Research On Risk Management Of Public Rental Housing Financing Based On REITs

Risk management is one of the most core contents in finance.Good risk management helps to reduce risks and avoid losses.Real estate investment trust(REITs)is an important way of real estate asset securitization.Because of its advantages such as large financing scale,invigorating stock assets and reducing debt burden,it can well meet the financing needs of real estate enterprises.In recent years,under the dual promotion of financial innovation and real estate market regulation policies,REITs have developed rapidly.However,REITs started to develop relatively late in China,and there are many risks.It is more special to issue REITs with public rental housing as the underlying property assets.Therefore,it is necessary to study the risk management of public rental housing REITs.As the first public rental housing REITs in China,the Anju REITs plays an exemplary role in the development of public rental housing REITs in China.Therefore,on the basis of relevant theories,the financing process of Anju REITs,trade structure,and risk management measures are discussed,analysis the depths of the vc how to reside REITs risk management still existing problems and reasons,and with the perspective of issuers and regulators,put forward the improvement of public rental housing REITs financing risk management measures.Study found that:first,Anju REITs only rely on the underlying property rental income generated by the operations can meet the expected returns,investors must also rely on the priority right to purchase expenses and balance complement mechanism for financial subsidies,there is the risk of investment income does not cover,to this point and conventional long rent apartment REITs have big difference;Second,Anju REITs did not take related taxes and fees into account in the stress test in the issued documents,resulting in overly optimistic stress test results.When the value of the underlying property asset falls by more than a certain range,investors will apply for exit or even run on the bank because the principal is not guaranteed,resulting in liquidity risk.The characteristics of private placement further aggravate the liquidity risk.Thirdly,the underlying property asset of Anju REITs is public rental housing,which has the attribute of public goods.The whole process is dominated by the government,but the rent-seeking risk has not been considered,and no corresponding management measures have been taken.Fourth,Anju REITs took the assets and the original equity to separate bankruptcy isolation,but the original equity still control the daily operation of the property assets,the original equity whether the real sale of the property assets of the original equity is still controversial,the effectiveness of bankruptcy isolation is worth discussing.The Suggestions are as follows:increase the financial subsidy to the public rental housing REITs,expand the scope of investment assets of the public rental housing REITs,improve the relevant laws and regulations on REITs,and combine with the reform of the securities issuance and registration system to make REITs rapidly public and corporate listing.