Research On The Financing Risk Of Public REITs In Warehousing Logistics

With the development of China’s economy,people’s needs for a better life have increased accordingly.In order to meet people’s living needs and further improve their happiness of life,the country has introduced a series of policies to support infrastructure construction.However,due to the large investment in infrastructure projects,the large demand for funds in the early stage of construction,the long payback period of funds,and certain public property,the effect of traditional financing methods is limited,so it is necessary to innovate traditional financing methods to improve the effect of financing.In this context,the first batch of 9 public infrastructure REITs funds was successfully issued in June 2021.By the end of February 2023,China had issued 25 public infrastructure REITs.As a basic industry related to People’s Daily life,two of the first batch of infrastructure public offering REITs belong to the warehousing and logistics industry,providing a new way of financing for warehousing and logistics enterprises.However,it should also be noted that as a new financing method,the relevant system and process are not standardized,especially because of the particularity of the warehousing and logistics industry,the warehousing and logistics public offering REITs still have corresponding risks.Taking Redsoil Yantian Port REITs as an example,this paper studies the risks existing in Redsoil Yantian Port REITs,conducts risk identification,risk assessment,and puts forward risk control measures from three aspects: underlying assets of REITs fund,related transaction subjects,and transaction structure.Through risk identification,it is found that Hongtu Yantian Port REITs has a single type of underlying assets,a high degree of project concentration,and a slow growth of net cash inflow from 2021 to 2026.The financial condition of the originator is deteriorating,and other transaction participants lack incentive policies;Existing transaction structure tax burden heavy risk.In view of the above risks,this paper proposes to disperse the concentration of underlying assets,moderately increase the rent price of the original owners,strengthen the evaluation and supervision of the original owners,improve the internal control and external supervision of each transaction subject and other risk control suggestions,reasonable planning of tax and other risk control suggestions,reduce potential risks and improve the security of the fund.Finally,by extending its vision to the whole warehousing and logistics public offering REITs industry,it proposes that high-quality underlying assets should be selected,high-quality trading subjects should be selected,and relevant system construction should be strengthened,so as to help fund issuing enterprises and investors fully understand the potential risks of fund projects.To provide experience and reference for the subsequent warehousing and logistics industry enterprises to issue infrastructure public offering REITs.