HTSC·2026-01-12 08:03Investment Rating - The report maintains a rating of "Buy" for several commercial real estate companies, including Longfor Group, China Overseas Development, Link REIT, and others [10][5]. Core Insights - The C-REIT market is entering a comprehensive development era, with significant potential for commercial real estate REITs, driven by abundant stock, high adaptability for securitization, and strong market recognition [1][12]. - The report emphasizes that commercial real estate REITs can enhance asset liquidity and facilitate value reassessment for related enterprises, particularly benefiting those deeply engaged in commercial real estate and management services [1][12]. - The potential market size for domestic commercial real estate REITs could reach trillions, with a current market value of only 40.8 billion, indicating substantial growth opportunities [3][12]. Summary by Sections International Comparison - In the U.S. and Japan, commercial real estate constitutes a significant portion of REITs, with respective shares of 43% and 55% as of November 2025 [2][16]. - The report highlights that income volatility affects risk premiums and valuation differences, with hotel REITs showing the highest dividend yields and office REITs the lowest due to their sensitivity to economic fluctuations [2][16]. Domestic Outlook - The report forecasts a substantial expansion potential for C-REITs, particularly in the retail sector, as domestic demand mirrors that of the U.S. market [3][56]. - Factors driving the growth of commercial real estate REITs include the emergence of projects with management premiums and location advantages, as well as a significant stock of quality assets [3][12]. Market Style - The report suggests that the C-REIT market may adopt a fixed-income plus investment mindset, similar to Japan's market style, with stable assets likely to present valuation premiums [14][56]. - It notes that the domestic REITs market is expected to benefit from the recent regulatory changes that broaden the asset base to include office buildings and hotels [3][56]. Investment Recommendations - The report recommends investing in established commercial real estate operators and property management companies with management premiums and strategic advantages, including Longfor Group, China Resources Land, and others [5][15].