Group 1 - Paramount Group's stock price rose by 3.7% after reports of multiple bidders in the second round of sales [1] - Bidders include Vornado Realty (VNO.US), SL Green Realty (SLG.US), Empire State Realty Trust (ESRT.US), Blackstone (BX.US), DivcoWest, and Rithm Capital (RITM.US) [1] - Paramount Group initiated a strategic review in May to maximize shareholder value [1] Group 2 - Paramount Group is a real estate investment trust focused on owning, operating, managing, acquiring, and redeveloping high-quality Class A office properties in central business districts of New York City and San Francisco [1] - The company's stock has increased by 40% year-to-date [1]

Core Viewpoint - The public REITs market in China has achieved a significant milestone with the approval of the first foreign-funded consumer REIT, Huaxia CapitaLand Commercial REIT [1] Group 1: REIT Approval and Structure - Huaxia CapitaLand Commercial REIT was officially approved on August 27, allowing for a total fundraising of 400 million shares [1] - The primary original rights holder and operational management institution is CapitaLand Investment, with Huaxia Fund as the manager [1] Group 2: Asset Details - The REIT includes two initial assets: CapitaLand Plaza Yunshang in Guangzhou and CapitaLand Plaza Yuhua Pavilion in Changsha, with a total construction area of 168,405 square meters [1] - As of March 31, 2025, the overall occupancy rate is approximately 96% [1] Group 3: Strategic Investors and Management - Strategic investors CapitaLand Investment, CapitaLand China Trust, and CapitaLand Development will collectively hold at least 20% of Huaxia CapitaLand Commercial REIT [1] - CapitaLand Investment will continue to manage the operations of the two properties post-listing [1] Group 4: Asset Management and Future Growth - CapitaLand Investment manages over 40 high-quality retail properties across 18 cities in China, with an asset scale exceeding 80 billion [1] - The diverse asset categories include shopping centers, office buildings, hospitality, and logistics parks, providing a rich asset reserve for future expansion of Huaxia CapitaLand Commercial REIT [1] - As an investment management branch of CapitaLand Group, CapitaLand Investment can leverage the group's development capabilities and asset reserves for broader future growth opportunities [1]

Core Viewpoint - The approval of the first foreign-funded consumer REIT, Huaxia CapitaLand Commercial REIT, marks a significant breakthrough in China's public REITs market, indicating a move towards internationalization and diversification [1] Group 1: Market Overview - Huaxia CapitaLand Commercial REIT has received a total fundraising approval of 400 million units, with the original rights holder and management being CapitaLand, a leading global real estate asset management company based in Asia [1] - The approval signifies a key step in the internationalization and diversification of China's public REITs market [1] Group 2: Asset Composition - The REIT includes two properties: CapitaLand Plaza Yunshang in Guangzhou and CapitaLand Plaza Yuhua in Changsha, with a total building area of 168,405 square meters and an overall occupancy rate of approximately 96% as of March 31, 2025 [4] - The projects focus on high-energy consumer markets in first and strong second-tier cities, providing a diversified asset portfolio that balances risk and complements advantages [4][7] Group 3: Property Details - CapitaLand Plaza Yunshang is located in Guangzhou's Baiyun New Town CBD, featuring a unique "double park" shopping center surrounded by residential and office buildings, making it a rare investment opportunity in a first-tier city [7] - CapitaLand Plaza Yuhua is situated in the core of Changsha's Yuhua District, serving as a mature community shopping center with convenient access to multiple subway lines, enhancing its appeal as a family-oriented lifestyle space [7] Group 4: Management Expertise - CapitaLand, as a strategic investor, will hold at least 20% of Huaxia CapitaLand Commercial REIT, continuing to manage the properties post-listing [11] - CapitaLand has over 23 years of REIT management experience and manages assets worth approximately 38 billion Singapore dollars, holding a significant market share in Singapore's REITs [11] Group 5: Future Outlook - CapitaLand manages over 40 quality retail properties across 18 cities in China, with an asset scale exceeding 80 billion RMB, providing a robust asset reserve for future fundraising [15] - The rise of consumer REITs in China is driven by a shift from "scale growth" to "quality improvement," supported by policy incentives and market recognition, positioning Huaxia CapitaLand Commercial REIT for long-term growth [18]

