Research On Risk Management Of Poly Rental Housing REITs

In order to improve the supply of housing and enrich the investment and financing channels of the real estate industry,the government has repeatedly issued documents to support the issuance of financial products such as real estate investment trusts that are conducive to the development of the housing leasing industry.In 2017,Poly issued the first single rental housing REITs listed products through the way of shelf offering.The issuance of shelf offering adopts a model of continuous supervision of one issue.The CSRC simplifies the registration process,improves the flexibility of financing,and relaxes the supervision of administrative approval.It can be expected that more and more REITs will flood into the market in the future.Under such a model,due to the simplification of approval,it is necessary to strengthen the study on risk management of each stage of REITs.By analyzing the studies,there is a risk of Poly Rental Housing REITs risky macro level,such as market interest rates increase the risks,the risk of micro-level,the risk of underlying assets such as REITs and risk management exist.In the risk assessment,the REITs products have low-level terms,cash flow risks,special plan managers and interest rate risks are low,and because the relevant laws and regulations of the leasing market have not been perfected,political and legal risks,operator default moral hazard and the risk of renting property rights in housing is high.For this reason,Poly Rental Housing REITs have taken measures such as signing a whole-lease agreement,regularly reporting on property assets,planning future interest rate fluctuations in advance,and hiring professional institutions to prevent possible risks.Poly rental housing REITs survival time of only two years so far,select REITs in the United States issued its risk management products SRG comparison,the main underlying assets of SRG Sears bankruptcy filing by the end of 2018,the stock price of the SRG caused serious negative impact,but in the end SRG rent by decreasing the proportion of Sears and dispersed the underlying asset distribution and other operations causing the share price SRG will steadily after the crash.By comparing the results REITs risk management conclusions need to diversify revenue and strong financial support.Finally,combined with the case of Poly Rental Housing REITs,it is concluded that in the risk management of such REITs products,it is necessary to strictly review the underlying asset cash flow,regulate operations,review the credit enhancement plan,and prepare for risk acceptance of policy changes.