Research On Valuation Optimization Of Public Offering REITs For Affordable Rental Housing

The comprehensive deepening of urbanization construction has strongly promoted the rise of urban rental housing demand.In addition,with the change of rental population structure and preferences,tenants have put forward higher quality and more personalized requirements for rental housing.However,at present,there is a serious shortage of high-quality,centralized and professionally operated rental housing supply in the rental market,so it is difficult to meet the rental demands of the market.The main reason for the lack of quality rental housing supply is that the investment cost is high,the cycle is long and the yield is low,which leads to many professional institutions are "prohibitive".As for the official launch of public offering REITs for affordable rental housing,it will help enterprises realize a virtuous inner cycle of "financing--investment--construction--operation--recovery--reinvestment" and can attract more subjects to participate in the investment and construction of the rental market.This can increase the supply of high-quality rental housing in the rental market and achieve the goal of alleviating housing difficulties for new citizens,young people,college students,and others.In the process of promoting the development of public offering REITs,the valuation results of the underlying assets of the project will have a significant impact on the price and issuance scale of the product,and further exert a certain impact on the transactions in the secondary market.Therefore,a reasonable valuation of the underlying assets is crucial.From this point of view,this paper selects one of the newly expanded public offering REITs of affordable rental housing as the research object.And it first reviews the common valuation methods of REITs in the current market,and analyzes the applicability of various methods in combination with the characteristics of affordable rental housing.Finally,this paper takes the relatively reasonable income method as the basic method of case study.And in view of the shortcomings of the basic method,an optimization idea is proposed,which is to introduce Monte Carlo simulation into the traditional valuation model,so as to more fully consider the influence of uncertain factors on the valuation results and reduce the subjectivity in the evaluation process to a certain extent.Moreover,the evaluation parameters and results are changed from the form of point estimation to the form of interval estimation,which improves the accuracy of the estimation.Then this paper verifies the rationality of the optimization of the valuation method by comparing the valuation results with the amount of funds raised by the project and calculating the capitalization rate.Finally,the main conclusions of this paper include the reasonableness of Monte Carlo simulation and the importance of rent growth rate and discount rate for the valuation of public offering REITs for affordable rental housing.Aiming at the development of public offering REITs for affordable rental housing,the paper also puts forward some suggestions,such as optimizing the land transfer mechanism and product design,improving supporting facilities and governance mechanism,hoping to provide certain references for promoting the healthy development of the public offering REITs for affordable rental housing in China.