Lin Deliang'S "Assassin'S Mace": The "Trinity" Operation Breaks Through The Ceiling Of Scale

Among the numerous commercial real estate formats, what kind of products can stably go through the economic cycle and recover first in the post epidemic period? Lin Deliang's answer is: office buildings.

It is the original intention of developers to maintain and increase the value of assets. Generally speaking, commercial real estate developers have three operation modes. The main purpose of the first type of companies is to earn the development income of the front end of the value chain, and the second type of companies develop complex projects through the mode of "selling, maintaining and renting". The third type of enterprises is represented by Yuexiu real estate. By injecting property into REITs, the development enterprises can enjoy the development period income and long-term stable capital return.

REITs can create stable returns for investors every year, which is the most attractive place for capital. From the distribution yield of Yuexiu REIT, since 2005, Yuexiu REIT has continued to maintain 100% and above, and the distribution yield of historical funds has remained above 5%.

In 2020, under the influence of the epidemic situation, Yuexiu REIT still achieved the expected performance. Looking at the mid-term performance, the revenue of office buildings is still going against the trend, with a year-on-year growth of 3.5%, maintaining the development toughness.

Office buildings are products that are easy to pass through the economic cycle. In the property portfolio held by Yuexiu REIT, the office assets account for more than 50%. In 2020, Yuexiu REIT's office building projects remain stable. In the first half of the year, the office revenue is still rising by 1.2%. The overall rental rate of office buildings has also risen steadily to 82.9%, with a year-on-year growth of 17.1%. The total revenue has increased by 3.5% to 470 million yuan. The rental rate of Yuexiu wealth center in Wuhan can still break through after the epidemic situation, with a year-on-year increase of 17.1 percentage points.

The performance of "Star project" IFC office building in Guangzhou is still outstanding, with a year-on-year growth of 1.2% in the first half of the year. It has successfully passed the boma international 360 certification, becoming the first REITs asset project with boma COE + 360 dual certification in the Asia Pacific region.

According to reports, Guangzhou IFC is the first super high-rise office building in South China that adopts international standards to manage indoor air quality. The reporter observed on the spot that there are five indoor environmental monitoring stations in IFC building in Guangzhou. Through the data transmission of cloud platform and mobile terminal, real-time monitoring of PM2.5, carbon dioxide concentration, air temperature and humidity inside and outside the building can ensure that the office building always maintains a comfortable and healthy environment.

In terms of commercial service, Yuexiu REIT's front-line operators have also upgraded the "yeservice Yue Business" service system.

While the "hardware + software" of assets and services are improved together, Yuexiu REIT will conduct a comprehensive evaluation of its properties every year. It is reported that asset appraisal is carried out according to three indicators: growth rate, property valuation and NPI rate of return. The lower ranking properties may have a choice.

Asset management should be advanced to development. For example, Guangzhou International Financial Center, with a total construction area of 450000 square meters, also has office buildings, retail, hotel apartments and other formats. In the early stage of project development, it is necessary to use the concept of asset management to plan the real estate certificate. For the complex, each floor and each unit have their own retail premium, and how to distribute the shared area is the details of detailed planning.

This is the embodiment of asset management in the early stage of development and investment period.

As early as before Yuexiu REIT acquired Shanghai Yuexiu building, Lin Deliang specially investigated the tenants' feedback on the office building on the Internet, and found out the most frequently complained problems of this office building, including hardware maintenance, service experience, etc. The industry customer group of Shanghai Yuexiu building used to focus on supporting, logistics and shipping industries. Following the delimitation of the free trade zone, Yuexiu REIT actively repositioned the Shanghai project and transformed the customer portrait into a growing financial and trading enterprise.

Considering the office characteristics and demands of such enterprises, Yuexiu REIT has invested more than 10 million yuan in the acquisition of Shanghai Yuexiu building and carried out more than 10 capital renovation projects. It has invested in upgrading and upgrading every year to maintain and increase the value of the project. The real "integrated" commercial operation realizes the integration of asset management and fund management, the integration of commercial operation and property management, and the integration of capital promotion and asset transformation.

Since the acquisition, the rent of Yuexiu building in Shanghai has risen from 7.2 yuan / square meter / day to 8.6 yuan / square meter / day. At the end of 2019, the rental rate remained at 92.2% and the valuation increased by 16%, reflecting the effectiveness of fund managers in asset management after the acquisition.

Talking about the core competitiveness of Yuexiu REIT, Lin Deliang believes that "Trinity, cash flow and active management" are the key elements of operation improvement. He firmly believes that based on the advantages of Yuexiu's "real estate + finance" dual platform interaction, Yuexiu REIT's "Trinity" can produce synergy effect, so as to maximize the asset value.