Valuing options to renew at future market value:the case of commercial property leases

In this study,we develop and empirically test a valuation model for a commonly encountered option in office leases:a tenant’s option to renew at future market rent(a fair market value)with lease termination as the maturity date.The model integrates decision analysis with real options analysis and market risk with private risks.“Option value”is defined as the private value of the option to either party pre-contract,while“option price”assumes a fair agreement between transacting parties and can be positive(rental premium paid)or negative(rental discount offered).Without manifest expectations,an analysis of a sample of office leases supports the model’s logic with price estimates in a practical range.The tenants’option price/value is shown to have a negative relationship with the original/renewal lease term;conversely,the landlords’option value is positively related to the original/renewal term.Comparative analyses show that transaction costs have a positive effect on tenants’option value and on prices,while vacancy costs and the vacancy period are both positively related to the landlords’option value and negatively related to price.Market rent is found to have a negative relationship with option price.Overall,this study provides a theoretical analysis and empirical tests of the value of a real option that allows option holders to renew/extend their contracts at a fair market value.

Contingent convertible lease modeling and credit risk management

The main objective of this study is to determine a lease agreement to finance an investment project and a solution for managing credit risk.This study investigates three types of contingent leases to reduce the costs associated with bankruptcy and compensate for the lessor’s position.A leasing defaultable contract allows the lessor to obtain the rent that will be recovered if the lessee defaults.A leasing convertible contract can be automatically converted into shares when certain default conditions related to the cash flows generated by the firm are met.These conditions are triggered by the ratio of the firm’s value and leasing payments.A Defaultable-Convertible-Leasing contract with a payback option grants the lessor the right but not the obligation to convert the remaining lease payments into stocks or to break up the contract and pick up the rented equipment when the firm reaches the default threshold.These contracts are motivated by contributing to the range of risk-management strategies by adding more flexibility to standard leasing contracts and contingent rents.Closed-form securities pricing solutions are set forward in a dynamic model for firms with existing assets and a growth option financed by shares and a contingent lease.Risk-neutral pricing theory and the backward induction method are used to determine the pricing of corporate securities.Numerical analysis shows that leasing convertible contracts and defaultable-convertible contracts with payback options impact the service value of the leased asset,maturity,and inefficiencies resulting from insolvency and asset substitution.An optimal conversion rate reduces inefficiencies,thus making the leasing convertible contract and defaultable-convertible-leasing contract with payback option a reliable solution to ensure business continuity and loss coverage of the leasers upon default.

The Profit Model of Long-Term Lease Apartments Under Multi-Agent Supply

The acceleration of urbanization has led to an increase in the number of urban floating population, which leads to more demands for the housing rental market. With the support of policies, long-term lease apartments have begun to emerge. However, under the multi-subject supply, longterm lease apartments have encountered problems such as small profits in their development. Starting from the background of the development of long-term lease apartments, this study classified the main types of long-term lease apartments, analyzed the four profit models of comprehensive profit, expansion of rent difference, REITs and value-added services based on their business models, and proposed corresponding suggestions on the profitability of long-term lease apartments according to the current situation of profit difficulty of long-term lease apartments and the lack of profit models.

STUDIES OF A BIODEGRADBLE DELIVERY CAPSULES (CAPROF)CONTAINING LEVONORGESTREL (LNG):IN VIVO DRUG RELEASE EVALUATION

The paper describes drug release evaluation of a biodegradable long-acting con-traceptive Capsule (CaproF) containing levonorgestrel (LNG)in vivo.Poly(E-Capro-lactone) (PCL) biodegradable material,suitable for many medical application,wasused in this study.It was extruded into tubes.The tubes were then cut and loadedwith LNG powder before melting-sealed on both ends to get drug capsules.This sub-dernal implant has been found to be highly effective in animal experiments.Two ad-

IN VITRO AND IN VIVO DRUG RELEASE STUDIES OF BIODEGRADABLE COATED TABLLAE WITH POLY(AMINO ACIDS)

Poly-α-amino acid is a kind of biodegradable biomedical material.It is used forthe preparation of sustained drug-release device.There are some advantages of thedrug delivery devices.They can provide the therapy with side effects.The drug re-lease is maintained at a beneficial rate for a prolonged time.The polymer may bebiodegraded after the drug has been exhausted.

