It is even more out of reach to step on flip-flops and hold a plate of keys to collect rent.
Recently, with the introduction of policies and the declaration of institutions, the day of simply collecting rent is coming!
At present, REITs products on the market can be subdivided into four categories: industrial parks (property rights), warehousing and logistics (property rights), expressways (franchise rights) and eco-environmental protection (franchise rights).
However, these underlying assets do not involve "houses", so domestic REITs came out at the beginning, which is still a certain gap from the real estate investment trust fund that everyone imagined.
This pattern will soon change, and the fifth type of REITs products-rental REITs will soon meet with you.
Before the introduction of affordable rental housing, we must first understand the concept of "new citizens".
"New citizens" generally include migrant workers and college graduates. They have injected fresh vitality into the city, but the city has not given them a corresponding sense of belonging.
The difficulty of renting a house is the primary problem they face. Therefore, the rental housing is ready:
The owner of the property right of the rented house is the government, and the rented object is the newly employed college students, young people, urban basic public service personnel and other new citizens without housing.
Affordable rental housing has two characteristics: cheap and high occupancy rate.
For example, Xiamen Housing Bureau requires that the rent price of affordable rental housing should not be higher than 95% of the rent of the same quality rental housing in the same location.
Cheap rents also lead to higher occupancy rates. The occupancy rate of two rental housing projects of CICC Xiamen Real Estate Investment Trust Fund has exceeded 99%.
Compared with industrial parks and warehousing logistics, which are also property rights REITs, renting REITs has outstanding advantages: the stability of cash flow is extremely high.
In addition to stability, REITs have another feature, which is growth.
From June 20265438 to March 2022, two rental housing projects in Admiralty, Xiamen both achieved a growth rate of over 4%.
At present, there are two REITs, one in Xiamen and the other in Shenzhen, which belong to the developed coastal areas, and the rent increase continues.
More importantly, REITs used for renting houses belong to property rights REITs, and they can enjoy the income from the disposal of the property when the products are liquidated, which is also an imaginative cash flow at the end of the period.
Risks and challenges
Although renting REITs looks beautiful, there are still some problems at the product level:
To initiate REITs of affordable rental housing, it is necessary to obtain the identification of affordable rental housing in advance, but at present, most cities still lack specific implementation rules.
There are still some practical problems in the definition of land nature, product structure, transaction cost and tax support system of affordable rental housing REITs, which need further study.
Therefore, the issuance and expansion of REITs products for affordable housing may not be as fast as expected.
And for investors, the better things are, the harder it is to buy, and the market has long been eyeing REITs. As a result, the pricing of products may be higher, and there may even be a premium.
Whether the first batch of REITs has investment value still needs to wait for the announcement of the placing price, and I will make a detailed interpretation for you then.
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