Research On The Operating Mode Of Reits In Chinese Long-term Apartment Market

In recent years,China's real estate market is in full swing,which has produced a siphon effect on the asset and the capital.For the healthy and stable development of China's economy,it is imperative to vitalize retained house property and increase the ratio of renting to selling.In the current environment,the development of the long-rent apartment market is an effective way.However,the growth of the long-rent apartment industry faces many obstacles.The financing problems and the low income are the main problems.These problems can be deeply relieved by perfecting China's REITs model and applying it to the long-term rental apartment market.This paper analyzes the functional characteristics and practical significance of REITs,verifies the feasibility of the application of REITs in the long-rent apartment market in China,and uses the case analysis method to compare the background,target assets,transaction structure,product risk and other aspects of two cases.Two typical cases of Xuhui apartment REITs and Xinpai apartment REITs are compared and analyzed,focusing on the operation modes and advantages and disadvantages of REITs,and further evaluating their effects.The comparison found that these two long-rent apartment REITs chose equity-type and contract-type REITs,all of which do not rely on third parties to complete credit enhancement,adopt similar external management mode,internal credit enhancement measures,and exit arrangements with preliminary public offerings.However,there are also differences,such as Xuhui complete with re-asset closed-loop but Xinpai apartment operating in light asset mode.In addition,many factors have led to the low return of REITs in China.The tax system is not suitable,the double taxation exploits profits and the lack of professional management mode makes REITs unable to adopt the light-asset management model to reduce costs in the short term.The public offering of REITs has not yet been published,which makes investors participate in REITs with higher thresholds.Therefore,this paper designs an operation mode suitable for the promotion of long-rent apartment REITs.It is recommended to adopt equity-type public offering REITs based on contract type,first closed and then open,external management mode and heavy-asset operation mode.This ideal mode of operation cannot be achieved overnight.It requires a suitable market environment.Therefore,the following "prescription" is mentioned in this paper.(1)For the government,specialized law is proposed to open up the legal fog in front of REITs and in various transactions.Introduce supporting preferential policies to avoid double taxation and reduce corporate tax burden.(2)For property operators,it is recommended to improve the quality of property assets,enhance the quality of property operations,and improve the governance and internal control mechanisms of managers.