Core Viewpoint - The Huaxia Dayuecheng Commercial REIT, as the first consumption REIT in Southwest China, has demonstrated strong commercial operational capabilities since its establishment in September 2024, with promising results in cash flow management, asset operation, and investor returns, highlighting the market value of consumption infrastructure REITs [1] Group 1: Financial Performance - In Q1 2025, the REIT achieved revenue of 84.6991 million yuan, with a distributable amount of 44.7376 million yuan, resulting in an annualized distribution rate of 5.46%, which is an increase of 13 basis points compared to the forecast in the prospectus [2] - The occupancy rate at the end of the project rose to 98.38%, exceeding the forecast by 2.38 percentage points, while the average rental price increased to 363.52 yuan per square meter per month, indicating a continuous optimization of cash flow structure [2] Group 2: Strategic Initiatives - The operational success is attributed to a multi-faceted strategy that includes building a brand attraction matrix, improving revenue through brand classification management, creating innovative consumption scenarios, and enhancing member ecosystem value [2] - The introduction of flagship stores and popular dining options has created a new consumption scene, combining day and night experiences with pet socialization [2] Group 3: Investment Returns - Since its inception, the REIT has distributed dividends to investors twice, totaling 103.679 million yuan, showcasing the stable cash flow characteristics of the underlying project and the commitment to return operating results to investors [3] - The REIT's investment value is reinforced by the dual benefits of consumer recovery and the expansion of the public REIT market, with a focus on precise business adjustments and brand renewal [3] Group 4: Market Position - The Chengdu Dayuecheng project is located in a key consumption hub and national central city, benefiting from a strong economic foundation and active consumer market, particularly in the Wuhou District, which has a leading GDP per capita and population density [3] - Since its opening in late 2015, the Chengdu Dayuecheng has consistently improved its operational performance, maintaining a leading position among non-luxury shopping centers in Chengdu [3]

Report Industry Investment Rating - There is no information provided regarding the report industry investment rating in the given text Core Viewpoints of the Report - China's retail commercial real estate is facing challenges such as slowing consumption growth, online channel diversion, and high property vacancy rates. However, the stabilizing macro - economy, increased consumption stimulus policies, and financial support policies are driving the industry into a structural adjustment period [1]. - Consumption downgrade is spurring the transformation of the immersive experience economy, and the operation model of retail commercial real estate is shifting towards "light - heavy combination" and "data - empowered" models. Developers capable of differentiated positioning, format innovation, and refined operation will gain an edge in the competition [1][2]. - The low - interest environment and the expansion of REITs are reshaping the industry logic, and the securitization process of high - quality assets is accelerating. The industry may gradually shift from "driven by residential sales" to "operation - driven + capital operation" [1][2] Summary by Directory Points - Affected by reduced income growth and weak consumer confidence, China's consumption market growth has slowed, and the operation of retail commercial real estate is challenged. However, the stabilizing macro - economy and increased consumption policies are expected to boost the market and concentrate resources on high - quality enterprises [2]. - The investment scale of China's retail commercial market has been declining, but the supply in some cities with high vacancy rates is still large. In 2024, the overall rent of shops decreased, with first - tier cities having an earlier rent decline inflection point and higher rent stability than second - and third - tier cities. Despite falling rents, retail property large - scale transactions are active [2]. - Leading domestic operators of retail properties are expanding, and the industry concentration is further increasing. Currently, high - end retail properties are under pressure, while brand operators in third - and fourth - tier cities are more valuable. The operation model of retail commercial real estate is transforming, and developers with differentiated advantages will take the lead [2]. - The low - interest environment and diverse financing channels are favorable for the development of commercial real estate. The dependence of retail commerce on residential sales is decreasing, and the expansion of consumer infrastructure REITs has great potential for development [2] Main Concerns - The consumption of catering, clothing, cosmetics, and gold and silver jewelry, which are closely related to retail commercial real estate, is sluggish, and online consumption is diverting offline consumption. However, the stabilizing macro - economy, increased consumption policies, and the implementation of the retail innovation and improvement project are conducive to the long - term stability of the retail commercial real estate operation market and the concentration of resources on high - quality enterprises [3] Conclusion - China's retail commercial real estate is facing challenges such as slowing consumption growth, online channel diversion, high vacancy rates, and homogeneous competition. However, the stabilizing macro - economy, increased consumption policies, and optimized financing environment are driving the industry into a structural adjustment period. Operators capable of differentiated positioning, format innovation, and refined operation are expected to break through first [33]