Investment Rating - The report does not provide a specific investment rating for the REITs industry [1] Core Insights - The REITs industry is experiencing operational divergence, with varying performance across different sectors. The overall market sentiment is improving, creating potential investment opportunities despite ongoing pressures [5][6] - The total market capitalization of the REITs industry is approximately 2170.96 billion yuan, with a circulating market value of about 1109.16 billion yuan [1] Summary by Sections Industrial Park Sector - The industrial park sector faces significant pressure due to oversupply in major cities, leading to a general decline in rental rates and occupancy [5][12] - Increased competition and a rise in supply have resulted in a downward trend in revenue and EBITDA for many projects [12] - Some projects are adjusting strategies, such as lowering rents and offering customized services to attract tenants [5][12] Warehousing and Logistics Sector - Demand is differentiated, with essential industries like pharmaceuticals and e-commerce supporting occupancy rates, while small tenants show weak demand [5] - The sector is experiencing rental pressure due to increased supply in many regions [5] Affordable Rental Housing Sector - This sector remains the most stable, with occupancy rates consistently above 90% and minimal rental fluctuations [5] - Demand is driven by new citizens and corporate employees, providing strong resilience against market changes [5] Consumer Sector - The consumer sector shows stable occupancy rates above 90%, benefiting from asset upgrades and marketing strategies [5] - Rental income performance varies, with shopping centers seeing growth while outlet and farmer's market types face short-term fluctuations [5] Highway Sector - The highway sector has seen improved traffic volumes due to seasonal travel, although attention is needed on network diversion impacts [5] - Revenue growth is primarily driven by increased passenger traffic during peak travel seasons [5] Municipal Utilities Sector - Core indicators vary significantly due to industry characteristics, influenced by seasonal cycles and policy adjustments [5] Energy Sector - Performance heavily relies on resource endowments and policies, with national subsidy mechanisms being a key variable affecting distributable amounts [5] Data Center Sector - The customer base is primarily large enterprises, maintaining high occupancy and billing rates, indicating stable cash flow [5] Investment Recommendations - The report suggests that despite ongoing pressures, there are structural opportunities for investment, particularly in fundamentally sound assets. It recommends considering projects with reasonable valuations and potential for recovery [5]

Core Viewpoint - The A-share market continues to strengthen, but public REITs with quasi-fixed income attributes have experienced a pullback, with five out of six completed public REITs trading at a discount compared to their expansion prices [1][2]. Group 1: Market Performance - Since the third quarter, the public REITs market has been in a state of fluctuation and pullback, with the CSI REITs Total Return Index dropping over 7% from a peak of 1124.91 points on June 23 to 1045.13 points on October 24 [2]. - Among the six public REITs that have completed expansion, five are currently trading at a discount, with an average discount rate of 12.34% [2]. Group 2: Discount Analysis - Specific REITs have shown significant discounts, such as Huazha Zhangjiang Industrial Park REIT at over 19%, and both CICC ProLogis REIT and Bosera Shekou Industrial Park REIT at over 17% [2]. - The discounts are attributed to the timing of the expansion, which occurred when the REITs market was at a high valuation, leading to a decline in market prices shortly after the expansions [2][4]. Group 3: Long-term Implications - While the short-term impact of discounts may affect market confidence, it is believed that this could lead to a return to value investing in the long run [4]. - The underlying assets' ability to generate stable cash flows and the establishment of effective price discovery and liquidity mechanisms are crucial for long-term market health [4]. Group 4: Investment Value - Current issues in the REITs market include a lack of significant positive changes in the underlying factors that previously drove valuations, such as declining interest rates [5]. - The absolute distribution rates of REITs have improved but still do not present a significant advantage compared to dividend stocks, indicating a need for positive changes on both the asset and parent company levels for price appreciation [5].

