Risk Management Research Of Taihe Long Rent Apartment REITS

REITS refers to Real Estate Investment Trusts.Through the issuance of REITS,enterprises allow ordinary investors to invest in real estate projects and obtain certain benefits by purchasing stocks or income certificates.At present,the housing market is developing rapidly,and thanks to the continuous policy of cultivating the housing market,the prospects for the long-term rental apartment market are getting better and better.However,the contradiction between the high quality and high quality demand for housing leasing and the unbalanced and inadequate development of the real estate leasing market has become increasingly prominent.Consumers are increasingly demanding their branded operations,refined management,and standardized after-sales services,but long-term rental apartments face problems such as long payback period,high financing costs,and narrow financing channels.It seems that the issuance of REITS has become the best choice for long-term rental apartment companies,but it is well known that long-term rental apartment securities are a new thing after all,and their issuance faces quite a number of problems,which can be said to be risks.Taihe Group Musheng Long Rent Apartment No.1 Asset Support Special Plan is based on the Taisheng Group's Musheng Apartment as the underlying asset.Based on the long-rent apartment,the corresponding special plan is designed to raise funds in the form of trust funds.Funding,to solve the problem of a large amount of funds in the initial stage of the development of long-term apartment companies.However,due to the fact that the domestic REITS is still in the early stage of development,there are still certain risks in the overall issuance of the Musheng long-rent apartment.Based on the theory of principal-agent theory,bankruptcy isolation theory and credit enhancement theory,based on the analysis of the status quo and problems of REITS development of long-term rental apartments at home and abroad,this paper analyzes the residential renting apartment REITS.The project analyzes the risk impact of REITS on Taihe Group and attempts to obtain various measures to control the risk of REITS projects in light of China's current policy.The study found that: First,the overall special plan of REITS in Musheng Long-rent Apartment has a variety of risks in the overall structural design.Because of its unique “trust + special plan” model,there is a certain structural design in bankruptcy isolation.The risk,the credit enhancement measures adopted by it can notcompletely cover its multi-level securities classification system to a certain extent.Second,the liquidity problem of the asset-backed special program has always been the focus of investors.The liquidity risk of the REITS in the long-term rental apartment is a problem that cannot be ignored after the issue.There is also the use of raised funds,which involves risks in the use of funds.Third,the exit mechanism still has unreasonable places,which will also cause certain risks to the REITS.The proposed solutions include the following four points: the introduction of third-party operational management agencies and rating agencies,the establishment of a more complete bankruptcy isolation mechanism and exit mechanism,and the selection of multiple entities for liquidity support.