Core Insights - 中金普洛斯REIT held an investor open day in Suzhou, discussing fund performance, project operations, future management strategies, and market trends in the logistics sector [1] Group 1: Fund Performance - As of 2025, 中金普洛斯REIT has distributed approximately 175 million yuan, with a total of over 1.2 billion yuan distributed since its listing in 2021, achieving nearly 100% annual dividend payout ratio [1] Group 2: Asset Overview - The underlying asset, 普洛斯苏州望亭物流园, was built in two phases from 2009 to 2017, with a total leasable area of approximately 94,434 square meters [1] - The logistics park has a current occupancy rate of 100%, an average remaining lease term of 866.54 days, and a rent collection rate of 99.53% as of the end of Q2 this year [1] Group 3: Location and Market Context - The logistics park is located within the Suzhou Wangting International Logistics Park, near Wuxi Airport and Suzhou North Station, and is adjacent to two national high-tech development zones [1] - The surrounding area hosts over 50 Fortune Global 500 companies, indicating a strong market presence and potential for growth [1]

Core Insights - The successful listing of the first batch of data center REITs in China marks a significant milestone for the REITs market, supporting technological, green, and digital financial innovations [1] - The two REITs, Southern Universal Data Center REIT and Southern Runze Technology Data Center REIT, raised a total of 69 billion yuan, with 24 billion yuan and 45 billion yuan respectively [1] - Both REITs experienced a 30% increase on their first trading day, indicating strong market interest and performance [1] Group 1: REITs Market Development - The listing of Southern Universal Data Center REIT (code: 508060) and Southern Runze Technology Data Center REIT (code: 180901) represents the first data center REITs in China [1] - The total number of shares for Southern Universal Data Center REIT is 800 million, priced at 3 yuan per share, while Southern Runze Technology Data Center REIT has 1 billion shares priced at 4.5 yuan per share [1] - The successful launch of these REITs is expected to activate high-quality assets in the data center sector and expand effective investments [1] Group 2: Market Performance - On their debut trading day, Southern Universal Data Center REIT closed at 3.9 yuan with a trading volume of 2.34 billion yuan and a turnover rate of 25.37% [1] - Southern Runze Technology Data Center REIT closed at 5.85 yuan with a trading volume of 4.52 billion yuan and a turnover rate of 26.43% [1] - The strong performance on the first day reflects positive investor sentiment and confidence in the data center REIT sector [1]

Core Insights - The first batch of data center REITs has been listed on the Shanghai and Shenzhen stock exchanges, marking a significant development in the real estate investment trust sector focused on data centers [1] Group 1: Industry Overview - The introduction of data center REITs is expected to enhance the investment landscape for infrastructure related to digital economy [1] - This move aligns with the growing demand for data storage and processing capabilities driven by the rapid digital transformation across various sectors [1] Group 2: Market Impact - The listing of these REITs is anticipated to attract both institutional and retail investors, potentially increasing liquidity in the market [1] - The performance of these REITs will be closely monitored as they represent a new asset class within the Chinese financial market [1]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $11.8 million, a 4% increase from $11.4 million in the prior year period, primarily due to two industrial manufacturing property acquisitions [4] - Adjusted funds from operations (AFFO) increased by 22% to $4.8 million compared to $3.9 million in the same quarter last year [4] - AFFO per share rose 12% from $0.34 to $0.38, despite a $1.2 million increase in diluted shares outstanding [5] - Cash interest expense decreased by $255,000 compared to the same period in 2024, reflecting a reduction in the weighted average fixed rate from 4.53% to 4.25% [5] Business Line Data and Key Metrics Changes - The portfolio consists of 43 properties with an annualized base rent of $39 million as of June 30, 2025, with 39 industrial properties representing 81% of this amount [6] - The weighted average lease term for the portfolio is 14.4 years, with approximately 29% of tenants having an investment-grade credit rating [6] Market Data and Key Metrics Changes - Total cash and cash equivalents were $5.8 million as of June 30, 2025, with $30 million available to draw on a revolver [6] - The company has $280 million of debt outstanding, with no debt maturities until January 2027 [6] Company Strategy and Development Direction - The company is focusing on asset recycling, planning to sell legacy assets to reinvest in more accretive properties [18][22] - Management is exploring various financing options, indicating a positive lending environment