Research On Jianxin Zhongguancun Industrial Park Public REITs Value Assessment

The traditional financing methods of a property sale and bank credit are constrained in the context of risk mitigation,leverage stabilization,and financial supervision.This study proposes that the introduction of "public REITs," an innovative financial instrument,can create a new financing channel for industrial park development.It is expected that more experienced industrial park developers may issue REITs in the future to recover investment costs and construct new ones.The assessment of the value of REITs over the whole life cycle of REITs is beneficial to help investors avoid risks,decrease information asymmetry,and contribute to the healthy development of China’s public REITs market,therefore the demand for appropriate valuation of REITs will rise as more public REITs in industrial parks are issued.As a result,the research on public REIT valuations in industrial parks is the main topic of this essay.First,it examines numerous widely utilized evaluation techniques worldwide as well as the logic behind REIT value.According to valuation logic and feasibility,it is thought that there is a lack of an applicable basis,and the income technique is still currently a somewhat relevant approach.This is used to examine the degree of uncertainty surrounding key economic metrics used in the income approach.The income method was then improved,the evaluation’s parameter uncertainty was measured,and their application was examined using a Monte Carlo simulation model.Finally,the Monte Carlo simulation optimized income approach was used to evaluate the value of the case of public REITs in Jianxin Zhongguancun Industrial Park.This method provided a fairly elastic and accurate evaluation range.The results show that(i)Monte Carlo simulation makes the valuation value change from point estimation to interval estimation,which can provide more reference information;and(ii)improving the reasonableness of the prediction of the main factors affecting rental income can improve the accuracy of the valuation value.In summary,by studying the value of the public REITs of Jianxin Zhongguancun Industrial Park,this paper can better assess the reasonableness of the current REITs’ prices and evaluate the future appreciation potential of the project,which can provide reference for the subsequent issuance and listing of other public REITs products.