Analysis And Strategy Research On Value Growth Mechanism Of REITs

In the promotion of social and economic development,Chinese real estate industry has shown a sustained and rapid development momentum over the past decade.As the real estate industry is a typical capital intensive industry,its rapid development will generate huge capital demand,which also brings a huge impact on Chinese financial system.The development of the real estate industry also directly affects the national economic and financial level.The emergence of Real Estate Investment Trusts(REITs)provides a new asset securitization instrument for Real Estate financing,which effectively meets the capital demand of Real Estate industry and improves the liquidity of funds.Therefore,it has been recognized and supported by many countries and becomes an important form of Real Estate financing.Since REITs were born in the United States in 1960,37 countries or regions have already implemented REITs legislation in the world,and 8 countries including China,Indonesia,Poland and Sweden are considering implementing REITs.Chinese government has gradually strengthened its efforts over the past decade,and REITs are once again included in the agenda of the latest two sessions in 2018.On March 13,wang jingwu,a deputy to the 13 th National People's Congress and President of the people's bank of China's guangzhou branch,put forward a proposal at the National People's Congress.In this dissertation,through qualitative and quantitative analysis,put forward the specific mechanism of REITs value growth and growth factors,based on present data for the study of REITs in the developed countries,analyzes the sources of internal growth and external growth way and make a detailed empirical analysis,presented the contribution of each factor on REITs growth way and degree,and puts forward the countermeasures and policy Suggestions of REITs value growth.The first chapter of this dissertation mainly expounds the background,significance and related research situation of REITs market research.The second chapter first clarifies the basic concept of REITs value and compares other similar concepts.By using FFO,AFFO index,NAV net value model,P/FFO or P/AFFO model and cash flow discount model,the market valuation and trend estimation of REITs are summarized.The third chapter elaborates the mechanism of REITs value growth,including the internal growth mechanism and the external growth mechanism.Firstly,the paper expounds the main factors of internal growth,including rent growth,tenant upgrading,property renovation and capital recycling.Secondly,it expounds the main channels of external growth,including acquisition and development.The value growth of REITs can be reflected by the performance growth of its blue chips.The last part of this chapter summarizes the characteristics and performance of REITs blue chips worldwide,including the quality of management team,additional internal growth opportunities,good property location advantages,performance record tracking and balance sheet strength.Chapter four regression analysis was carried out on the factors of internal growth mechanism,establish the model selection of Singapore whole REITs market as the research object,through the analysis of related data and index system,make the VAR pulse analysis and factor analysis of variance and the corresponding conclusions: both external macro,medium and micro elements on growth of REITs have selected,but the magnitude and direction of their influence.Among them,rent growth is the source and controllable factor influencing REITs growth,and the ability to improve rent is the decisive factor for REITs internal growth.In reality,the rent rate can also grow with the improvement of macro and industrial environment,which means that higher rent income makes the asset value of REITs continuously endogenous.Chapter five uses relevant data of yuexiu real estate REITs 2008-2017 in Hong Kong,to empirically analyze the impact of growth factors of non-rent growth brought by m&a and development on the external growth of REITs value.Firstly,this chapter summarizes and analyzes the growth data of yuexiu real estate trust fund,including its internal growth and external growth performance within ten years and makes the growth function model.Through the quantitative analysis of the model,this chapter expounds the external growth factors of yuexiu real estate trust fund in particular.Yuexiu REITs began in 2008 through the form of external acquisition,acquisition of a variety of assets,change the single source of rental income situation,especially to spend 13.44 billion yuan to buy 2012 guangzhou international financial center,the gold center includes a variety of forms such as hotel income form,making the external of rental income growth of yuexiu yield growth has made a significant positive contribution.The sixth chapter firstly lists the international common valuation models and methods of blue-chip REITs.And then select the United States,Australia,Britain,Singapore and Hong Kong,China,a total of eight blue-chip REITs,inductive analysis of its performance,chip based on the empirical analysis we draw the conclusion: blue chip performance of REITs,return on equity,return on assets or equity multiplier,have good and stable performance,is ideal fixed investment products;Secondly,from the type of property involved,the return on investment of commercial real estate based on the research sample will be higher than that of other property types,especially the unit performance of diversified real estate operations.The third part uses CAPM model to measure the performance value of internationally renowned blue chip REITs,and compares it with financial industry,manufacturing industry and science and technology enterprises to find out the performance value characteristics presented by REITs.Generally speaking,blue-chip REITs has the same performance value as the technology industry,but the value of each enterprise is different.Some performance value is more reflected in its excess Alpha income,while some enterprise performance value is more reflected in its relatively stable risk.Chapter seven studies the strategies and policies of value growth of REITs,and presents relevant strategies from three perspectives of internal growth of rent growth,property renovation and tenant upgrading.State external growth strategy from two aspects of acquisition and development;Through the analysis of the principal-agent theory model,this paper proposes the governance mechanism that is more conducive to the operation and management of blue-chip companies.Finally,from the macroscopic point of view,combined with the current development of REITs in China,put forward relevant policy recommendations.In this dissertation,the current issue of the real estate investment trust value growth of empirical analysis,the factors which influence to look forward to extensive investigate result has the certain enlightenment on the development of Chinese real estate securitization,at the same time hope that the extensive investigate,in theory,can make up for the current domestic REITs empirical extensive investigate the blank,rich REITs value growth theory and method,lay a theoretical foundation for the research of market revenue management.This dissertation,based on a large number of statistical data related to REITs and the theory of market return management,provides theoretical support for the study of market return management of REITs on the one hand,and provides practical value for the management of market return of REITs on the other hand.