2023 Long-term Rental Apartment Industry Research Report

Chapter 1 Industry Overview

Long-term rental apartments are a new form of housing that provide tenants with long-term accommodation options, usually with a lease term of more than one year. Long-term rental apartments are usually managed by real estate developers or professional property management companies, which provide tenants with complete supporting facilities and services, such as 24-hour security, furniture and appliances, and cleaning services.

Long-term rental apartments are usually located in the city center or near the bustling business district, which is convenient for residents to live and work. The rent is usually higher than that of traditional long-term rental housing, but compared with short-term rental housing such as hotels, the price of long-term rental apartments is more affordable. At the same time, long-term rental apartments also provide more stable and reliable housing options, suitable for those who need to live for a long time, such as migrant workers, international students, professionals, etc.

Therefore, long-term rental apartments provide tenants with a convenient, comfortable and safe accommodation option, and are an emerging form of housing.

Figure Long-term rental apartment participants in my country

Source: Qianji Investment Bank Asset Information Network

The commercial housing built by the real estate industry can be said to be the "raw material" of the housing leasing industry. In recent years, my country's real estate industry has developed rapidly. In 2020, my country's real estate sales area will reach 1.760 billion square meters, and sales will reach 17.36 trillion yuan. The real estate industry has provided strong support for the long-term rental apartment industry.

Figure China National Housing Prosperity Index

Source: Qianji Investment Bank Asset Information Network Choice

Figure Commercial housing sales area and sales

Source: Qianji Investment Bank Asset Information Network Choice

Chapter 2 Business Model and Technology Development

2.1 Industry chain

The industrial process of long-term rental apartments in China is roughly the acquisition of housing sources—design and decoration—marketing and signing—day-to-day operation management—and late project exit.

Obtaining housing sources: China’s long-term rental apartment companies mainly target single young people aged 20-35 to meet their housing needs before they start a family. Therefore, when selecting housing sources, companies will choose buildings with convenient transportation and close to the CBD area according to the needs of the audience. The housing supply largely determines the later demand, vacancy rate, rent level, and asset appreciation space if it is an asset-heavy operation.
Design and decoration: Generally, the design and decoration style of centralized apartments are unified, which is convenient to reduce decoration costs through centralized procurement. Apartments with good design and decoration are more attractive, increasing rental demand, reducing vacancy rates, and bringing a certain amount of rent premium space to enterprises.
Additional services: Long-term rental apartment operators can fully explore the needs of tenants during their stay, introduce partners or provide additional services such as furniture leasing and moving, and charge a certain amount of income.
Network platform: The full-chain network platform can greatly save various labor costs in the operation process, including but not limited to management personnel costs, financial personnel costs, marketing costs, etc.
Lease securitization: Lease securitization is a financial product derived on the basis of long-term rental apartment rent collection, such as using the rental income as the underlying asset to issue public or private placement ABS for corporate financing.

Figure Long-term rental apartment industry chain

Source: Qianji Investment Bank Asset Information Network iFinD

In the entire industrial process, in addition to obtaining asset value and rental income through asset acquisition and leasing, other businesses that can be generated in the industrial chain mainly include 1) decoration design after obtaining housing sources; 2) application of big data systems in the operation process; 3) Additional services in the daily operation process: such as rental loans, furniture leasing, etc.

Figure Industry Chain Major Participants

Source: Qianji Investment Bank Asset Information Network

2.2 Major players in the industry chain

Port Apartment-Long-term rental business has an early layout and rapid development

Relying on the financial support of Vanke Group, "Bo Yu" as a unified brand of long-term rental apartments is conducive to brand building and publicity. Port Apartment began to deploy long-term rental apartment business in China in 2014. It was deployed early and developed rapidly. The main target group is young people such as graduates and entrepreneurs in first- and second-tier cities, and the market positioning is accurate. "Bo Yu" has entered the stage of rapidly replicating and developing the long-term rental apartment business in various parts of China.

The development history of Tuboyu

Source: Qianji Investment Bank Asset Information Network

Ziroom - online rental business covering multiple fields

Ziroom has six major products, among which Ziroom Friends Home, Ziroom Entire Rent, and Ziroom Direct Rent are distributed apartments, and Ziroom Apartment is a centralized apartment. In terms of operation mode, the official website, APP, WeChat and other channels provide management services. In terms of services, multiple service items such as cleaning, maintenance, and moving have been launched to meet the living needs of users from multiple dimensions. Ziroom's product system covers the rental business from multiple dimensions and can meet the diverse needs of users. However, since security incidents have emerged one after another recently, Ziru should pay more attention to the division of labor and coordination in management to create a good business closed loop.

