Study On Factors Affecting REITs Yield Rate In Long Rental Apartment Financing In China

In recent years,with the country's increasing support for the housing rental market,China's long-term rental apartments have entered a period of rapid development.This article first to rent the apartment sorted out the definition,characteristics,main operation mode,analysis the existing in the course of operating capital flow is slow,main problem such as financing and capital exit mechanism is less,then the definition,characteristics,advantages of REITs are analyzed,such as that with the aid of REITs can better solve the problems that exist in the development of Chinese rent the apartment,and puts forward the restriction to rent apartment REITs distribution and operation of the key factors is whether have enough income to meet the needs of investors.This is the key issue in this paper.Then,the income source and influencing factors of equity REITs are analyzed,and the four major factors affecting the income of equity REITs,namely,basic assets,asset operation performance,tax policy and asset value,are determined.From the perspective of the above influencing factors,this paper analyzes the specific operating income of EQR,the largest apartment REITs fund in the United States.Finally,the internal rate of return model of China's long-lease apartment REITs is constructed,and relevant data of typical Chinese cities and existing policies are selected to calculate the corresponding rate of return.The influence of the index on the rate of REITs of long-rented apartments was determined by separately compiling scatter plot and analyzing the linear regression with one variable for each index,so as to find out the key index of the influence.Through research and analysis,it is concluded that under the current market environment of housing price,rent level and tax policy in China,the internal rate of return of REITs for issuing long-lease apartments is low and it is difficult to attract a large amount of capital investment.The reason for this result is that the ratio of rental to sales is low in each city of our country and the tax cost associated with REITs is high.Based on the experience of American REITs fund EQR to improve returns,this paper puts forward some Suggestions to improve the internal rate of return of China's long-term rented apartments REITs.