Core Viewpoint - The REITs market has stabilized after a two-month correction, with a recent increase of 1.75% over the last five trading days, indicating a potential rebound and new highs by year-end [1][2]. Short-term and Long-term Factors - Three short-term negative factors affecting the REITs market (outflow of trading funds, concentrated unlocks, and institutional profit-taking at mid-year) are nearing exhaustion [1][2]. - Three long-term positive factors remain unchanged: a supply-demand imbalance expected in the next 2-3 years, the attractive asset characteristics amid asset scarcity, and the cyclical resilience of quality assets [1][2]. Market Dynamics - The dynamic distribution of property REITs has increased to nearly 4%, suggesting an acceleration of entry for allocation-type funds, especially as many have missed opportunities earlier in the year [1][2]. - The market is anticipated to complete its bottoming process ahead of schedule in the third quarter, with a strong recovery expected in the fourth quarter as trading funds re-enter [2]. Recommended Sectors - Recommended sectors include: 1. Stable anti-cyclical varieties such as policy-based rental housing and municipal environmental protection [3]. 2. Assets with marginal recovery in demand, including scattered rental logistics in the Yangtze River Delta and highways with sustained traffic recovery [3]. 3. Targets with strong demands for original equity expansion and high-quality reserve assets [3].

Group 1: Report's Investment Rating - No information about the industry investment rating is provided in the report. Group 2: Core Views of the Report - Since the end of June 2025, the REITs secondary - market heat has cooled, but the primary - market sentiment remains strong, showing eight characteristics: supply slowdown, asset diversification, low subscription ratio, high post - listing gains, difficulty in obtaining strategic allocation, no offline lock - up period, narrowing regulatory valuation reduction, and opening of the upper limit of the inquiry range. Primary projects still have relative cost - effectiveness, the subscription ratio is expected to remain low, post - listing gains may decline, and new - issue strategy should focus on fundamentals, while new assets may have a certain premium [1]. - The primary issuance speed has slowed down, asset types are becoming more diverse, REITs are scarce, the subscription ratio is low, and post - listing gains are significant. However, the valuation reduction amplitude in the exchange's feedback response draft has narrowed, the inquiry range has widened, and the subscription price is close to the upper limit. It is expected that the post - listing gains will narrow, and new - issue returns will show a convergence trend [2]. Group 3: Summary by Relevant Catalogs I. Eight Characteristics of 2025 Public Offering REITs Primary Issuance 1. Primary issuance speed slows down - China's public offering REITs pilot officially started in 2020, and a "first - issuance + expansion" mechanism has been gradually established. In 2025, from January to August, 15 public offering REITs were listed, with a total of 29.884 billion yuan, and 2 expansion projects were completed, with 2.669 billion yuan. The overall issuance progress is slower than that of 2024 [10][11]. 2. Asset types become more diverse - The current underlying assets involve eight categories: municipal environmental protection, affordable rental housing, warehousing and logistics, industrial parks, highways, energy, consumption, and data centers. In August 2025, two new data center REITs were listed, further enriching the underlying asset types [14]. 3. Low subscription ratio - From 2021 - 2025, the average offline effective subscription ratios were 12.27%, 1.26%, 43.92%, 42.86%, and 0.85% respectively, and the average public effective subscription ratios were 5.50%, 1.07%, 37.96%, 35.43%, and 0.19% respectively. The low subscription ratio is related to market conditions and the scarcity of REITs [15]. 4. High post - listing gains - Due to the significant price difference between the primary and secondary markets, the post - listing gains of REITs are considerable. In 2025, the average first - day listing gain is 26.86%, and the average first - 5 - day gain is 33.63%. The high - gain situation on the first day further reduces the subscription ratio [16]. 5. Active strategic allocation, extended lock - up period, and active participation of securities firms' proprietary business - It is difficult to obtain strategic allocation quotas, and the lock - up period has been extended from 1 year to 2 - 3 years. Securities firms' proprietary business participates actively, followed by fund special accounts and insurance funds. Insurance and industrial capital are more cautious about the extended lock - up period. By underlying asset type, insurance funds participate more in the strategic allocation of affordable rental housing, warehousing and logistics, and data centers [21][23]. 6. Removal of the offline partial lock - up period, and insurance funds become the largest offline institutional investors - Recently, 9 newly listed REITs have cancelled the offline partial lock - up period, and Southern SF REIT has adjusted the trading share ratio limit to 50%. In 2025, insurance funds (7.48% of the total share) have surpassed securities firms' proprietary business (4.49%) to become the largest institutional investors [29]. 7. Narrowing of the valuation reduction amplitude in the exchange's feedback response draft - In 2025, the median REITs valuation adjustment is about - 6.04%, a 4.81 - percentage - point recovery compared to 2024. The valuation reduction amplitudes of most industries such as industrial parks, energy, and consumption have narrowed [33]. 8. Opening of the upper and lower limits of the inquiry range, and the subscription price is close to the upper limit - In June 2025, under regulatory guidance, the upper limit of the inquiry range for newly issued REITs was raised to 25%. The average width of the inquiry range in 2025 for 4 projects after Huadian Clean Energy is significantly widened to over 50%, and the subscription price is mostly above 90% of the inquiry range [38]. II. Public Offering REITs New - Issue Return Calculation - New - issue returns are calculated as: subscription ratio * post - listing gains - capital cost. Historically, the absolute value of offline new - issue returns mostly does not exceed 0.5%. In 2025, the average offline new - issue return is 0.25%, and the average public new - issue return is only 0.05%. Public new - issue returns are mostly lower than offline ones, mainly due to lower public subscription ratios, more capital occupation costs, fewer allocated shares, and a 0.4% subscription fee [4][50]. III. Future Opportunities in the Primary Market - It is expected that the market size will reach 250 billion yuan by the end of this year. Primary projects still have cost - effectiveness compared to secondary ones. New - issue returns are expected to show a convergence trend. Future primary new - issue participation should focus more on asset fundamentals, especially for public investors. New asset types may have a certain valuation premium and can be focused on [5][53][54].

