Group 1 - Prologis China achieved a total revenue of 4.224 billion yuan in the first half of 2025, representing a 10% increase compared to the same period last year [1] - The operating EBITDA reached 2.027 billion yuan, showing an increase of over 20% year-on-year [1]

Core Insights - The Southeast Asian e-commerce market is rapidly growing, with Singapore emerging as a key entry point for major platforms like TikTok Shop, Lazada, Temu, JD.com, and Taobao [1] - JD.com plans to establish a logistics Real Estate Investment Trust (REIT) in Singapore, with an estimated size exceeding $1 billion, marking a significant step in its international capital strategy [3][5] Group 1: JD.com's REIT Plans - JD Property, in collaboration with Partners Group and EZA Hill Property, aims to launch a REIT in Singapore with a scale of over $12 billion (approximately 12.8 billion SGD or 71.5 billion RMB) [3] - The REIT will include high-quality logistics parks, smart warehousing bases, and industrial parks owned by JD Property in the Asia-Pacific region [3][5] - The establishment of this REIT is expected to be completed by October this year, with a potential listing on the Singapore Exchange as early as next year [3][5] Group 2: Strategic Acquisitions and Expansion - Recently, JD Property and its partners acquired four logistics assets for approximately 3.06 million SGD (about 17 million RMB) from CapitaLand [5] - The companies plan to continue expanding their footprint in Southeast Asia by acquiring more industrial and logistics assets through the REIT [7] - JD Property has invested in over 40 logistics projects across eight countries, focusing on Southeast Asia, Europe, East Asia, and the Middle East [9] Group 3: Enhanced Logistics Capabilities - JD Logistics has accelerated its logistics expansion in Southeast Asia, establishing three new self-operated overseas warehouses in Malaysia and Vietnam, and launching two direct air freight routes from China [13] - The logistics services will be upgraded to cover seven Southeast Asian countries, improving cross-border fulfillment efficiency [13] - JD Logistics aims to provide comprehensive services, including B2B/B2C warehousing, shipping, and last-mile delivery, with capabilities for next-day delivery in multiple regions [15]

Core Insights - The logistics real estate sector has experienced fluctuations in investment activities from 2017 to 2024, with a total of 29 investment events, averaging 2-3 events per year. The peak year for investments was 2021, driven by the recovery of downstream port freight activities, which increased the attractiveness of related enterprises [1][2] - In 2024, a new wave of investment emerged, focusing on port logistics, comprehensive supply chain logistics, and international logistics warehousing [1] Investment Events Summary - Investment events involve various types of enterprises, including logistics service providers, online freight platforms, logistics facility suppliers, and property management service providers. The investment rounds include equity investments, mergers and acquisitions, and Series D funding [2] - Notable financing events include: - 运百物流 received a strategic investment of 2.84 million yuan on August 23, 2024 [4] - 亚太港口 secured a strategic investment of 267 million yuan on February 22, 2024 [4] - 万纬物流 received a strategic investment of 1.15 billion yuan on October 2, 2021 [5] Financing Rounds - Strategic investments are the primary financing round in the logistics real estate sector, accounting for 30% of all investment events, followed by Series A at 17%. There is an increasing trend in Series B to D funding rounds [6] Investment Entities - Private equity (PE) and venture capital (VC) firms account for 50% of the investment entities, indicating short-term profit opportunities in the sector. Industrial companies represent 28% of the investment entities, focusing on integrated supply chain investments [7] Investment Destinations - Investment destinations are concentrated in major cities such as Shanghai (28%), Guangdong (24%), and Jiangsu and Zhejiang (12% each). These regions are attractive due to strong project operational prospects, high order volumes, and mature logistics real estate development [8][11] Fund Management Scale - Various funds are actively investing in the logistics real estate sector, including 杭州嘉锐基金, 嘉实基金, and 顺丰产业基金. These funds are attracted by the long-term value of infrastructure and the synergy effects within the industry [12] Mergers and Acquisitions - Major mergers and acquisitions in the sector reflect vertical integration, such as 时代邻里 acquiring 科箭物业 and 京东 acquiring Chinese logistics assets. These moves aim to enhance operational specialization and scale in logistics real estate [16] Overall Summary - The logistics real estate sector is characterized by strategic financing aimed at expanding business operations and seeking new growth opportunities. The industry has a significant number of large-scale funds, with a focus on technology investments, and mergers are primarily aimed at vertical integration [17][19]

