Application Research Of REITs In Long-term Apartment Financing

Real estate investment trusts(REITs)are a new type of real estate financing tool.Although they have matured and accepted by the public in Western countries,they are still in their infancy in China.The development of China’s REITs is influenced by many policies such as economy,finance,real estate,taxation,and urbanization.Nowadays,it is a consensus to develop REITs,and the two most promising aspects of China’s REITs are: First,the rental market Second,the field of public infrastructure.China’s real estate market is developing very rapidly,and as the housing rental market has also been promoted with the continuous development of real estate.After 2016,many countries in China have a purchase restriction policy,and the policy also supports the development of the housing rental market.However,a large number of housing backlogs are difficult to allow companies to continue to develop funds only by renting them,and REITs can solve this urgent need and bring better financing methods to enterprises,not only to obtain financing,but also to revitalize their property assets.Poly Real Estate is the leading enterprise of China’s housing enterprises.It issued the first REITs for the storage of rented houses in China,which realized the innovation of the financing method of the real estate industry,responded to the call of the government,and brought a good reference for other enterprises.Therefore,this paper selects Poly Real Estate’s “Poly Real Estate – Lianqianhai Open Source Leasing Housing No.1 Phase I Asset Support Special Plan” 。Through the case analysis of the special plan,this paper has an in-depth understanding of the operational process and practical experience of renting rental REITs,and analyzes its advantages and disadvantages,so as to draw lessons from the same industry.Through the successful issuance of the REITs special plan,Poly Real Estate not only revitalized its underlying assets,but also brought cash flow to the company.It also provided investors with a good investment method and stable and rich investment income.However,the success of the project as the first successful REITs still has shortcomings.For example,the benefits of priority asset-backed securities are not growing in the future,the products are not open to public investors,and the relevant laws and regulations are missing.In this regard,this paper also tries to put forward some relevant suggestions to make up for the shortcomings of REITs.I hope that today’s class-like REITs can develop into real REITs in the future.