Core Viewpoint - The report from CMB International slightly raises the target price for Link REIT (00823) to HKD 49.8 while maintaining a "Buy" rating, citing potential interest rate cuts and inclusion in the Stock Connect as key catalysts in the next 12 months [1] Group 1: Target Price and Ratings - CMB International has adjusted the target price for Link REIT to HKD 49.8, reflecting a slight increase due to anticipated interest rate and discount rate reductions [1] - The firm maintains a "Buy" rating on Link REIT, indicating confidence in the stock's performance [1] Group 2: Financial Projections - The company has slightly lowered its per unit distribution forecasts for the fiscal years 2026 and 2027 by approximately 1.5% and 2.9% respectively, while introducing projections for fiscal year 2028 [1] - The latest operational data shows a year-on-year decline of 0.8% in sales for Hong Kong retail properties in Q1 of fiscal year 2026, which is slightly below the overall market growth of 0.4% [1] Group 3: Market Conditions and Performance - The decline in sales is attributed to the impact of e-commerce free shipping services on non-essential goods transactions [1] - Despite the sales decline, Link REIT maintains a high retail property occupancy rate of 97.6% and an office building occupancy rate of 99.2% [1] - The company anticipates a negative single-digit percentage for the renewal rent adjustment rate, which may lead to a slight decrease in revenue for fiscal year 2026 [1] Group 4: Financing Costs - The company expects recent declines in HIBOR/SORA/BBSY to help reduce financing costs [1]

