Core Viewpoint - Yuexiu Real Estate Investment Trust (Yuexiu REIT) is seeking to optimize its financial statements by selling a 50% stake in Yuexiu Financial Tower to its affiliate, Guangzhou Yuexiu Development Group, for approximately 3.433 billion yuan, with the proceeds aimed at debt repayment [1][2]. Group 1: Financial Restructuring - The transaction will involve two phases: first, transferring 50% of the Yuexiu Financial Tower project company to an affiliate, followed by transferring the remaining 50% to a non-wholly-owned subsidiary of Yuexiu REIT [2]. - The net proceeds from the sale, after deducting related costs, are expected to be around 2.3 billion yuan, combined with a bank financing of 3 billion yuan, totaling 5.3 billion yuan for debt repayment [2]. - Post-transaction, the debt ratio is projected to decrease from 48.1% to approximately 41.2%, enhancing the financial resilience and long-term competitiveness of Yuexiu REIT [2][5]. Group 2: Performance Impact - Yuexiu Financial Tower has contributed diminishing returns, with revenue of 362 million yuan in 2024 and 165 million yuan in the first half of 2025, alongside declining occupancy rates [3]. - The sale is expected to result in a loss of approximately 165 million yuan due to the sale price being lower than the project's net asset value, but it is viewed as a necessary step for balance sheet restructuring [3][4]. - The overall revenue for Yuexiu REIT in the first half of the year was 966 million yuan, a decrease of 6.6% year-on-year, with a net loss of 337 million yuan primarily due to property value impairment [4]. Group 3: Strategic Outlook - The sale of Yuexiu Financial Tower is seen as a "debt reduction" strategy, allowing Yuexiu REIT to improve its financial metrics and investor confidence [5]. - The proportion of income from office properties is expected to decrease from 55% to 46%, which may enhance the ability to withstand market fluctuations [5]. - The transaction is anticipated to improve external credit ratings, facilitating access to diversified financing channels in the future [5].

Group 1 - The first foreign-funded consumer REIT, Huaxia CapitaLand Commercial REIT, will be officially launched for sale from September 9 to September 10, 2025, with a total fundraising target of 2.2872 billion yuan [1] - The underlying assets of the REIT are two shopping centers located in Guangzhou and Changsha, which have been operating for over nine years and have a solid business foundation [1][2] - The offline inquiry phase received a total of 2,842,563,000 shares in subscription requests, which is 254.50 times the initial offline issuance amount, indicating strong recognition of the investment value by professional investors [1] Group 2 - The REIT is backed by a strong management team, with CapitaLand being the largest REIT manager in the Asia-Pacific region and having extensive experience in consumer asset management [2] - As of June 30, 2025, CapitaLand manages over 40 high-quality retail properties across 18 cities in China, with an asset scale exceeding 80 billion yuan [2] - The consumer REITs are gaining attention in the capital market due to their strong anti-cyclical capabilities and stable dividend characteristics, becoming an important tool for asset allocation among residents [3] Group 3 - The successful issuance of Huaxia CapitaLand Commercial REIT not only provides investors with a new quality investment target but also serves as a replicable and scalable example of commercial asset securitization in China's public REITs market [3] - The introduction of international standards in commercial operations and REIT management systems is expected to inject professional concepts and long-term capital into China's consumer market [3]

Group 1 - The first foreign consumer REIT, Huaxia CapitaLand Commercial REIT, will be officially launched for sale from September 9 to September 10, 2025, with a price of 5.718 yuan per share and a total fundraising target of 2.2872 billion yuan [1] - The public offering will consist of 47.868 million shares, with a minimum subscription amount of 1,000 yuan, including subscription fees [1] - The underlying assets for the initial offering are two shopping centers located in Guangzhou and Changsha, which have been operational for over nine years and feature a diverse range of brands [1] Group 2 - The market is paying significant attention to Huaxia CapitaLand Commercial REIT due to its status as the first foreign consumer REIT, along with its high-quality underlying assets and professional management team [2] - CapitaLand Investment manages over 40 high-quality retail properties across 18 cities in China, with an asset scale exceeding 80 billion yuan as of June 30, 2025, providing a solid foundation for future fundraising [2] - During the offline inquiry phase, Huaxia CapitaLand Commercial REIT received inquiries from 144 offline investors, with a total proposed subscription amount of 2,842,563 million shares, which is 254.50 times the initial offline offering amount [1][2]

