Research On The Valuation And Pricing Of Industrial Park REITs

Industrial parks are an important part of China’s economic development.It is the focus of promoting the high-quality development of industrial parks to revitalize the stock of highquality assets through the issuance of public REITs.As a financial product with high liquidity that converts underlying assets into ordinary investors,the valuation and pricing of public REITs is critical to the listing of this fund.The issue pricing is closely related to the interests of all relevant parties of the public REITs,including the recovery of investment fund to original equity owner when launching the asset,the management service fee of the fund manager,and the appreciation of investors’ fund shares.Accurate and appropriate valuation and pricing makes the public REITs market run smoothly and promotes the continuous launch of high-quality products.With the valuation and pricing of REITs as the core,this paper studies the valuation and pricing methods applicable to industrial park public REITs.After comparing several major methods,fund from operations discount method is selected as the valuation and pricing method for SC industrial Park REITs to be listed in this paper.Based on the analysis of the valuation and pricing status of SC industrial Park REITs,the problems of operation,multiagent relationship of REITs,variable parameter selection and deviation caused by vacancy rate and rent-free period rate fluctuation are put forward.The paper analyzes the relevant influencing factors of 4 listed industrial parks REITs valuation and pricing to provide reference for SC industrial park REITs’ valuation pricing.Through the quantitative analysis of the valuation and pricing of SC industrial Park REITs,a suitable model is established,which takes into account the fluctuations of vacancy rate and rent-free period rate.After a comprehensive analysis of the relevant historical data of SC Industrial Park and the factors affecting the operation of each variable parameter of the model,the distribution characteristics of each variable parameter in the future income period were set to predict.The valuation and pricing model and variable distribution were brought into Crystal Ball software for Monte Carlo simulation to obtain the operating cash flow of SC Industrial Park in each phase.The predicted normal distribution discount rate and model were brought into Monte Carlo simulation to obtain the present value of each phase,and the final valuation and pricing was obtained by accumulation.In the process of quantitative analysis of valuation and pricing,it is found that the model’s variable parameters are set to a certain range of values with distribution characteristics,which is closer to the actual operating conditions than the original fixed predicted values.By comparing with the market price of similar properties of the underlying assets of SC Industrial Park REITs,as well as the net cash allocation rate and capitalization rate of the original valuation,the valuation and pricing results in this paper are more objective and reasonable and close to the actual operating conditions.