Research on Financial Lease Pricing Model

Financial leasing is a financial innovation product with leasing and financing functions.The research on the theory of financial leasing and risk pricing methods should be highly valued.Rent is set based on the total revenue of the lessor and the total cost of the lessee.The factors that affect pricing include project costs,security deposits,fees,lease terms,revenue,interest rates,etc.Using the principle of net present value to elaborate the components of financial leases and constructing a financial lease pricing model from the perspective of maximizing the profit and interests of the lessor,an empirical analysis of the model was carried out using an actual case,thus concluding that the model is effective.

A New Lease of Life Organ donation gains wider acceptance in China as an efficient donation system raises awareness

Wu Yue, a lung transplant recipi ent. now regards August 31, the day she underwent surgery, as her re-birth day. In the eyes＇ of many people, the 30-year- old woman is an embodiment of love, dili gence and intelligence.

Prisons Help Inmates Turn a New Lease in Life

Shandong Province, east China,has reported a recidivist rate of 2.6 percent, meaning that of every 100 convicts jailed for criminal offenses, an average of only 2.6 have committed

Psychological Counseling Helps Prison Inmates Turn a New Lease in Life

Psychological counseling for ＇prison inmates appeared in Jiangsu in the late 1980s, and it is now available in all prisons in this east China province. According to Yu Airong, director of the Jiangsu Provincial Prison Administration, the 19 prisons in the province each have a psychological correction center staffed by professionals.

Effects of Labor Price Hike and Population Ageing on Rural Land Lease in China

In answering the questions as whether China's rising labor price and ageing workforce have affected rural land leasing and whether these factors have any joint effect,we have employed RCRE data of the Ministry of Agriculture to carry out an empirical analysis and the result indicates that labor price hike has significant positive effects on both the land lease-in and lease-out of rural households,i.e.labor price hike will help increase the land leasing of rural households.At the level of ageing workforce,our empirical results indicate that ageing workforce does not create any significant impact on rural land leasing market no matter for land lease-in or lease-out in overall samples,plain regions and mountainous regions.In our empirical analysis on whether ageing workforce will intensify or weaken the effects of labor price hike on rural land leasing market,the regression result also indicates that there is no significant effect from a statistical perspective.

A Blockchain-Based Proxy Re-Encryption Scheme with Conditional Privacy Protection and Auditability

With the development of Internet of Things technology,intelligent door lock devices are widely used in the field of house leasing.In the traditional housing leasing scenario,problems of door lock information disclosure,tenant privacy disclosure and rental contract disputes frequently occur,and the security,fairness and auditability of the housing leasing transaction cannot be guaranteed.To solve the above problems,a blockchain-based proxy re-encryption scheme with conditional privacy protection and auditability is proposed.The scheme implements fine-grained access control of door lock data based on attribute encryption technology with policy hiding,and uses proxy re-encryption technology to achieve auditable supervision of door lock information transactions.Homomorphic encryption technology and zero-knowledge proof technology are introduced to ensure the confidentiality of housing rent information and the fairness of rent payment.To construct a decentralized housing lease transaction architecture,the scheme realizes the efficient collaboration between the door lock data ciphertext stored under the chain and the key information ciphertext on the chain based on the blockchain and InterPlanetary File System.Finally,the security proof and computing performance analysis of the proposed scheme are carried out.The results show that the scheme can resist the chosen plaintext attack and has low computational cost.

A New Lease on China

Jonathan L. Fales has worked for more than 26 years in the information technology and equipment leasing fields and has worked extensively in Asia since the 1990s. A member of the American Equipment Leasing Association board of directors and executive committee, he is co-author of an ELA white paper, Knocking Down (Great) Walls: Identifying Factors for Success in the Chinese Equipment Leasing Market. Fales' suggestions have been frequently solicited since China's top legislature initiated the drafting of ...

