Case Analysis Of Market-Oriented Exiting Of HNA-Pufa Building REITs

For the past few years,with the constant development of the real estate industry in China,scale of commercial properties in China has had a great transformation from the “incremental” period into the “incremental and stock” period.In order to vitalize the stocking asset and improve the efficiency of using resources,the pilot work of Real Estate Investment Trust(REITs)started formally.By the end of 2020,there had been 93 REITs in China.However,some REITs products had to exit from market because of various risks from market,policies and the operating strategies of enterprises.At the bottom of 2018,Haorui Hengtai-Hainan Airline Pufa Building Assetbacked Securities(referred to as HNA Pufa building REITs)exited from market in a marketized way,which was also the first REITs using marketized way to exiting.This text studies this case through the methods ofdocuments analysis,comparative analysis,case analysis and qualitative and quantitative analysis.At first,this text summarizes and reviews the studies about the risks and exiting of REITs and then collects and synthesizes the categories of REITs and similar-REITs,and lists the differences between them.Otherwise,this text introduces the exiting mechanism of REITs,including the exiting reason and exiting mode.Afterwards this text introduces the relevant theories.Secondly,this text introduces the case of HNA Pufa building REITs.Based on the introduction of the fundamental information of the participants and underlying asset,this text analyzes the operation mode of this REITs,including the mode of dual SPV,the exiting design and the final actual exiting procedures After analyzing the exiting reasons and the influences of market-oriented exiting,and analyses the limitation of marketized exiting and its influence on the asset income this text find that the way of marketized exiting is beneficial for perfecting the asset income structures and asset forms structures,and effectively improving the short-term debt paying ability.Nevertheless,this exiting method is found to weaken the longterm debt paying ability of an enterprises and it also has an important precondition that the REITs that plan to exit from market in this way must have high-quality assets,which is also one of shortages of marketized exiting.On this basis,this text compares the way of market-oriented exiting with offering a new similar-REITs and repurchasing the shares,and draws an analogy with the exiting methods of private equity investment funds.Though this way,this text draws a conclusion that the public exiting way is the optimal way to exit from market.Finally,on the basis of introduction and financial analysis of HNA Pu Fa Building REITs case,the text gives some suggestions to improving the Chinese REITs market,which includes developing public REITs based on infrastructures to improve the development of REITs in all industries to make public exiting in all industries come true,carrying out preferential tax policy,investing high-quality assets.