Group 1 - The article discusses various housing expenses including mortgages, utilities, homeowners' insurance, maintenance, and rent [1] - It introduces iREIT®, a platform that provides in-depth research on various real estate investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers [1] - The iREIT® Tracker offers data on over 250 tickers, including quality scores, buy targets, and trim targets for investors [1] Group 2 - A new Ratings Tracker called iREIT Buy Zone has been added to assist members in screening for value [2] - The offer includes a 2-week free trial along with a free book for new members [4]

Core Insights - The total market value of public REITs in China has surpassed 200 billion yuan, reaching 201.99 billion yuan as of June 5, marking significant growth since the first batch of REITs was launched less than four years ago [1] - The Shanghai Stock Exchange (SSE) accounts for 67% of the total market value, with 1.35 billion yuan attributed to its REITs [1] Market Overview - The first batch of 9 public REITs was launched on June 21, 2021, raising a total of 16.6 billion yuan, initiating the development of REITs in the Shanghai market [1] - As of June 5, there are 44 REIT products listed on the SSE, doubling the number since the end of 2023, with a total fundraising scale of 121.6 billion yuan [1] Sector Performance - In the property rights category, there are 17 projects in total, with 12 from the SSE raising 20.3 billion yuan; in the logistics sector, 9 projects raised 13.8 billion yuan; consumer projects raised 6.3 billion yuan; and affordable rental housing projects raised 9.5 billion yuan [1] - In terms of operating rights, energy projects raised 14.3 billion yuan, transportation projects raised 54 billion yuan, and ecological projects raised 1.9 billion yuan [2] Market Activity - The SSE REITs have shown active trading since 2025, with a year-to-date return of 21%, outperforming the CSI REITs total return index at 14% [2] - Notable sectors include consumer, rental housing, and toll roads, with year-to-date increases of 44%, 26%, and 22% respectively [2] Liquidity and Returns - The average daily trading volume for SSE REITs is 440 million yuan, accounting for 70% of the total market volume, with a daily turnover rate of 0.79% [2] - The average cash distribution rate for SSE REITs is 5.8%, and the average internal rate of return is 3.6%, indicating favorable investment characteristics [2] Financial Performance - The 33 SSE REITs that disclosed their 2024 annual reports achieved a total revenue of 8.5 billion yuan, a year-on-year increase of 35%, with distributable amounts reaching 6.2 billion yuan, up 28% [2] Development Initiatives - The SSE is enhancing its fundraising mechanisms, promoting a dual-driven model of "initial issuance + expansion" to support high-quality development of the REITs market [3] - In 2023, the SSE completed expansion projects for two REITs, raising approximately 5 billion yuan, with more projects in the pipeline for 2024 [3] - Innovative asset combinations are being explored, such as the first cross-regional mixed asset expansion project involving photovoltaic and hydropower assets [3]

Core Insights - The investment strategy focuses on acquiring strong businesses when they are undervalued, emphasizing the importance of quality and price [1] - The portfolio has evolved through various industries, including technology, banking, and emerging markets, with a current emphasis on high-quality businesses and their competitive advantages [1] - The investment philosophy is influenced by notable investors and CEOs, highlighting the significance of learning from successful figures in the industry [1] Investment Strategy - The approach prioritizes large tech companies with extensive user bases and content libraries, recognizing the potential for cross-selling opportunities [1] - Valuation is conducted at the EBIT plus R&D level, reflecting the belief in the potential of certain R&D investments [1] - The investment performance from February 2019 to October 2024 shows an annual return of 11.4% CAGR, which is below the market's 15.18% CAGR, but there is confidence in future outperformance due to expanded knowledge [1] Portfolio Management - The strategy aims to minimize portfolio turnover, with a focus on holding existing companies rather than frequent trading [1] - The investment philosophy rejects traditional "Buy" and "Sell" recommendations, advocating for a "Strong Buy" threshold for exceptional businesses and categorizing others as "Strong Sell" to generate cash for new opportunities [1] - A "Hold" position may be initiated for great businesses if the pricing is not favorable, indicating a flexible approach to market conditions [1]

