... and capitalization rates. Findings Although useful from a conceptual point of view, the main asset pricing model, the capital asset pricing model (CAPM), has limited use for real estate given its underlying assumptions. The build-up approach is intuitively appealing and is often used in practice, although...

... the traditional single-index capital asset pricing model (CAPM) and the Carhart four-factor model. The empirical evidence is reasonably consistent with the FF3 model; the values for the market, size and value are highly statistically significant over the analysis period, with 68.7% variation in S-REITs’ returns...