1. Report Title and Date - Report Title: "REITs Index Pulls Back, Initial Strategic Allocation Unlocks with Attractive Returns — July Half - Monthly Report on the Public REITs Market in 2025" [1] - Date: July 16, 2025 [2] 2. Core Viewpoints - The REITs index has pulled back in the past half - month, with the ecological and environmental protection sector rising on increased volume, while the rental housing and energy sectors have seen a decline in both price and volume. The consumer and industrial park sectors have slightly declined on increased volume, and the warehousing and transportation sectors have slightly risen with shrinking price and volume [3]. - The dividend yield of equity - type REITs is lower than that of the CSI Dividend Index, but the dividend yield of the warehousing and logistics sector has increased [3]. - The performance assessment of insurance funds in 2025 has started, which is expected to attract more funds into the REITs market [3]. - Two initial strategic allocations have unlocked with attractive returns, and China Resources Commercial REIT plans to apply for a second expansion [3]. 3. Summary by Relevant Catalogs 3.1 Near - Half - Month REITs Index Pulls Back, Equity - Type Dividend Yield Lags Behind CSI Dividend 3.1.1 Near - Half - Month REITs Index Pulls Back, Underperforms CSI 300 - Since the second half of June, the secondary market of REITs has been oscillating downward. From July 1 to 15, the CSI REITs (Closing) Index and the CSI REITs Total Return Index fell by 0.3%/0.1% respectively, underperforming the CSI 300 Index. As of July 15, in 2025, the two indices have cumulatively risen by 10.9%/14.1%, outperforming the CSI 300 Index and the ChinaBond - Treasury Bond Total Wealth (7 - 10 Years) Index [8]. 3.1.2 Ecological and Environmental Protection Leads in Gains, Nearly 90% of Rental Housing REITs Decline - From July 1 to 15, about 65% of REITs' net values have cumulatively declined, with an average decline of 0.56%. The ecological and environmental protection sector led the rise by 2.36%, while the rental housing and water conservancy facilities sectors, after rising for four consecutive months, had their first pullback, with average declines of 2.17% and 2.34% respectively. The consumer REITs had their first pullback this year, with over 60% of individual bonds declining, and the industrial park REITs had 70% declining [9][12]. 3.1.3 Turnover Rate Remains Low, Ecological and Environmental Protection Rises on Increased Volume - Since March 2025, the turnover rate of REITs projects has been continuously declining. From July 1 to 15, the average daily turnover rate of REITs projects was 0.76%, the same as in June. The ecological and environmental protection sector rose on increased volume, with the turnover rate significantly increasing to an average of 1.65%. The rental housing and energy sectors declined in both price and volume [13][16]. 3.1.4 Equity - Type Dividend Yield Lags Behind CSI Dividend, Warehousing and Logistics Sector's Dividend Yield Increases - As of July 15, 2025, the average TTM dividend yields of equity - type and concession - type REITs were 3.74%/6.94% respectively. Among equity - type REITs, the warehousing and logistics and industrial park REITs had relatively high TTM dividend yields, both exceeding 4%. Among concession - type REITs, the transportation - type REITs had a relatively high TTM dividend yield, with an average of 7.82% [19]. 3.1.5 Concession - Type: Ecological and Environmental Protection REITs Have High P/FFO Valuation Percentiles, Many Energy REITs Have Negative ChinaBond IRR - As of July 15, 2025, the P/FFO of REITs in the water conservancy facilities and transportation sectors is, on average, at the 63% and 66% historical percentiles respectively, with a lower valuation level than other concession - type assets. The P/FFO percentile of the ecological and environmental protection sector has reached an average of 85% since listing. Many energy infrastructure REITs have a low IRR, and some have a negative IRR [21]. 3.1.6 Equity - Type: Industrial Park REITs' Valuation Drops to the Historical Median - As of July 15, 2025, the latest P/NAV of rental housing REITs has dropped to the 87% historical percentile, and the IRR is at the 14% historical percentile. The P/NAV of consumer REITs has reached the 83% percentile, and the industrial park REITs' P/NAV is, on average, at the 56% percentile since listing [25]. 