Group 1 - The National Development and Reform Commission has issued a notice to further promote the regular application and recommendation of real estate investment trusts (REITs) in the infrastructure sector, marking an important milestone in the normalization of the public REITs market [1] - The public REITs market is experiencing continuous expansion, with a steady increase in issuance scale and positive market performance [1] - The Shanghai Stock Exchange supports REITs projects that are honest, trustworthy, and focused on improving operational quality and investor returns, aiming to cultivate benchmark projects that investors trust [1] Group 2 - Multiple REITs projects in the Shanghai market have shown strong performance in the first half of the year, with cash flow completion rates meeting expectations and stable underlying asset operations [2] - The Huatai-PB Nine Continent Pharmaceutical REIT reported a consolidated revenue of 36.02 million yuan and a net profit of 12.86 million yuan for the first half of the year, with a cash distribution rate of 1.31% [2] - The Jiashi Wumart Consumption REIT achieved approximately 52.86 million yuan in revenue and announced a distribution of 34.52 million yuan, representing 96.14% of the available distribution amount [2] Group 3 - The CICC ProLogis REIT held a mid-year performance briefing to communicate with investors about its operational results and asset management strategies [3] - The meeting aimed to provide investors with a comprehensive understanding of the REIT's interim performance and financial situation [3] Group 4 - Several REITs in the Shanghai market are actively promoting capital expansion to provide internal momentum for the development of REIT platforms [4] - The Guotai Junan Dongjiu New Economy REIT has received approval for its expansion project, which includes new assets with a 100% occupancy rate [4] - The Huatai-PB Nine Continent Pharmaceutical REIT is working on revitalizing existing assets and integrating similar assets, with plans for a pre-REITs initiative [4] Group 5 - The Shanghai REITs have established effective incentive and constraint mechanisms, linking project operational performance directly to team and individual performance [5] - The management team can enjoy excess returns through a floating management fee structure when performance exceeds expectations [5] Group 6 - A market ecosystem is gradually forming where "good projects receive good treatment," enhancing the overall quality and attractiveness of REITs [6] Group 7 - The Shanghai Stock Exchange is actively conducting classified supervision to support high-quality REIT projects while limiting weaker ones, providing comprehensive support measures for original equity holders and related parties [7] - High-quality REIT original equity holders can utilize various financing methods, including corporate bonds and asset-backed securities, to enrich their financing options [7]

