Economic Outlook - Hong Kong's GDP growth is projected to be between 2% and 3% for the year [3] Infrastructure Development - The construction of the Hung Hom Station and the Hong Kong North Station is progressing rapidly, with completion expected in 2027 and 2030 respectively [5] - The establishment of the "Northern Metropolis Development Committee" aims to accelerate the development of the Northern Metropolis [7] Financial Market Initiatives - Hong Kong will collaborate with exchanges in the Greater Bay Area to explore new businesses in bulk commodity trading and carbon trading [8] - The Hong Kong Securities and Futures Commission is promoting the inclusion of Real Estate Investment Trusts (REITs) in the "Stock Connect" program [12] Industry Development - A budget of HKD 1 billion has been allocated to establish the "Hong Kong Artificial Intelligence Research Institute" next year [11] - The government is actively fostering emerging industries such as renewable energy, AI, and data science [11] - Plans are in place to attract more pharmaceutical companies to set up operations in Hong Kong [11]

Core Viewpoint - Despite a gradual recovery in real estate securities following earlier price adjustments, risks from U.S. trade policies and uncertainties surrounding Federal Reserve interest rate cuts continue to exert pressure on future growth [1] Growth Drivers - Resilient income levels: Real Estate Investment Trusts (REITs) tend to perform relatively stable in trade dispute or tariff-dominated market environments due to their focus on local demand and defensive characteristics, along with long-term leases that naturally hedge against inflation [3] - Solid fundamentals: Limited new project supply leads to supply-demand imbalances, supporting property valuations and rental levels [4] - Structural growth trends: Shortages in the residential market drive up rents for tiered units and senior housing, while digitalization trends such as e-commerce and artificial intelligence boost demand for logistics facilities (e.g., industrial properties, cold chain storage) and data centers [4] - Strong potential for valuation recovery: Historical data shows that when U.S. 10-year Treasury yields are between 3% and 5.25%, REITs often outperform the overall stock market, indicating potential for valuation recovery as interest rate expectations remain high [4] - Increased merger and acquisition activity potential: Attractive valuations combined with improving fundamentals encourage more private equity funds to participate in the REIT market, with a low-interest environment still favoring M&A transactions even if the Federal Reserve delays rate cuts [4] Investment Opportunities - The Asia-Pacific real estate sector exhibits relatively high defensiveness amid market volatility caused by trade policies and concerns over global economic growth, contrasting with the negative impacts on export-oriented industries [6] - In Japan, market concerns and political uncertainties threaten economic growth, suggesting that the Bank of Japan is unlikely to raise interest rates this year [6] - In Australia, if inflation is controlled, the Reserve Bank of Australia is expected to continue lowering policy rates through the remainder of 2025 [6] - Japanese developers benefit from improved shareholder return policies, while Japanese REITs are expected to perform well driven by catalysts in logistics and hospitality sectors [7] - In Australia, residential and retail REITs benefit from strong local consumption and rate cuts [7] - In Singapore, local retail and industrial REITs may have upside potential due to robust dividend growth and low vacancy rates [7] - In Hong Kong, non-essential retail REITs may benefit from low yields and potential interconnectivity arrangements with the mainland Chinese market [7] - Following two years of volatility, a stabilizing macro environment and declining capital costs provide clearer prospects for REITs, with certain sectors and regions showing solid fundamentals and clear long-term growth drivers, presenting attractive entry points for patient long-term investors [7] - Compared to the overall stock market, REITs exhibit lower earnings uncertainty, and a mild interest rate environment amid slowing economic growth favors valuation recovery, suggesting that global REITs may present optimal investment opportunities in a high-growth, low-inflation environment [7]

大华继显发布研报称，华润置地(01109)上半年核心纯利同比跌6.9%，大致上符合预期，受惠商场业务 和经常性业务表现强劲，贡献60.2%的盈利。在政策支持和已增加的资源下，管理层对下半年销售持正 面看法。集团近期目标定期上市房地产投资信托基金(REIT)，这将对短期盈利产生积极影响。该行维持 对其盈测不变，予润地目标价由32.8港元上调至34.1港元，其评级为"买入"。 ...