3.2 Two Initial Strategic Allocations Unlock with Attractive Returns, China Resources Commercial REIT Plans to Apply for Second Expansion 3.2.1 REITs Market News from July 1 to 15 - The high - tech industrial park public REIT project of Taicang High - tech Holding Co., Ltd. has started the tender. The Ministry of Finance has issued a notice on guiding long - term and stable investment of insurance funds. The REIT project of Wuxi Xishan Environmental Energy Group Co., Ltd. has started the tender. Beijing has issued a plan to boost consumption, supporting the issuance of REITs for eligible consumer infrastructure [28]. 3.2.2 No REITs Issued in July 1 - 15, 2025 - From July 1 to 15, there was no REIT issuance. As of July 15, a total of 10 REITs have been issued in 2025, with a total fundraising of 1.79 billion yuan [29]. 3.2.3 Offline New - Share Subscription Yield of 2.54%, Two Initial Strategic Allocations Unlock with Attractive Returns - As of July 15, the combined offline income of 0.5/1 billion yuan of funds in 2025 is 1.269 million/2.5381 million yuan, with a yield of 2.54%. On July 2 and 9, the initial strategic allocations of China TBEA New Energy REIT and China Shenzhen International REIT were unlocked, with unlocking yields of 56.62% and 32.58% respectively [35]. 3.2.4 Ten REITs Initial Projects Are in Queue - As of July 15, there are currently 10 initial REIT projects in the queue. The exchange has newly accepted China Anbo Warehousing and Logistics REIT, and some projects have updated their status to "feedback received" [38]. 3.2.5 Six REITs' Expansion Projects Are in Queue, China Resources Commercial REIT Plans to Apply for Second Expansion - Currently, six REITs' expansion projects are in the queue. China Resources Commercial REIT announced on July 9 that it plans to apply for a second expansion, including the Hangzhou Xiaoshan Vientiane City project, the Shenyang Changbai Vientiane City project, and the Zibo Vientiane City project [39][40].

Core Viewpoint - The public REITs market has shown significant growth in 2023, with many funds achieving high returns, attracting institutional investors and expanding their market presence [1][6][9]. Group 1: Performance of REITs - As of May 23, 2023, the returns for 华夏大悦城商业REIT and 华安百联消费REIT are approximately 49.21% and 48.90% respectively, with both funds experiencing price increases exceeding 50% compared to their issuance prices [3][4]. - A total of 54 out of 58 listed REITs have generated positive returns this year, with 19 REITs yielding returns between 20% and 40%, and 40 REITs exceeding 10% [6][5]. Group 2: Market Expansion and Institutional Interest - The public REITs market is expanding, with 8 new REITs launched this year and several new projects and expansions in the pipeline [10][9]. - Institutional investors, including insurance companies and brokerages, are increasingly participating in the REITs market, with institutions holding 83% of the total shares in 富国首创水务REIT [9].

Core Viewpoint - Public REITs have achieved record high returns this year, with significant interest from institutional investors and a growing number of new listings and projects [1][4][6]. Group 1: Performance Highlights - As of May 23, 2023, both Huaxia Dayuecheng Commercial REIT and Huaxia BaiLian Consumption REIT have returns close to 50%, specifically 49.21% and 48.90% respectively [2][4]. - A total of 54 out of 58 listed REITs have generated positive returns this year, with 19 REITs yielding between 20% and 40%, and 40 REITs exceeding 10% [4][5]. Group 2: Regulatory Actions - Due to the significant price increase, both Huaxia Dayuecheng Commercial REIT and Huaxia BaiLian Consumption REIT experienced a trading suspension for one hour after their prices deviated from the benchmark price by 50% [2][3]. Group 3: Institutional Interest - The investment value of public REITs has attracted various institutional investors, including insurance companies, brokerages, and wealth management subsidiaries, leading to a diverse ownership structure [6][7]. - For instance, institutional investors hold 83% of the total shares in the FuGuo ChuangShang Water REIT, indicating strong institutional confidence in the asset class [6]. Group 4: Market Expansion - This year, eight new REITs have been listed, including ZhongHang YiShang Warehousing Logistics REIT and HuaXia JinYu Intelligent Manufacturing REIT, with several new projects and expansions in the pipeline [7].

