Research On Risk Analysis And Control Of Real Estate Investment Trust

Real estate industry as the main support industry of national economy plays important roll in the development of our national economy. Real estate is a typical capital-intensive industry, In recent years, rapid development of real estate in the process of encounter bottlenecks, Since 2003, the state has to raise bank loans to the threshold of the real estate business, On the other hand, the lack of efficient products which givea rise to domestic private capital into huge returns on investment. REITs, as a tool, can solve these two problems, in China's development will be the real estate market and capital market development trend. Real Estate Investment Trust as a form of financing and investment patterns, the risks inherent in REITs can not ignore..In order to promote the healthy development of REITs in China, Analyze the risks of REITs and effective management it has important theoretical and practical significance.This article describes the theory of REITs and related theories,Including the definition of real estate investment trust, classification and theories including breakeven analysis, probability analysis, sensitivity analysis, the theoretical basis income, as well as portfolio theory and principal-agent theory. Risk analysis on REITs, Including analysis of investment risk, build Monte Carlo simulation risk analysis model and use of random data simulations Monte Carlo simulation risk analysis model; Second, analysis of operational risks, including analysis of operating risk and build utility theory-based Risk Analysis Model of Agency.For investment risk and operational risk, Explore the investment decision-making mechanism, internal control mechanism, to strengthen management training and management, a risk warning system and attention to maintenance of property values for equity-based REITs. Although some risk is an objective reality, But can minimize the risk through the mechanism improvement, Or the use of probability analysis to optimize the investment portfolio. This article offers some suggestions for the risk control of real estate investment trusts.