Case Study On Capital Chain Risk Of Long-term Rental Apartment Based On Danke Apartment And EQR Company

Under the background of policy promotion and increasing rental demand,The longterm rental apartment industry in China is in a swift and violent development time,and the emergence of long-term rental apartment has effectively improved residents’ housing difficulties and poor living experience.At present,there are still many problems in the development of China’s long-term rental apartment industry.This dissertation takes Danke Apartment,a hot long-term rental apartment enterprise in China,and Equity Residential(EQR),a mature similar enterprise in the United States,as the research object,studies the current situation of capital chain risk of Danke apartment and EQR,and makes a comparative analysis from the perspective of the three stages of fund raising,utilization and return of capital chain circulation.Comparison studies proved that the gaps between the two companies are as follows: In the stage of fund raising,Danke Apartment’s financing structure,rationality of financing cost and security of debt maturity are far behind EQR’s.In the capital utilization stage,the cost control ability of Danke apartment is also weaker.In the capital return stage,the rental premium capacity of Danke apartment is lower,the profitability can hardly be guaranteed.At all levels,Danke Apartment and EQR have certain similarities in macro environment and corporate strategic planning,but there are great differences in policy environment,implementation of strategy,investment positioning and operation and management mode.Based on the above comparison,through further summary,it is found that the external risk factors of long-term apartment capital chain mainly include the particularity of the industry itself,the imperfection of relevant policies and the instability of macro factors;Internal risk factors mainly include the lack of enterprise’s own financing ability,the mismatch between expansion strategy and ability,the imperfect cost control system and the lack of profitability.Based on the above analysis,this dissertation puts forward some suggestions on the capital chain risk management of long-term rental apartment enterprises.In the fund-raising stage,companies should broaden financing channels,optimize debt structure;In the capital utilization stage,companies should formulate targeted investment and management strategies,strengthen cost control;In the capital return stage,it is necessary to enrich the source of income and increase the level of rent premium.