Ruisi financing is a kind of trust fund, the full name is real estate investment trust fund. It is an important means of real estate securitization, and it is a trust fund managed by a specialized investment institution to distribute the comprehensive investment income to investors in proportion.
To put it simply, a fund manager found a group of investors and used the raised funds to invest in real estate or infrastructure projects. These projects will generate certain returns, such as rent. After deducting the management fee of the fund manager, the money earned will be distributed to everyone.
The fund manager is REITs management company, whose job is to manage real estate trust funds, collect management fees from its shareholders, and pay dividends to shareholders regularly after deducting related expenses. If properly managed, these real estate investment projects can obtain considerable fixed income.
The purpose of REITs is to transform commercial real estate with weak liquidity into securities assets with strong liquidity, and the main income sources of REITs are cash flow generated by real estate: rent and future asset appreciation.
However, real estate investment trusts are not limited to investing in real estate. The first public offering of REITs in China focused on infrastructure, covering four major areas: toll roads, industrial parks, garbage and sewage treatment and warehousing and logistics.