A Research On Product Structure And Risk Control Of Real Estate Investment Trusts

Real Estate Investment Trusts are an important way for the financial industry to serve the real economy and promoting the common development of the financial industry and the real estate industry;It is an important means to implement the policy guidance of The 19 th National Congress “The house is for living,not others” and “Accelerating the Housing Leasing Market Development”;It is an effective way to promote the transformation of real estate enterprises to reduce leverage and to operate in light assets;it is an innovative financing tool to solve the financing difficulties of real estate enterprises.Under the circumstances that “rental housing” and “REITs” are receiving attention,academics and practitioners are actively exploring the operation mode of REITs and the application of REITs in the field of rental housing.Although REITs are regarded as high-yield,low-risk investment products,they still blong to financial products with risks.The predecessors have conducted in-depth research on macro risks such as REITs policies and market environment,so this article will firstly discuss the theories of REITs and risk control : the theory of REITs' s concept and development,and the theory of risk control.Then giving an example “the domestic first-stage central enterprise storage-type rental housing REITs in March 2018”,we will summarize the product's structure and current status of risk control.after that,we will analyze the internal risks faced by REITs from the four dimensions” basic assets,original equity holder,participants and tax”.Finally,we will propose several suggestions for REITs risk control from four dimensions,too.Firstly,from the perspective of basic assets,the two asset appraisal agencies fully adjust the basic assets,and extend the lease period to sign the agreed terms with the tenants to maintain stable cash flow;Secondly,from the perspective of equity holder,we will continue to pay attention to the operating status of equity holder and minimize the dependence on the equity holder.Thirdly,from the perspective of each participant,the participants will be diligently responsible through internal and external incentives and heavy default measures.At last,from the perspective of taxation,the benefits of investors will be expanded through the preferential policies of asset transfering and the income penetration system.