May 31，The first batch of public REITs are publicly offered，The underlying assets are mainly large infrastructure industries。The reporter from China Securities News learned from the interview，With policy support，As of the first quarter of 2021，19 rental housing REITs products have been issued in China，Provided preliminary experience and project accumulation for the launch of housing rental REITs。

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Senior Director of Cushman & Wakefield、Hu Feng, director of the North District Valuation and Consulting Services Department, pointed out in an interview with a reporter from China Securities News，Among the first batch of 9 publicly offered REITs，There are 3 underlying assets that are industrial parks、The two underlying assets are warehousing and logistics、2 expressways、1 sewage treatment facility and 1 waste-to-energy project。Currently，The underlying assets are mainly issued around the large infrastructure industry，Including commercial real estate、Office building、Real estate formats including shopping malls，There is no underlying asset as the pilot issuance of REITs。

“For the direct financing market，The sale of the first batch of public REITs is a milestone event。" Hu Feng pointed out，"April 30 last year，After the release of the pilot policy for public 188bet Online Sports Betting and Casino REITs，Market participants began to conduct research intensively，After that, companies that comply with the policy will begin to match and connect with securities companies、Evaluation、Law Firm、Accounting firms and other professional organizations，Various institutions are also helping these companies clarify their ideas，Realize fund sales as soon as possible。The listing process of public REITs is as complex as the IPO of listed companies。Completed the approval and sale of the first batch of 9 public REITs in such a short period of time，It can be said to be quite fast and efficient。”

April 30, 2020，China Securities Regulatory Commission、The National Development and Reform Commission jointly issued the "Notice on Promoting the Pilot Work of Real Estate Investment Trust Funds (REITs) in the Infrastructure Sector"，And issue supporting guidelines，marks the official implementation of the pilot policy for public offering of real estate investment trust funds。

China Securities News reporter learned，REITs first appeared in the United States in the early 1960s，Intended to enable small and medium-sized investors to participate in the real estate market with a lower threshold，Obtain the income from real estate market rent and appreciation。Currently，Most of the internationally popular REITs funds refer to real estate trust investment funds，By this means, the lower liquidity、Real estate investment in non-securities form，Directly transformed into the financial transaction process of securities assets in the capital market。

“According to Peking University Guanghua’s estimate，The potential size of China’s REITs market is conservatively estimated to be between 5 trillion yuan and 14 trillion yuan。Refer to the relatively mature REITs market experience in the United States，The 188bet Online Sports Betting and Casino scale of public REITs accounts for about 3% of the total market capitalization of the stock market，Singapore REITs account for about 12% of the total stock market value。Great market potential。" Hu Feng pointed out。

“Public REITs products should allow investors to obtain better returns，Fund managers first need to have a correct understanding of infrastructure assets，Has unique ideas and vision in choosing the right target；Secondly, you must have the ability to proactively manage infrastructure assets，Provide investors with dividend income and possible asset appreciation income。At the same time，Purchase better quality targets，Guarantee the continued operation of the fund。”

More than 90 REITs-like products

Introduction to Hu Feng，Before the launch of the 9 REITs public offerings，my country has issued a large number of REITs-like products。As of December 31, 2020，A total of 93 domestic REITs products have been issued，Total issuance size reaches 1752.100 million yuan，The average size is about 18.800 million yuan。where，18 REITs-like products have been repurchased through the main body、Renewal、Exit from market-oriented disposal method，The total size of exited products is 374.300 million yuan；There are 75 duration REITs products，Product size is 1377.800 million yuan。

“The biggest difference between REIT-like products and public REITs products is，Most REITs-like products are financing methods，There is no true formation of a virtuous investment cycle of ‘investment, financing, management and exit’。" Hu Feng pointed out，“The common REITs-like products currently on the market generally implement the ‘3+3+3’ model，Open every 3 years，It can continue to exist through the renewal mode。Also，REITs-like products 188bet Online Sports Betting and Casino are mainly aimed at institutional investors，It is a private placement financing method。Public REITs can target public investors，Allow public investors to invest in real estate projects at a lower threshold。Most public REITs products require 90% or more of the income to be regularly distributed to investors as dividends。But，REITs as equity investment tools，The price itself will also fluctuate after listing。”

Hu Feng said，Reasonable asset valuation is an important means to prevent market risks in REITs，The impact of real estate valuation and pricing on investors’ investment decisions、Managers’ business decisions have a very important impact。In the real estate trading market，The logic of asset pricing has certain regularities。

“During the due diligence process of public REITs assets，How to reasonably price the underlying assets and establish a reference value measurement system is particularly critical。where，Capitalization rate can truly reflect the relationship between net income from asset operations and value in the real estate bulk transaction market，Objectively reflects investors’ requirements for income returns，Studying capitalization rates is of great significance to real estate pricing。" Hu Feng pointed out。

Housing rental REITs are expected to receive policy support

For the future development direction of REITs，Many industry insiders pointed out，Rehousing rental REITs are more likely to receive policy support than other areas。

April 25, 2018，The China Securities Regulatory Commission and the Ministry of Housing and Urban-Rural Development jointly issued the "Notice on Promoting Work Related to the Securitization of Housing Rental Assets"，Clarified the basic conditions for carrying out housing rental asset securitization、188bet app Priority and key support areas，Improving the working procedures for housing rental asset securitization，Proposed to strengthen the supervision and management of housing rental asset securitization。At the same time，Encourage specialization、Institutionalized construction or operating institutions carry out housing rental asset securitization。

As of the first quarter of 2021，19 residential rental REITs products have been issued in China，Issuance scale reaches 26 billion yuan。Diverse types of companies participating in the market，Includes government investment platform，Such as Shenzhen Talent Residence、Hainan Development Holdings；Enterprises have guaranteed profits、Yuexiu、Huafa etc.；The apartment service company has new apartments, etc.。Rich underlying asset segments，Including talent apartment、Serviced Apartment、White-collar apartments and other rental housing types，Provided preliminary experience and project accumulation for the launch of housing rental REITs。

Hu Feng pointed out，Using asset securitization to realize investment in housing rental enterprises、Operation、Exit channels to build a complete industrial chain and closed-loop business model，Provide confidence and motivation for enterprises to increase investment in rental housing，It is also helpful to improve asset operation and management capabilities，Improve project investment income。

*this文来Source: China Securities Network,Original title：《Policy support, conditions for the launch of housing rental REITs are beginning to take shape》.