Core Viewpoint - The report from CMB International slightly raises the target price for Link REIT (00823) to HKD 49.8, maintaining a "Buy" rating, citing potential interest rate cuts and inclusion in the Stock Connect as key catalysts in the next 12 months [1] Group 1: Target Price and Ratings - CMB International has adjusted the target price for Link REIT to HKD 49.8, reflecting a slight increase due to anticipated interest rate and discount rate reductions [1] - The firm maintains a "Buy" rating on Link REIT, indicating confidence in the stock's performance [1] Group 2: Financial Projections - The company has slightly reduced its per unit dividend forecasts for FY2026 and FY2027 by approximately 1.5% and 2.9% respectively, while introducing projections for FY2028 [1] - The anticipated decline in HIBOR/SORA/BBSY is expected to help lower financing costs for the company [1] Group 3: Operational Performance - Link REIT's latest operational data shows a 0.8% year-on-year decline in sales for its Hong Kong retail property portfolio in Q1 FY2026, which is slightly below the overall market growth of 0.4% [1] - The high occupancy rates remain strong, with retail properties at 97.6% and office buildings at 99.2% [1] - The company forecasts a negative single-digit adjustment rate for renewal rents, which may lead to a slight decline in revenue for FY2026 [1]

Report Industry Investment Rating No information about the report industry investment rating is provided in the content. Core Viewpoints of the Report - This week, the REITs market showed a pattern of first declining and then rising, with an overall decline. The liquidity improved significantly, but the main funds turned into a net outflow. The first high - speed REIT of the year was declared and accepted. The issuance scale of REITs this year increased year - on - year [5]. - The CSI REITs Total Return Index fell this week, underperforming the Shanghai and Shenzhen 300 and CSI Dividend Indexes. Different asset - type REITs had different performance, and the data center, transportation, energy, and warehousing logistics sectors performed better [5]. Summary According to the Directory 1. Primary Market: Two First - Issue Public REITs Made New Progress - As of August 15, 2025, 15 REITs have been successfully issued this year, with a total issuance scale of 31.35 billion yuan, a year - on - year increase of 2.9%. This week, two first - issue public REITs made new progress: the ChinaAMC Vipshop Outlet Mall REIT completed its fundraising, with an expected fundraising of 3.48 billion yuan; the Huaxia Jiaotou Chutian Expressway REIT was declared on August 18 and accepted on August 22 [5]. - The underlying assets of the Huaxia Jiaotou Chutian Expressway REIT are the toll rights and ancillary facilities of the main line of the Macheng - Xishui section of the Daqing - Guangzhou Expressway in Hubei Province, with a toll - collection mileage of 147.1 kilometers. The original equity holders are Chutian Expressway (listed on the A - share market) and Hubei Communications Investment Construction Group [5]. - In the current approval process, there are 10 first - issue REITs that have been declared, 2 that have been questioned and responded, 1 that has passed the review, and 1 that has been registered and is awaiting listing. For the expansion and issuance, 9 have been declared, 7 have been questioned and responded, and 6 have passed the review [5]. 2. Secondary Market: The Index Accelerated Its Decline and Then Had a Slight Recovery This Week 2.1 Market Review: The CSI REITs Total Return Index Fell by 1.74% - This week, the CSI REITs Total Return Index (932047.CSI) closed at 1062.06 points, a decline of 1.74%, underperforming the Shanghai and Shenzhen 300 by 5.92 percentage points and the CSI Dividend by 2.57 percentage points. The year - to - date increase of the CSI REITs Total Return Index is 9.73%, underperforming the Shanghai and Shenzhen 300/CSI Dividend by 1.53/9.41 percentage points [5]. - By project attribute, property - type REITs fell 2.03%, and concession - type REITs fell 1.13%. By asset type, the data center (- 0.96%), transportation (- 1.03%), energy (- 1.06%), and warehousing logistics (- 1.23%) sectors performed better. Among individual bonds, 9 rose and 64 fell this week [5]. 2.2 Liquidity: Both the Turnover Rate and Trading Volume Increased - The average daily turnover rates of property - type and concession - type REITs this week were 0.85% and 0.56% respectively, an increase of 17.88 and 3.64 basis points compared with last week. The trading volumes during the week were 706 million and 154 million shares respectively, a week - on - week increase of 29.48% and 6.99%. The data center sector had the highest activity [5]. 2.3 Valuation: The Valuation of the Affordable Housing Sector Is Relatively High - From the perspective of the ChinaBond valuation yield, the yields of property - type and concession - type REITs are 3.88% and 3.81% respectively. The warehousing logistics (5.32%), transportation (4.62%), and park (4.34%) sectors rank among the top three [5]. 3. This Week's News and Important Announcements - On August 15, 2025, Linyuan Investment subscribed to the public REITs market for the first time. A number of private funds under Linyuan Investment participated in the offline subscription of the ChinaAMC Vipshop Outlet Mall REIT, with a total subscription amount of nearly 80 million yuan [38]. - On August 15, 2025, the first private - owned private - placement consumer REIT, the Guojin Asset Management - Wuyue Square Hold - type Real Estate Asset - Backed Special Plan, was officially approved, with an issuance scale of 1.064 billion yuan [38]. - There are also announcements such as the lifting of strategic placement share restrictions, operating data announcements, and expansion progress announcements for multiple REITs [39][40].

