The Research Of Long-term Rental Apartment Enterprise Using Real Estate Investment Trusts

The high housing prices in the first and second tier cities of our country and the high floating population have spawned strong demand of rental housing,and the continuous advancement of urbanization and the upgrading of consumption structure have stimulated the demand for high-quality rental housing.To promote the standardized development of our country's rental housing market,the government has successively promulgated several related policies,such as multi-agent supply,hire purchase simultaneously and so on.Long-term rental apartment enterprises are enterprises that provide long-term rental services for tenants.Long-term rental apartment enterprises can provide refined management and standardized services,which can effectively meet the high-quality demand of consumers for rental housing,so they have good prospects for development.However,our country's long-term rental apartment industry as a whole is still in the extensive development stage,enterprises blindly pursue the expansion of scale,do not pay attention to the value of property assets excavation.At the same time,the entire industry has a long investment recovery period,high financing cost,narrow financing channels and capital exit difficulties and so on.Real estate investment trusts(REITs)provide long-term and stable capital support for long-term rental apartment enterprises,which makes enterprises pay more attention to the operation and value excavation of property assets in the process of large-scale expansion,and realize the light asset operation.Therefore,REITs are inevitable means to promote the healthy development of long-term rental apartment industry.This paper mainly uses normative analysis method,case analysis method and comparative analysis method to study the application of REITs in long-term rental apartment enterprises.The full text is mainly divided into four parts to demonstrate.The first part introduces the connotation of REITs and long-term rental apartment enterprises,analyses the principle and structure process of long-term rental apartment REITs in our country,and analyses the significance of developing long-term rental apartment REITs in our country.The second part carries out realistic analysis of long-term rental apartment REITs.Based on the space of our country's rental market and the problems of long-term rental apartment enterprises,this part analyzes the necessity of developing long-term rental apartment REITs in our country.Based on the policy environment and industrydevelopment in our country,this part analyzes the feasibility of developing long-term rental apartment REITs in our country.The third part takes Xinpai apartment REITs as an example,and introduces its background and basic content in detail.The fourth part makes an in-depth analysis of the Xinpai rental apartment REITs and makes a comparative analysis with "Xu Hui apartment REITs" and "Poly Real Estate REITs" to summarize the experience and shortcomings of each product.Through the analysis,it is found that the Xin pai apartment REITs is separated from credit of the subject and give full play to the excellent gene of its underlying asset.It is a real equity-based long-term rental apartment REITs product,which is very close to the standardized REITs,but it does not use the storage shelf issuance mechanism.Both Poly Real Estate REITs and Xuhui apartment REITs have adopted storage shelf issuance mechanism,but they have the problem that the underlying assets are not mature enough and relying on the subject's credit.The difference between the two REITs products is that the equity attributes of Xu Hui apartment REITs is more obvious,while Poly Real Estate REITs is a complete debt financing product,and there is a big gap compared with standardized REITs.At the same time,all three products have proved that REITs can broaden the financing channels and capital exit channels of enterprises,and help enterprises realize light assets operation.Finally,in order to promote the healthy development of long-term rental apartment REITs in our country,this paper puts forward relevant suggestions according to the results of case studies:(1)In the course of operation,long-term rental apartment enterprises should attach importance to improving their own operation and management ability and fully excavate the value of property assets;(2)The government should enact laws and regulations for REITs as soon as possible to facilitate the operation of participants.At the same time it should formulate tax incentive policy for REITs to simplify the structural design of our country's REITs.(3)The government should strictly supervise the use of funds raised by REITs to prevent REITs from becoming a leverage tool for local governments or real estate enterprises,resulting in fluctuations in real economy.