Core Viewpoint - The logistics service demand remains weak due to trade disputes and economic uncertainties, leading to downward pressure on rental prices for logistics properties [1][2]. Financial Performance - SF REIT reported a 0.2% year-on-year increase in distributable income for the first half of 2025, amounting to HKD 119.5 million, while the distribution per unit decreased by 10.9% to HKD 0.1311 [1]. - The payout ratio has decreased from 100% in mid-2024 to 90% in mid-2025 [1]. Rental Agreements and Adjustments - The rental agreements for properties in Tsing Yi, Foshan, and Wuhu, which account for approximately 59% of the total leasable area, will expire in the first half of 2026, followed by the lease for the Changsha property in the second half of 2026 [1]. - The management has renewed half of the leases expiring this year, with an average rental adjustment of -9.6% [2]. - The occupancy rate is expected to decline by 1.2 percentage points to 96.1% by June 30, 2025, due to one third-party tenant not renewing their lease [2]. Market Conditions - The overall economic uncertainty in Hong Kong and geopolitical factors have slowed the development of logistics suppliers, leading to a decrease in demand for rental spaces [2]. - The overall vacancy rate in the market has risen to over 10%, the highest in decades, due to reduced demand and increased supply [2]. Future Outlook - Approximately 9 million square feet of new logistics supply is expected in the next two years, which will continue to exert pressure on rental prices [3]. - The impact of the tariff war has slowed the growth of cross-border e-commerce clients in the Greater Bay Area, affecting future expansion plans [3]. - The company plans to continue monitoring logistics real estate investment opportunities, particularly in the Greater Bay Area, while acknowledging the volatility of the market and economic environment [3].

Core Insights - The logistics real estate industry is characterized by significant regional concentration in China, with upstream supply concentrated in coastal and central regions, while the development and operation segments are primarily located in the Yangtze River Delta, Pearl River Delta, and Beijing-Tianjin-Hebei regions [5] Industry Overview - Logistics real estate serves as a platform for modern logistics facilities, where developers invest in and construct specialized logistics infrastructure based on the needs of logistics enterprises [1] - The main operational activities in logistics real estate include site selection, land acquisition, development, management, and fund operations [1] Competitive Landscape - According to Michael Porter's value chain theory, logistics real estate companies must focus on developing core competencies in strategic segments of the value chain to maintain competitive advantages [2] Company Performance - In 2024, the performance of logistics real estate companies in China shows significant divergence, with Kerry Properties reporting revenue of 19.5 billion yuan and a gross margin of 32.8%, while R&F Properties faced a loss with a revenue of 18.77 billion yuan and a gross margin of -4.7% [7] - Other companies like Joy City maintained stable performance with a revenue of 35.79 billion yuan and a gross margin of 21.8% [7] Investment Trends - Kerry Properties has been divesting logistics assets, including the sale of warehouses in Hong Kong for 4.62 billion HKD in 2022, while R&F Properties has exited the logistics real estate sector by selling its entire stake in Guangzhou Airport Logistics Park to Blackstone for a total of 5.295 billion yuan [10] - SF Holding is actively expanding its logistics footprint, planning to list REITs and investing in multiple industrial parks [10] - Other companies like Transfar Zhilian and Nanshan Holdings are also expanding their logistics networks and pursuing REIT listings [10]

Core Insights - The logistics real estate industry in China is experiencing a phase of oversupply from 2020 to 2023, with an average annual supply of over 10 million square meters across 31 major cities, but is expected to return to rational development starting in 2024 [1][2] - New opportunities are emerging in the logistics real estate sector as demand for overseas warehousing and supply chain services increases due to the export of high-quality Chinese products [2][3] Industry Trends - The logistics real estate sector is beginning to stabilize with a combination of decreasing supply and structural demand adjustments, leading to a potential bottoming out of rental levels [3] - Positive trends include an increase in potential clients, growth in leased area, and rising occupancy rates, indicating a recovery in the market [3] Company Strategies - JD Property is focusing on emerging sectors such as new energy vehicles, photovoltaics, cross-border e-commerce, and instant retail, creating comprehensive service solutions that cover the entire logistics process [3][4] - The company has established deep partnerships with leading automotive manufacturers, providing customized logistics solutions and achieving significant operational scale [3][4] Ecosystem Collaboration - JD Property integrates resources from the JD Group to offer comprehensive support to partners, focusing on cost reduction and efficiency in the supply chain [4] - The company has successfully assisted over 50 manufacturing enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area and 180 in the Yangtze River Delta region to expand their domestic sales channels [4] Global Expansion - JD Property has initiated an overseas strategy, launching over 50 projects across nine countries, with a total area exceeding 1.5 million square meters, and plans to add over 1 million square meters in 2025, particularly in markets like the UK, Germany, and Mexico [5][6] - The company emphasizes localized supply chain solutions in international markets, enhancing efficiency for local partners and gaining favorable reception from local governments [6]