How to Lease or Buy a Hause in Beijing

IN recent years,more and moreforeigners have been coming toBeijing to work and study for longperiods of time,some are evensettling down here.For those that are,the first hurdle is finding out how toactually lease or buy a house in thecity.To help our new guests andfuture residents,we interviewed anumber of people and asked themwhat the best course of action wouldbe.Here are their answers--

美国租赁会计准则修订、影响及经验借鉴

IFRS16 Lease和US GAAP更新稿ASU2016-02 Lease(Topic842)(以下简称Topic842或新准则)先后于2016年1月和2月发布。通过回顾租赁准则的修订背景,比较Topic842与US GAAP ASC840后认为:(1)新准则的主要变化在于租赁定义、承租人租赁业务(除短期租赁外)表内确认及售后租回业务确认与计量等方面;(2)承租人融资租赁判断标准及会计处理理念、承租人经营租赁对综合收益表和现金流量表的影响未发生变化;(3)融资租赁出租人会计处理除与Topic606指引相协调发生变化外总体未变;(4)新准则能够有效增强信息透明度与可比性,但因Topic842依旧侧重区分租赁合同实质加以分类处理,故复杂程度高于IFR S16 Lease。

租赁业的基本分类及概念辨析

本文对国内外关于租赁业的几个基本分类及概念进行了梳理和分析,说明了相关概念的区别与联系。

The Spatial Organization Dialectics of the City ofJeriquara/SP, Brazil

The present paper aims to analyze and discuss the morphological formation of the city of Jeriquara, located in the countryside of the state of S o Paulo, Brazil. The importance of this study lays on its primary documentation, that is, the long lease deeds (cartas de aforamento). These deeds are part of the medieval legal system implemented in Brazil by the Portuguese. The long lease, perpetual lease or tenure, or fiefdom (in the Brazilian legal system, aforamento, enfiteuse or emprazamento) are synonyms of this legal institute that divides urban land between two holders: the Catholic Church and the civil individual. This article employs as research method the interpretive and descriptive analysis of such deeds, based on theoretical bibliography on the referred legal institute, civil law and the Brazilian forms of urbanization. Following the presentation of a case study there will be the discussion of the juridical issues at the core of the national colonization implemented by the Portuguese and which are at the genesis of several of the current conflicts. This study shows that the urban territory of many cities is still ruled by these past contexts and, without understanding them, we will not be able to efficiently interfere with city spaces.

一种新的变步长LMS算法

为了提高LMS自适应算法的性能,在对传统LMS算法、变步长LMS算法及其改进算法分析的基础上,提出了一种新的步长与误差信号之间的函数关系。既能保证均方误差收敛、有较小的失凋,又能在算法达到稳态时,在低信噪比环境下有很好的跟踪性能,并且不易受噪声影响。理论分析和计算机仿真结果均表明该算法优于传统算法。

Laws,Defects and Countermeasures on the Circulation of Rural Housing Land——From the Perspective of Farmer Rights Protection

The thesis combs the existing legal provisions about rural housing land from the perspectives of use restriction,means restriction,subject restriction and mortgage prohibition,and finds out their defects,namely,weakening real right,confused knowledge about the integration of house property and land property,the loophole in Land Administration Law,the bans on the rural residents' purchase of housing land and so on.Then the thesis expounds the harms of restricting the circulation of housing land,for example,it will result in underground transaction of housing lands;lead to untenanted lands and waste of resources;bring about financing difficulty for peasants;do harm to the interest of land owners(rural collective economic organizations) and so on.The thesis further proposes to establish the legal lease model to solve the problems in the circulation of housing lands,specifically explains the definition of the legal lease model of housing lands,illustrates its detailed information from the aspects of object,subject and content and elaborates a series of problems involving,how to distribute the rent of housing lands,as well as how to perfect relevant procedures and formalities in the credit circulation of housing lands so as to realize the legitimate and effective circulation of rural housing lands and protect the peasants' interests.