1960, the world's first REITs was born in the United States. Like other financial innovations in the 1960s and 1970s, real estate investment trusts were born to evade supervision. With the US government officially allowing qualified REITs to be exempted from income tax and capital gains tax, REITs have become the most important financial mode in the United States, and the dividend ratio of REITs is generally above 90%. There are about 300 real estate investment trusts in operation in the United States, with total assets under management exceeding $300 billion, of which nearly two thirds are listed and traded on national stock exchanges.
Take the LinkedIn REITs just listed in Hong Kong as an example. Its basic assets are commercial properties owned by the Housing Authority, a public institution in Hong Kong, of which 68.3% are rental income from retail business, 25.4% are parking lot business and 6.3% are other income (mainly air conditioning fees). Rent distribution is 7.2% on Hong Kong Island, 33.8% in Kowloon and 59% in the New Territories. Link promises to distribute 90%- 100% of rental income to shareholders after deducting management fees. Therefore, if you need to buy a new house in the future, you can only increase the financial leverage by borrowing from the bank (the asset-liability ratio can reach up to 45%).
At the beginning of 2009, the People's Bank of China, together with relevant departments, formed the overall framework of the first batch of pilot REITs. However, due to the imperfect laws and regulations in China, REITs have not been officially launched. 20 1 1 The first REITs account in China. SDIC UBS mainly invested in REITs products in the Asia-Pacific region, and completed the contract filing, becoming the first REITs account product in the domestic fund industry.