Tuziroom online rental business and services

Source: Qianji Investment Bank Asset Information Network

YOU+ International Youth Community - screening tenants to create a resource integration community

YOU+ international youth community has three thresholds before moving in, and the target customers are defined carefully, carefully and accurately. At the core of operation, the long-term apartment business of YOU+ International Youth Community is just a carrier, and building a resource integration community platform for young people and entrepreneurs is the core.

Figure YOU+Community

Source: Qianji Investment Bank Asset Information Network

Woqu apartment business

The Woqu Apartment brand belongs to the hotel group Plateno Group, and its apartment types are mainly divided into two types: light community apartments and serviced apartments. Among them, the light community apartment focuses on long-term rental apartment business, while the lease period of serviced apartments is more flexible, taking into account long-term rental, short-term rental, daily rental and hourly rental. Woqu Apartment has obvious traces of hotel operation in the operator, and the supporting services it provides emphasize "hotel-style"; in terms of consumer differentiation, Woqu Apartment also launched a membership system, targeting whether members are in the rental price, room rate, etc. There are significant differences in terms of fee credits, cleaning fees, etc.

Tuwoqu Apartment Business

Source: Qianji Investment Bank Asset Information Network

2.3 Business model

According to whether the property distribution of long-term rental apartment operators is centralized or not, the business model of long-term rental apartments can be divided into centralized and decentralized.

Centralized long-term rental apartment, that is, a rental apartment model in which the leasing platform obtains the overall management right of the project (usually the entire building, or several floors in the entire building) through acquisition or leasing, and rents out after unified renovation.
Decentralized long-term rental apartment, that is, a rental apartment model in which the rental platform obtains housing resources from scattered landlords, and after standardized renovation or decoration, unified rental management.

From the point of view of characteristics, the two management methods are different in terms of house source acquisition, property nature, product service, rental method and target customers.

Figure business model

Source: Qianji Investment Bank Asset Information Network iFinD

According to the different asset structures of operators, the business models of long-term rental apartments can be divided into two categories: asset-heavy operation and asset-light operation.

(1) Asset-heavy model

The asset-heavy mode refers to the mode in which operators obtain and hold houses through self-construction, acquisition, etc., rent them out, and mainly obtain benefits by collecting rent. Most of the housing sources under the asset-heavy model are centralized properties, which have high requirements for funds, which discourages many operators. Usually, state-owned enterprises and developer-type apartment operators involved in housing leasing have strong capital and financing advantages, have idle self-sustained property resources, and have the ability to renovate properties, so they will choose to adopt the asset-heavy model.

(2) Asset-light model

The asset-light model means that the operator does not hold the property, but acquires housing sources through long-term leasing or entrusted management, obtains the rent price difference through subletting, or obtains management by exporting brands, providing rental management, property management and other services. Mode of remuneration. Those who choose the asset-light model will have relatively little capital accumulated in the early stage, and can quickly expand the market in a short period of time. Apartment operators with an intermediary background, hotel management apartment operators, and entrepreneurial apartment operators mostly adopt the asset-light model.　

Hosting model: The landlord entrusts the apartment to the operator for rental and post-rental management. In the trusteeship model, operators only need to bear a certain amount of management costs, which greatly reduces the pressure on funds. At the same time, the risk of vacancy rate that was originally borne is also transferred to the landlord himself due to the trusteeship model.
Franchise model: Long-term rental apartment companies rely on their brand advantages to seek franchise partners by formulating a standardized and reproducible model, quickly copy the business model, realize chain operations, and expand market share.
Internet + mode: Intelligent and financialized convenient life services centered on housing resources, all configured to meet the living requirements of renting, retail, dry cleaning, fresh food distribution, fitness, beauty, book bars and other community services All are carried out by professional outsourcing.

With the continuous increase of market participants, the industry consolidation and mergers in the long-term rental apartment market will continue to intensify in the future, and asset-light operation models such as asset packaging and listing (issuing REITs), asset securitization, etc. will be the exit methods favored by investors. The development of the long-term rental apartment industry will enter a new stage of refinement.

