Core Insights - The overall average occupancy rate of the China Merchants Commercial Real Estate Investment Trust (REIT) was reported at 80.8% as of December 31, 2025, indicating structural differentiation in operational performance across asset types [1] Group 1: Operational Performance - The office segment showed an average occupancy rate of 77.0%, reflecting pressure on the office market demand [1] - In contrast, the retail property, specifically the Garden City, maintained a high occupancy rate of 96.5%, demonstrating resilience in specific commercial assets [1] Group 2: Rental Collection and Pricing - The rental collection rate for China Merchants Shekou Leasing REIT reached 100% in Q4 2025, aligning with some peers in policy-driven projects [1] - However, rental levels may face challenges, with a market-wide average rental decline of 2.70% quarter-on-quarter as market-oriented rental housing projects adopted pricing strategies to maintain occupancy [1] Group 3: Regional and Asset Type Disparities - The rental performance within the affordable rental housing segment showed variability, with the Sijing project experiencing a year-on-year rental decline of 5.4%, while the initial asset saw a decline of 1.9% [2] - The national rental housing index showed a dual decline trend both year-on-year and quarter-on-quarter in Q4 2025, with first-tier cities experiencing relatively mild rental decreases compared to greater pressures in some second and third-tier cities [2] Group 4: Future Outlook - The affordable rental housing REIT market is expected to face challenges, with ongoing new supply potentially exerting further pressure on rental prices, particularly in second and third-tier cities [2] - Local housing platform projects, benefiting from government pricing and cost advantages, may exhibit stronger rental stability in this environment [2]