1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - This week (2025/09/15 - 2025/09/19), the weighted index of REITs decreased by 0.14% to 100.42 points. The performance of major asset classes from high to low was: crude oil > pure bonds > gold > REITs > stocks > convertible bonds. [2] - In terms of the nature of underlying asset projects, property - type REITs rose 0.13% to 113.97, while concession - type REITs fell 0.46% to 84.48. From the perspective of industry types, the weekly performance from high to low was: data centers > warehousing and logistics > industrial parks > consumer - type > energy - type > rental housing for affordable housing > highways > ecological and environmental protection. [2] 3. Summary According to Relevant Catalogs 3.1 Secondary Market Price - Volume Performance - **Overall Market Performance**: The weighted index of REITs decreased by 0.14% this week. The performance of major asset classes varied, with crude oil having the highest return at 2.09% and convertible bonds having the lowest return at - 1.55%. [2] - **Performance by Project Nature**: Property - type REITs rose 0.13%, and concession - type REITs fell 0.46%. [2] - **Performance by Industry Type**: Data centers had the highest return of 1.32%, while ecological and environmental protection had the lowest return of - 2.00%. [2] - **Top - Performing REITs**: In property - type REITs, the top five in terms of increase were Huaxia Fund China Resources Youchao REIT (2.20%), CICC Yizhuang Industrial Park REIT (1.54%), Huaxia Joy City Commercial REIT (1.43%), Southern Runze Technology Data Center REIT (1.41%), and AVIC Yishang Warehousing and Logistics REIT (1.37%). In concession - type REITs, the top five were China Merchants Expressway REIT (1.89%), E Fund Shenzhen Expressway REIT (1.57%), Ping An Ningbo Jiaotou REIT (1.40%), AVIC Jingneng Photovoltaic REIT (1.15%), and Yin Hua Shaoxing Raw Water and Water Conservancy REIT (0.87%). [3] - **Turnover Rate**: Among property - type REITs, CICC Vipshop Outlets REIT, Hua'an Waigaoqiao REIT, Southern Wanguo Data Center REIT, CICC Hubei KeTou Optics Valley REIT, and China Merchants Fund Shekou Rental Housing REIT had relatively high turnover rates. Among concession - type REITs, Huatai Jiangsu Jiaokong REIT, Guojin China Railway Construction REIT, Fuguo First - Created Water Service REIT, Huaxia Huadian Clean Energy REIT, and Huaxia Tebian Electric New Energy REIT had relatively high turnover rates. [3] 3.2 Secondary Market Valuation Situation - **Property - type REITs**: The top three in terms of internal rate of return (IRR) were CICC Hubei KeTou Optics Valley REIT (7.70%), Boshi Shekou Industrial Park REIT (6.69%), and Huaxia HeDa High - tech REIT (6.61%). The three REITs with relatively low P/NAV valuation quantiles and showing undervaluation were E Fund Guangkai Industrial Park REIT, CICC China Green Development Commercial REIT, and Huitianfu Shanghai Real Estate Rental Housing REIT. [4][23] - **Concession - type REITs**: The top three in terms of IRR were Huaxia China Communications Construction REIT (9.65%), Ping An Guangzhou Guanghe REIT (8.96%), and ICBC Hebei Expressway REIT (6.18%). The three REITs with relatively low P/NAV valuation quantiles and showing undervaluation were Huaxia Yuexiu REIT, Huaxia Huadian Clean Energy REIT, and ICBC Mengneng Clean Energy REIT. [4] 3.3 Market Correlation Statistics - **Correlation between REITs and Major Asset Classes**: This week, REITs had the highest correlation coefficient with the Shanghai Composite Index at 0.20, followed by CSI 300 at 0.18, ChiNext Index at 0.11, small - and - medium - cap stocks at 0.16, CSI Convertible Bond Index at 0.17, CSI All - Bond Index at 0.07, gold at 0.04, and crude oil index at 0.09. [27] - **Correlation of Different Types of REITs with Major Asset Classes**: Different types of REITs had different correlations with major asset classes. For example, industrial park - type REITs had a relatively high correlation with the Shanghai Composite Index at 0.21, while rental housing for affordable housing - type REITs had a correlation coefficient of 0.00 with the Shanghai Composite Index. [28] 3.4 Primary Market Tracking As of September 19, 2025, there were 11 REITs products still in the exchange acceptance stage and 1 REIT in the state of having passed the review and waiting for listing. [5][31]

Core Viewpoint - 中金普洛斯REIT held a mid-year performance briefing for 2025, discussing its mid-term performance, infrastructure project operations, asset management initiatives, and the logistics market situation [1] Financial Performance - In the first half of the year, 中金普洛斯REIT achieved revenue of approximately 216 million yuan, with a consolidated EBITDA of about 138 million yuan, and a distributable amount of around 167 million yuan [1] Operational Strategies - As the original equity holder and external management institution, 普洛斯 enhanced tenant retention and park competitiveness through refined operations and asset renewal [1] - The company is advancing a systematic park renovation plan, exemplified by the upgrades at the 普洛斯 (Chongqing) urban distribution logistics center, which included facade renovation, landscaping upgrades, and road repairs to improve park image and operational efficiency [1] Communication with Investors - 中金普洛斯REIT has established various communication mechanisms, such as performance briefings, investor open days, and underlying asset research, to timely address investor concerns and enhance the quality of information disclosure [1]

Group 1 - The core performance of CICC Prologis REIT for the first half of 2025 includes total revenue of approximately 216 million yuan and EBITDA of about 138 million yuan, with a distributable amount of around 167 million yuan [1] - Rental and property management service fee income reached approximately 214 million yuan, while the EBITDA from infrastructure projects was about 144 million yuan, resulting in a net profit margin of 67.12% after excluding fair value changes [1] - The REIT efficiently served 70 clients across various industries, including e-commerce, express logistics, and pharmaceutical cold chain, with an average leasing rate exceeding 90% for 10 logistics parks [1] Group 2 - Prologis, as the original rights holder and external management institution of CICC Prologis REIT, enhances tenant stickiness and park competitiveness through refined operations and asset renewal initiatives [2] - The company is implementing systematic park renovation plans, exemplified by the upgrades at Prologis (Chongqing) urban distribution logistics center, which include facade renovations, landscaping upgrades, and road repairs [2] - Prologis is actively creating a vibrant park ecosystem by hosting various activities to enhance tenant belonging and satisfaction, contributing to stable operations and long-term value growth [2]

