Di Yi Cai Jing·2025-09-29 07:30Core Viewpoint - The consumer REITs market has shown a strong performance in 2025, with significant investor interest and notable first-day gains for newly listed REITs [1][3]. Group 1: Market Performance - The newly listed Huaxia CapitaLand Commercial REIT opened at 6.840 CNY per share, a 19.62% increase from its issue price of 5.720 CNY, closing with a 12.6% gain [1]. - Since 2025, 16 public REITs have been listed, with an average first-day increase of 25% for consumer infrastructure REITs, significantly higher than the 1.5% average for 8 similar products in 2024 [1]. - As of September 29, 2025, the average annual increase for 11 listed consumer REITs is 26%, with notable performers like Jiashih Wumart Consumer REIT and Huaxia Joy City Commercial REIT achieving annual increases of 45% and 41%, respectively [4]. Group 2: Fundraising and Investor Interest - The Huaxia CapitaLand Commercial REIT aimed to raise 22.872 billion CNY, with total subscriptions exceeding 309.17 billion CNY, resulting in a public investor subscription multiple of 535.2 times [3]. - The strong subscription reflects market recognition of quality commercial assets and the scarcity of foreign brands in the public REITs sector [3]. Group 3: Operational Insights - The underlying assets of the Huaxia CapitaLand Commercial REIT are valued at approximately 2.6 billion CNY, consisting of Guangzhou CapitaLand Plaza and Changsha CapitaLand Plaza [3]. - Consumer REITs require a higher level of operational expertise compared to traditional REITs, as they depend on continuous brand management, marketing activities, and customer maintenance [4]. - The average occupancy rate for consumer REITs exceeded 95% in early 2024, and by the first quarter of 2025, these REITs reported a combined revenue of 565 million CNY and a net profit of 76.176 million CNY [4]. Group 4: Strategic Developments - CapitaLand Investment's CEO stated that the successful issuance of Huaxia CapitaLand Commercial REIT marks a comprehensive layout of a multi-tiered REIT system in China, enhancing asset liquidity and capital structure [5]. - The integration of international capital with China's vast consumer market is expected to deepen CapitaLand's presence in the Chinese market [5].