| Real estate industry is the pillar industry of our country's economy,and is typically capital-intensive.Financing is crucial for real estate companies.In recent years,the regulation and control policies of real estate industry are an impediment to real estate enterprises' financing activities.Expanding innovative channels to obtain funds has become an urgent need for real estate enterprises.Real estate investment trusts(REITs)is a kind of trust organization in which investors' funds are collected by specialized investment institutions in the form of issuing beneficiary certificates to conduct the investment,development,operation and management of real estate.Income of the trust is distributed to investors.The United States is the world's largest REITs market.REITs in China("REITs in China" and " China's REITs " are both abbreviations of REITs products in mainland China,excluding REITs in Hong Kong and Taiwan)began to develop rapidly in recent years.However,due to the restrictions of laws and taxes,there is no standard REITs product in China at present.The REITs product issued by Poly development holdings group co.,LTD.(or "Poly" for short)is China's first rental housing REITs,and is also China's first shelf offering REITs product.This product has a strong reference value for real estate companies' follow-on issuance of REITs in China.And it's also a further step for our country's REITs to standardize public offering REITs.This article adopts the standard methodology and case study method.First of all,based on the systematical review of the literatures and researches related to REITs at home and abroad,building the knowledge of the advantages of REITs in mature markets,the constraints faced by REITs in domestic application,and the development direction of REITs in China.After that,analyzing the typical case of Poly REITs.Finding the motivation of Poly's adoption of issuing REITs in combination with its internal and external conditions,business and strategy.The event research method was used to explore the influence on the market performance through analyzing the changes of Poly's excess earnings before and after the approval of Poly REITs.Using the method of financial accounts and financial indexes analysis to evaluate the impact on Poly's debt paying ability,operating ability,cash flow and financing cost.Combined with the financing structure and strategic planning of Poly,the article analyzes the effect of REITs' issuance on its financing strategy and operation strategy.Through the analysis of Poly REITs,it can be concluded that REITs is an innovative financing method applicable to the financing status of China's real estate enterprises.Issuing REITs can help enterprises raise funds smoothly,bring good market and financial effects to enterprises,and promote the transformation of enterprise business model and business expansion.Poly and other real estate enterprises should strengthen their operational capacity,improve the cash flow and asset value of operational properties through good operations,and bring new profit model for themselves.At the same time,REITs and other financial instruments should be effectively used to explore diversified and innovative financing channels and facilitate the operation and development of enterprises.Based on the development of China's REITs market,it is suggested that relevant departments should improve laws,regulations and tax policies,and asset management institutions should improve their asset management capabilities. |
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