The aftermarket performance of Spanish REITs

Since 2013, when the market for REITs started in Spain, the number of these investment vehicles has grown steadily. At the end of 2019, Spanish REITs ranked third in Europe in terms of market capitalisation, and first in terms of the number of REITs. This research investigates the abnormal performance of REITs in the Spanish market for 6-, 12- and 24-month post-admission windows during the period from November 2013 to January 2020. We obtain evidence that issuers experience economically and statistically significant negative abnormal returns during the two years after going public. These results are robust to the different metrics, estimations and tests used. The differentiating characteristics of the market analysed (mainly the fact that the flotations were not carried out through an Initial Public Offering, unlike most previous studies, but through a direct listing procedure) are particularly relevant to determine the level of aftermarket performance.