Research On The Financing Pricing Of REITs For The Garden’s Long-rental Apartment

The emergence of REITs in China has promoted the refined development of financing for real estate companies.It not only solves the financing problems of many real estate companies,but also provides excellent investment products for the financial market.The valuation of REITs has also become a concern of both issuers and investors.In order to further promote the development of long rental apartment REITs in China and improve the relevant mechanism,this paper analyzes the pricing of long rental apartment REITs.This paper takes the valuation of real estate trusts and investment funds(REITs)as the research direction,and "Country Garden Real Estate Rental Residence No.1 Phase 1 Special Asset Support Plan" as the main research object.Static cash flow discount method and Monte Carlo simulation method are selected as the valuation methods.First to introduce the product characteristics,trade structure and the basic information such as credit promotion measures,and then using the regression analysis method and monte carlo simulation on a line and a new line of city rent income changes,to simulate the model and applied it to Garden’s long-rental apartment REITs cash flow estimates,and the static cash flow discount method is adopted to establish the evaluation model of REITs,Calculate the value of country Garden long rental apartment REITs at the time of establishment.Finally,this paper summarizes the important results in the process of case analysis and puts forward corresponding suggestions.The research conclusions of this paper are as follows.First,Garden’s long-rental apartment is a biased debt type financial product.Second,according to statistics,various expenses such as taxes and fees account for a high proportion of the total rental income of country Garden’s long-rental apartments.The problem of heavy tax burden is more prominent in the field of long-rental apartment REITs.Third,Garden long-rental apartment REITs have reasonable valuation and good long-term investment value.Fourth,from both theoretical and practical aspects,Monte Carlo simulation method and static cash flow discount method are better valuation methods for Country Garden long-term rental apartment REITs.