Core Insights - The consumer market's heat has significantly boosted the REITs market, particularly in consumer infrastructure REITs, driven by the consumption peak during events like "Double Eleven" [1][2] - The overall public REITs market has shown strong performance this year, with consumer infrastructure REITs leading in growth due to consumption subsidy policies and improved market expectations [2][3] Group 1: Market Performance - As of November 9, the average increase for 12 listed consumer REITs this year is 24%, with notable performers like the Jiashi Wumei Consumer REIT exceeding 50% growth and Huaxia Jinmao Commercial REIT over 40% [3] - The total market capitalization of the 12 consumer REITs has surpassed 42 billion [3] Group 2: Investment Trends - The recent surge in consumer REITs has led to high subscription rates, with the Huaxia Zhonghai Commercial REIT receiving nearly 160 billion in subscriptions before its listing [5] - The demand reflects market recognition of quality commercial assets and the scarcity of foreign brands in the public REITs sector [5] Group 3: Performance Disparities - In Q3, consumer REITs collectively reported revenues of 598 million and net profits of 20.11 million, with Huaxia Huarun Commercial REIT leading in revenue [7] - There is a notable performance disparity among different REITs, with some achieving significantly higher revenues than others [7] Group 4: Future Outlook - The operational capabilities of shopping centers, including renovation and innovation, remain core competitive advantages for consumer REITs [8] - The macroeconomic environment and interest rates will continue to influence REIT pricing and investor returns [9]

1. Report Industry Investment Rating There is no information about the industry investment rating in the provided content. 2. Core Viewpoints of the Report - The REITs market continued to decline this week, with the park and warehousing logistics sectors leading the decline. The market is still concerned about their pressure on occupancy rates. The Shenyang International Software Park REIT listed on Thursday, showing a weak performance and breaking the issue price on the first day, which may suppress the market sentiment for subsequent new products. The short - term weak and volatile pattern may continue [2]. - As of November 7, 2025, 18 REITs have been successfully issued this year, with an issuance scale of 36.34 billion yuan, a year - on - year decrease of 25.8%. This week, 3 new public offering REITs made new progress [2]. - The CSI REITs Total Return Index closed at 1041.51 points this week, down 0.4%, underperforming the CSI 300 by 1.22 percentage points and the CSI Dividend by 2.63 percentage points. Property - type REITs fell 0.84%, while concession - type REITs rose 0.15%. The consumer, data center, environmental protection and water services, and transportation sectors performed better [2]. - In terms of liquidity, the average daily turnover rates of property - type and concession - type REITs this week were 0.60% and 0.45% respectively, down 8.70 and 0.36 basis points from last week. The trading volumes were 577 million and 129 million shares respectively, down 11.78% and 0.79% week - on - week [2]. - In terms of valuation, the ChinaBond valuation yields of property - type and concession - type REITs were 3.89% and 4.07% respectively. The warehousing logistics, transportation, and park sectors ranked among the top three [2]. 3. Summary According to the Directory 3.1 Primary Market: 3 New Public Offering REITs Made New Progress - As of November 7, 2025, a total of 77 REITs have been issued, with a total issuance scale of 202 billion yuan, a total market value of 220.6 billion yuan, and a circulating market value of 110.9 billion yuan. Among them, there are 54 property - type REITs and 23 concession - type REITs [12]. - This week, 3 new public offering REITs made new progress: the CITIC Construction Shenyang International Software Park REIT was listed, the Shanxi Securities Jinzhong Public Investment Ruiyang Heating REIT was under inquiry, and the E Fund Guangxi Beitou Expressway REIT was accepted. There was no new progress in the expansion of REITs this week [13][14]. 3.2 Secondary Market: Liquidity Declined This Week 3.2.1 Market Review: The CSI REITs Total Return Index Fell 0.4% - The CSI REITs Total Return Index closed at 1041.51 points this week, down 0.4%, underperforming the CSI 300 by 1.22 percentage points and the CSI Dividend by 2.63 percentage points. Property - type REITs fell 0.84%, while concession - type REITs rose 0.15%. The consumer, data center, environmental protection and water services, and transportation sectors performed better [2]. - Among individual bonds, 33 rose and 42 fell. The top three were the China AMC JINMAO Commercial REIT (+4.42%), the Zheshang Expressway REIT (+2.37%), and the Guotai Junan Jinan Energy Heating REIT (+2.25%); the bottom three were the GF Chengdu Gaotou Industrial Park REIT (-9.44%), the CICC Liandong Science and Technology Innovation REIT (-8.43%), and the E Fund Guangzhou Development Industrial Park REIT (-7.01%) [2]. 3.2.2 Liquidity: Both Turnover Rate and Trading Volume Decreased - The average daily turnover rates of property - type and concession - type REITs this week were 0.60% and 0.45% respectively, down 8.70 and 0.36 basis points from last week. The trading volumes were 577 million and 129 million shares respectively, down 11.78% and 0.79% week - on - week. The data center sector was the most active [2]. 3.2.3 Valuation: The Valuation of the Affordable Housing Sector was Relatively High - The ChinaBond valuation yields of property - type and concession - type REITs were 3.89% and 4.07% respectively. The warehousing logistics, transportation, and park sectors ranked among the top three [2]. 3.3 This Week's News and Important Announcements - News: On November 4, 2025, Li Ming, the vice - chairman of the China Securities Regulatory Commission, stated at the 2025 International Financial Leaders Investment Summit that support will be provided to include REITs and other products in the Hong Kong Stock Connect [29]. - Announcements: Multiple REITs issued share unlocking announcements this week, including Huatai Jiangsu Expressway REIT, Yin Hua Shaoxing Raw Water Water Conservancy REIT, etc. Some REITs also announced dividend plans [29].

