UR Investing: The H&R REIT Decision
(4 pages of text)
Case (Pub Mat)
In April 2014, a research analyst for UR Investing, an investment group from the University of Regina, in Saskatchewan, Canada, was contemplating the decision of investing in a real estate investment trust (REIT). The decision had strategic implications because it would affect the risk profile of the student-managed fund. The analyst was given the task of evaluating the H&R REIT in particular and estimating a target price for H&R’s units. He had to carefully weigh the benefits in terms of returns generated against the risk of taking a position in the REIT. He had to analyze the strategic value of investing in REITs and decide whether to recommend that UR Investing should buy H&R units.
This case can be taught in an MBA program in any of the following courses: investment analysis, portfolio management, alternative investments, and valuation. After completion of this case, students will be able to:
- understand real estate investment trusts;
- evaluate an investment opportunity in terms of risks and returns; and
- perform asset valuation with a focus on REITs.
Finance and Insurance
Canada, Small, 2014
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