The Application Of Real Estate Investment Trusts In The Field Of Pension Real Estate In China

According to the population statistics in recent years,we can see that our country has entered the accelerated stage of aging.By 2035,the aged population aged 60 and above will reach 418 million.With the increasing degree of aging in our country,the shortage of pension service facilities has become one of the problems in the process of aging population.Therefore,investment in the construction of pension service facilities has become the key direction of the state to encourage investment,in which the development direction of pension real estate has become the focus of social concern.The following is the many social capital and real estate enterprises increasingly urgent to enter the pension real estate market,and at present our country's pension real estate is still in the exploration,the industry has yet to find a sustainable profitable business model.Pension real estate is a kind of real estate product that combines the real estate with the health medical service effectively.It realizes the income through different service system and profit model,and finally realizes the social function of the old people.Therefore,compared to the traditional model of nursing homes,pension real estate in its larger scale,more professional,social benefits are also more significant.This has set a higher demand on the various institutions involved.At the same time,pension real estate has different characteristics compared with traditional real estate,that is,the pension real estate needs a lot of capital support in the process of development and operation,and the payback period is longer,higher investment risk.Real Estate Investment Trusts(REITs)is an innovative product combining real estate and financial market,which can solve the financing needs of the real estate.Its comprehensive characteristic is that it can mobilize the asset allocation of the financial market,and provide a good solution for the problem of high investment,long investment recovery period and high investment risk faced by the pension real estate investment.Since its birth in the United States in the 1960 s,REITs has grown rapidly in Japan,Korea,Singapore and Hong Kong.As of the end of September 2017,the market value of REITs in the United States has reached $ 111.5 trillion,and nearly 200 REITs have been listed on the New York Stock Exchange.Most of the REITs in the old-age care category were established in the 1970 s and 1980 s,in which Welltower Real Estate Investment Trust was invested in the fields of senior housing and healthcare real estate the market capitalization of the company is the highest,and its market capitalization has exceeded $ 20 billion.The operation and management mode of American pension real estate is mainly REITs mode,which provides a good reference for China to promote the construction of pension service facilities.In the next article,I will introduce REITs from three aspects:REITs related theory,China pension real estate real estate and case study and REITs' value evaluation.The theoretical part includes the concept of REITs,the research and development status of REITs at home and abroad,the theory and characteristics of REITs,the concept of REITs,the introduction of REITs valuation methods and so on.The purpose is to help people understand REITs,to understand the advantages of REITs in real estate development,and to elaborate the necessity of applying REITs in the development and operation of pension real estate.The case section selects the NAV valuation method of the three valuation methods introduced in the theoretical part,and combines with the pension real estate project in Kunming,to the real estate investment trusts(REITs)price value is analyzed,and the specific application of the valuation model method is demonstrated,in order to illustrate the role that REITs can play in the application of asset evaluation in the field of pension real estate.Finally,we concluded that,in the current situation of increasing aging population,REITs has its unique advantages in the development and operation of pension real estate,it is worth studying and popularizing the central government,local government,real estate enterprises and relevant institutions.I think the relevant government departments and legislative bodies should improve the relevant laws and regulations as soon as possible,so that our country can begin to explore the practice of REITs in the development and operation of pension real estate as soon as possible,to help our country to solve the problem of serious shortage of service facilities for the aged.At the same time,it is very important to assess the value of REITs in the process of REITs in the process of applying REITs to pension real estate,especially in transaction and asset injection,therefore,we should make full use of the value discovery function of asset evaluation,and help us to explore the value evaluation method of REITs which is suitable for our country on the basis of the existing REITs value evaluation ideas.In the REITs valuation case section,the NAV value assessment method recommended by American analysts is used,although they also believe that this method is difficult to operate,but this article is still in the case of combining with the research case,the NAV value evaluation method is a complete demonstration and introduction.