Investment Rating - The report does not provide a specific investment rating for the public REITs industry [1]. Core Insights - The REITs index experienced a decline of 0.40% this week, while the Shanghai and Shenzhen 300 index rose by 0.82% [19]. - The total market capitalization of the industry is approximately 217.1 billion yuan, with a circulating market value of about 110.9 billion yuan [1]. - The trading volume for the week was 25.9 billion yuan, reflecting a decrease of 6.3% compared to the previous week [7]. - The report highlights the correlation of REITs with various indices, showing a correlation of 0.16 with ten-year government bonds and 0.37 with the Shanghai and Shenzhen 300 index [21]. Summary by Sections Market Overview - The report notes significant events in the market, including the listing of the CITIC Construction Shenyang International Software Park REIT on November 6, which had a trading volume of 77.57 million yuan and a turnover rate of 23.74% [10][11]. - Other notable events include the holding of meetings by various REITs to discuss performance and future strategies [10]. Trading Performance - The report indicates that 32 REITs saw price increases, 2 remained stable, and 43 experienced declines, with an overall decrease of 0.40% in the REITs market [23]. - The largest gain was recorded by Huaxia Jinmao Commercial REIT, which increased by 4.42%, while the largest decline was by GF Chengdu Gaotou REIT, which fell by 9.44% [23]. Investment Recommendations - The report suggests that the overall economic stability remains unchanged, and REITs are expected to have strong allocation attributes in the long term. Investors are encouraged to pay attention to sector rotation and expansion opportunities [7].