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Core Insights - The iREIT® service, in collaboration with HOYA Capital, focuses on various income-oriented investment vehicles including REITs, BDCs, MLPs, and Preferreds, aiming to provide in-depth research and analysis [2][3] - The team behind iREIT® has over 100 years of combined experience in the investment field, featuring professionals with diverse backgrounds including hedge fund management and military service [2] - Brad Thomas, a key figure in the iREIT® initiative, has extensive experience in real estate investing, having been involved in over $1 billion in commercial real estate transactions [3] Company and Industry Summary - iREIT® Tracker offers data on more than 250 tickers, providing quality scores, buy targets, and trim targets to assist investors in making informed decisions [1] - The service is designed to appeal to investors seeking attractive returns through detailed analysis of real estate investment trusts and related financial instruments [1][2] - Brad Thomas has authored multiple books on the subject, including "REITs For Dummies," indicating a commitment to educating investors about real estate investments [3]

Group 1 - Real estate preferred shares are currently facing significant discounts, indicating potential undervaluation in the market [1] - Investors are cautious due to the looming credit risk that could further depress valuations in the real estate sector [1] - Pearl Gray specializes in systematic analysis of Bonds, Preferreds, and REITs, focusing primarily on the Financials and Real Estate sectors [1] Group 2 - The mission of Pearl Gray is to identify actionable total return ideas by integrating rigorous academic theories with practical experience [1]