1. Report Industry Investment Rating There is no information about the industry investment rating in the report. 2. Core Viewpoints of the Report - In August 2025, the public REITs market was under overall pressure due to factors such as the capital diversion effect caused by the high - sentiment stock market, the rise of the risk - free interest rate, the previous excessive increase, and the unlocking impact of some projects. The CSI REITs index fell by 2.86% in a single month, and the decline was larger than that in July. However, it showed a trend of stopping the decline and stabilizing recently [4]. - The valuation of REITs has回调 to the 60% - 65% quantile, and the difference between the property - type REITs and the dividend yield is at the 70% quantile. The institutional scramble led to the subscription multiple reaching the second - highest in history, and the safety cushion for the initial dividend of the newly issued REITs was still thick. The offline subscription yield in 2025 has reached 3.34%. The brokerage control degree has reached 50%, and the insurance holdings have declined. The valuation of the to - be - issued industrial park projects still shows a large discount [4]. 3. Summary According to the Directory 3.1 REITs Market Adjustment Intensifies, and the Dividend Yield Difference Remains High - **Market Performance**: In August, the A - share market rose with high elasticity, while the bond market saw a significant increase in the 10 - year Treasury yield. Affected by this, the REITs market adjustment intensified, with an 8 - month cumulative decline of 2.86% [13]. - **Sector Performance**: All types of REITs indexes declined in August. The rental - housing REITs, as long - duration assets, led the decline (-5.69%), followed by the consumer - type REITs (-3.02%), and the warehousing and logistics REITs had the shallowest decline (-0.44%). After the sharp adjustment, all types of assets showed a trend of stopping the decline and rising, with the consumer - type index rising by 3.8% from August 20th to 31st [4][18]. - **Trading Activity**: The average daily turnover rate of Shanghai and Shenzhen REITs in August was 0.55%, slightly down 0.01 percentage points from July. The turnover rate performance of various types of REITs was differentiated. From August 20th to 31st, the daily turnover rates of rental - housing and public utilities REITs increased significantly [24]. - **Dividend Yield**: The property - type REITs' dividend yield difference compared with the dividend is at the 70% historical quantile, and the difference compared with the Treasury yield is at the 42% quantile. Except for the industrial park REITs, the dividend yield quantiles of other types of REITs have increased [25][27]. - **Valuation**: The valuations of property and concession - type REITs have回调 to the 60% - 65% quantile. The P/NAV of rental - housing REITs has the largest adjustment, and the current low - valuation sectors include industrial parks (48%), transportation (60%), and rental - housing (65%) [28][29]. - **IRR**: The IRR of property - type REITs has increased, while that of concession - type REITs has decreased. Only the industrial park REITs' IRR is above the 50% quantile [30][33]. 3.2 Institutions' Scramble Pushes up the Pricing Level, and New Assets Are Actively Traded in the Initial Listing Period - **New Issuance**: In August, only the CICC Vipshop Outlet Mall REIT was issued, with an offline effective subscription multiple of 252.8 times, reaching the second - highest in history. Three REITs were listed in August, and two IDC REITs reached the daily limit on the first day of listing [4][61]. - **Pricing**: Since 2025, the lower limit of the inquiry price has continued to decline. Institutions tend to bid close to the upper limit, and the profit - sharing margin has almost disappeared. The initial dividend safety cushion of similar REITs has thickened [53][54]. - **Subscription and Allocation**: In the context of concentrated institutional quotations, the average offline subscription success rate in July - August 2025 was about 99%. The average offline allocation ratio has been continuously lower than 2% since 2025, and the offline allocation ratio of the CICC Vipshop Outlet Mall REIT in August was only 0.4% [59]. - **Return**: The first - day increase has expanded, and the offline subscription yield as of 2025 has reached 3.34% [60]. 3.3 Brokerage Control Degree Has Reached 50%, and Insurance Holdings Have Declined - **Mid - year Report**: As of August 31st, 66 public REITs released their 2025 mid - year reports. In the second half of August, 14 REITs announced dividend plans, and 3 rental - housing REITs were unlocked on September 1st [65]. - **Holder Structure**: In terms of the total share, the shareholding ratio of the original equity holders and related parties has increased to 50%, the shareholding ratio of securities companies has slightly increased to 25%, and the shareholding ratio of insurance companies has slightly decreased to 10%. In terms of the tradable share, the shareholding ratio of securities companies has increased to 50%, while that of insurance companies has decreased to less than 20% [72]. - **Sector Allocation**: The whole market increased its holdings of consumer - type REITs the most, and decreased its holdings of public - utility REITs the most. Securities companies increased their holdings of transportation and industrial park REITs the most and decreased their holdings of public - utility REITs the most. Insurance companies increased their holdings of consumer - type REITs the most and decreased their holdings of industrial park REITs the most [75]. 3.4 The Valuation of In - Review Industrial Park and Energy - Type Projects Has a Large Decline, and Chengtou Kuanting Plans to Apply for Expansion - **Queuing Projects**: As of August 31st, the CICC Vipshop Outlet Mall REIT has issued a fund share inquiry announcement. Two expansion projects have been registered and are effective, and there are 10 initial issuance projects and 3 expansion projects under review [80]. - **Valuation Update**: In August 2025, the valuations of 5 projects were updated. The valuations of the Guotai Junan Dongjiu Industrial Park REIT (expansion) and the CITIC Construction Investment Shenyang Software Park REIT (initial issuance) decreased by more than 10 percentage points compared with the application draft, and the asset valuation of the AVIC Jingneng Photovoltaic REIT (expansion) also decreased by 11 percentage points [81]. - **Tendering and Application Updates**: In August 2025, there were 5 updates on public REITs tendering information. The listed Guotai Junan Chengtou Kuanting Rental - Housing REIT plans to purchase two assets, and the Three Gorges New Energy Dalian Power Generation Co., Ltd. plans to issue public REITs for its Dalian Zhuanghe III Offshore Wind Power Project [85].

