First, REITs are standardized financial products that can be circulated. Generally, real estate packages are purchased from listed or unlisted companies, and the sale of assets is strictly restricted. Most of the income comes from real estate rental income, real estate mortgage interest or income from the sale of real estate, which can be listed and circulated in the stock exchange. At present, the domestic real estate trust plan is a collection of non-standardized financial products limited to 200 contracts, and generally does not involve the purchase of real estate asset packages. Its income depends on the scheme setting of the trust plan. At present, there is no secondary market and it cannot be listed and circulated on the stock exchange.

Second, REITs need to distribute most of their income to investors in return. For example, the United States requires 95% profits to be distributed to investors. The return of domestic real estate trust plan to investors is the return agreed in the trust plan, which is currently around 3%-9%.

Thirdly, the operation mode of REITs is: providing funds, setting up asset management companies or management teams for investment operation; The operation mode of domestic real estate trust plan is: providing funds, supervising the safe use of funds, or participating in the operation of the project company in part or in part to get returns.

Fourthly, the product cycle of REITs is generally 8- 10 years, which pays more attention to the management of completed real estate projects after real estate development; The product cycle of domestic real estate trust plan is short, generally 1-3 years.

Fifth, the tax preference of REITS: REITs are exempt from enterprise income tax and capital gains tax if the trust income is distributed to beneficiaries, and the profits after dividends are subject to income tax at the applicable tax rate. However, at present, there is no relevant tax system arrangement for domestic real estate trust plans.

Sixth, the concept of real estate trust in China is relatively broad, which can be REITs model, loan trust, preemptive right trust, property right trust, beneficial right transfer trust and so on.

In short, simply put, REITs are funds invested by the public, which are invested by professional investment institutions in commercial buildings such as commercial office buildings, shopping centers, restaurants and public buildings. Investors do not directly invest money in real estate, but obtain beneficiary certificates, and the return is made in the form of profit distribution. REITs can be listed and traded publicly, and investors can also buy and sell in the open market to earn capital gains.

REITs is a Real Estate InvestmentTrust, which is the abbreviation of English "real estate investment trust" (plural REITs). This trust design originated in the United States in the 1960s. Later, some Asian countries (or regions) followed the trust design of the United States, but their names were different. For example, Japanese and Taiwan Province provinces call it "real estate investment trust", Hong Kong calls it "real estate investment trust fund" and Chinese mainland calls it "real estate investment trust" or "real estate investment trust fund".

The title of "real estate investment trust" is more accurate and appropriate for the following reasons: first, "real estate" means "real estate" in law, and the extension of "real estate" is obviously smaller than "real estate"; Second, "investment trust", namely "investment trust", should belong to a model of commercial trust; Third, the current "investment trust fund" is actually synonymous. After all, China's contractual funds (also known as trust funds) should belong to a kind of trust; Fourthly, in the field of real estate, China Mainland has been imitating Hong Kong's "professional discourse" for a long time, and the title of "real estate investment trust fund" is exactly the same. Although from the accurate and appropriate terminology, the use of "real estate investment trust" is the best; However, from the perspective of respecting convention, it is not unreasonable to use "real estate investment trust" or "real estate investment trust fund".

REITs in the United States are investment institutions that pool the funds of multiple investors in the form of companies or trusts to acquire and hold profitable real estate (such as apartments, shopping centers, office buildings, hotels and storage centers). ) or financing for real estate and enjoying tax incentives. Most REITs take the form of companies, and their shares are generally traded freely on stock exchanges or markets (new york Stock Exchange, American Stock Exchange and Nasdaq Stock Exchange). According to different investment objects, REITs can be divided into mortgage REITs, equity REITs and mixed REITs. REITs are actually real estate securitization products. Among them, mortgage REITs belong to real estate debt securitization products; Equity REITs belong to the securitization products of real estate equity.