The Real Estate Trust Revenue Impact Factor Research Based On The Fama-french Three Factors Model

With the development of economy and investment markets of China, the real estateinvestment trusts is becoming a more and more important investment tool. Because ofthe characteristics, gaining high income in short period, the real estate investment trusthas been widely accepted by investors. However, the redemption pressures andproblems in the real estate trust have been happening in recent years. As a result, theissue of the real estate trust income, the revenue related factors, the problems faced inthe real estate trust, all of that are very necessary and important.According to the research background and research purposes, the main contents ofthis paper are as follows. First, the literatures concerning the income of the real estatetrusts are reviewed and analyzed. Moreover, the possible factors can be attributed tomacroeconomic factors, industry market factors and firm characteristics factors.Secondly, analyzing the theory of the real estate trust investment income, the real estatetrust income can be described using the Fama-French three-factor model. Meanwhile,the three categories of factors are related to research, which are inflation, interest rates,money supply and stock market. Finally, the relevant factors are added separately tothree factors based on the empirical test, and the results are analyzed and discussed asfollows.The empirical results show that changes in the income of the trust estate marketcan be answer using excess return and others, which affect the real estate trustcompanies. There is an obvious company size effect and the Book-to-market effects inthe real estate trust. Meanwhile, the real estate trust is also influenced by market interestrates, money supply and stock returns. China's real estate trust income steadily risingand growing maybe owe to the impact on money supply. Market interest rates have anenormous impact on earnings, which show that the real estate trusts income is mainlybased on the real estate development and real estate credit.This paper shows that the real estate trust company should increase the interest inleasing, investing more funds to this field, and reduce the investment in real estatedevelopment. Meanwhile the state should control the money supply, maintaining amoderate growth to stimulate the investment.