Financing of Low-Rent Housing REITs in China

Xiao-xin, Liu; Wu, Di; Li, Xiuting; Dong, Jichang

doi:10.1515/jssi-2013-0001

Cited by 2 publications

(6 citation statements)

References 51 publications

(26 reference statements)

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“…First, conceptualizations of social-purpose REIT see it as "vehicle for the provision of private market, mission-driven solutions for increased affordable housing development" (Ades, 2016). By implication, affordable housing REIT is a "business trust that combines the capital of several investors to provide financing for all forms of lowincome housing (Liu et al, 2013). This makes it a nimbler platform for capitalizing affordable housing delivery (Robaton, 2020).…”

Section: Reviewmentioning

confidence: 99%

“…The focus on this investment class presents a grim anomaly when juxtaposed with the over 17 million-housing deficit statistic of which estimated 90% accounts for affordable housing (Yinglun, 2019). Still, empirical evidence (Ades, 2016;Liu et al, 2013;Robaton, 2020) illustrates the potential of REITs to effect necessary transformation of housing delivery towards a preponderance of affordable, indemnificatory or subsidized rent-geared-to-income units.…”

Section: Introductionmentioning

confidence: 99%

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Affordable Housing Ambidexterity of Real Estate Investment Trusts: SWOT Analysis for N-REITs

2021

EJBM

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Symmetric movements of real estate investment trust (REIT) capitalization and affordable housing deficit in Nigeria fuelled the motivation of the study on analyzing the implications of an affordable housing ambidexterity of REITs in Nigeria (N-REITs). The focus on REITs was informed by the unsustainable growth in the deficit statistics of affordable housing in Nigeria which implies a think-outside-the-box search for financing panacea. Indeed, there seems a paucity of empirical and practical evidence of such ambidextrous diversification for N-REITs, so the study was aimed at conducting a strength, weakness, opportunity and threat (SWOT) analysis of affordable housing ambidexterity of N-REITs. Survey research method was employed on a sample frame of housing delivery stakeholders. Sample size of 369 was determined using Freund and Williams formula, while the research instrument was a self-administered e-questionnaire. Data was obtained from primary sources, and further subjected to descriptive analysis. The study found that professional investment management competency was the most dominant strength, 10% investable income was the most significant weakness, significant room for rise in market share was the most significant opportunity, while effect of systematic risk on sustainability planning was the most significant threat to N-REIT ambidexterity towards affordable housing investment in Nigeria. The study concluded that the professional investment management quality of REITs, in comparison with non-listed direct real estate companies would envisage a robust and sustainable contribution to increase in affordable housing stock in the country. It was recommended that management of N-REITs should leverage on their professional investment management strengths to explore blue ocean strategies for an ambidextrous attitude that enhances the growth and sustainability of affordable housing units, in addition to the employment of risk analysis, management and mitigation strategies to limit the effect of volatilities from macroeconomic risks.

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Section: Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Affordable Housing Ambidexterity of Real Estate Investment Trusts: SWOT Analysis for N-REITs

2021

EJBM

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“…Over the past few years, research on REITs have focused on generating capital for real estate investment through 3 main investment strategies -mortgage REITs, equity REITs, and hybrid REITs. Equity REITs are most common globally, and they refer to listed companies that own and operate income-generating real estate investments (Chan, 2016;Liu et al, 2013). Equity REITs require no less than 50 shareholders, thereby providing opportunity of diverse array of investors across a broad spectrum of real estate portfolios.…”

Section: Real Estate Investment Trustsmentioning

confidence: 99%

“…We follow suit, and accordingly define social purpose REIT as real estate investment companies "that provide a private market, mission-driven solution for increased affordable housing development" (Ades, 2016). It is a business trust that combines the capital of several investors to provide financing for all forms of low-income housing (Liu et al, 2013). By implication, social purpose REIT in consistence with the merits of REITs to housing delivery, is a quicker platform for generating capital for low-income housing delivery (Robaton, 2020;Sgro, 2017;Ades, 2016).…”

Section: Social Purpose Reitsmentioning

confidence: 99%

“…Sgro (2017) extends the definition of low-income housing as housing whose rent does not exceed 30% of annual income of the low-income and middle-income demography. Simply put, it is housing for the low-income demography, and funds generated by social purpose REITs are used in consistence with the constructive documents to develop, acquire, manage, and maintain such properties (Liu et al, 2013).…”

Section: Social Purpose Reitsmentioning

confidence: 99%

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Dilating Low-Income Housing Financing: Lessons for Emerging Market REITs

2020

EJBM

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Asymmetric movements of housing demand and supply has consequently led to extraordinary house price increments, thereby making housing unaffordable and unsustainable for significant proportion of urban settlers in many emerging economies. This deficit in low-income housing delivery strengthens the pertinence of looking elsewhere for solutions. With the emergence of REITs as a vast source of real estate financing, literature has identified the potential of this investment vehicle in financing low-income housing delivery in the form of social purpose REITs. Worryingly, studies on the applicability of these REITs in financing low-income housing is almost inexistent in emerging economies, outside China. The study is aimed at the examination of empirical literature on the use of social purpose REITs as vehicle for ameliorating low-income housing delivery with a view to extricating pertinent lessons for emerging market REITs. Content analysis was conducted using TEXTPACK; and the resulting synthesis of extant literature produced 4 main lessons for emerging market REITs. It was concluded that to dilate the financing of low-income housing delivery, REITs in emerging markets should adopt policies that encourage the establishment of social purpose REITs. Such policies should lend towards the implementation of tax credits to social purpose REITs and an exemption of low-income housing developers from development costs. Also, Public-Private Partnerships for housing delivery should be reviewed to incorporate strategies that ameliorate indemnificatory housing, while the mortgage system should be revamped to accommodate mortgage tranche and long-term debt capitalization.

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Financing of Low-Rent Housing REITs in China

Cited by 2 publications

References 51 publications

Affordable Housing Ambidexterity of Real Estate Investment Trusts: SWOT Analysis for N-REITs

Affordable Housing Ambidexterity of Real Estate Investment Trusts: SWOT Analysis for N-REITs

Dilating Low-Income Housing Financing: Lessons for Emerging Market REITs

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