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core Viewpoints - This week, the China Securities REITs Index declined slightly. Concession - type REITs outperformed property - type REITs, with average weekly price changes of - 0.3% and + 0.6% respectively. The order of weekly price changes of major indices is: China Securities Convertible Bond Index > China Securities All - Bond Index > China Securities REITs Index > CSI 300 Index. The average daily turnover rate of REITs decreased slightly compared to the previous week. Energy, transportation, and consumer - type REITs in the entire market rose, while water conservancy and park - type REITs fell. As of May 30, the average annualized cash distribution rate of public - offering REITs was 6.0%, higher than the current static yields of mainstream fixed - income assets. The dividend yield of property - type REITs was 313 basis points lower than the average dividend yield of CSI Dividend stocks, and the spread between the average internal rate of return of concession - type REITs and the 10 - year Treasury bond yield was 212 basis points [1]. 3. Summary by Directory Market Trends - **Overall Index Performance**: As of May 30, 2025, the closing price of the China Securities REITs (closing) Index was 868.35 points, with a weekly change of - 0.1%, outperforming the CSI 300 Index (- 1.1%) but underperforming the China Securities Convertible Bond Index (+ 0.2%) and the China Securities All - Bond Index (- 0.01%). Since the beginning of the year, the order of price changes of major indices is: China Securities REITs Index (+ 10.0%) > China Securities Convertible Bond Index (+ 3.6%) > China Securities All - Bond Index (+ 0.5%) > CSI 300 Index (- 2.4%). The return rate of the China Securities REITs Index in the past year was 9.1%, with a volatility of 6.9%. The return rate was higher than that of the CSI 300 Index, the China Securities Convertible Bond Index, and the China Securities All - Bond Index, and the volatility was lower than that of the CSI 300 Index and the China Securities Convertible Bond Index but higher than that of the China Securities All - Bond Index. The total market value of REITs decreased to 198.2 billion yuan on May 30, a decrease of 200 million yuan from the previous week. The average daily turnover rate for the whole week was 0.56%, a decrease of 0.15 percentage points from the previous week [2]. - **Differentiated Performance of Different Types of REITs**: - **By Project Attribute**: The average weekly price changes of property - type REITs and concession - type REITs were - 0.3% and + 0.6% respectively [1][3]. - **By Project Type**: The weekly price changes were differentiated. The top three project types with the largest average increases were energy (1.0%), transportation (0.5%), and consumer - type (0.1%). The top three REITs in terms of weekly gains were Huaxia TBEA New Energy REIT (+ 4.26%), ICBC Mengneng Clean Energy REIT (+ 4.04%), and Huaxia JINMAO Commercial REIT (+ 3.59%) [3]. - **Trading Activity**: Affordable housing REITs had the highest trading activity. The affordable housing - type had an average daily turnover rate of 0.9% during the period, accounting for 14.9% of the total REITs trading volume. The transportation infrastructure - type had an average daily turnover rate of 0.5%, accounting for 25.2% of the total REITs trading volume. The top three REITs in terms of net inflow of main funds were CICC Anhui Expressway REIT (7.48 million yuan), Guotai Junan Lingang Innovation Industrial Park REIT (6.82 million yuan), and Huatai Jiangsu Expressway REIT (5.31 million yuan) [3]. Primary Market Issuance As of May 30, 2025, there was 1 REIT product in the declared stage, 1 in the in - inquiry stage, 1 in the accepted stage, 7 in the feedback stage, 5 in the passed - and - awaiting - listing stage, and 3 first - issued products that had passed and were listed on the exchange [24]. Valuation Tracking - **Bond - like Aspect**: As of May 30, the average annualized cash distribution rate of public - offering REITs was 6.0%, significantly higher than the current static yields of mainstream fixed - income assets [26]. - **Equity - like Aspect**: The valuation of REITs is judged through relative net - value premium/discount rate, IRR, and P/FFO. The relative net - value premium/discount rate reflects the relationship between the market value and the fair value of the fund, similar to the PB indicator of stocks. IRR is the internal rate of return calculated using the discounted cash - flow method. P/FFO is the current price divided by the cash flow generated from operations. Different project types have different valuation indicators. Additionally, as of May 30, 2025, the dividend yield of property - type REITs was 313 basis points lower than the average dividend yield of CSI Dividend stocks, and the spread between the average internal rate of return of concession - type REITs and the 10 - year Treasury bond yield was 212 basis points [26][27]. Industry News - CICC Yizhuang Industrial Park REIT launched the price - inquiry process. The initial strategic placement of fund shares was 280 million, accounting for 70% of the total issued shares. The original equity holder or its affiliated party under the same control planned to subscribe for 100 million shares, accounting for 25% of the total issued shares, and other strategic investors planned to subscribe for 180 million shares, accounting for 45% of the total issued shares. The initial number of fund shares for offline sales was 84 million, accounting for 21% of the total issued shares, and the initial number of fund shares for public investors' subscription was 36 million, accounting for 9% of the total issued shares. The price - inquiry period was from June 5, 2025, with an inquiry range of 2.257 - 2.758 yuan per share [33]. - On May 28, Huaneng International announced that it planned to apply for the issuance of infrastructure public - offering REITs with the Huaneng Qingdao project held by Qingdao Thermal Power as the underlying asset. In 2024, Qingdao Thermal Power achieved a power generation of 3.4 billion kilowatt - hours and a heat supply of 5.1 million gigajoules, with year - on - year increases of 6.2% and 49% respectively [33]. - On May 30, BOC Sinotrans Warehouse Logistics REIT obtained the registration approval from the CSRC and the no - objection letter from the Shanghai Stock Exchange. It is a state - owned enterprise - controlled warehouse logistics infrastructure REITs project and the 5th REITs product under the China Merchants Group. Its first - issued assets focus on important logistics nodes in the Yangtze River Delta, Beijing - Tianjin - Hebei, and Sichuan - Chongqing regions, with a total construction area of 305,400 square meters, a rental rate of 95.59%, and a project valuation of 1.097 billion yuan as of December 31, 2024 [33].

Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, highlighting its positive testimonials [1] Group 2 - The article includes a disclosure stating that the author has no stock or derivative positions in any mentioned companies and has no plans to initiate any such positions in the near future [2] - It emphasizes that past performance is not indicative of future results and that no specific investment recommendations are provided [3]

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Group 1 - The investment group High Yield Landlord, led by Jussi Askola, provides real-time insights into a REIT portfolio, including buy/sell alerts and direct access to analysts [2] - Jussi Askola is the President of Leonberg Capital, which specializes in consulting hedge funds, family offices, and private equity firms on REIT investing [2] - The group has received over 500 five-star reviews, indicating high satisfaction among its members [1] Group 2 - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, particularly in real estate [1] - The investment strategies offered are designed to maximize returns for members at a fraction of the typical cost [1]