Research On The Application Of REITs In Real Estate Financing

As one of the financial instruments of asset securitization,REITs take the future stable cash flow of real estate assets,such as property fees,rental and the growth of asset value.Standard REITs have stable income,relatively high proportion of cash dividends and are easy to circulate in the secondary market.These characteristics can well meet the demands of real estate financing enterprises,investors,governments and other parties.This paper is based on the modern corporate finance theory,principal-agent theory and bankruptcy isolation theory as the theoretical basis,and take real estate enterprise financing present situation as the background,combined with the international market system of REITs,selection our country real estate enterprise REITs mode,further through the L group to specific application of REITs financing analysis summary REITs financing problems of real estate enterprises in our country and puts forward some countermeasures for improvement.The research ideas of the case of L group are as follows:financial analysis and financing status analysis before REITs financing,application analysis of REITs issued by enterprises,financing effect analysis of companies after successful REITs issuance,and finally,the innovative design of this REITs financing of L group is summarized.The research methods proposed in this paper mainly include case analysis method,literature analysis method,graphic chart analysis method and qualitative and quantitative analysis method.The literature research method is an important research method in this paper.By referring to the literature about REITs at home and abroad,the research results are sorted out,and literature review is conducted on this basis to consolidate the theoretical basis of writing.At the same time pay attention to the timeliness of the literature,closely in line with practical policy.In addition,the case analysis method is also the main research method.The "L no.1" fund cases issued in China are discussed and analyzed in detail.On the basis of theoretical analysis,the cases are analyzed and further studied.The innovation of this paper is that this paper first studied the financing case of "L no.1 asset support special plan" and analyzed the financial situation,financing status,case application and financing effect of L commercial real estate company,and summarized the characteristics,advantages and disadvantages of the case.Comparing international mature REITs market experience,combined with China's basic national conditions and financing status of small and medium-sized real estate enterprises,I study the pattern of REITs in our country,and financing structure based on L groups REITs tool application,summarizes the advantages and disadvantages and puts forward corresponding Suggestions.Finally,I put forward tne advice for small and medium-sized real estate enterprises.At present,REITs have been developed for five years in China,with rich practical experience,and a truly standardized REITs is ready to come out.Our country should regulate legislation as soon as possible and guide the positive development of REITs.At the same time,the generation of standardized REITs can also provide a better exit path for investors of the REITs that have been published.