The Study On Operational Model Of Real Estate Investment Trusts

Real estate investment trusts (REITs) is an important tool for real estate investment and financing, it is good for continuing development of the real estate market and the stability of financial markets. REITs have been developed for many years abroad, but not formed yet in China for various reasons. The purpose of this paper is to study the rules and characteristics in the operation of REITs, to learn foreign experience in the development of REITs, and then get the proper operational model for REITs'development in China.The operational model of REITs covers rich content. In order to analyze the operational model of REITs systematically and comprehensively, the paper has limited the content of the operational model of REITs and the range of study, summarized the study fruit of domestic and foreign research in this field. For carries on the thorough analysis from several important aspects of the REITs, we introduce several important theories and the co-integration theory. Then take this as the foundation, we analyzes the characteristics of REITs'operational model from the type, organization structure with the process, investment strategy and scale. To further the study on the effect the operational model have had on performance of REITs, we carried on the analysis of the evaluation factors of REITs operation, then found that the returns ratio of REITs manifests the overall state of REITs'operation. Because of the non-stability of the REITs returns ratio, we introduced the co-integration theory and the error correction model (ECM) of the series analysis theory. Then carry on the analysis of the co-integration relationship between the REITs type and the returns ratio, between the scale and the return ratio, we discovered that there are co-integration of the returns ratio between the Equity REITs and the stock market, between the REITs scale and the income return index, thus lay the basis for the choice of REITs operational model in China. Then combine with China's economic environment and law system, we analyzed the way China develops the operational model of REITs, and give some advice for promoting development of china's REITs from the economic environment. Finally, Singapore take the Prime REITs as an example, analyzed its operating characteristics and mode of operation, from this analysis we can learn the experience for China's development of REITs.