Research On Real Estate Investment Trust Fund Model Of Company S

The Real Estate Investment Trusts Fund is a mid or long term investment model which applies the investment trust in real estate industry and securitized it, in the meanwhile, it establishes the professional investment operation team and financial organization to extensively absorb the public capital fund through issuing the income credential(receipts). Afterwards, these team and organization distribute the revenue, which brought by the public capital fund that invested into real estate industry, to the investors by different proportion. The Real Estate Investment Trusts Fund can securitize the real estate by its centralized management model and multidirectional investment ways; therefore, it can avoid the risks efficiently and acquire the highest rewards. The Real Estate Investment Trusts Fund, which is high stability, high profitability and low taxability, is one of the significant expression modes about securitization of real estate. At the same time, The Real Estate Investment Trusts Fund is operated under the standardized fund management model and rigid investment strategy. This essay describes the basic concept of Real Estate Investment Trust Fund and analyses its characteristics as well as operation mode. At the meantime, this essay analyses the background and development situation of Real Estate Investment Trust Fund of Company S by combining the current situation of Company S. In this essay, it also analyses the characteristics of Company S by four aspects, such as: structure system, source and investment orientation, operation cost, rewards distribution and withdrawing ways. This essay researches extensively on Real Estate Investment Trust Fund of Company S by compared with other modes. The Real Estate Investment Trusts Fund of Company S has three competitive advantages, such as:excellent structure, high liquidity, operational expertise and high social reputation. In the meanwhile, it also has few competitive disadvantages, such as: uncontrollable financial leverage, obstacle on society and culture, low liquidity. These competitive advantages and disadvantages are analyzed by author with SWOT analysis model. There are few development opportunities of Company S, such as: the increasing demand of Chinese real estate, the initial formation of the investment subject, and improving capital markets. Company S also has some risk factors, such as: the fierce competition, uncontrollable change of market, the unsure effects of policy and controlling measures, the development risks and so on. This essay evaluates these development opportunities and risk factors of Company S then providing few improvement methods, such as: control financial leverage reasonably and strengthen the localization of market for The Real Estate Investment Trusts Fund of Company S. Meanwhile, the experienced conclusions are provided by author, such as: create the necessary lawful environment of REITs, enhance the efforts on the risk prevention, establish the organization structure of REITs and improve the institution on disclosure of information. Through these analyses of The Real Estate Investment Trusts Fund of Company S, the author would like to provide some examples to make domestic Real Estate Investment Trust Fund developed in a better way.