Core Viewpoint - The performance of rental housing REITs is expected to remain positive due to favorable policies and the scarcity of high-yield products, but investors should be cautious of potential risks behind the "hot market" [1][3]. Group 1: Market Performance - The Huatai Suzhou Hengtai Rental Housing REIT was suspended twice this week due to rapid price increases, with a closing price of 4.178 yuan per share on May 23, 2025, representing a 52.82% increase from the base price of 2.734 yuan per share [2]. - On May 26, 2025, the REIT's closing price reached 4.133 yuan per share, leading to another suspension after a cumulative increase of 16.29% over three trading days [2]. Group 2: Investor Sentiment - The REIT's popularity is attributed to frequent favorable national policies and the distinct advantages of mandatory dividends and high yields in a market with limited supply of high-yield products [3]. - The subscription multiples for the REIT were notably high, with offline subscriptions at 216.91 times and public subscriptions at 829.78 times, indicating strong demand [3]. Group 3: Risks - Three main risks in the public REITs market include price volatility risk, high premium risk, and operational risk of underlying assets [4][5]. - Price volatility can lead to significant deviations from net asset values due to short-term speculation and market sentiment [4]. - High premiums can erode actual cash flow distribution rates, as demonstrated by the projected cash flow distribution rates of 4.00% and 4.07% for 2025 and 2026, respectively, which decrease with rising secondary market prices [4]. Group 4: Future Outlook - The current rental housing REITs are considered "top performers," primarily located in first- and second-tier cities with strong rental demand, suggesting limited investment risks [5]. - However, as the market expands, the difficulty in identifying quality underlying assets will increase, necessitating careful evaluation of rental demand and operational quality [7].