1. Report Title and Date - Report Title: "REITs Index Pulls Back, Initial Strategic Allocation Unlocks with Attractive Returns — July Half - Monthly Report on the Public REITs Market in 2025" [1] - Date: July 16, 2025 [2] 2. Core Viewpoints - The REITs index has pulled back in the past half - month, with the ecological and environmental protection sector rising on increased volume, while the rental housing and energy sectors have seen a decline in both price and volume. The consumer and industrial park sectors have slightly declined on increased volume, and the warehousing and transportation sectors have slightly risen with shrinking price and volume [3]. - The dividend yield of equity - type REITs is lower than that of the CSI Dividend Index, but the dividend yield of the warehousing and logistics sector has increased [3]. - The performance assessment of insurance funds in 2025 has started, which is expected to attract more funds into the REITs market [3]. - Two initial strategic allocations have unlocked with attractive returns, and China Resources Commercial REIT plans to apply for a second expansion [3]. 3. Summary by Relevant Catalogs 3.1 Near - Half - Month REITs Index Pulls Back, Equity - Type Dividend Yield Lags Behind CSI Dividend 3.1.1 Near - Half - Month REITs Index Pulls Back, Underperforms CSI 300 - Since the second half of June, the secondary market of REITs has been oscillating downward. From July 1 to 15, the CSI REITs (Closing) Index and the CSI REITs Total Return Index fell by 0.3%/0.1% respectively, underperforming the CSI 300 Index. As of July 15, in 2025, the two indices have cumulatively risen by 10.9%/14.1%, outperforming the CSI 300 Index and the ChinaBond - Treasury Bond Total Wealth (7 - 10 Years) Index [8]. 3.1.2 Ecological and Environmental Protection Leads in Gains, Nearly 90% of Rental Housing REITs Decline - From July 1 to 15, about 65% of REITs' net values have cumulatively declined, with an average decline of 0.56%. The ecological and environmental protection sector led the rise by 2.36%, while the rental housing and water conservancy facilities sectors, after rising for four consecutive months, had their first pullback, with average declines of 2.17% and 2.34% respectively. The consumer REITs had their first pullback this year, with over 60% of individual bonds declining, and the industrial park REITs had 70% declining [9][12]. 3.1.3 Turnover Rate Remains Low, Ecological and Environmental Protection Rises on Increased Volume - Since March 2025, the turnover rate of REITs projects has been continuously declining. From July 1 to 15, the average daily turnover rate of REITs projects was 0.76%, the same as in June. The ecological and environmental protection sector rose on increased volume, with the turnover rate significantly increasing to an average of 1.65%. The rental housing and energy sectors declined in both price and volume [13][16]. 3.1.4 Equity - Type Dividend Yield Lags Behind CSI Dividend, Warehousing and Logistics Sector's Dividend Yield Increases - As of July 15, 2025, the average TTM dividend yields of equity - type and concession - type REITs were 3.74%/6.94% respectively. Among equity - type REITs, the warehousing and logistics and industrial park REITs had relatively high TTM dividend yields, both exceeding 4%. Among concession - type REITs, the transportation - type REITs had a relatively high TTM dividend yield, with an average of 7.82% [19]. 3.1.5 Concession - Type: Ecological and Environmental Protection REITs Have High P/FFO Valuation Percentiles, Many Energy REITs Have Negative ChinaBond IRR - As of July 15, 2025, the P/FFO of REITs in the water conservancy facilities and transportation sectors is, on average, at the 63% and 66% historical percentiles respectively, with a lower valuation level than other concession - type assets. The P/FFO percentile of the ecological and environmental protection sector has reached an average of 85% since listing. Many energy infrastructure REITs have a low IRR, and some have a negative IRR [21]. 3.1.6 Equity - Type: Industrial Park REITs' Valuation Drops to the Historical Median - As of July 15, 2025, the latest P/NAV of rental housing REITs has dropped to the 87% historical percentile, and the IRR is at the 14% historical percentile. The P/NAV of consumer REITs has reached the 83% percentile, and the industrial park REITs' P/NAV is, on average, at the 56% percentile since listing [25]. 3.2 Two Initial Strategic Allocations Unlock with Attractive Returns, China Resources Commercial REIT Plans to Apply for Second Expansion 3.2.1 REITs Market News from July 1 to 15 - The high - tech industrial park public REIT project of Taicang High - tech Holding Co., Ltd. has started the tender. The Ministry of Finance has issued a notice on guiding long - term and stable investment of insurance funds. The REIT project of Wuxi Xishan Environmental Energy Group Co., Ltd. has started the tender. Beijing has issued a plan to boost consumption, supporting the issuance of REITs for eligible consumer infrastructure [28]. 3.2.2 No REITs Issued in July 1 - 15, 2025 - From July 1 to 15, there was no REIT issuance. As of July 15, a total of 10 REITs have been issued in 2025, with a total fundraising of 1.79 billion yuan [29]. 3.2.3 Offline New - Share Subscription Yield of 2.54%, Two Initial Strategic Allocations Unlock with Attractive Returns - As of July 15, the combined offline income of 0.5/1 billion yuan of funds in 2025 is 1.269 million/2.5381 million yuan, with a yield of 2.54%. On July 2 and 9, the initial strategic allocations of China TBEA New Energy REIT and China Shenzhen International REIT were unlocked, with unlocking yields of 56.62% and 32.58% respectively [35]. 3.2.4 Ten REITs Initial Projects Are in Queue - As of July 15, there are currently 10 initial REIT projects in the queue. The exchange has newly accepted China Anbo Warehousing and Logistics REIT, and some projects have updated their status to "feedback received" [38]. 3.2.5 Six REITs' Expansion Projects Are in Queue, China Resources Commercial REIT Plans to Apply for Second Expansion - Currently, six REITs' expansion projects are in the queue. China Resources Commercial REIT announced on July 9 that it plans to apply for a second expansion, including the Hangzhou Xiaoshan Vientiane City project, the Shenyang Changbai Vientiane City project, and the Zibo Vientiane City project [39][40].