Research On The Impact Of REITs Asset Securitization Financing On Real Estate Business Performance

With the 2015 Central City Work Conference “destocking” as one of the five major tasks of economic development,the corresponding real estate regulation and control policies have emerged in an endless stream,and the control measures for real estate enterprise financing have become increasingly strict.After implementing the tightening regulation policy,the difficulty of real estate enterprise financing has been pushed to a new height.At present,the financing channels of commercial banks are becoming narrower and narrower,and the financing channels of capital markets are gradually tightening.This series of measures has not only increased the difficulty of financing for real estate enterprises,but also increased the financing costs.In the face of financing difficulties,REITs are a better solution.With the development of China’s asset securitization market,in 2015,Vanke Group and Penghua Fund issued the first public fund in China to invest in REITs,Penghua Qianhai Vanke REITs,which is the first attempt by Vanke Group to carry out asset securitization.The issuance of this product has many reference values for the current REITs market in China.This paper mainly adopts the literature research method and the case analysis method.Under the background of the increasingly severe domestic real estate financing,the development status and existing problems of REITs at home and abroad are expounded.Based on the introduction of REITs asset securitization theory and the basic theory of business performance,this paper introduces the Penghua Qianhai Vanke REITs project and Vanke’s financial status in detail,and then selects financing channels,debt financing and REITs financing.The cost analysis,financial effect analysis and market performance have carried out specific case studies to explore the impact of REITs asset securitization on Vanke’s business performance.Firstly,by comparing the feasibility of three traditional financing channels,it illustrates the necessity of Vanke’s implementation of REITs securitization financing.Secondly,comparing the respective costs of debt financing and REITs financing methods,itshows the cost-effectiveness of REITs to a certain extent.Furthermore,since the REITs project has a certain degree of influence on Vanke’s entire financial indicators,the financial effects of REITs are illustrated through an analysis of the four capabilities of profitability,debt service,operations and development,and through peer comparisons.Further explanation of the financial impact of Vanke’s implementation of REITs under the same circumstances;finally,based on the results of the event research method,stock price changes and fund returns,the market performance of REITs is reflected.The conclusion of this paper is that the REITs securitization financing has a positive impact on the business performance of real estate enterprises.Through the above analysis,it is found that REITs securitization financing has certain reference for real estate enterprise financing,and can broaden the financing channels of real estate enterprises.At the same time,it also has certain experience and enlightenment for China’s development and improvement of REITs securitization system.