Poly Real Estate Rental Housing REITs Case Study

In response to the housing problem,the 19 th National Congress pointed out that we must adhere to the system of “staying and not speculating,renting and purchasing together” and paying attention to the residential property of the building.This measure has greatly promoted the construction of the building.Coupled with the rapid development of urbanization and the continuous growth of the floating population,the demand for housing leasing in China is huge,and the housing leasing industry is developing rapidly.However,in the early stage of construction,the house leasing company will have problems such as large capital investment,long operating period and long payback period.Therefore,financial market needs are needed.REITs(Real Estate Investment Trusts,REITs)are an important means of solving the housing leasing market financing and a new financing method that can revitalize real estate.China’s REITs are still in the exploration stage,and China is supporting the development of the housing leasing market.Therefore,applying REITs to the housing leasing market as an research direction has important theoretical and practical significance.2017 is the “first year” of rental housing REITs.So far,the number of housing lease REITs has been small,and REITs have insufficient experience in the housing leasing industry.Therefore,in order to promote the design and development of China’s rental housing REITs products more perfect,the development is more mature,this paper selects China’s first single central enterprises(Poly real estate)rental housing REITs products for a more systematic analysis.This paper first gives a comprehensive introduction to the distribution background,product structure,basic assets and cash flow of Poly Real Estate Rental Housing REITs.Then the product is analyzed from the advantages and disadvantages,and the advantages of this product are double SPV transaction structure,the ownership is clear;double bankruptcy isolation,guarantee the security of funds;rich credit enhancement means;stable cash flow;High efficiency and high financing efficiency.The shortcomings are fixed interest income,out of REITs’ own value;secondary market liquidity is insufficient;credit rating agencies are single,rating authority is weak;property assets are affected by geographical location and tenants;rental return rate is low and tax is not completely taxed Risk,etc.Finally,suggestions for the development of rental housing REITs: improving the legal and regulatory requirements for rental housing REITs;accelerating the implementation of support policies,indirectly improving the rate of return;strengthening the risk control of basic asset screening and cultivating and developing the centralized housing leasing market;Mechanism,improve the efficiency of issuance;introduce a number of credit rating agencies to improve the authority of rating results;introduce market maker system and establish an independent REITs information disclosure platform to improve the liquidity of the secondary capital market.