Core Viewpoint - The Suzhou Hengtai Rental Housing REIT has officially listed, marking Jiangsu's first rental housing REIT and the eighth public REIT for affordable rental housing in the market, with a significant opening day increase of 29.99% [1][2]. Group 1: Fund Details - The fund raised a total of RMB 1.367 billion, with a total issuance of 500 million shares priced at RMB 2.734 per share, and has a duration of 48 years [2]. - On its first trading day, the fund's price surged to RMB 4.178 per share, reflecting a 52.82% increase from the base price, and it was temporarily suspended due to the price increase [2][4]. - The underlying asset of the REIT is the "Elite Apartment" community, which includes 28 public rental housing buildings and has a total area of 282,400 square meters [2][4]. Group 2: Rental Performance - The average rent for the residential units in the underlying asset is RMB 26.17 per square meter per month, while the average rent for supporting properties is RMB 37.12 per square meter per month [4]. - The occupancy rates from 2020 to 2023 were 91.10%, 90.11%, 90.97%, and 87.97%, with a noted decline attributed to internal renovations planned for 2024 [4]. - By the end of 2024, approximately 92.85% of the rental contracts for the residential portion will expire in 2025, indicating a concentration of lease expirations [4]. Group 3: Future Expansion Plans - The controlling entity, Hengtai Group, plans to invest approximately RMB 7 billion in new rental housing construction over the next five years and has already secured 12 quality reserve projects totaling 1,173,400 square meters [5]. - The company aims to align existing projects with public REIT issuance standards and improve operational efficiency while minimizing impacts on customer experience [5]. Group 4: Market Trends - Since the launch of the first rental housing REIT in 2022, a total of eight rental housing REITs have been listed, indicating a growing interest in this investment vehicle [6]. - The rental housing REIT sector has shown strong performance, with a 29.8% increase in the price index for rental housing REITs in Q1 2025, driven by supportive policies and stable distribution rates [6][7]. - The cumulative issuance scale of affordable rental housing REITs is expected to exceed RMB 25 billion, reflecting the increasing supply and demand in the rental housing market [7].