Application Of Real Estate Investment Trusts In The Rental Housing Market

Recent years,China has formulated stricter and striter regulatory policies for the real estate industry.Housing is returning to its residential property,which used to be an efficient investment product.In addition,changes in supply and demand structure and upgrading of residential housing consumption have prompted housing companies to change their traditional “build-sales-rebuild” expansion mode.The real estate industry has set off a wave of upgrading and transformation.Rental housing REITs is not only an innovative financing method,but also a promotion to upgrade the real estate enterprises.Furthermore,it's in line with national policy intentions.REITs have the advantages of high financing efficiency,improving the efficiency of stocking assets,and maintaining stable ownership structure.In 2018,the scale of China's asset securitization market continued to grow rapidly.The total number of REITs issued during this year was 24.144 billion yuan.And it's 2.05 times over that in 2016,which is 11.755 billion yuan.Although the application of REITs in the real estate industry is gradually increasing,the related studies are few in contrast.Based on MM theory,the theory of enterprise life cycle,superior order financing theory,control theory and principal-agent theory,combined with the development status of real estate industry and industry policy,this paper expounds the necessity and feasibility of adopting REITs financing in the real estate enterprise layout rental housing market,and selects a representative case of Poly Rental Housing REITs is,to analyze the feasibility of financing the rental housing market.As the first single housing rental housing in China REITs,the first storage shelf issued REITs,Poly rental housing REITs has important research significance.To illustrate the necessity of adopting REITs for financing,this paper takes the capital structure and financing structure of Poly Develpoment and Holding Group Co.Ltd.as the entry point.Subsequently,the structural design,project cash flow and credit enhancement measures of Poly leased housing REITs products were elaborated,indicating that the financing of leased housing REITs is feasible.And analyze the risks it may face.Then,combine with several issued Rental Housing REITs and REITs in developed,to summarize the characteristics of China's rental housing REITs.Point out the application conditions.After above,combine the financial figures of comparable companies to analyze the motivation of Poly to adopt the REITs in the rental housing market.The article examines market reactions to Poly's issuance of REITs by using the event study,and it's believed that issuing rental housing REITs brought relatively positive effect to corporate value.Meanwhile,through the analysis of accounting statistics before and after the event,conclude the issuance of REITs has a positive impact on Poly.At the end of this paper,the author summarizes the enlightenment brought by Poly leased housing REITs and the inadequacies of the study,and forecast the prospects for future research.