Core Viewpoint - REITs in China are a relatively new investment category, having started trials in 2021 and expected to normalize by 2024, with significant growth in issuance and market interest due to current economic conditions [1][13]. Group 1: Market Performance and Trends - As of February 20, 2025, there are 63 publicly offered REITs in China, raising a total of 168.374 billion yuan, covering various asset classes such as industrial parks and affordable housing [1]. - The China Securities REITs Total Return Index rose by 12.31% in 2024, with some products in the industrial park sector increasing by over 40% due to supportive policies and fundamentals [1][12]. - The issuance of REITs remains robust, with record subscription rates, such as 813 times for the Guotai Junan Jinan Energy Heating REIT and 1192 times for the Huatai-PineBridge Jiuzhoutong Pharmaceutical REIT [2]. Group 2: Investment Appeal of Public REITs - Public REITs serve as an effective tool for real estate investment, especially as traditional property investment becomes more challenging due to high entry barriers and stable housing prices [4]. - The "landlord" nature of public REITs meets the demand for stable cash flow among investors, allowing them to indirectly own underlying real estate assets and receive regular income based on rental performance [4][11]. Group 3: Investment Strategies for Public REITs - Investors can engage in public REITs through three main strategies: participating in initial offerings, trading during market cycles, and holding quality assets for long-term income [8]. - The initial offering process is competitive, with high subscription rates leading to potential under-allocation of shares, but successful offerings can yield significant first-day gains [9]. - Long-term holding of quality REITs is encouraged, as they are required to distribute at least 90% of their distributable income, providing a degree of income stability [11]. Group 4: Future Outlook - The development of public REITs is driven by both policy support and market demand, with expectations for continued growth and active market sentiment in 2025 [13]. - The potential for introducing REITs ETFs in the future could enhance liquidity and provide more investment options for retail investors [10].

Core Viewpoint - The REITs market is experiencing a "dividend wave" in the first quarter, with a significant increase in the number of REITs distributing dividends, driven by new products launched in 2024 [2][3]. Group 1: Dividend Distribution - In the first quarter of this year, 12 REITs have completed dividend distributions, with several exceeding 100 million yuan, including招商高速公路REIT (210 million yuan), 工银银河北高速REIT (190 million yuan), and 中金安徽交控REIT (180 million yuan) [3]. - The dividend ratios for some REITs are notably high, with招商高速公路REIT at 5.9%, 嘉实中国电建清洁能源REIT at 3.5%, and 嘉实物美消费REIT at 3.4% [3]. - The increase in dividend distributions is attributed to a batch of new products entering their first dividend period, contrasting with only 4 REITs distributing dividends in the same period last year [5]. Group 2: Market Dynamics - The rapid expansion of the public REITs market and concentrated dividend distributions are driven by the need to activate a large number of quality existing assets and the appeal of stable returns amid an "asset shortage" [2][6]. - The year 2024 is projected to be a significant year for REITs issuance, with 29 new REITs launched, contributing to a total of 63 listed REITs by March 24, 2025 [5]. Group 3: Investment Appeal - REITs are gaining traction among institutional investors due to their high dividend yield, low volatility, and low correlation with other asset classes, making them an attractive option for optimizing asset allocation [2][4][9]. - The 中证REITs total return index has increased by 9.32% as of March 24, outperforming the沪深300 index, which indicates strong market performance [8]. - Institutional investment in REITs has surpassed 100 million yuan, with over 40 public products incorporating REITs into their portfolios, highlighting their growing importance in asset allocation strategies [8][9].