for new term loans or credit facilities [31][34] - The company aims to maintain a disciplined approach to acquisitions, prioritizing smart decisions over rapid growth [10][70] Management's Comments on Operating Environment and Future Outlook - Management expressed frustration with the current market volatility but remains confident in the long-term strategy and the potential for future growth [8][12] - The company is optimistic about the potential for asset recycling to improve financial performance and shareholder value [26][72] - Management noted that while there are challenges in the current environment, they believe the company is well-positioned to navigate these issues [34][70] Other Important Information - The Board of Directors declared a cash dividend of $9.75 for common shares for July, August, and September 2025, representing an annualized dividend rate of $1.17 per share [7] - The company is actively working on lease extensions and has ongoing discussions regarding property sales [50][52] Q&A Session Summary Question: Can you provide more details on asset recycling and the $150 million asset mentioned? - Management indicated that the assets for sale would largely be legacy properties, with some being core and non-core, and emphasized the importance of timing in the sales process [18][19][22] Question: What are the current lending market conditions? - Management noted that the lending environment is favorable, with terms and rates expected to be the same or better than previous loans, and they are exploring various financing options [31][34] Question: Can you explain the increase in income recognized from the joint venture? - The increase reflects the impact of extending a lease, which involves recognizing rent that will be received in the future [40] Question: What is the status of the Calera equipment? - Management stated that the equipment is on the market, and they prefer to sell it rather than lease it, taking an impairment charge to reflect its current value [44][46] Question: How are tariffs impacting tenant discussions? - Management indicated that while there is some delay in capital decisions among tenants, they do not foresee significant negative impacts from tariffs [48][49] Question: Are transformative transactions still being considered? - Management confirmed that transformative transactions are still on the table but emphasized the need for the right environment to pursue such opportunities [54][56] Question: Is there a risk regarding the zoning for the KB Homes property? - Management believes the delay is due to bureaucratic processes and does not foresee significant risks regarding zoning approvals [74][76]

Financial Data and Key Metrics Changes - The company reported operating earnings of $0.25 per security for FY 2025, in line with guidance, and forecasts earnings and distributions for FY 2026 of $0.255 per security, reflecting a 2% growth over FY 2025 [4][5][31] - The net tangible assets (NTA) per security as of June 30, 2025, is $4.59, consistent with the previous half-year results, with minor impacts from swap movements [5][12] - The portfolio delivered a 3% like-for-like net property income growth, with 54% of income being CPI linked [5][10] Business Line Data and Key Metrics Changes - The portfolio consists of a diversified real estate portfolio valued at approximately $5.5 billion, with an occupancy level of 99.9% and a weighted average lease term (WALT) of 9.3 years [3][22] - The company completed $715 million of new interest rate hedging, with 89% of debt hedged as of June 30, 2025, and an average forecast hedging of 72% for FY 2026 [6][14] Market Data and Key Metrics Changes - The portfolio value is on average 18% higher in June 2025 compared to June 2020, driven by contracted and market rental growth [7] - The average cap rate of the portfolio is 5.4%, reflecting no change over the past twelve months [21] Company Strategy and Development Direction - The company aims to provide stable and secure income while targeting both income and capital growth through a diversified portfolio leased to corporate and government tenants [30] - Active curation and asset recycling are ongoing to enhance portfolio quality, with a focus on acquiring accretive strategic assets [14][30] Management's Comments on Operating Environment and Future Outlook - Management believes valuations have troughed and expects some cap rate compression and valuation growth in the coming period due to a lower interest rate environment [33][89] - The company is optimistic about tenant demand across various sectors, particularly in retail and industrial, with long leases in place [72] Other Important Information - The company has maintained net zero Scope one and Scope two emissions for assets under its operational control and has installed 8.9 megawatts of solar across its portfolio [28][29] - Moody's reaffirmed the company's Baa1 investment grade credit rating [7][13] Q&A Session Summary Question: Regarding acquisitions and balance sheet