After a lackluster performance in 2025, my hopes were that U.S. residential REITs such as NexPoint Residential Trust, Inc. ( NXRT ) would finally stage a turnaround in 2026. Alas, despite a notable decline in 10-year U.S. treasuryI ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash ...

Albert Anthony is the pen name of a Croatian-American business author who is a contributing analyst on investor platform & financial media site Seeking Alpha, where he has over +1,000 followers, & also has written for platforms like Investing dot com. He is the author of a new book on Amazon called Investing in REITs: A Fundamental & Technical Analysis (2026 Edition).The author's career focus as a business & information systems analyst also included the IT department at top 10 financial firm Charles Schwab, ...

Core Insights - The article discusses the author's long-term investment approach, focusing on REITs, preferred stocks, and high-yield bonds, which began in high school in 2011 [1] - The author has recently combined long stock positions with covered calls and cash secured puts, indicating a strategic evolution in investment tactics [1] - The primary focus of the author's analysis on Seeking Alpha is on REITs and financials, with occasional insights into ETFs and other stocks influenced by macroeconomic trends [1] Investment Strategy - The investment strategy is fundamentally driven, emphasizing a long-term perspective rather than short-term gains [1] - The author employs a combination of long positions and options strategies, showcasing a sophisticated approach to risk management and potential income generation [1] Coverage Focus - The author primarily covers REITs and financial sectors, suggesting a specialization that may provide deeper insights into these areas [1] - Occasional articles on ETFs and macro-driven stocks indicate a broader interest in market trends and their implications for various investment vehicles [1]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The secondary - market prices of publicly - offered REITs in China continued the downward trend in December 2025. The performance of REITs was weaker compared to other mainstream asset classes. The primary market had new product applications and acceptances, and the policy environment was optimized with the expansion of the REITs issuance scope and the introduction of relevant development promotion policies [1][2][40] 3. Summary by Directory 3.1 Primary Market 3.1.1 Listed Projects - As of December 31, 2025, there were 78 publicly - offered REITs in China, with a total issuance scale of 201.749 billion yuan (excluding expansion). The traffic infrastructure category had the largest issuance scale at 68.771 billion yuan, followed by the park infrastructure category at 32.933 billion yuan. In December 2025, one new REIT, Huaxia Anbo Warehouse REIT, was listed, with an issuance scale of 2.448 billion yuan and an asset type of warehousing and logistics [11]. 3.1.2 Pending - Listing Projects - As of December 31, 2025, there were 19 REITs pending listing, including 16 initial - offering REITs and 3 REITs pending expansion. During the month, the project status of several REITs was updated, such as "accepted", "feedback received", "declared", and "approved" [14]. 3.2 Secondary - Market Performance 3.2.1 Price Trends - **At the level of major asset classes**: In December 2025, the secondary - market prices of publicly - offered REITs continued the downward trend. The returns of China's publicly - offered REITs were - 2.51%, ranking behind A - shares, convertible bonds, gold, pure bonds, and US stocks, and ahead of crude oil [16]. - **At the underlying asset level**: Both equity - type and franchise - type REITs' prices declined, with franchise - type REITs having a larger decline. Among different underlying asset types, new infrastructure - type REITs had the largest increase, and new infrastructure and affordable housing - type REITs had better returns at 1.24% and 0.05% respectively [20][22]. - **At the single - REIT level**: In December 2025, 23 REITs rose and 55 fell. The top three in terms of increase were Huatai Nanjing Jianye REIT, CICC Chongqing Liangjiang REIT, and Huaxia Fund China Resources Youchao REIT [24]. 3.2.2 Trading Volume and Turnover Rate - **At the underlying asset level**: In December 2025, the trading volume of publicly - offered REITs decreased compared to the previous month. The water conservancy facilities - type REITs had the highest average daily turnover rate. The top three in terms of trading volume were traffic infrastructure, consumer infrastructure, and park infrastructure categories. The top three in terms of average daily turnover rate were water conservancy facilities, municipal facilities, and new infrastructure categories [26]. - **At the single - REIT level**: The trading volume and turnover rate of single REITs continued to show differentiation. The top three in terms of trading volume were CICC Puluosi REIT, Huaxia China Communications Construction REIT, and Huaxia Fund China Resources Youchao REIT. The top three in terms of trading amount were Huaxia China Resources Commercial REIT, Huaxia China Communications Construction REIT, and Zheshang HuHangYong REIT. The top three in terms of turnover rate were Huaxia Anbo Warehouse REIT, CITIC Construction Shenyang International Software Park REIT, and ICBC Inner Mongolia Energy Clean Energy REIT [27]. 3.2.3 Main - Force Net Inflow and Block Trading - **Main - force net inflow situation**: In December 2025, the total main - force net inflow was 119.71 million yuan, indicating an increase in market trading enthusiasm compared to the previous month. The top three underlying asset types in terms of main - force net inflow were traffic infrastructure, consumer infrastructure, and warehousing and logistics. The top three single REITs in terms of main - force net inflow were Huaxia China Resources Commercial REIT, Huaxia Anbo Warehouse REIT, and China Merchants Expressway REIT [30]. - **Block trading situation**: In December 2025, the total block - trading amount was 1.29 billion yuan, a decrease compared to the previous month. There were block trades on 19 trading days. December 29 had the highest single - day block - trading amount. The top three single REITs in terms of block - trading amount were Huaxia Shouchuang Outlet Mall REIT, China Merchants Expressway REIT, and Southern Runze Technology Data Center REIT [35]. 3.3 Related Policies - On December 1, the National Development and Reform Commission issued the "List of Industry Scope for Infrastructure Real Estate Investment Trust Fund (REITs) Projects (2025 Edition)", expanding the issuance scope of infrastructure REITs to 15 industries, mainly adding commercial office facilities and urban renewal facilities. On December 31, the China Securities Regulatory Commission issued the "Notice on Promoting the High - Quality Development of the Real Estate Investment Trust Fund (REITs) Market" and the "Announcement on Launching the Pilot Program of Commercial Real Estate Investment Trust Funds". The Shanghai and Shenzhen Stock Exchanges also revised and issued the business rules for publicly - offered REITs [40].

