break and another after the break. Interestingly, the relationship is negative before the break and a new positive relationship (regime) is confirmed after the noted break.
Practical implications
This research helps REITs stakeholders to position themselves in light of any changes to macroeconomic activity within South Africa.
Originality/value
This is one of the first studies to test inflation relationship with REITs returns in South Africa and the effects of COVID-19 thereof. This research helps REITs stakeholders to position themselves in light of any changes to macroeconomic activity within South Africa.
Details
Keywords
Yewande Adewunmi, Prisca Simbanegavi and Malcolm Weaich
Informal settlements are frequently located in hazardous areas with a high risk of natural disasters. Upgrading informal settlements can be difficult due to the time and expense…
Abstract
Informal settlements are frequently located in hazardous areas with a high risk of natural disasters. Upgrading informal settlements can be difficult due to the time and expense needed to complete the process. This chapter advocates using a management framework of public services in informal settlements. In doing so, it addresses 17 of the 17 UN sustainable development goals (SDGs). The study reviewed the literature to investigate current ways of managing environmental enterprises in informal settlements in South Africa. Thereafter, the challenges of managing public services were explored, and a conceptual framework for managing public services by social enterprises in such communities was developed. The chapter found that environmental enterprises are classified as ‘green spaces’ and infrastructure, water and sanitation services, energy systems, and recycling initiatives. Essential aspects of sustainable community-based facilities management (SCbFM) for managing public services are maintenance, governance, community project management, environment service delivery, service performance, governance, community project management, environment service delivery, service performance, well-being and health and safety, disaster management, and finance. Some of the problems of managing public services in informal settlements include the limited skills of managers, the focus of government on new projects rather than managing existing projects, not choosing the right indicators to measure service performance, and limited guidelines for the health and safety of managers and disaster management. Thus, a new conceptual framework was needed and developed based on the principles of social capital and capability for managing services in informal settlements in South Africa.