Report Summary 1. Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints - The REITs market continued to decline this week, with the park and warehousing logistics sectors leading the decline. The market is still concerned about their pressure on occupancy rates. The Shenyang International Software Park REIT listed on Thursday, showing a dismal performance and breaking its issue price on the first day, which may suppress the market sentiment for subsequent new products. The short - term weak and volatile pattern may continue [2]. - As of November 7, 2025, 18 REITs have been successfully issued this year, with a total issuance scale of 36.34 billion yuan, a year - on - year decrease of 25.8%. This week, 3 first - issued public REITs made new progress [2]. - This week, the CSI REITs Total Return Index closed at 1041.51 points, a decline of 0.40%, underperforming the CSI 300 by 1.22 percentage points and the CSI Dividend by 2.63 percentage points. In terms of project attributes, equity - type REITs fell by 0.84%, while franchise - type REITs rose by 0.15%. In terms of asset types, the consumption, data center, environmental protection and water services, and transportation sectors performed better [2]. - In terms of liquidity, the average daily turnover rates of equity - type and franchise - type REITs this week were 0.60% and 0.45% respectively, down 8.70BP and 0.36BP from last week. The trading volumes were 577 million and 129 million shares respectively, with a week - on - week decrease of 11.78% and 0.79%. The data center sector was the most active [2]. - In terms of valuation, the yields of equity - type and franchise - type REITs according to ChinaBond valuations were 3.89% and 4.07% respectively. The warehousing logistics, transportation, and park sectors ranked among the top three [2]. 3. Summary by Directory 3.1 First - level Market: 3 First - issued Public REITs Made New Progress - As of November 7, 2025, a total of 77 REITs have been issued, with a total issuance scale of 202 billion yuan, a total market value of 220.6 billion yuan, and a circulating market value of 110.9 billion yuan. Among them, there are 55 equity - type REITs and 23 franchise - type REITs [13]. - This week, 3 first - issued REITs made new progress: the CITIC Construction Investment Shenyang International Software Park REIT was listed, the Shanxi Securities Jinzhong Public Investment Ruiyang Heating REIT was under inquiry, and the E Fund Guangxi Beitou Expressway REIT was accepted. There was no new progress in the expansion and fundraising of REITs this week [14][15]. 3.2 Second - level Market: Liquidity Declined This Week 3.2.1 Market Review: The CSI REITs Total Return Index Fell by 0.4% - This week, the CSI REITs Total Return Index closed at 1041.51 points, a decline of 0.4%. It underperformed the CSI 300 by 1.22 percentage points and the CSI Dividend by 2.63 percentage points. The CSI REITs Total Return Index has risen by 7.61% since the beginning of the year, underperforming the CSI 300 by 11.30 percentage points and outperforming the CSI Dividend by 4.54 percentage points [2]. - In terms of project attributes, equity - type REITs fell by 0.84%, while franchise - type REITs rose by 0.15%. In terms of asset types, the consumption (+0.41%), data center (+0.29%), environmental protection and water services (+0.28%), and transportation (+0.26%) sectors performed better [2]. 3.2.2 Liquidity: Both Turnover Rate and Trading Volume Decreased - The average daily turnover rates of equity - type and franchise - type REITs this week were 0.60% and 0.45% respectively, down 8.70BP and 0.36BP from last week. The trading volumes were 577 million and 129 million shares respectively, with a week - on - week decrease of 11.78% and 0.79%. The data center sector was the most active [2]. 3.2.3 Valuation: The Valuation of the Affordable Housing Sector was Relatively High - According to ChinaBond valuations, the yields of equity - type and franchise - type REITs were 3.89% and 4.07% respectively. The warehousing logistics (5.53%), transportation (4.96%), and park (4.63%) sectors ranked among the top three [2]. 3.3 This Week's News and Important Announcements - On November 4, 2025, Li Ming, the vice - chairman of the China Securities Regulatory Commission, said at the 2025 International Financial Leaders Investment Summit that support would be provided to include RMB stock trading counters, REITs, etc. in the Hong Kong Stock Connect [31]. - This week, there were several important announcements, including the release of restricted shares of some REITs and dividend announcements [31].

Group 1 - The analyst has over 10 years of experience researching more than 1000 companies across various sectors including commodities and technology [1] - The focus has shifted from writing a blog to creating a value investing-focused YouTube channel, covering hundreds of companies [1] - The analyst expresses a particular interest in metals and mining stocks, while also being comfortable with consumer discretionary, REITs, and utilities [1]

