Research On The Financing Methods Of REITs To Solve The Financing Problem Of Long-term Rental Apartments In My Country

In recent years,the rental market demand of the first and second-tier cities:in our country is increasing day by day,mainly concentrated in the modern decoration style and other ancillary services which are needed by the "new generation" population.As a result,the long-term rental apartment industry came into being and developed rapidly in the front-line cities of our country.However,due to the high cost of capital investment in acquiring housing resources and renovation in the early stage of long-term rental apartments,it is difficult to achieve returns and profits before the formation of large-scale apartments.At present,the core problem of the industry is the lack of funds.As a financing mode that appears soon in China but develops relatively mature in some parts of foreign countries,REITs can be applied to solve the capital of long-term rental apartment industry.In the first chapter,the background,significance,content,ideas and literature review of the study are elaborated.In the second chapter,the main problems faced by the long-term rental apartment industry are discussed and analyzed,as well as the basis for choosing REITs financing mode to solve the fund problem.Chapter 2 first introduces the concept of long-term rental apartment and its development in China.Then it analyses the reasons for the lack of funds in long-term rental apartments,and introduces other operation and management problems caused by capital problems in the industry.Based on the above background,this paper proposes to choose REITs to finance the industry to solve the problem of lack of funds,and then introduces the concept,classification and origin of REITs.At the same time,the author compares REITs with the other four financing modes in the long-term rental apartment industry,and finds that REITs is the best way to solve the financing problem in the long-term rental apartment industry.The detailed analysis process can be referred to the content of part 2.2.And REITs products for long-term rental apartment financing product operation has the relevant financial theoretical basis support,see 2.2.3 and 2.2.4 for details,thus obtained the basis of choosing REITs to solve the long-term rental apartment financing problem.Then,in the third chapter,the feasibility of applying REITs financing method to solve the capital problem in the long-term rental apartment industry is discussed and analyzed from the perspective of the demand side and the supplier side.The author uses theoretical analysis and empirical analysis to verify the feasibility of the basic conditions involved in the issuance of REITs products by the demander-long-term rental apartment,including the underlying assets,the policy environment,whether foreign practice is feasible or not,and the returns level and future trend change that the supplier-investor pays most attention to in its investment decision-making.Finally,we get the conclusion that RETIs solves the capital problem of long-term rental apartment industry.The product issuance foundation is good and the product income can be expected to rise.From the perspective of both the demand side and the supplier side of the fund,we verify the feasibility of applying RETIs to solve the capital problem of long-term rental apartment in China.Then,in the fourth chapter,this paper explores the product model construction of REITs when it is applied to the financing of long-term rental apartments.According to the actual situation of our country,the author has made a concrete discussion and research from six aspects:trading structure,organization construction,raising mode,operation mode,investment form and basic assets management mode.It is concluded that at present,China should mainly adopt exchange-like mode,equity investment form,contractual organization form,public fund raising mode,net lease management mode and closed operation mode.At the end of the chapter,the main innovations and problems of the case are summarized through the analysis of the first REITs product"Xinpai Apartment Equity Asset Support Special Plan".Finally,in the fifth chapter,this paper draws the main conclusions and gives some suggestions on the development of REITs in the long-term rental apartment industry in China.The main conclusions are as follows:firstly,REITs is feasible in the long-term rental apartment industry,and REITs products have a good basis for issuing and the future yield of products will rise.The basis and analysis process of this conclusion can be found in Chapter III of this paper;secondly,REITs application in the long-term rental apartment industry in China has certain development prospects,and according to the current national conditions,it is appropriate to adopt rights and interests at this stage.The types of exchange-like mode,equipty investment,contractual organization,public fund raising,net lease management and closed operation are suggested.It is suggested that the bankruptcy isolation means and credit enhancement design of "Xinpai Apartment" RETIs be used for reference in practical operation.The basis and analysis process of this conclusion can be referred to Chapter IV.Thirdly,the relevant laws,policies and systems of REITs in China are not perfect,and there is a certain degree in comparison with international ones.So the application of RETIs financing model to the long-term rental apartment industry in China should also carefully and comprehensively consider the risks of policy,system and other changes.At the end of the article,the author gives four suggestions about the future trend of REITs in the long-term rental apartment industry in China.In terms of product setting,it is suggested that the organizational structure of REITs in long-term rental apartments in the future should be gradually transformed from contractual type to corporate type,adopting public-offered fund raising mode,operation mode of equity type and management mode of third-party management,setting up tracking and evaluation mechanism,and insuring assets when necessary;in terms of operation mode,it is suggested that long-term rental apartments should promote asset operation of "combining light with heavy".In terms of tax policy,it is suggested to provide appropriate tax preferences for REITs;in terms of laws and regulations,formulate special laws and regulations for REITs,improve the current real estate registration system and real estate related laws,and establish a special secondary trading platform for REITs,so as to promote the development of REITs in long-term rental apartments in China,and realize the "simultaneous rent and sale" as soon as possible,and "each has its own residence" for our country.