Core Insights - The logistics real estate industry in China has a limited number of listed companies, with most focusing on either real estate or logistics, and many involved in warehousing and light asset operations [1][4] - Companies like Jinke, Zhongchu, and others have a high degree of relevance to logistics real estate, while others like R&F and Joy City have a moderate relevance, primarily focusing on real estate development [1][4] Company Overview - Kerry Properties (00683HK): A comprehensive real estate group in Hong Kong, focusing on high-end commercial real estate development and investment, with total assets exceeding HKD 100 billion [3] - R&F Properties (02777.HK): A major residential and commercial real estate developer in China, managing over 300 property projects, currently focusing on debt restructuring and asset optimization [3] - Joy City (000031.SZ): A subsidiary of COFCO, known for urban complex operations, managing over 20 commercial projects, emphasizing young consumer experiences [3] - China Vanke (000002.SZ): A leading real estate company in China, expanding into logistics and cold chain sectors in recent years [3] - SF Holding (002352.SZ): The largest express logistics company in China, operating 84 self-owned cargo planes and focusing on smart logistics transformation [3] Financial Performance - In 2024, revenue for logistics real estate companies shows significant divergence, with leading companies like Zhongchu and SF Holding generating revenues in the hundreds of billions, while some smaller firms report revenues around tens of millions [4][5] - Most companies maintain a gross margin between 10-30%, indicating an overall improvement in industry profitability [4] Revenue and Profitability Metrics - SF Holding reported a revenue of CNY 2844.2 billion with a gross margin of 13.9% in 2024 [5] - Vanke A achieved a revenue of CNY 3431.8 billion with a gross margin of 10.2% [5] - R&F Properties reported a revenue of CNY 187.7 billion but with a negative gross margin of -4.7% [5] Regional Layout - Companies have varying regional focuses, with Kerry Properties targeting key areas like Shanghai and Beijing, while Zhongchu has established a national network with over 100 warehouses across 20 provinces [9][10] - SF Holding is developing logistics hubs in cities like Ezhou and Jiaxing, enhancing its logistics network [10] Business Development Plans - Companies like Huayuan Holdings and Zhongchu are planning to build new logistics parks, focusing on intelligent technology applications and network enhancements [15][17] - Vanke is concentrating on high-standard warehouses and cold chain logistics, while Jinke is exploring synergies between logistics and other real estate sectors [17][18]

Investment Rating - The report maintains a "Weaker than Market" investment rating for the industry [5]. Core Insights - The expansion of the "Bond Connect" southbound channel will provide more overseas asset allocation opportunities for mainland non-bank financial institutions, alleviating the supply tightness of quality assets in the domestic market and promoting reasonable capital flow [1]. - The U.S. inflation data for June showed a year-on-year increase to 2.7%, slightly above expectations, while core CPI rose to 2.9%, indicating controlled inflation but potential short-term increases if tariffs are raised [2]. - The derivatives market maintains expectations for two rate cuts by the Federal Reserve in September and December, with a cumulative reduction of 50 basis points anticipated by year-end [3]. - The report suggests that the current long-end U.S. Treasury yields are rising, reflecting market concerns about future inflation and fiscal deficits, while the expansion of the southbound bond market will enhance liquidity for Chinese dollar bonds and Hong Kong dollar bonds [4]. Summary by Sections U.S. Macroeconomics and Liquidity - The report highlights the controlled inflation environment in the U.S., with CPI expected to rise to 3.0%-3.5% in the short term if tariffs increase [2]. - The yield curve for U.S. Treasuries has steepened, indicating market concerns about inflation and fiscal policy [3]. Overseas Dollar Bonds - The expansion of the "Bond Connect" southbound channel is expected to create structural opportunities for dollar bond allocations, particularly benefiting Chinese dollar bonds and Hong Kong dollar bonds [4]. Chinese Dollar Bonds - The report notes that recent rating actions by international agencies included 11 adjustments for Chinese dollar bond issuers, with three upgrades and five downgrades [93].

