Research On Valuation Of Real Estate Investment Trusts Based On EVA By The Case Of Yuexiu REITs

As an important way of financing in the real estate industry, the real estate investment trusts(REITs) has been developed abroad for several decades. But in our country, it is still in the initial stage. At present, Chinese real estate industry been in the transition period of developing, the capital is facing more restrictions and mainly concentrated in the bank, which is not conducive to the transformation and upgrading of the industry. Therefore, in order to increase the funding of real estate industry and reduce the bank’s systemic risk, we have to promote the rapid development of REITs in our country.The main content of this paper is divided into two parts. The first part mainly introduced REITs’ concept, characteristics, history, valuable composition and influence factors to value.From the view of practice EVAluation,we compared and selected a suitable method to EVAluate the valuation of REITs, which is called EVA.The second part is the process of estimating a case. we use the way of EVA to assess the value of Yuexiu REITs, which is China’s first REITs listed on overseas by means of property in the territory. We finally obtained the Yuexiu REITs’ EVAluation results consisted with its market value and proved the applicability of EVA’s method to assess the REITs.