2.4 Technology Development

In recent years, as the real estate market continues to heat up and young people's demand for housing continues to grow, long-term rental apartments have received more and more attention and development. With the development and application of technology, long-term rental apartments have also begun to gradually realize digital, intelligent and sustainable development.

Digitization: Long-term rental apartments have achieved digitization in the release of rental information, housing inventory management, tenant management, rent payment, and maintenance. Through digital channels such as the Internet and mobile terminals, tenants can easily inquire, compare and book listings, and landlords can also achieve more efficient management through digital platforms.
Intelligentization: With the development of technologies such as the Internet of Things, big data, and artificial intelligence, long-term rental apartments are gradually becoming intelligent. For example, through smart door locks, smart meters and other equipment, self-service check-in and check-out of tenants can be realized, and intelligent monitoring and control of electricity consumption can also be realized. In addition, through the application of artificial intelligence technology, the identification and behavior analysis of tenants can be realized, and more personalized services can be provided for tenants.
Sustainability: Long-term rental apartments are also gradually emphasizing sustainable development. For example, through the application of technologies such as solar photovoltaic panels and green building materials, the energy consumption and environmental impact of long-term rental apartments can be reduced. At the same time, long-term rental apartments can also protect and contribute to the environment through garbage classification and wastewater treatment.

The number of patents of each patent applicant in the domestic long-term rental apartment industry is counted. The top ten companies are: Shuyuan Technology, Vanke A, Ningbo Fidelity, Seazen Holdings, Aoyuan Beauty Valley, Jinke, Fuxing , Tahoe Group, Shibei High-tech, and Lushang Development.

Table Top 10 Electronic Companies Ranked in Domestic Patents

Source: Qianji Investment Bank Asset Information Network iFinD

2.5 Policy Supervision

Policies related to housing leasing are mainly manifested in two steps. First, continue to strengthen the general tone of vigorously developing the housing leasing market, actively cultivate the market, and promote market development; At the central level, the policy is mainly to clarify the development direction, support and encourage the development of the housing rental market; at the local level, it is mainly to standardize the market and strengthen supervision, and to issue policies in a timely manner according to the market situation, and precisely regulate to ensure the stable and healthy development of the market.

Chapter 3 Industry Valuation, Pricing Mechanism and Global Leading Enterprises

3.1 Comprehensive financial analysis of the industry

The comprehensive financial analysis of the long-term rental apartment industry needs to consider many aspects, including industry development trends, financial index analysis, operating capability analysis, and risk assessment. Here are some financial analysis indicators and methods:

(1) Analysis of industry development trend

The development trend of the long-term rental apartment industry is very important because it will affect the future profitability of the company. Factors such as market size, growth rate, and competition status of the industry need to be analyzed.

(2) Analysis of financial indicators

For the financial status of long-term rental apartment companies, you can focus on the following indicators:

Revenue: A company's revenue level can reflect the company's profitability. It is necessary to analyze the company's revenue growth rate, revenue source, revenue composition, etc.
Cost: The cost of the company includes operating costs, management expenses, labor costs, etc. It is necessary to analyze the changes and proportions of costs.
Profit: A company's profit level can reflect the company's profitability and management efficiency. Need to analyze the company's profit margin, gross profit margin, net profit margin, etc.
Asset-liability status: Asset-liability status is an important indicator reflecting the company's solvency and financial risk. It is necessary to analyze the company's asset-liability ratio, current ratio, quick ratio, etc.

(3) Analysis of operating capabilities

In addition to financial indicators, it is also necessary to analyze the company's operating capabilities, including indicators such as rental yield, average occupancy rate, average lease period, and customer satisfaction to measure the company's operating efficiency and competitiveness.

(4) Risk assessment

The risks in the long-term rental apartment industry mainly come from factors such as market competition, policy changes, and economic fluctuations. It is necessary to analyze the company's risk exposure and coping strategies, as well as its impact on the company and its risk control capabilities.

