Well-known securities funds invest in stocks and bonds, while REITs funds invest in real estate, which has been handled by financial means such as asset securitization //ABS. Specifically, REITs are called real estate investment trusts. In terms of product structure, REITs funds do not directly own assets by purchasing real estate property rights, but purchase securities products issued by real estate, and then indirectly hold asset shares through securities products.
Real estate targets invested by REITs include: infrastructure, office buildings, hotels, shopping malls, industries and data centers. According to the exposure draft, the investment target is in the field of infrastructure. At present, buildings, hotels, shopping malls and other "real estate" areas are not within the scope of the pilot. At present, the products that have been issued and declared are concentrated in the field of infrastructure, including: industrial parks, highways, warehousing and logistics.
For investors, REITs fund income mainly comes from dividend income and fluctuation income of fund transaction price difference;
According to the product descriptions of various fund companies at present, after the establishment of REITs, more than 80% of the fund's assets will be invested in ABS to obtain full ownership of infrastructure projects. Therefore, the income of REITs comes from the income of real estate management operation.
For different asset types, REITs funds have different sources of income. The income of industrial parks is mainly rental income, property income and parking fee income. The tax revenue of expressway mainly comes from toll revenue. In essence, the long-term income of real estate comes from economic growth and monetary growth, that is, the income from asset appreciation. The more stable the real estate project, the greater the income and the higher the return.