capacity - Management indicated that current gearing is within the target range and expressed confidence in future valuation growth due to expected interest rate cuts [33][89] Question: On the Department of Defense acquisition and market rents - Management is negotiating to extend the lease and sees potential for the property to become a long-term asset [36][52] Question: On cost of debt and margins - Average margins remain just under 1.5%, with no significant changes expected [42] Question: On acquisition opportunities and market conditions - Management noted that while there are limited high-quality long-term opportunities, they remain active in the sale and leaseback space [46] Question: On the ALE portfolio and rental expectations - Management believes the ALE portfolio remains under-rented and is confident in its value [84]

Financial Data and Key Metrics Changes - Core FFO per share was reported at $0.84, and AFFO per share was $0.85, each up 1.2% year-over-year [14] - Annualized base rent reached $894 million at the end of the quarter, reflecting an increase of almost 7% year-over-year [14] - The company announced a 3.4% increase in its common stock dividend, marking the thirty-sixth consecutive year of annual dividend increases [3][19] Business Line Data and Key Metrics Changes - The company renewed 17 out of 20 leases during the quarter, achieving rental rates 8% above prior rents [6] - Seven properties were leased to new tenants at rates 5% above prior rents, indicating strong demand for assets [7] - Acquisitions during the quarter totaled over $230 million across 45 new properties, with an initial cap rate of 7.4% and an average lease term of over 17 years [8][9] Market Data and Key Metrics Changes - The company has a portfolio of approximately 3,663 freestanding single-tenant properties across all 50 states [6] - The average debt maturity is reported at 11 years, positioning the company favorably in the capital markets [12][18] - The company has nearly $1.5 billion in available liquidity, providing flexibility for acquisitions and other opportunities [12][19] Company Strategy and Development Direction - The company is committed to a disciplined and thoughtful underwriting approach while emphasizing acquisition volume through sale-leaseback transactions [10] - The company plans to increase its full-year acquisition volume guidance to $650 million, reflecting strong transaction activity [10][20] - The focus remains on optimizing the portfolio by disposing of underperforming assets while maintaining a strong balance sheet [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall health of the portfolio, with no significant concerns regarding current tenants [7][16] - The company is optimistic about the long-term prospects for properties associated with At Home, which filed for bankruptcy but remains current on rent [7][16] - Management noted that while competition has increased, the market remains robust, and they are taking a conservative approach to future guidance [25] Other Important Information - The company successfully completed a $500 million unsecured bond offering with a 4.6% coupon, enhancing liquidity and capital flexibility [5][17] - The company has raised its guidance for core FFO per share to a range of $3.34 to $3.39, reflecting strong performance year-to-date [20] - Lease termination fees for the quarter totaled $2.2 million, which was in line with expectations [15][21] Q&A Session Summary Question: What is driving the implied deceleration in investment guidance? - Management indicated that while the market appears robust, the implied deceleration is more about conservatism and lack of visibility into the fourth quarter [25] Question: Can you discuss the new relationships in acquisitions? - Management noted that new relationships are developed through long-term calling efforts, but they do not disclose specifics about non-relationship acquisitions [27][29] Question: Update on available assets for sale or retenanting? - Management reported strong demand for certain assets, with 28 out of 64 assets currently being worked on for re-leasing [34] Question: What is the expected timing for vacant properties to be released? - Management stated that while initial marketing activity occurs within 30-40 days, the full release process may take 9-12 months depending on redevelopment needs [44] Question: How is the company managing bad debt? - Management explained that they are maintaining a conservative approach to bad debt, embedding 60 basis points in guidance due to uncertainties, particularly with At Home [50][52] Question: What is the outlook for cap rates? - Management indicated that cap rates are expected to remain stable, with potential minor fluctuations depending on the mix of closings [38] Question: How does the company plan to handle upcoming debt maturities? - Management confirmed that the recent bond issuance has prefunded refinancing needs, and they may return to the market for additional debt later in the year [42] Question: What sectors are being targeted for acquisitions and dispositions? - Management highlighted the auto service sector as a robust area for acquisitions, while dispositions are focused on underperforming assets [62]

