Research On Optimization Of Property Allocation In Commercial Real Estate Investment Trust

As China’s first publicly raised Real Estate Investment Trust(REIT)by Penghua Fund and Wanke with the property in Qianhai area at Shenzhen has been officially approved,the road to REITs marched further in China.REITs have developed very well globally.Since it was established in the United States in 1960 s,there are 27 countries and regions who have listed markets of REITs with more than 780 REITs traded.The total market capitalization reaches a thousand billion dollars.Considering the ability of stable return and risk dispersion,REITs are very attractive to investors internationally.In recent years,domestic experts have done wide range of research on mature REITs markets in the world and also demonstrated the feasibility of REITs in China,while proposed to amend related laws and regulations.At the same time,internal real estate companies are actively discussing and designing similar investment products,some of which have issued and listed in Hong Kong and Singapore.Focusing on the commercial REITs,this article firstly analyzed the performance of REITs in the oversea markets within the economic period to verify the contribution and advantage of REITs to the development of Commercial real estate.Referring to the condition of domestic real estate and based on the theory of Mean-Variance Model,the optimization model was set up to compare three portfolio strategy with properties of different types and areas.The optimized performance of the new portfolio will be measured in return and risk,and will be compared with index return of domestic real estate stock.The result may be worked as the reference to the investors.