Group 1: Investment Overview - GLP Pte Ltd (Prologis) received a strategic investment of $1.5 billion from Abu Dhabi Investment Authority (ADIA), with an initial deployment of $500 million, marking one of the largest strategic investments in China's new infrastructure sector this year [1][2] - ADIA's upgrade from a limited partner to a strategic investor in Prologis signals that China's new economic infrastructure is becoming a "must-have" for international long-term capital [1][2] Group 2: Market Confidence and Economic Potential - The investment by a sovereign wealth fund like ADIA is seen as an "international endorsement" of China's new economic industries, reflecting confidence in the long-term potential of the Chinese market [2][3] - The collaboration between Prologis and ADIA has been built on years of successful partnerships, indicating a deep understanding and recognition of Prologis's capabilities across the entire project lifecycle [2][3] Group 3: Strategic Significance of New Economic Infrastructure - The investment highlights three attractive features of new economic infrastructure: stable cash flow, enhanced operational efficiency through technology, and alignment with digital economy and green transition trends [3][4] - ADIA's investment strategy aligns with its goal of expanding in the new economy sector, further solidifying its role as a representative of "smart money" in global capital markets [3][4] Group 4: Policy Support and Economic Recovery - China's economic recovery is reflected in a GDP growth of 5.3% year-on-year, with significant contributions from new production forces like renewable energy and artificial intelligence, driving demand for new infrastructure [4][5] - Recent policies from the National Development and Reform Commission and the Ministry of Finance have encouraged public REITs to invest in new infrastructure projects, boosting investor confidence [5][6] Group 5: Prologis's Role and Capabilities - Prologis has established a comprehensive capability system covering investment, development, operation, and management, positioning itself as a benchmark enterprise in China's new economic infrastructure [6][7] - The company has successfully transformed from a logistics real estate developer to a diversified infrastructure operator, focusing on logistics, data centers, and renewable energy [6][7] Group 6: Future Prospects and Strategic Alignment - Prologis's partnerships with local governments and state-owned enterprises are expanding, as seen in its recent collaboration with Zhejiang's state capital for a $3.75 billion investment in a data center [7][8] - The alignment of Prologis's operational model with national policies supports the development of new infrastructure, contributing to the long-term transformation of the economy [8]

Core Viewpoint - The strategic investment of $1.5 billion by Abu Dhabi Investment Authority (ADIA) in GLP reflects the growing recognition of China's new economic infrastructure by international capital, driven by supportive policies and industry upgrades [1][5][6]. Group 1: Investment and Market Dynamics - ADIA's investment in GLP is seen as a significant endorsement of China's new economy, indicating strong market confidence and the long-term potential of the Chinese market [2][3]. - The collaboration between ADIA and GLP has evolved from previous fund-level partnerships to a strategic alliance, highlighting the recognition of GLP's comprehensive capabilities in project planning, development, and operational enhancement [2][3]. - The investment signifies a shift in international capital's focus towards China's new economic infrastructure as a stable investment anchor, particularly in logistics, data centers, and renewable energy [3][5]. Group 2: Economic and Policy Environment - China's economic resilience and supportive macroeconomic policies are crucial factors driving investment in new economic infrastructure, with GDP growth of 5.3% and retail sales growth of 5% in the first half of 2025 [5][6]. - The rapid rise of new productive forces, including renewable energy and artificial intelligence, is propelling industry upgrades and creating sustained market demand for new infrastructure [5][6]. - Recent policies from the National Development and Reform Commission and the Ministry of Finance have encouraged public REITs to invest in new infrastructure projects, enhancing investor confidence [6][9]. Group 3: GLP's Strategic Positioning - GLP has established a comprehensive professional capability system covering investment, development, operation, and management, successfully transitioning from a logistics real estate developer to a diversified infrastructure operator [7][9]. - The company has demonstrated strong asset management capabilities, with over 20 private real estate funds and public REIT products, achieving high dividend payouts and leading in its category [7][9]. - GLP's partnerships with local governments and state-owned enterprises are expanding, as seen in its recent collaboration with Zhejiang's state capital for a $3.5 billion investment in a data center [8][9]. Group 4: Future Outlook and Strategic Alignment - The alignment of GLP's operational model with national policy goals positions it as a key player in the new productive forces era, facilitating the interaction between capital, industry, and policy [9]. - The company's experience in asset fund management and REIT operations aligns with the government's objectives of revitalizing existing assets and supporting new infrastructure development [9]. - GLP's role extends beyond infrastructure construction and operation, potentially serving as a bridge among capital, industry, and policy in the context of China's high-quality economic development [9].

