Characteristics of China Public Offering Real Estate Investment Trust Fund

[1] Compulsory dividend: In mature markets such as the United States, REITs are required by law to distribute most profits (usually more than 90%) to share holders. [2] Low-leverage operation: In most countries and regions, the law has a clear maximum leverage limit for REITs. For example, Singapore stipulates that the leverage ratio of REITs should not exceed 35%, and the China-Hong Kong Securities Regulatory Commission stipulates that the leverage ratio of REITs should not exceed 40%. [3] Liquidity: Public offering REITs divide the complete real estate assets into relatively small units, which are listed and traded on the stock exchange and become open-end funds. Diversification: the basic assets of REITs can be office buildings, retail properties, hotel apartments, factory warehouses, hospitals, nursing homes and so on. , as well as infrastructure such as airports, ports, launch towers, pipelines and data centers. Therefore, it is a relatively stable investment product. [5] Tax incentives: Some countries are tax-free for the investment income of REITs, but it depends on our policies. Extended information: Real estate trust and investment funds (REITs) are an important means of real estate securitization. From different angles, REITs have many different classification methods. Common classification methods are as follows: 1. According to the organizational form, REITs can be divided into two types: company type and contract type. Based on the company law, the funds raised by issuing REITs are used to invest in real estate assets. REITs have independent legal personality, operate funds independently, and raise fund shares for unspecified investors. The holders of real estate investment trusts eventually become shareholders of the company. Contractual real estate investment trusts, based on the establishment of trust deed, raise funds by issuing beneficiary certificates and invest in real estate assets. Contractual REITs are not independent legal persons, but assets, initiated by fund management companies, and the fund managers are entrusted to invest in real estate as trustees. The main difference between them lies in the different legal basis and operation mode, so contractual REITs are more flexible than corporate REITs. Corporate REITs are dominant in the United States, while contractual REITs are more common in Britain, Japan and Singapore. 2. According to the different forms of investment, REITs can usually be divided into three categories: equity type, mortgage type and mixed type. Equity REITs invest in real estate and have ownership. More and more equity REITs begin to engage in real estate business activities, such as leasing and customer service. However, the main difference between REITs and traditional real estate companies is that the main purpose of REITs is to operate real estate as part of the portfolio, rather than resell it after development. Mortgage real estate investment trust funds are real estate mortgage loans or real estate mortgage-backed securities, and the main source of their income is the interest of real estate loans. Hybrid REITs, as the name implies, are between equity REITs and mortgage REITs. They own some property rights and also engage in mortgage services. Most of the REITs circulating in the market are equity REITs, and the other two types of REITs account for less than 65,438+00%. Equity REITs can provide better long-term investment returns and greater liquidity, and the market price is more stable. 3. According to the different modes of operation, real estate investment trust funds can be divided into closed type and open type. The circulation of closed REITs is restricted at the initial stage of issuance, and no additional issuance is allowed at will; In order to increase funds to invest in new real estate, open REITs can issue new shares at any time, investors can also buy them at any time, or redeem them at any time when they are unwilling to hold them. Closed REITs are generally listed and circulated in stock exchanges, and investors can sell them in the secondary market when they don't want to hold them. 4. According to the different ways of raising funds, REITs are divided into public offering and private offering. Private equity REITs raise funds from specific investors in a private way, and there are specific targets, so public publicity is not allowed. Generally not listed and traded. Public offering REITs raise trust funds from public investors in the form of public offering. When it is issued, it needs to be strictly approved by the regulatory authorities and can be widely publicized.