1. Report Industry Investment Rating No information provided in the text. 2. Core Viewpoints of the Report - The China Securities REITs Total Return Index continued to decline this week, with a weekly decline of 0.83% and a decline of 3.71% compared to the end of January, basically erasing the gains since the beginning of 2026. The average daily turnover rate was 0.3%, a historically low value since 2021, and market activity remained low [1][10]. - The "AVIC Beijing Changbao Rental Housing REIT" started the inquiry process. It is a government - allocated rental project with high secondary - market buying value, and its listing increase is expected to reach 25 - 30% [1][2]. - In the secondary market, all asset sectors declined this week, with the warehousing and logistics and industrial park sectors having relatively large declines [4]. 3. Summary by Directory 3.1 Primary Market - **AVIC Beijing Changbao Rental Housing REIT**: Registered and became effective on March 23, 2026, and conducted an inquiry on March 27. It is the second infrastructure public REIT issued in 2026. The underlying assets are three public rental housing projects in the Future Science City of Changping District, Beijing. It belongs to government - allocated rental REITs, with a policy - oriented nature. The rent is about 70% of the surrounding area, and the project has a high secondary - market buying value. The listing increase is expected to reach 25 - 30% [1][18][29]. - **Other Infrastructure REITs**: "Dongfanghong Tunnel Co., Ltd. Expressway REIT" ended the inquiry and entered the issuance stage, with a predicted IRR still above 4%. As of March 27, 2026, 8 projects have received inquiry feedback and 2 projects have been accepted by the exchange [32]. - **Commercial Real Estate REITs**: On March 26, 2026, Guolianan Fuxing Commercial Real Estate REIT was submitted to the Shanghai Stock Exchange. As of March 27, 2026, a total of 16 commercial real estate REITs have been declared, with an expected fundraising scale of over 46.2 billion yuan [3][33]. 3.2 Secondary Market - **Overall Market Performance**: All asset sectors declined this week, with the warehousing and logistics sector declining by 1.34% and the industrial park sector by 1.21%. Only 12 out of 79 individual bonds rose, and 67 declined [4][36]. - **Warehousing Sector**: The decline was the largest this week. Only two individual bonds rose, and the rest declined. The decline of CICC GLP REIT exceeded 10% this month, but the current distribution rate reached 5.63%. The decline of Harvest JD Warehouse Infrastructure REIT stopped, and it plans a secondary expansion. The predicted distribution rate can still be above 4% [39][42]. - **Industrial Park Sector**: The decline was relatively large. Only 2 individual bonds rose, and 18 declined. The current distribution rate of the park sector has risen to 4.79%. For individual bonds with poor fundamentals or large previous declines and a distribution rate of over 5%, there may be opportunities for marginal improvement. It is recommended to focus on park REITs with stable fundamentals, a distribution adjustment mechanism, and a high distribution rate [44]. - **Rental Housing Sector**: All individual bonds declined this week, with an overall decline of 0.78%. The decline of Cathay Fortune Urban Investment Kuanting Rental Housing and China Asset Management CR Land Nest was the smallest, with a distribution rate of about 3.4%. CICC Xiamen Anju has launched a vote for an expansion. The rental housing sector has good fundamentals, and attention can be paid to trading opportunities related to interest - rate adjustments [49][51]. - **Transportation Facilities Sector**: The performance was average. Only 2 individual bonds rose, and the decline of Huaxia Nanjing Transportation Expressway REIT was the largest. It is recommended to focus on road assets with traffic - inducing effects or in economically active areas [52][53]. - **Transaction Activity**: The trading activity of REITs this week remained low. The average daily trading volume was 371 million yuan, the average daily trading volume was 86 million shares, and the average daily turnover rate was 0.30%. The trading of each asset was also relatively inactive [58].

Group 1 - The report analyzes the launch of the Beijing Changbao REIT, which focuses on rental housing for talents in Changping District, Beijing, with a total issuance of 400 million shares priced between 1.822 and 2.318 yuan per share, corresponding to a fundraising scale of 7.29 to 9.27 billion yuan [11][12] - The underlying assets include three projects: Yalan Xincheng, Guorui Xiyuan, and Future Rongshang Garden, all located in the Future Science City of Changping District, benefiting from a balanced supply and demand for public rental housing [13][14] - The expected fair value of the projects is estimated to be between 728 million and 942 million yuan, with a projected dividend yield of 3.71% for 2026, which is higher than comparable REITs [4][29] Group 2 - The projects have a high occupancy rate, with historical rental prices stable at 60%-70% of the market rate, benefiting from the tight supply-demand balance in the area [4][19] - The rental structure shows a high proportion of large tenants, with a significant portion of leases expiring in 2026, leading to a recent decline in renewal rates [4][35] - Changping District has a limited supply of public rental housing, with only one new public rental project planned, while the demand for talent housing is projected to increase by approximately 10,600 units during the 14th Five-Year Plan period [19][29] Group 3 - The operational performance of the underlying assets has shown continuous growth, with revenues increasing from 36.88 million yuan in 2022 to 33.91 million yuan in the first nine months of 2025, and net profits improving correspondingly [44][45] - The gross profit margin of Beijing Changbao REIT is higher than that of comparable projects, with margins of 66.48% in 2022 and 64.91% in 2025, indicating strong operational efficiency [47] - The rental pricing strategy is government-regulated, resulting in minimal price fluctuations and a competitive advantage over market rates [4][19]

Core Viewpoint - The public REITs market in China is expected to experience a "high-quality development opportunity" in 2026, driven by policy benefits and improved market ecology, balancing "stock activation" and "high-quality development" [2][4]. Group 1: Market Performance and Developments - The public REITs market started 2026 with a strong performance, with several products showing significant weekly gains, such as E Fund Huawai Market REIT leading with a 7.84% increase [4]. - Multiple public REITs products have made progress, including the acceptance of China Aviation Beijing Changbao Rental Housing REIT by the CSRC and updates on other REITs' statuses [4]. - By the end of 2025, the public REITs market had 79 products with a total issuance scale exceeding 210 billion yuan, making it the largest REITs market in Asia and the second largest globally [5]. Group 2: Investment Opportunities - The macroeconomic recovery and expectations of declining interest rates are expected to enhance the attractiveness of REITs as high-dividend assets for long-term funds like insurance and social security [5]. - The market is anticipated to show differentiation, with high-quality assets and strong operational capabilities receiving valuation premiums, while single assets facing operational pressures may experience volatility [5]. - New growth points are expected from categories like data centers, cultural tourism, and elderly care, with a normalization of the expansion mechanism allowing REITs to evolve from single projects to asset platforms [5]. Group 3: Investment Focus Areas - In 2026, three main investment lines are highlighted: 1. Anti-cyclical stable cash flow assets, such as consumer infrastructure and policy-based rental housing, which are less affected by economic cycles [8]. 2. High-prosperity policy-driven assets, like data centers benefiting from the digital economy, and logistics sectors expected to recover as demand increases [8]. 3. Strong expansion asset platforms, where commercial real estate pilot projects may achieve scale effects and enhanced dividends through asset injections [9]. - The REITs market is expected to balance "stock activation" and "high-quality development," with a focus on core consumer assets, new policy-supported assets, and potential assets with improved operational efficiency [9].