1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - From July 28 to August 1, 2025, the secondary - market prices of China's listed public REITs showed an overall upward trend, with a weighted REITs index return of 2.2%. Compared with other mainstream asset classes, REITs ranked second in terms of return [1][11]. - This week, two new REITs were listed, and the status of two first - offering projects was updated [4]. 3. Summary According to the Directory 3.1 Secondary Market 3.1.1 Price Trends - **At the major asset level**: The secondary - market prices of listed public REITs in China showed an upward trend. The weighted REITs index closed at 143.13 with a return of 2.2%. The return ranking from high to low was: crude oil > REITs > gold > pure bonds > convertible bonds > A - shares > US stocks [1][11]. - **At the underlying asset level**: Both property - right and franchise - right REITs showed a fluctuating upward trend, with property - right REITs having a larger increase. Among the underlying asset types, consumer - related REITs had the largest increase, and the top three in terms of return were consumer - related, municipal facilities, and water conservancy facilities [16][18]. - **At the single - REIT level**: After excluding the newly listed REITs this week, 57 REITs rose and 12 fell. The top three in terms of increase were China Merchants Shekou Industrial Zone REIT, Industrial and Commercial Bank of Inner Mongolia Energy Clean Energy REIT, and China Resources Commercial REIT [22]. 3.1.2 Trading Volume and Turnover Rate - **At the underlying asset level**: The total trading volume of public REITs this week was 3.61 billion yuan. Warehouse logistics REITs led in terms of daily average turnover rate. The top three in terms of trading volume were park infrastructure, warehouse logistics, and transportation infrastructure; the top three in terms of daily average turnover rate were warehouse logistics, park infrastructure, and energy infrastructure [26]. - **At the single - REIT level**: The trading volume and turnover rate of single REITs continued to show differentiation. The top three in terms of trading volume were Bank of China Sinotrans Warehouse Logistics REIT, CICC Jinhua Agricultural REIT, and Huaxia Huadian Clean Energy REIT; the top three in terms of trading amount were CICC Jinhua Agricultural REIT, Bank of China Sinotrans Warehouse Logistics REIT, and Huaxia Huadian Clean Energy REIT; the top three in terms of turnover rate were Bank of China Sinotrans Warehouse Logistics REIT, Huaxia Huadian Clean Energy REIT, and CICC Jinhua Agricultural REIT [27]. 3.1.3 Main Capital Inflow and Block Trading - **Main capital inflow situation**: The total main capital inflow this week was 30.86 million yuan, and the market trading enthusiasm decreased. The underlying asset types with positive main capital inflow were energy infrastructure and warehouse logistics. The top three REITs in terms of main capital inflow were Huaxia Huadian Clean Energy REIT, Bank of China Sinotrans Warehouse Logistics REIT, and Penghua Shenzhen Energy REIT [31]. - **Block trading situation**: The total block trading amount this week reached 205.55 million yuan, an increase compared with last week. There were block trading transactions on five trading days this week, and the highest single - day block trading amount was on August 1, 2025. The top three REITs in terms of block trading amount were CICC Jinhua Agricultural REIT, CITIC Construction Investment Mingyang Smart New Energy REIT, and Industrial and Commercial Bank of Hebei Expressway REIT [32]. 3.2 Primary Market 3.2.1 Listed Projects - As of August 1, 2025, the number of public REITs products in China reached 71, with a total issuance scale of 183.952 billion yuan. Transportation infrastructure had the largest issuance scale, followed by park infrastructure [36]. - This week, Bank of China Sinotrans Warehouse Logistics REIT was listed on July 29, 2025, with an asset type of warehouse logistics and an issuance scale of 1.311 billion yuan; Huaxia Huadian Clean Energy REIT was listed on August 1, 2025, with an asset type of energy infrastructure and an issuance scale of 1.895 billion yuan [36]. 3.2.2 Pending - Listing Projects - According to the project announcements of the Shanghai and Shenzhen Stock Exchanges, there were 24 REITs in the pending - listing state, including 13 first - offering REITs and 11 REITs pending expansion [40]. - This week, the status of the first - offering project of "China International Capital Corporation Vipshop Outlets Closed - end Infrastructure Securities Investment Fund" was updated to "approved", and the status of the first - offering project of "China Aerospace Hong Consumer Closed - end Infrastructure Securities Investment Fund" was updated to "accepted" [41].