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - The REITs expansion business rules have been further improved, and the Dujiangyan Scenic Area REITs project was successfully bid. The Shanghai Stock Exchange issued the "REITs Expansion Business Handling Guide", and the Shenzhen Stock Exchange also enabled the non - targeted expansion business function. The Huaxia Anbo Warehouse Logistics REIT's application status was updated to "accepted", and AVIC Fund won the bid for the Dujiangyan Scenic Area REITs project [4]. - In the primary market, 4 single - issue REITs made new progress this week, and the issuance scale decreased year - on - year. In the secondary market, the market rebounded with fluctuations this week, and the liquidity continued to rise [5]. 3. Summary According to the Table of Contents 3.1 Primary Market: 4 Single - Issue REITs Made New Progress - As of July 4, 2025, 10 REITs have been successfully issued this year, with a total issuance scale of 15.35 billion yuan, a year - on - year decrease of 43.8%. This week, 4 single - issue public REITs made new progress, and there was no new progress in expansion [5]. - There are currently 15 single - issue REITs under application, 5 have been queried and responded, 0 have passed the review, and 1 is registered and awaiting listing. For expansion, 10 have been applied, 4 have been queried and responded, and 3 have passed the review [5]. 3.2 Secondary Market: The Market Rebounded with Fluctuations This Week, and the Liquidity Continued to Rise 3.2.1 Market Review: The CSI REITs Total Return Index Rose 0.66% - This week, the CSI REITs Total Return Index (932047.CSI) closed at 1116.42 points, up 0.66%, underperforming the CSI 300 by 0.88 percentage points and the CSI Dividend by 1.28 percentage points. The year - to - date increase of the CSI REITs Total Return Index is 15.35%, outperforming the CSI 300/CSI Dividend by 14.15/16.43 percentage points [5]. - By project attribute, property - type REITs rose 0.42%, and franchise - type REITs rose 1.05%. By asset type, the transportation (+1.29%), ecological environment protection (+1.08%), park (+0.83%), and energy (+0.60%) sectors performed better [5]. - Among individual bonds, 55 rose and 13 fell this week. CICC China Greentown Commercial REIT (+6.50%), E Fund Huayi Farmers' Market REIT (+5.25%), and Huaxia Nanjing Transportation Expressway REIT (+3.91%) led the gainers, while Huaxia TBEA New Energy REIT (-2.09%), Huaxia Beijing Affordable Housing REIT (-1.70%), and Guotai Junan Lingang Innovation Industrial Park REIT (-1.55%) were the biggest losers [5]. 3.2.2 Liquidity: The Ecological Environment Protection Sector Had the Highest Activity - The average daily turnover rate of CSI REITs this week was 0.62%, an increase of 3.94BP from last week. The average daily turnover rates of property - type/franchise - type REITs this week were 0.78%/0.63%, an increase of 16.46/1.69BP from last week. The trading volumes during the week were 569 million/170 million shares, a week - on - week increase of 28.49%/9.15%. The ecological environment protection sector was the most active [5]. 3.2.3 Valuation: The Energy Sector Had a Higher Valuation - According to the ChinaBond valuation yield, the yields of property - type/franchise - type REITs were 3.77%/3.94% respectively. The warehouse logistics (5.12%), transportation (5.09%), and park (4.70%) sectors ranked among the top three [5]. 3.3 This Week's News and Important Announcements - **This Week's News**: On June 27, the Shanghai Stock Exchange issued the "REITs Expansion Business Handling Guide", and the Shenzhen Stock Exchange also enabled the non - targeted expansion business function. On June 30, the application status of Huaxia Anbo Warehouse Logistics REIT was updated to "accepted". On July 4, AVIC Fund won the bid for the Dujiangyan Scenic Area REITs project [4][31]. - **Important Announcements**: Multiple REITs released expansion, listing, and operation data announcements, including Guotai Junan Lingang Innovation Industrial Park REIT, CICC China Greentown Commercial REIT, etc. [32]

Core Viewpoint - ESR, Asia's largest logistics real estate company, has officially delisted from the Hong Kong Stock Exchange and transitioned into a privately held entity, marking a significant step in its privatization process [1][2] Group 1: Privatization Process - The privatization proposal was approved under Section 86 of the Companies Law and will take effect on June 30, 2025, following court approval on June 20 [1] - As of June 30, ESR received valid acceptances for approximately 99.3% of its total share options, indicating strong support for the privatization [1] Group 2: Management Changes - Following privatization, ESR has undergone a significant management overhaul, with Brett Robson appointed as the independent board chairman and Phil Pearce as president [2][3] - New appointments also include Matthew Lawson as CFO, Josh Daitch as Chief Investment Officer, and David Matheson as Chief Investment Officer for Group Strategy and Investment [3][4] Group 3: Strategic Focus - ESR aims to accelerate its strategic transformation post-privatization, focusing on core logistics and data center business areas to leverage its platform advantages in the Asia-Pacific region [2][7] - The management changes are intended to align with long-term strategic goals, allowing for more flexibility in decision-making without the pressures of public market performance [7][8] Group 4: Employee Transition - Employees have been informed about the privatization process, with company-controlled desktop settings to address potential concerns regarding the transition [5][6] - The new management team is expected to enhance operational efficiency and attract top talent through improved compensation and career development opportunities [8]