Figure Total operating income of real estate development enterprises (10,000 yuan)

Source: Qianji Investment Bank Asset Information Network Choice

Figure Real estate development companies operating profit (10,000 yuan)

Source: Qianji Investment Bank Asset Information Network Choice

Figure industry performance

Source: Qianji Investment Bank Asset Information Network iFinD

Figure Industry Valuation

Source: Qianji Investment Bank Asset Information Network iFinD

Valuation methods for the long-term rental apartment industry can choose price-earnings ratio valuation method, PEG valuation method, price-to-book ratio valuation method, price-to-cash ratio, P/S market-sales ratio valuation method, EV/Sales market-sales ratio valuation method, RNAV revaluation net asset valuation method, EV/EBITDA valuation method, DDM valuation method, DCF discounted cash flow valuation method, NAV net asset value valuation method, etc.

Valuation comparison of overseas long-term rental apartment companies (updated to 2023/3/13)

Source: Qianji Investment Bank Asset Information Network iFinD

Table Chinese long-term rental apartment company valuation comparison (updated to 2023/3/13)

Source: Qianji Investment Bank Asset Information Network iFinD

3.2 Industry Development

my country's long-term rental apartment companies were originally derived from the traditional real estate intermediary industry. Second landlords appeared in the 1990s, and branded apartment companies appeared around 2008. Long-term rental apartments are currently mainly distributed in first- and second-tier cities, such as Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Chengdu, etc., and the main customer groups are young white-collar workers, aged between 25 and 30, and the work experience of the above-mentioned people does not count There are many, the salary level is moderate, and at the same time, it pays great attention to the quality of life. Taking Shanghai as an example, 35% of the customers are between 23-30 years old, 38% of the tenants have less than 2 years of work experience, and 32% of the tenants have a monthly income of 6001-8000 yuan.

In the past two years, under the influence of policies, markets, and financing, long-term rental apartments have become the standard configuration for many companies. 2019 is the year when the long-term rental apartment industry returns to rationality. After experiencing the barbaric growth in the first two years, the participants realized that the development of the industry is difficult. This year, enterprises slowed down their pace of expansion, the phenomenon of survival of the fittest among enterprises intensified, and capital intervention became more prudent. While encouraging market development, policies focused more on regulating the market, rectifying chaos, and preventing risks. Under the leadership of the government, my country's long-term rental apartment market is gradually being regulated, and the market scale has risen to a large level. The scale of participants, housing sources, and related land supply has all increased significantly.

3.3 Driving factors

Driven by population structure: The results of the seventh national census show that in the past ten years, the population has accelerated to gather in big cities. By the end of 2020, the permanent population of six cities including Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu and Chongqing exceeded 17 million. The population growth of megacities mainly comes from the import of migrants. As of the end of 2020, the proportions of the migrant population in Shenzhen and Guangzhou to the total urban population were 69% and 50% respectively, and the proportions of the migrant population in Shanghai and Beijing also reached 42% and 39%. While the non-resident population has become the city's "new citizens", it also provides productivity and consumption power for the local urban development, and at the same time increases the housing demand of the city.

In addition to increasing population mobility between cities, short-distance population mobility within cities has also increased significantly. In 2020, the number of people separated from households in the municipal area is about 117 million, an increase of about 77 million compared with 40 million in 2010, an increase of 192.7%. This shows that even in the same city, modern people no longer only live in one residence for a long time, but choose convenient living places flexibly according to changes in their working locations.

Figure Separation of Population by Household

Source: Qianji Investment Bank Asset Information Network iFinD

(1) Driven by the threshold of house purchase

Housing prices in big cities remain high, making housing difficulties for new citizens, young people and other groups in big cities. JLL data shows that in 2020, the housing price-to-income ratio in Shanghai and Shenzhen will be higher than 30%, the housing price-to-income ratio in Hangzhou and Beijing will exceed 20%, and the housing price in cities such as Suzhou, Chengdu, Nanjing, Dongguan, Guangzhou, Xi’an, and Zhengzhou will be higher than 30%. The income ratio has also exceeded 15%, which is generally higher than the range of 10%-15% in international mainstream cities. High housing prices will inevitably drive the rental housing demand of residents in first-tier cities.

In addition, in recent years, China's first-tier and second-tier cities have continuously tightened the policy of restricting purchases and loans. Most first-tier cities have social security payment requirements, and the proportion of down payment on loans has increased. Do not turn to the rental market to address housing needs.

(2) Policy driven

The housing problem is a major issue of people's livelihood, and only by living in peace can we enjoy our work. In order to better deal with the structural contradiction between housing supply and demand, the central government proposed to "accelerate the establishment of a housing system with multi-subject supply, multi-channel guarantee, and simultaneous rental and purchase". From the positioning of "housing to live in, not speculation", to the establishment of the "long-term housing mechanism", and then to the proposal of "simultaneous renting and purchase", the reform orientation of housing "returning to the residential attribute" has been clarified, setting the general tone for future housing development.

