Study On The Financing Effect Of Real Estate Investment Trust

The real estate industry is an important pillar of China’s national economy and is also the focus of many investors.In recent years,with the adjustment of relevant policies of the real estate industry by the state,many large real estate enterprises have been frequently erupted "debt crisis","financing difficulties" and "slow development" have become urgent problems to be solved by many real estate enterprises.Faced with the fact that most real estate enterprises choose the single mode of credit financing,how to broaden the financing channels of real estate enterprises and reduce the financial pressure of real estate enterprises has become a common problem faced by real estate enterprises.As a new financing method,real estate investment trust combines the dual attributes of real estate and finance.By issuing equity securities,real estate can be revitalized in a short time,so as to improve the cash flow of enterprises and optimize the capital structure of enterprises.At the same time,the raised funds can be used for project investment and liquidity supplement.Meanwhile,our financial sector has also been expanding reforms.In order to promote the development of public offering of infrastructure REITs,the China Securities Regulatory Commission and the National Development and Reform Commission issued the Notice on Promoting the Work Related to the Pilot Program of Real Estate Investment Trusts in the Field of Infrastructure,launching the pilot program of public offering of real estate investment trusts in infrastructure.This paper takes the REITs of China Merchants Shekou Industrial Park as the research object.Firstly,it systematically reviews the literature related to the issuing motivation,financing effect and risk of REITs,and then introduces the REITs of China Merchants Shekou Industrial Park from the aspects of corporate financing structure,issuing motivation and product transaction structure.In terms of financing effect evaluation,it evaluates its financing effect comprehensively from the perspectives of financial performance,market performance,financing efficiency and risk.Finally,it is concluded that REITs are conducive to improving corporate financial performance,increasing shareholder wealth and improving corporate production efficiency.At the end of the paper,it is suggested that REits should be included in the financing choice of real estate enterprises.The successful issuance of China Merchants Shekou Industrial Park REITs has also created a precedent for public offering REITs in the real estate industry and created a good model.The author hopes that through in-depth analysis of this case and evaluation of its financing effect,it can clearly understand its application value and provide some references and suggestions for other real estate enterprises in the industry to REITs financing.