On October 9, a piece of news sparked heated discussions among the general public, and the news showed that in the first three quarters of this year, a total of 2,300 ** companies implemented dividends, and the cumulative dividend amount reached more than 150 billion. Among them, it is worth mentioning that the total dividends of REITs have directly doubled this year, and there are currently 28 REITs in the market, of which 25 have implemented dividends, with a total dividend amount of 46400 million yuan. In the same period last year, only 11 REITs paid a total of 180.1 billion yuan.
1. What are REITs?
The full name of REITs is "Real Estate Investment Trusts", which is a foreign product, literally translated as "Real Estate Investment Trusts**", which is pronounced as "Ruizi". It is similar to *** bonds**, and it is also a kind of **, but the investment object is different; The investment object of the stock base is mainly **, the investment object of the bond base is mainly bonds, and the investment object of REITs is mainly real estate.
At present, the investment objects of REITs are mainly our domestic infrastructure, such as toll highways, industrial parks and properties. To put it simply, REITs are a kind of raising investors' money to invest in real estate, in this way, individual investors can enjoy the income brought by real estate cash flow and appreciation. For example, if the investment object of a REITS** is a highway, then the income of the ** is mainly based on vehicle tolls, and we buy this ** is equivalent to obtaining the right to dividends of the highway tolls.
2. What are the advantages of REITS**?
Low threshold for participation funds: In general, if we ordinary people want to invest directly in real estate, the amount required will be very large. However, REITs divide the real estate project into many small amounts of valuable **, and we only need to spend a small amount of money to become a charter company and a charter wife to obtain the return of real estate assets. Generally, 1,000 yuan can be subscribed.
The income is clear: there are two main incomes of REITs: the first is the appreciation of real estate, and the second is dividends; For example, the underlying asset of the REITS** we invest in is a well-run industrial park, so we can not only enjoy the income brought by land appreciation, but also participate in the dividend income of the park's rent every year.
Stable and high proportion of dividends: The distribution method of REITS** income is cash dividends, and the policy stipulates that more than 90% of the annual distributable amount should be distributed to investors.
Data**: China**Regulatory Commission.
*Convenient exit channel: Since REITs** are closed operations, the closure period generally ranges from 20 to 99 years, which means that we cannot operate during the closure period. However, if you want to withdraw, you can directly transfer the ** share to the secondary market and sell it, at present, in order to facilitate everyone's transfer, it is connected to the over-the-counter sales agency, and you only need to sell it with one click on the app.
3. Are REITs** worth investing in?
In fact, China's first batch of REITs** will only be officially listed in June 2021, and the operation event is not long, but the market growth is relatively fast, and the public REITs market continues to expand, and is about to exceed 100 billion yuan, and the future space is still relatively large.
Increase in number and expansion of assets: From the perspective of the development of the REITs market in the United States, the types cover office buildings, apartments, warehousing, retail, medical care, data centers, signal towers, etc., and there is still a lot of room for expansion in China's REITs market in terms of categories. At the same time, there are currently 225 REITs listed on the exchange in the United States, with a market value of more than 1 trillion US dollars, while there are less than 30 in China, with a market value of only 100 billion yuan, and there is a lot of room for future development.
In terms of yield, it is expected to usher in further improvement: since the underlying assets invested by REITS** are all real estate projects, the level of income directly depends on the operation of these real estates; With the gradual recovery and improvement of the economy and the continuous increase of stimulus policies, the entire fundamentals will usher in a bottom**, the performance will gradually improve, and the yield of REITs** is also expected to usher in further improvement. So in the long run, REITs** are still a good investment choice. In addition, the research report of heavy finance companies shows that the scale of global REITs is growing rapidly, with a growth rate of 1658%；
4. How can individuals participate in REITs**?
The first way: direct subscription during the offering period: Like ***bonds**, we can subscribe directly during the offering period, such as Alipay, Tiantian**, WeChat and other platforms. However, the issuance of REITS** is generally more popular, with more institutional participation, and the supply often exceeds demand, so proportional allotment is generally opened.
For example, ** plans to raise 10 billion, but investors subscribe for 50 billion, then the placement ratio is 100 500 = 20%. That is to say, if we buy 10,000 yuan, we only succeed in buying 2,000 yuan.
The second way: to the secondary market to directly buy and sell second-hand REITS** shares: this method requires everyone to have a ** account to participate, just like buying and selling**, it is also a T+1 trading system, and the trading time is also 9:30-11:30 in the morning, 13:00-15:00 in the afternoon, during which we can directly buy and sell REITs**.
However, unlike others, after the establishment of REITS, it is a closed operation, and the closed period is generally 20-99 years, during which we have no way to redeem, we can only transfer to the secondary market for transfer, if there are investors to buy, we can only sell. So for short-term investments, be sure to take this into account.
On the whole, the trading rules and systems of REITs and bonds are almost the same, but the investment objects of REITs and bonds still belong to financial assets such as bonds and bonds, while the investment objects of REITs are various real estates, aiming at the dividend income and value-added income of these real estates. In fact, it is to turn real estate assets into ** and lower the transaction threshold, which not only increases a financial product, but also solves the financing problem of these real estate projects. What do you think of REITs**?