Core Viewpoint - The recent investment of $1.5 billion by the Abu Dhabi Investment Authority (ADIA) in GLP Pte Ltd marks a significant upgrade in their partnership, transitioning ADIA from a limited partner to a strategic investor, which is expected to enhance GLP's financial strength and strategic alignment in capturing new opportunities in the new economy sector [2][4][6]. Group 1: Investment Details - ADIA's investment consists of an initial deployment of $500 million, with the remaining amount to follow, indicating a strong commitment to GLP's growth [4][6]. - GLP's asset management scale has reached $80 billion, focusing on supply chain, big data, and new energy sectors, which positions it well for future expansion [5][9]. Group 2: Strategic Implications - The collaboration is seen as a mutual recognition of the potential in the new economy sector, combining GLP's logistics and technology innovation with ADIA's diversified asset allocation experience [3][6]. - ADIA's investment strategy has shifted towards the new economy, as evidenced by its recent investments in AI and data analytics, indicating a broader trend of sovereign wealth funds targeting high-growth sectors [5][11]. Group 3: Market Position and Performance - GLP has established a strong presence in China, particularly in the public REIT market, with its GLP REIT being the largest in terms of market capitalization and asset scale among logistics REITs in China [8][9]. - The company has built a comprehensive logistics and manufacturing infrastructure network across 70 regional markets, serving nearly 3,000 clients, which demonstrates its operational capabilities and market reach [9][10]. Group 4: Future Growth and Expansion - GLP is actively expanding into new economic infrastructure areas, including data centers and cold chain logistics, reflecting its strategic pivot towards high-demand sectors [10][11]. - The partnership with ADIA is expected to provide GLP with enhanced strategic resources and funding support, facilitating its growth in emerging markets and technology sectors [7][11].

Core Viewpoint - The strategic investment of $1.5 billion by Abu Dhabi Investment Authority (ADIA) in Prologis signifies a strong commitment to China's new economy sectors, highlighting a new model for global capital to engage deeply with China's real economy [1][2]. Group 1: Investment Details - ADIA's initial $500 million investment is allocated to logistics supply chains, digital infrastructure, and new energy projects, indicating a focus on high-growth sectors [1]. - Prologis has established itself as a dual-identity entity, functioning as both an infrastructure operator and a capital hub, managing nearly $80 billion in global assets [1][3]. Group 2: Partnership Evolution - The collaboration between ADIA and Prologis has evolved from financial investment to a strategic partnership, reflecting a deeper commitment to the latter's business model and growth potential [2][4]. - Prologis has a history of successful collaborations with ADIA, having previously engaged in multiple fund investments across various markets [2]. Group 3: Business Model and Ecosystem - Prologis operates as an alternative asset investment and management institution, focusing on new economy sectors while providing operational services linked to infrastructure assets [3][5]. - The company has developed a closed-loop value creation system that integrates industry and capital, which is highly valued by long-term capital investors like ADIA [4]. Group 4: Market Potential and Economic Indicators - The logistics and warehousing industry in China has shown resilience, with a social logistics total exceeding 200 trillion yuan and a year-on-year growth of 5.2% [7]. - The demand for digital economy infrastructure, particularly in AI and renewable energy, is rapidly increasing, driven by national strategies and market needs [7][8]. Group 5: Future Prospects - Prologis is reportedly planning a potential IPO in Hong Kong, which could provide global capital with easier access to investment opportunities in China [8]. - The recent strategic investment from Zhejiang state capital into Prologis's computing center business underscores the synergy between international and local capital in promoting AI and industrial integration [8].