Core Insights - The current market environment is described as extremely challenging, primarily due to the significant impact of AI-driven trades that have benefitted the "Magnificent 7" stocks, which are noted for their unparalleled innovation capabilities [1] Group 1: Market Environment - The market is facing challenges attributed to the massive AI trade [1] - The "Magnificent 7" stocks have been highlighted for their ability to innovate on a scale that others cannot match [1] Group 2: Analyst Contributions - Leo Nelissen is identified as an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities [1] - The aim of the iREIT®+HOYA Capital team, which includes Nelissen, is to provide insightful analysis and actionable investment ideas, particularly emphasizing dividend growth opportunities [1]

Core Insights - The essence of REITs is that local governments take a one-time cash flow for 20-30 years, leaving the risks to the market [2] - Retail investors are not "landlords" but rather "risk bearers of debt instruments" [2] - The stability of cash flow over 20 years is a myth; instead, REITs are characterized by slow declines and small fluctuations [2] Group 1: Investment Characteristics - 86%-92% of the ownership and operational rights of all listed and under-review REITs are held by local governments, central enterprises, and local state-owned enterprises, with private enterprises only accounting for 10%-14% [2] - REITs primarily serve as tools for central and local state-owned assets to realize future cash flows [2] - The participation of private assets in REITs faces significant barriers, including land acquisition, scale thresholds, and exemptions from state-owned asset transfers [2] Group 2: Market Dynamics - The REITs market is dominated by institutions, with 40% of original equity holders locking their shares, while retail investors only account for 5% of the market but contribute 35% of the trading volume [2] - The proportion of institutional investors is expected to exceed 97% by 2025-2026, indicating a shift in market dynamics [2] - REITs are not simply "stable rental income" but are equity assets that can be leveraged, have time limits, may experience vacancies, and are sensitive to policy changes [2][3] Group 3: Performance Issues - A specific REIT has seen a 16% year-on-year decline in rental rates and a drop in actual rental area by nearly 20%, indicating potential issues with major clients [4] - The rental collection rate has decreased by 6% year-on-year to only 65%, raising concerns about future bad debts [4] - The weighted average lease terms have shown a decline, which is unusual for industrial parks that typically have longer lease durations [4] Group 4: Broader Market Sentiment - Historical performance of certain REITs has shown that perceived low risk can lead to significant losses over time, as evidenced by a notable decline over five years [5] - The oversupply of industrial parks and office buildings necessitates careful scrutiny of the underlying assets of REITs [8] - The experience from international markets suggests that REITs often exhibit volatility comparable to stocks, contradicting the notion of them being low-risk investments [8]

Core Viewpoint - Armada Hoffler Properties (AHH) is currently trading significantly lower than its performance in the same quarter last year, with a trading multiple of 6.17 times the midpoint of its normalized funds from operations (NFFO) guidance of $1.05 per share [1] Group 1: Company Performance - AHH's current trading multiple is 6.17x the midpoint of its NFFO guidance range [1] - The company has seen a substantial decline in its stock price compared to the previous year [1] Group 2: Market Context - The equity market serves as a mechanism for wealth creation or destruction over the long term, influenced by daily price fluctuations [1] - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Core Insights - The real estate sector is currently underperforming compared to the broader market, making it difficult to identify thriving Real Estate Investment Trusts (REITs) [1] - Welltower (WELL) is highlighted as a successful REIT amidst the challenging market conditions [1] Company Analysis - Welltower is positioned as a strong investment opportunity within the REIT sector, particularly for those seeking dividend growth and long-term investment potential [1] - The company is part of a diversified investment strategy that includes classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds, which can enhance investment income while achieving total returns comparable to traditional index funds [1]

Core Viewpoint - The real estate sector is currently underperforming compared to the broader market, making it difficult to identify thriving Real Estate Investment Trusts (REITs) [1]. Group 1: Company Analysis - Welltower (WELL) is highlighted as a REIT that is managing to thrive despite the challenges faced by the real estate sector [1]. - The company is positioned as a potential investment opportunity for those seeking high-quality dividend stocks and long-term growth [1]. Group 2: Investment Strategy - A hybrid investment strategy combining classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds is suggested as an effective way to enhance investment income while achieving total returns comparable to traditional index funds [1]. - This approach aims to balance growth and income, allowing investors to capture total returns on par with the S&P 500 [1].