Research On The Application Of REITs In The Financing Of Long-term Rental Apartments

In recent years,long-rented apartments have developed rapidly and become a trend in the industrial transformation of real estate enterprises.At the same time,due to the high demand for financing funds,narrow financing channels,long recovery cycle and high financing costs in the apartment industry,it is facing a financing bottleneck.Referring to the experience of developing apartment properties abroad,China has started to introduce the new financing method of real estate investment trust fund(REITs).On the one hand,issuing REITs can raise funds for the residential rental market,revitalize enterprise assets and promote asset-light operation.On the other hand,it can also provide a way for small and medium-sized investors to invest in real estate and promote the development of rental housing industry.Poly real estate is one of the first enterprises to apply for long-term apartment REITs in China and get the approval.It has a large issuance scale,innovates the use of "storage rack" mode,and is representative and typical.This article USES the case analysis,poly real estate REITs issue,for example,in the study of poly real estate REITs issue of the background,motivation,and process,on the basis of analysis of poly real estate the financing mode of operation,the study found that poly real estate REITs structure design to ensure that risk isolation measures,credit,credit enhancement effect can be achieved,the choice of the underlying assets to ensure the safety of the future cash flows.Based on the advantages of the above operation mode,poly real estate was successfully issued.Issuing REITs improves the financing efficiency of poly apartments,invigorates assets,promotes the development of long-term rental apartment industry,and is conducive to the implementation of its strategic transformation.Meanwhile,poly real estate REITs also has shortcomings,due to the limited issuance,to improve the capital structure and other financing effect is not significant,at the same time,the issue of still exist the following problems: first,the rent recycling risk,second,the heavy tax burden,the third,no breakthrough in private form block funding liquidity.In view of the successful issuance of poly real estate REITs,this paper comes to the following enlightenment: REITs can be used as a new financing method for long-term rental apartments,and its model design of "special plan + private fund","storage and issuance" and "increase credit measures" can provide reference for other enterprises to adopt this financing method in the future.Aiming at the existing problem of poly REITs at the same time,this paper puts forward the following Suggestions: the current environment in China on the one hand,enterprises need to improve their capacity for REITs issue guarantee success,on the other hand,countries should formulate corresponding tax breaks,more special lease land supply,clear supervision institutions and monitoring content to overcome REITs in our country the disadvantages of the existing financing rent the apartment.The above Suggestions will help promote REITs to become an effective tool for investment and financing in the field of long-term rental apartments in China.