Research On Risk Of PLS Company’s REITs Financing Mode

In the past decade,China’s economic growth has been extremely dependent on infrastructure construction and real estate development.The rise of Internet e-commerce,retail transformation and high-end manufacturing drive the rapid development of logistics real estate.The sudden outbreak of the novel coronavirus pneumonia in 2020 has created more demand for high-standard logistics warehousing,resulting in a shortage of high-standard warehouses.Many commercial real estate enterprises have also stepped into the warehousing industry,and the competition in the logistics real estate industry has become increasingly fierce.The logistics real estate is different from the traditional real estate that can recover the funds after completion.It has a long project operation cycle,a long capital recovery period and a large amount of investment.Logistics real estate enterprises urgently need efficient financing and seek diversified financing channels to maintain their competitive advantages.In such a context,China’s infrastructure public offering REITs came into being,which help to revitalize high-quality infrastructure assets and alleviate financing difficulties.Therefore,the risk control research on the pilot of the first batch of infrastructure public REITs will lay a theoretical foundation for the development and improvement of the operation and management model of public REITs,and provide reference experience for the subsequent development of China’s REITs market.PLS is selected as the case study object in this thesis.Based on the product transaction structure,infrastructure assets and development status of PLS company REITs in the current market,it identifies its internal and external risks through literature review and research.Then,according to the key risk indicators,the risk analysis of the underlying assets,original stakeholders,managers,industries,legal policies,liquidity and other factors is carried out in detail,which focuses on the rent income cash flow risk assessment of the main income sources of REITs,through sensitivity analysis of the key factors of cash flow to predict its risk.Finally,the risk weight was determined according to the analytic hierarchy process,and the overall risk score of PLS company’s REITs financing mode was 2.92 points.According to the risk rating,it is classified as low-medium risk.Accordingly,relevant risk control measures and suggestions are proposed,including strengthening tenant lease management,establishing a cash flow monitoring system and risk early warning mechanism,strengthening the comprehensive budget management of project companies’ funds,setting up a reasonable operation management mechanism,strengthening information disclosure to reduce market information asymmetry,decentralizing investor structure to improve market liquidity,and strengthening learning of professional knowledge and skills,etc.The innovation of this thesis lies in the fact that 2021 is the first year of infrastructure public offering REITs in China.Before this,China has not issued REITs products in the real sense.There are few studies on REITs of public infrastructure,and previous studies have lagged behind in relevant analysis based on foreign or previous REITs-like models.In this context,PLS Company’s REITs financing is one of the first batch of publicly raised infrastructure REITs of "warehousing and logistics" in China.The case analysis of PLS company in this thesis has certain representativeness and typicality.Looking forward to the future of China’s REITs market,there will be more high-quality infrastructure assets.China’s infrastructure public REITs have great potential for development.