In recent years, the state has actively encouraged the development of the housing rental market, including long-term rental apartments, and introduced a series of supportive policies, including land supply, tax incentives, and financial support, while also strengthening market regulation and management. 2021 is the first year of the "14th Five-Year Plan". Major cities such as Shanghai, Beijing, and Shenzhen have successively issued plans for the supply of rental housing during the "14th Five-Year Plan". In this year, the rental housing market ushered in new policy support, including the reduction of value-added tax and property tax for leasing companies to rent out housing to individuals, and the inclusion of affordable rental housing in the pilot project of real estate investment trust funds (REITs) in the infrastructure field industry, the China Banking and Insurance Regulatory Commission announced that it will guide banking and insurance institutions to increase support for affordable rental housing and so on.

(3) Driven by market capital

As an important part of the long-term mechanism of real estate regulation, China's long-term rental apartment market experienced a wave of investment boom in 2017-2018 under the encouragement of policies. However, during 2019, there were some negative news in the industry, enterprises slowed down their expansion pace, the survival of the fittest intensified, and capital intervention became more prudent. Under the influence of the 2020 epidemic, on the one hand, traditional assets such as office and retail have been hit; on the other hand, the mainstream investment strategies of global sovereign funds, pension funds and other investment institutions have paid attention to alternative assets, especially the long-term rental apartment market. significantly increased.

3.4 Industry risk analysis and risk management

(1) Policy risk

At present, the development of China's real estate industry is still immature. In order to guide and standardize the healthy development of the industry, the government must use industrial policies, credit policies and tax policies to carry out macro-control: The macro-control of the real estate market has been significantly strengthened. The People's Bank of China adjusted the housing loan interest rate and returned the original housing loan preferential interest rate to the level of the loan interest rate of the same period. The ministries and commissions jointly issued the "Notice on Doing a Good Job of Stabilizing Housing Prices", and proposed specific measures such as raising the housing transaction tax, prohibiting the transfer of off-plan housing, and cracking down on land speculation; fall back.

The macro-control policy will directly increase the supply of ordinary housing, curb the excessive growth of speculative and investment housing demand and the construction of high-end and luxury housing, so that the order of the real estate market will be rectified and standardized, housing consumption will be guided reasonably, and finally the housing market will be adjusted. Regulatory objectives of supply structure and stable prices. For middle-income consumers, real estate companies that focus on developing mid-range ordinary residences and have strong competitiveness and brand influence will have a broader space for development. The above-mentioned real estate control policies and other policies that may be introduced in the future may cause a certain degree of short-term fluctuations in the real estate market, which will also affect the business of the industry to a certain extent.

(2) Project development risk

The development cycle of real estate projects is long, the investment is large, it involves a wide range of related industries, and there are many cooperative units. It has to accept the approval and supervision of multiple government departments such as planning, land, construction, housing management, fire protection and environmental protection, which makes it more difficult to control project development. big. Despite having strong project operation capabilities, if there is a problem in a certain development link of the project, such as product positioning deviation, new regulations issued by the government, poor communication between government departments, unscientific selection of construction plans, poor cooperation of cooperative units, and Poor management and organization, etc., may directly or indirectly lead to the extension of the project development cycle and the increase in costs, making it difficult to achieve the project's expected business goals as scheduled.

(3) Risk of product and raw material price fluctuations

The reform of the housing system and the accelerated pace of urbanization have effectively stimulated the demand for housing in my country. In recent years, domestic real estate prices have continued to rise, and some hotspots have even shown continuous and rapid rises. The rapid and sharp rise in real estate prices may lead to excessive expansion of investment in the industry, causing ups and downs in the industry, thus damaging the healthy and long-term development of the real estate industry. Although the real estate project has adopted a sound decision-making process for project approval and has a strong ability to resist risks, the ups and downs of the real estate market will inevitably affect the stability of operating performance. The price fluctuations of land and building materials, the main raw materials of real estate, will directly affect the cost of real estate development. At present, land prices are generally rising, which has promoted the rise of housing prices to a certain extent. Existing projects have a relative land cost advantage, which is more beneficial to development and operation. However, rising land prices will increase the cost of acquiring projects in the future and increase the risk of project development and operation.

