Equity Real Estate Investment Trust Investment Management And Research

Real Estate Industry is one of the main industries in our country.But Financing Mode of Real Estate Development Enterprises is self-accumulation to expand production.Loans are the chief financial source.In this background, there is enormous financial risk in the market. A creating financing tool is the key to change the present situation of lack of own capital and excessively depending on loan of the bank in the real estate industry.The development of real estate industry to a certain level calls for the emergence of real estate investment trusts(REITs). At present, commercial real estate that can bring continued income has been developed rapidly,such as Office buildings, industrial properties, shopping centers, etc,which is the industrial base of equity REITs. So the paper focuses on researching equity real estate investment trusts.Equity real estate investment trusts(EREITs) is a real estate investment trusts. It has been exiting for a long time in western countries.EREITs is known as an investment scheme constituted as a unit trust that operated by professional management company and invests in diversified property-related assets and uses the income to provide returns to its unitholders.This paper first analyzes the investment characteristics of real estate investment truts and income risks, systemic study its investment strategy. A selecting model about single property and an investment portfolio model are been put forward. Then the applicability of the two modes is been proved by an empirical study.The conclusion drawn from this paper provides: Firstly, for selecting strategy of a single property, the value of the property is accurate evaluated by a fuzzy real options decision-making model., which can choose the projects have potential investment value. So the risk is been reduced because of the depreciation of the property. Scondly, for investment portfolio strategy, a single exponential portfolio model based on entropy is constitued. Its feasibility and effectiveness to full diversification by both property type and region are proved. And the assets can been optimized by the model in advance, which reduces the amount of assets. At the same time, according to market uptrend and investor preferences, the structure and proportion of the investment portfolio are adjusted by changing the expectations yield. Empirical studies proved that the function of the model is distinct in adjusting. These results of the investment strategy are of great significance in both theory and practice.