Core Viewpoint - The H-share market has seen several listed REITs report mid-term performance, with most experiencing a decline in revenue and net property income growth, while the hotel and tourism sectors in mainland China have shown strong performance [1][5]. Group 1: REITs Performance - Most listed REITs reported a decline in revenue and net property income, with specific examples including: - Yuexiu REIT reported total revenue of 966 million RMB, down 6.6% year-on-year, and net property income of 679 million RMB, down 8.6% [3]. - Link REIT achieved revenue of 855 million HKD, down 2% year-on-year, with net property income of approximately 613 million HKD, down 3.2% [3]. - Sunshine REIT reported revenue of 391 million HKD, down 4.8%, and net property income of approximately 307 million HKD, down 5.4% [3]. - SF REIT achieved revenue of approximately 230 million HKD, up 3.4%, and net property income of approximately 192 million HKD, up 6% [3]. Group 2: Sector Analysis - The performance of different property sectors shows challenges: - Office, retail, and logistics sectors continue to face pressure, with declining occupancy rates reported [5][7]. - Yuexiu REIT's overall occupancy rate was approximately 82.2%, down 1.8 percentage points year-on-year [6]. - Sunshine REIT's overall occupancy rate was 89.2%, down about 2 percentage points from the beginning of the period [6]. - Conversely, the hotel and tourism sectors have performed well, with notable revenue increases: - Guangzhou IFC's serviced apartments achieved record revenue of 603 million RMB, and the Four Seasons Hotel in Guangzhou reported record room revenue of 190 million RMB, with an average occupancy rate of 80.1%, up 1.1 percentage points year-on-year [7]. Group 3: Market Outlook - The inclusion of REITs in the Shanghai-Hong Kong Stock Connect is seen as a significant breakthrough for capital market connectivity, potentially enhancing market activity and liquidity [1]. - The financing costs for several REITs have decreased, which may alleviate pressure on distributable income: - Yuexiu REIT reported a financing cost of 403 million RMB, down 13.5% year-on-year [8]. - Sunshine REIT's weighted average financing cost decreased from 4.2% to 3.7% year-on-year [8]. - Link REIT's financing cost decreased by 12.6% to 173 million HKD [8].

Core Viewpoint - Yuexiu Real Estate Investment Trust (00405.HK) reported strong half-year results for 2025, with total operating income of 966 million RMB and a net property income of 679 million RMB, achieving an overall occupancy rate of 82.2% [2][4]. Group 1: Financial Performance - The total operating income for the first half of 2025 was 966 million RMB, with a net property income of 679 million RMB [2]. - The operating income from office properties contributed 55% of total revenue, amounting to 532 million RMB, with a new signed area of 48,822 m², reflecting a year-on-year growth of 7.5% [2]. - The financing cost decreased by 13.5% year-on-year, saving 63 million RMB, with the average financing cost reaching a near three-year low [4]. Group 2: Segment Performance - Hotel and apartment revenue accounted for 26% of total income, with Guangzhou IFC Ascott serviced apartments achieving record revenue of 60.3 million RMB due to increased occupancy rates [3]. - The Guangzhou Four Seasons Hotel capitalized on foreign high-net-worth clientele, generating 190 million RMB in room revenue, with an average occupancy rate of 80.1%, up by 1.1 percentage points year-on-year [3]. - The Guangzhou White Horse Clothing Market reported an operating income of 109 million RMB, maintaining a 95% occupancy rate, and facilitated procurement worth 140 million RMB [3]. Group 3: Strategic Initiatives - The fund's management has actively optimized its financial structure, increasing the proportion of RMB financing to 72%, up by 31 percentage points year-on-year [4]. - In July 2023, the fund successfully issued 600 million RMB in three-year Panda bonds at a low interest rate of 2.70%, marking a significant milestone as the first listed REITs Panda bond issuance globally [4]. - Looking ahead to the second half of 2025, the fund aims to enhance asset value and maintain high-quality development amidst external uncertainties [4].

Group 1 - The S-REITs sector in Singapore experienced a decline of 6.2% due to the imposition of tariffs in early April, with a year-to-date total return of only 0.4%, underperforming the Straits Times Index and MSCI Singapore Index by 4.3% and 11.0% respectively [1] - The overall distribution per unit (DPU) for the S-REITs sector decreased by 2.8% year-on-year, with 7 out of 10 funds meeting market expectations, 1 exceeding expectations, and 2 falling short [1] - Notable declines in DPU exceeding 10% were observed in Mapletree Pan Asia Commercial Trust, SingPost Logistics Trust, and Mapletree Logistics Trust, attributed to high borrowing costs, unfavorable exchange rates, and reduced income from asset disposals [1] Group 2 - Institutional investors have seen a net outflow of approximately 495 million SGD from the S-REITs sector this year, particularly during the tense trade situation in early April, leading them to favor more defensive sectors such as telecommunications and non-cyclical consumer goods [1] - Singapore's OCBC Investment Research recommends investors to selectively choose high-quality stocks, particularly those with potential for distribution growth and strong asset portfolios, highlighting specific S-REITs such as CLAR, CICT, KDCREIT, and PLIFE [2] - By early 2025, the S-REITs market in Singapore is projected to rank second in Asia, with a total market capitalization of approximately 82 billion SGD, accounting for about 10% of the total market capitalization of the Singapore Exchange [2]