(4) Risks affected by the development cycle of the national economy

There is a greater correlation between the real estate industry and the development of the national economy, and it is greatly affected by the development cycle of the national economy. Generally speaking, in the rising stage of the macroeconomic cycle, the industry's investment prospects and market demand will be optimistic; on the contrary, market demand will shrink, business risks will increase, and investment returns will decline. Therefore, whether the fluctuations in the national economic development cycle can be correctly predicted, and the business strategy and investment behavior can be adjusted accordingly according to the characteristics of each stage of the economic development cycle will affect the performance to a considerable extent.

3.5 Competition Analysis

(1) Market competition analysis

With the development of the real estate market and the intensification of industry competition, the trend of survival of the fittest among real estate companies is gradually emerging. As consumers purchase houses and consume more and more mature, and the central and local governments continue to introduce and improve the macro-control policies for the development of the real estate industry, the competition in the real estate market will inevitably become increasingly fierce, and the reshuffle of the real estate industry is inevitable. With the full opening of the market after the WTO, a large number of overseas real estate funds and powerful developers with capital, technology and management advantages are actively involved in the domestic real estate market. The industry will face increasingly fierce market competition.

(2) Analysis of competitive structure

At present, long-term rental apartments in my country are divided into centralized apartments and decentralized apartments. Among them, distributed apartments are the main form of long-term rental apartments in my country. The number of rooms in decentralized apartments accounts for about 80% of the total number of long-term rental apartments; but in terms of brand awareness, centralized long-term rental apartments are even better.

Competitive structure of long-term rental apartment industry

Source: Qianji Investment Bank Asset Information Network

At present, the concentration of the centralized long-term rental apartment market still needs to be improved. The number of rooms in the Mofang apartment accounts for only 14% of the entire centralized long-term rental apartment; the market concentration of the decentralized long-term rental apartment is relatively high. The two companies account for more than 50% of the entire decentralized long-term rental apartment market.

Market Concentration Rate of Centralized Long-term Rental Apartment Industry

Source: Qianji Investment Bank Asset Information Network

Figure Market Concentration Ratio of Distributed Long-term Rental Apartment Industry

Source: Qianji Investment Bank Asset Information Network

There are four main types of long-term rental apartment players in the market: real estate companies represented by Vanke and Longfor, intermediaries represented by Ziroom, entrepreneurship represented by Rubik’s Cube, and hotels represented by Home Inns. Together to shape the industry landscape. Each company has different ways, rhythms and operating systems to enter the long-term rental market.

With the continuous introduction of various favorable housing leasing policies at the national level, various localities have also promoted the development of the leasing market, and the society has paid more attention to long-term rental apartments. While long-term rental apartment brands are grabbing market share, state-owned enterprises and central enterprises have poured into the housing leasing field and promoted their own branded apartments. Among the TOP30 real estate companies, nearly 20 real estate companies have entered or will deploy long-term rental apartments to seize the market. In the future, under the tightening of market regulation, as the effectiveness of market competition increases, the hard-core operation strength of apartment projects will be tested even more, and the industry will enter the era of refined operation. In addition to scale, it is expected to form a market competition pattern driven by operations and products in the future.

3.6 Important players of Chinese enterprises

Figure A-share and Hong Kong-listed companies (updated to 2023.3.13)

Source: Qianji Investment Bank Asset Information Network iFinD

(1) Vanke A[000002.SZ]: The main business is real estate development and property services; the company's main products and services are real estate, property management, and investment consulting. In 2020, the company won several awards such as the "Best A-Share Listed Company Award in the Real Estate Industry" issued by "Asiamoney", and the "Best Listed Company Award of the 10th China Securities Golden Bauhinia Award" issued by Hong Kong Dagong Wenhui Media Group.

(2) Seazen Holdings [601155.SH]: Its main business is real estate development and sales, and its main products are residences, complexes, property leasing and management, etc. According to the "Top 200 Sales of Chinese Real Estate Enterprises from January to December 2019" ranking list released by CRIC, the company's real estate sales area and sales amount ranked 8th among national real estate enterprises. At the same time, the company was named "China's Most Influential Real Estate Enterprise of the Year" by Phoenix.com.

