Public offering of REITS is a kind of financial product that obtains income by raising funds from many investors and investing in real estate.
Real estate trust and investment funds (REITs) are an important means of real estate securitization. Real estate securitization is a financial transaction process that directly transforms illiquid non-securities real estate investment into securities assets in the capital market. Real estate securitization includes two basic forms: real estate project financing securitization and real estate mortgage securitization.
On July 17, 2020, China REITs Forum held "China REITs Market Road Seminar and China REITs Market Construction Online".
The characteristics of REITs are: 1. Income mainly comes from rental income and property appreciation; 2. Most of the proceeds will be used to distribute dividends; 3.REITs have high long-term returns, but it is still controversial whether they can diversify investment risks. Some people think yes, others think no.
REITs (Real Estate Investment Trust Fund) is a kind of trust fund, which collects the funds of a specific majority of investors by issuing income certificates, manages real estate investment by specialized investment institutions, and distributes the comprehensive investment income to investors in proportion. Different from the purely private nature of trust in China, REITs in the international sense are equivalent to funds in nature, with a few private placements, but most of them are public offerings. REITs can operate in a closed mode or be listed and traded, similar to open-end funds and closed-end funds in China. In the past two decades, the return of REITs in North America is the best (13.2%), followed by Europe (8. 1%), and the average return of REITs in Asia is the lowest (7.6%). Due to the impact of the European debt crisis, the yield of REITs in Europe dropped rapidly to -9.2%, while the average return of REITs in North America was 12.0%. It can be seen that in different time intervals, the real estate prosperity of different countries and regions is often very different.
The charm of REITs lies in: providing opportunities for small and medium investors to invest in the lucrative real estate industry through the "collection" of funds; Professional managers use the raised funds for real estate investment portfolio, which disperses the real estate investment risk; The equity owned by investors can be transferred and has good liquidity.