Core Viewpoint - The approval of the first foreign-funded consumer REIT in China, 华夏凯德商业REIT, marks a significant development in the domestic real estate investment trust market, indicating increased foreign investment interest in China's real estate sector [1][2][3]. Group 1: Company Overview - 华夏凯德商业REIT has received registration approval from the China Securities Regulatory Commission, with its original rights holders including CAPITALAND MALL ASIA LIMITED and several management companies [3][4]. - The REIT will initially include two shopping center assets located in Guangzhou and Changsha, making it the first foreign consumer-type public REIT in China [5][6]. - 凯德投资, headquartered in Singapore, is a major player in the REIT market, having launched its first REIT in Singapore and managing assets worth approximately 117 billion Singapore dollars as of August 2025 [4][5]. Group 2: Asset Management and Expansion - The initial asset pool for 华夏凯德商业REIT consists of two shopping centers, with plans for future expansion as 凯德商用 holds a substantial portfolio of infrastructure assets in China, valued at over 800 billion yuan [7][9]. - The company has a total of 35 potential assets for future expansion, covering over 3 million square meters, with an average operational history of over 11 years and stable occupancy rates above 80% [7][8]. - 凯德商用 operates in 18 cities, with 50% of its managed projects located in first-tier cities, indicating a strong market presence [7][9]. Group 3: Market Trends and Foreign Investment - The entry of international asset management firms into the Chinese REIT market, including 安博 and 汉斯集团, reflects a growing trend of foreign investment in China's real estate sector [10][11]. - The establishment of a 30 billion yuan private real estate equity investment fund by 施罗德资本 and 西子国际 focuses on high-quality office buildings and consumer infrastructure in key cities, highlighting the increasing interest in China's real estate opportunities [14]. - The Chinese consumer REIT market is undergoing a transformation from "scale growth" to "quality improvement," driven by consumption upgrades and capital market reforms, positioning it as a key tool for revitalizing existing assets and promoting domestic demand [14].

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].