(3) Tibet City Investment [600773.SH]: A company mainly engaged in real estate development and sales. The company's real estate products involve various property types such as affordable housing, ordinary residences, and commercial buildings. The company was formerly known as Tibet Yalong Tibetan Medicine Co., Ltd. In 2009, it completed a major asset reorganization with a wholly-owned subsidiary of the Shanghai Zhabei District State-owned Assets Supervision and Administration Commission. Transformation of sexual housing construction.

3.7 Global Key Competitors

Figure Global listed companies (updated to 2023.3.13)

Source: Qianji Investment Bank Asset Information Network iFinD

(1) Jones Lang LaSalle [JLL.N]: incorporated in 1997. The company has more than 280 corporate offices worldwide in 80 countries. The company has approximately 77,000 employees, including 38,900 employees whose expenses are reimbursed by customers. The firm provides local, regional and global services to real estate owners, investors and developers across a broad range of property types, including offices, hotels, industrial, retail, multifamily, healthcare facilities, critical environments and data centers , sports facilities, cultural institutions and transportation centers, etc. Individual regions and markets focus on different property types based on local needs and market conditions.

(2) AGNC Investment [AGNC.0]: Established on January 7, 2008 and started operations on May 20, 2008 after completing its initial public offering (IPO). The firm purchases institutional securities in the form of primary stock or in the secondary market through a broker-dealer or similar entity. The company earns its income primarily from debt-funded operating investments in agency mortgage-backed securities. These investments include residential mortgage-backed securities and mortgage-backed obligations in which principal and interest payments are guaranteed by government-sponsored entities, such as Fannie Mae and Federal Home Loan Mortgage Corporation, or by U.S. government agencies such as the Government National Mortgage Association. The company may also invest in agency bond securities issued by Freddie Mac, Fannie Mae and Federal Home Loan Bank.

(3) Vereit [VER.N]: Incorporated in Maryland on December 2, 2010, the company mainly targets at investing in tenants with high credit ratings and other good credit, and has held and acquired single tenants and on a medium-term basis independent commercial real estate. The vast majority of the company's business is conducted through OP.

Chapter 4 Future Outlook

(1) The real estate department, the intermediary department and the Internet department may be divided into three parts

Compared with real estate companies and intermediary departments that have been deeply involved in the real estate market for many years, the start-up long-term rental apartment brand has certain operational advantages based on the Internet, but its property acquisition, promotion and customer acquisition capabilities are weak. With the gradual clarity of the policy, the real estate department, the intermediary department and the Internet department may be divided into three parts.

(2) State-owned enterprises began to set foot in the long-term rental apartment market

The Ministry of Housing and Urban-Rural Development has carried out housing leasing pilot projects in many places, as a state-owned enterprise with clear resource endowment advantages. State-owned enterprises are actively integrating their existing idle land and launching a variety of long-term rental apartment products. In addition, state-owned enterprises are also bidding for leased land in the land market. It is expected that state-owned enterprises will play an important role in the long-term rental apartment market in the future.

(3) Internet giants cooperate with local governments to launch official leasing platforms

During the housing leasing pilot program launched by the Ministry of Housing and Urban-Rural Development, Alibaba, Tencent, JD.com, and UnionPay were all involved. Several major Internet giants undertook the system construction projects of official leasing platforms for long-term rental apartments in some cities. Relying on the technological advantages of Internet companies, official leasing platforms in various places were quickly built. With the rapid development of the market, the traffic of the official leasing platform will gradually increase, and it is expected to become a new traffic portal for several major Internet companies.

(4) Financialization and informatization

Internet giants cooperate with local governments to launch official leasing platforms. During the housing leasing pilot program launched by the Ministry of Housing and Urban-Rural Development in 2017, Ali, Tencent, JD.com and UnionPay were involved. Several Internet giants undertook the official leasing platforms of long-term rental apartments in some cities. System build project. Relying on the technological advantages of Internet companies, official leasing platforms in various places were quickly built. With the rapid development of the market, the traffic of the official leasing platform will gradually increase, and it is expected to become a new traffic portal for several major Internet companies.

(5) Branding and communityization

Brand promotion and operational efficiency are the core competitiveness in the future; the tenant community will serve as a value-added service for long-term rental apartments.

(6) Lease securitization

Lease securitization is a derivative financial product based on rent collection from long-term rental apartments. It has now become an important means to revitalize stock assets and realize the present value of future income.

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