Investment Value Analysis Of The Real Estate Investment Trust Fund

As a kind of real estate financial products,REITs usually operate mature property,which meets the needs of the real estate development in china.At the same time,the emergence of REITs has also enriched the varieties of investment in financial markets,providing investors with a low threshold for real estate investment.Due to the short history of the development of REITs in China,there is still a lack of research on the investment value of REITs in china.This paper,in the form of case analysis,attempts to explore the actual investment value of REITs in China through the analysis of Penghua Qianhai Vanke REITs,so that investors can better understand this emerging investment varieties.This article first gives an overview of REITs,including the classification of REITs and the advantages and disadvantages of REITs,and then introduce the development and problems of REITs in china.After the introduction of the case,some elements of Penghua Qianhai Vanke REITs are introduced.This article compares Penghua Qianhai Vanke REITs with other mature REITs and analyzes the influence factors of return of Penghua Qianhai Vanke REITs.Afterwards,the investment value is evaluated,including three aspects: historical investment performance appraisal,the valuation in the end of 2016 and the yield prediction from 2016 to 2023.Finally,the investment value of real estate investment trusts is summarized and the corresponding recommendations are put forward.In the one year investigation period,Penghua Qianhai Vanke REITs performed so well,with a return of 16.3% from September 30,2015 to September 30,2016.According to the maximum retracement result,the largest retracement during the investigation period was 3.76%,which means the fund manager had strong ability to gain absolute income.From the performance attribution,we can find the fund manager was good at selecting high-yield stocks,but the ability of industry configuration was not excellent.According to the results of the valuation,Penghua Qianhai Vanke REITs still has a certain investment value,but the investment profit space is small.If consider the factor of future rising rents,the valuation by the end of 2016 will be higher and the investment value of the REITs will also be increased.According to the prediction of yield,as Penghua Qianhai Vanke REITs transfers the equity of the target company step by step,the future REITs annual yield shows a gradual downward trend and the return will be reduced to 5.29% by 2023.If the rental income will be improved and the proportion of stock investments will continue to rise in the future,Penghua Qianhai Vanke REITs will still have some investment value.Overall,Penghua Qianhai Vanke REITs has achieved good investment performance in the past,and it will still have some investment value in the future.With the development of REITs in the future,the investment value of REITs will become more and more prominent.In order to let more investors recognize the REITs investment value,regulators should establish special laws and regulations for REITs,with corresponding preferential tax policies and improved information disclosure system,so as to better protect the interests of investors;REITs issuers should also learn from foreign mature experience,consider the use of limited partnership and allocate assets reasonably so that it can create a higher investment value for investors;Investors should be aware of their investment needs and risk tolerance,and choose appropriate REITs to invest.