Investment Highlights - The new VPH REIT (508082.SH) is based on the Ningbo Shanjing Outlet, with an asset value of CNY 2.901 billion[2] - The outlet has a commercial area of 83,300 square meters and a high occupancy rate of 99.91% expected by the end of 2024[2] Issuance and Valuation - The REIT will issue 1 billion units, with allocations of 70% for strategic placement, 21% for offline, and 9% for public[3] - The initial IRR is projected at 7.75%, with expected distributable amounts of CNY 151 million and CNY 164 million for the next two years[3] - The issuance price is set at CNY 3.48, with a P/NAV of 1.20 times and a corresponding P/FFO of 23.05 times[3] Market Comparison and Target Price - The average P/NAV for comparable REITs is 1.41 times, with a median P/FFO of 25.02 times and a TTM dividend yield of 3.69%[4] - The target price for VPH REIT is estimated between CNY 4.58 and CNY 5.46, representing a potential increase of 32% to 57% from the issuance price[4] Risk Factors - Risks include consumer downturns, increased competition, operational inefficiencies, and potential declines in market valuations[5]

Core Viewpoint - Hong Kong-listed REITs, represented by Link REIT, are expected to become important investment targets for domestic investors seeking stable cash flow and optimized asset allocation due to their inclusion in the Stock Connect program [2][10][15] Group 1: Market Context - The global financial market is transitioning into a low-interest-rate environment, with the US 10-year Treasury yield around 4% and Hong Kong banks offering deposit rates between 1%-2% [2] - Domestic REITs have seen rapid growth, with 73 public REITs listed as of August 14, totaling approximately 200 billion RMB, surpassing those in Hong Kong, Singapore, and Japan, making it the largest market in Asia [2] Group 2: Investment Highlights of H-REITs - H-REITs provide stable dividend yields ranging from 6% to 9%, significantly higher than traditional low-risk investment products [3][4] - These funds are required to distribute at least 90% of their annual income to unit holders, ensuring consistent cash flow [6] - H-REITs offer high liquidity as they are publicly traded, allowing investors to buy and sell like stocks [6] - They possess natural risk diversification by investing in a variety of properties, reducing concentration risk [6] - H-REITs have good inflation-hedging properties, as real estate values and rental incomes typically rise with inflation [6] Group 3: Link REIT's Performance and Strategy - Link REIT has a property portfolio valued at 226 billion HKD, including retail, parking, office, and logistics properties, with a strong management system developed over 20 years [8] - The REIT has maintained a high occupancy rate of 97.8% in its Hong Kong properties, despite challenges in the retail sector [12] - Link REIT has consistently distributed 100% of its distributable income as dividends, achieving an annualized return rate of nearly 11% and a total distributable amount growth rate of 7.1% [9] Group 4: Policy and Market Expansion - The inclusion of H-REITs in the Stock Connect program is seen as a significant milestone, enhancing market connectivity between mainland China and Hong Kong [10] - This policy is expected to attract long-term capital from index funds, ETFs, and pension funds, increasing market activity and liquidity [11] - The launch of new products, such as the Southbound Asia Pacific REITs ETF, indicates growing investor interest in REIT assets [11] Group 5: Future Outlook - The ongoing low-interest-rate environment presents dual opportunities for H-REITs, enhancing both their financing conditions and the capital appreciation potential of quality rental assets [9][10]