Core Viewpoint - The performance of First REIT has been negatively impacted by fluctuations in the Indonesian Rupiah exchange rate, leading to a downgrade in its rating from "Buy" to "Hold" by OCBC Bank, while maintaining a target price of SGD 0.27 [1] Group 1: Financial Performance - First REIT's DPU for the first half of 2025 was SGD 0.0113, a decrease of 5.8% year-on-year, falling short of analyst expectations primarily due to exchange rate fluctuations [2] - Rental income and net property income (NPI) for the first half of 2025 declined by 2.9% and 2.7% year-on-year, amounting to SGD 50.5 million and SGD 48.9 million respectively; excluding currency effects, the property portfolio in Indonesia and Japan would have seen a rental growth of 5.5% [2] - The total distributable amount decreased by 4.8% year-on-year to SGD 23.8 million [2] Group 2: Analyst Predictions - Analysts at OCBC Bank have lowered their DPU forecasts for FY2025 and FY2026 by 3.8% and 3.2% respectively, citing ongoing currency headwinds [3] - Despite the downgrade, the fair value estimate remains at SGD 0.27 due to lower risk-free rate assumptions partially offsetting the rise in risk premiums [3] - The current closing price of SGD 0.280 indicates a tight valuation [3] Group 3: Strategic Review and Market Outlook - First REIT is undergoing a strategic review of its Indonesian hospital asset portfolio, having received an initial acquisition interest from PT Siloam International Hospitals [4] - Analysts recommend a "wait-and-see" approach for investors until the results of the strategic review are clearer [4] - The trust benefits from a weighted average lease expiry (WALE) of 10.1 years, providing stable cash flow, alongside structural trends such as aging population and increasing demand for quality healthcare services [4] - As of June 30, 2025, the trust's leverage ratio has slightly increased to 41.2%, with outstanding rent from tenant PT Metropolis Propertindo Utama accumulating to SGD 7 million [4]

Group 1 - The Dow Jones Equity All REIT index increased by 1.56% over the recent week [2] - This performance is comparable to the S&P 500, which rose by 1.46%, and the Dow Jones Industrial Average, which gained 1.26% [2] - Nearly all Dow Jones US real estate investment sectors contributed to this positive trend [2]

Investment Rating - The report provides a positive outlook on the ASEAN real estate sector, particularly highlighting the stability and growth potential of Singapore's real estate investment trusts (REITs) [1]. Core Insights - The report emphasizes the varying weight of real estate stocks in the MSCI standard index across ASEAN countries, with Singapore at approximately 7%, the Philippines at 18%, and Vietnam at 8% [1][3]. - Singapore's government actively intervenes in the real estate market to stabilize prices and limit speculative profits, leading developers to shift towards stable management models [1][6]. - CapitaLand Investment (CLI) has transformed into a management-focused company, comparable to Brookfield and Blackstone, enhancing its revenue stability through property and fund management [1][7]. - CLI manages assets worth approximately $13.6 billion and generates around $8 million annually from its U.S. assets valued at $40 billion [1][8]. - Singapore's REITs are attractive globally due to their high liquidity and returns, with quality assets like CapitaLand Integrated Commercial Trust (CICT) providing stable rental income [1][13]. - Secondary market fundraising has been crucial for narrowing industry price spreads, with secondary market fundraising being three times that of IPOs over the past decade [1][14]. Summary by Sections Market Overview - The report outlines the significant role of various ASEAN countries in the real estate market, noting the differences in stock market sizes and the representation of real estate stocks in indices [1][3]. Company Profiles - Key investable real estate companies in Singapore include CapitaLand, City Developments, and UOL Group, each playing distinct roles in property management and development [4]. - CLI's dual role as a manager and property owner allows it to earn fees from managing $13.6 billion in assets while also generating income from rental and dividends [8]. Government Influence - Singapore's government policies are designed to prevent market overheating, resulting in lower price volatility and limiting developers' profit opportunities from market fluctuations [6]. Investment Strategies - The report discusses the evaluation of companies based on net asset value (NAV) and the importance of considering various financial metrics when assessing real estate investments [5][11]. Future Outlook - The Singapore stock market is projected to grow significantly, potentially surpassing Japan's market within the next decade, driven by a stable growth rate and effective fundraising strategies [12]. - The report highlights the attractiveness of Singapore's REITs in the global market, particularly due to their stable income streams and lower risk profiles compared to other regions [13].