Group 1 - The FIFA World Cup in 2026 will provide a significant boost to hotel REITs, particularly RLJ Lodging Trust [1] - RLJ Lodging Trust's presentation in December 2025 emphasizes the positive impact of the World Cup on its business [1] Group 2 - The author has a long position in RLJ shares, indicating confidence in the company's future performance [2] - The article reflects the author's personal opinions and is not influenced by external compensation [2]

Core Insights - The REIT sector has experienced significant underperformance, particularly since the Federal Reserve began raising interest rates in March 2022, with a 70% underperformance compared to the S&P 500 [6] - Despite the underperformance, the fundamentals of many REITs remain solid, with opportunities particularly in small and mid-cap REITs [7][9] - The current interest rate environment is creating volatility, which can present investment opportunities [10] REIT Performance and Fundamentals - REITs have been trading at discounts to net asset value, with many companies exploring mergers or liquidation to unlock value [26][28] - Over two-thirds of REITs have raised their earnings guidance for 2025, and more than a third have increased their dividends this year [12][13] - The average REIT dividend yield is around 4%, but when considering smaller and mid-cap REITs, the yield can be closer to 6% [24] Dividend Insights - Many REITs are retaining cash to find the right investment opportunities rather than aggressively raising dividends [30] - Companies like Simon Property Group and Welltower have shown strong dividend growth, while others like Alexandria are facing challenges [32][37] - The focus on internal and external growth is crucial for predicting dividend increases [34] Sector-Specific Insights - Senior housing and data center REITs are expected to perform well, while sectors like lab space and cold storage are facing challenges [39][44] - Retail REITs are adapting by enhancing experiential offerings to attract customers, with grocery-anchored centers performing particularly well [50][56] - The office space sector is evolving, with some companies managing to weather the storm better than others [61][66] ETF Insights - Hoya Capital offers two ETFs, HOMZ and RIET, focusing on housing and high-dividend REITs, respectively [67][73] - HOMZ covers a broad range of housing-related investments, while RIET targets small and mid-cap REITs with attractive yields [69][73] Misconceptions about REITs - There is a common misconception that REITs are highly sensitive to interest rates; however, their performance is more closely tied to the underlying properties and tenant demand [16][82] - REITs provide transparency and allow investors to observe property performance directly, which is a significant advantage over other asset classes [76][84]