The Research On REITs Financing Model Of Rental Housing In China

Since 2014,the state council and several ministries and commissions have issued documents to cultivate and develop Chinese rental housing market and push forward the pilot of REITs.The 19 th CPC national congress has set the policy keynote of "no speculation in housing",and Chinese rental housing market has entered a new stage of development.At present,Chinese urbanization rate is only 60%,while the urbanization rate in European and American countries is over 80%,so there is room for further improvement in Chinese urbanization rate.Urbanization always comes with a large number of floating population,which will creat a large number of rental housing demand.However,the existing financing methods are unable to meet the needs of the rapid development of rental housing market.Firstly,this paper introduces the definition,principle and classification of REITs,and then makes a comparative analysis of REITs and other financing methods in the rental housing market.It finds that REITs have many advantages and is one of the best financing methods in Chinese rental housing market.Secondly,on the basis of in-depth analysis of Poly Rental Housing REITs,this paper makes a comparative analysis of Poly Rental Housing REITs,CYPA REITs and EQR,then offers suggestions for the construction and development of standardized REITs of Chinese rental housing REITs optimization model.The research findings are as follows :(1)Through comparative analysis with the CYPA REITs,it is concluded that Poly Rental Housing REITs have the characteristics of pioneering storage and rack issuance and high financing efficiency,but there are also problems,such as the rent to sale ratio of underlying property assets is too low and financing cost of REITs is high.(2)Through comparative analysis with EQR,it is found that Chinese REITs market is still faced with problems such as imperfect laws and regulations,multiple taxation of products,and lack of management institutions and professionals.(3)By selecting theadvantages of Poly Rental Housing REITs and CYPA REITs,this paper offers suggestions on the selection of underlying property assets,transaction structure design and other aspects for the construction of the optimization model of Chinese rental housing REITs.(4)Combining the comparative analysis of Poly Rental Housing REITs and EQR,this paper provides advice for the development of Chinese REITs market from the perspectives of establishing a sound legal system,standardizing the market environment and cultivating professional REITs management institutions and professionals.