Core Insights - The Shou Nong Industrial Park project has successfully issued and listed as a REIT on the Shanghai Stock Exchange, raising approximately 3.7 billion yuan, reflecting a premium of 20.2% over the project's declared valuation, marking it as the first public REIT in China to exceed a 20% premium [1][4] - The project is a significant example of Beijing's commitment to urban renewal and optimizing existing assets, aligning with the central government's directive to enhance urban quality and capacity [4][10] Group 1: Project Overview - The underlying asset of the Shou Nong Industrial Park REIT is the Zhongguancun Mobile Intelligent Service Innovation Park, located in Haidian District, Beijing, which transformed an old industrial site into a modern high-tech industrial hub [4] - The project has attracted leading companies in the mobile intelligent service sector, contributing to the optimization and upgrading of the regional industrial structure [4][6] Group 2: Urban Renewal and Innovation - The Shou Nong Yuan Center aims to create a vibrant innovation space that integrates industry clustering, functional reconstruction, and environmental optimization, supporting high-end talent development and technological industry growth [6] - The architectural design of the park combines historical elements with modern technology, using various materials to inspire innovation among tech talents [6] Group 3: Financial and Regulatory Aspects - The project was included in Beijing's infrastructure REITs project library in March 2022, with dedicated support from the Beijing Development and Reform Commission throughout the process [9] - The funds raised will be reinvested into subsequent urban renewal projects, creating a virtuous cycle of revitalizing existing assets and supporting new investments [9][10] - As of now, Beijing has successfully issued 13 infrastructure REITs projects, raising a total of approximately 31.1 billion yuan, leading the nation in both the number of projects and total funds raised [9]

Group 1 - The total number of REITs in the market has reached 68, with a market value of 204.7 billion yuan, making it the largest in Asia [1] - Smaller fund companies are leveraging REITs to gain competitive advantages, with notable entries such as Chuangjin Hexin Fund and Changcheng Fund [1] - The data shows that smaller fund companies have varying degrees of involvement in REITs, with CITIC Construction Investment Fund leading in management scale at 8.378 billion yuan [1] Group 2 - For smaller public funds, entering the REITs market is a strategic choice to overcome traditional competitive barriers, as they struggle to compete with larger firms in active equity [2] - The potential scale of China's REITs market is estimated to reach trillions, representing 3%-5% of GDP, indicating significant growth opportunities [2] - Industry insiders suggest that the rapid development of the public REITs market presents a new avenue for smaller fund companies to establish their unique characteristics [2]

1. Report Industry Investment Rating The provided content does not mention the report industry investment rating. 2. Core Viewpoints of the Report - The underlying assets of Shounong Industrial Park REIT are R & D office - type industrial parks in the Shangdi area of Beijing. The two core tenants, Kuaishou and Xiaomi, account for over 90% of the leased area, and the project occupancy rate in 2024 was about 95%. The original equity holder has rich reserve assets for potential expansion. The fund is expected to attract significant attention in the early stage of listing [2]. - The project assets are relatively new with advanced facilities, and are backed by the Shounong Food Group. The revenue has been shrinking, but the profit margin is relatively high. The occupancy rate remains stable at a high level, and the lease agreements of the two major tenants are stable [2]. - The predicted distribution rates for the second half of 2025 and 2026 are 8.29% and 8.23% respectively, significantly higher than those of other industrial park REITs. The project discount rate is 6%, and the asset valuation has increased by 74.21%. The P/NAV is 1.00 - 1.66 times, and the P/FFO is 16.25 - 27.08 times, comparable to the valuations of listed industrial park REITs [2]. 3. Summary According to Relevant Catalogs 3.1 Basic Issuance Elements - The initial offering of the Chuangjin Hexin Shounong Industrial Park Closed - end Infrastructure Securities Investment Fund is 1 billion shares. The preliminary inquiry period is from 9:00 to 15:00 on June 27, 2025, and the preliminary inquiry range is 2.303 - 3.838 yuan per share. The estimated raised funds are 3.0701 billion yuan, which will be invested in the urban renewal project of the Western Suburb Food Cold Storage (Shounong Financial Technology Innovation Park) and the Shounong Medical Engineering Cross - innovation Center [7][8]. 3.2 New and Advanced Project Assets in a Core Science and Technology Industry Cluster - **Underlying assets comparable to Grade A office buildings, targeting high - end and sophisticated office - type industrial parks**: The infrastructure project is the Zhongguancun Mobile Intelligent Service Innovation Park (Shounong Yuanzhongxin Project), located in the Shangdi area of Beijing. It has a total construction area of 203,643.55 square meters and a leasable area of 160,967.36 square meters, and has been in stable operation since November 2021. It is a model for headquarters - office parks and a benchmark for regional operations, with facilities comparable to Grade A office buildings and supporting commercial spaces [9][10][12]. - **Differentiated property quality in the region, with the average occupancy rate dropping to 70%**: As of Q2 2024, the total inventory of industrial parks in Beijing was about 22.853 million square meters. The Shangdi area ranked third in inventory, accounting for about 15.9%. The property products in the Shangdi area are polarized, and the occupancy rate has been declining since 2022, stabilizing at around 70% in 2024 [14][15]. - **State - owned background of the original equity holder, and stable operation of the project company**: The original equity holder is Beijing Shounong Information Industry Investment Co., Ltd., ultimately controlled by the Beijing State - owned Assets Supervision and Administration Commission. Shounong Information has professional operation capabilities, and the Shounong Food Group directly or indirectly holds 10 expandable industrial park assets [18][20][22]. 3.3 Shrinking Revenue but High Profit Margin - The project's revenue comes entirely from market - based rent, with no government subsidies. From 2022 to 2024, the revenue was 351 million, 332 million, and 283 million yuan respectively, and the EBITDA was 318 million, 278 million, and 228 million yuan respectively, with a CAGR of - 10.3% and - 15.2% respectively. The decline in revenue was mainly due to adjustments in lease agreements with tenants. The gross profit margin and EBITDA margin were relatively high compared to comparable REITs [24][27]. 3.4 Stable High Occupancy Rate and Stable Lease Agreements of Two Major Tenants - **Kuaishou and Xiaomi together account for over 90% of the leased area with strong lease stickiness**: As of May 31, 2025, the two major tenants, Shunjie Zhongheng (related to Kuaishou) and Xiaomi, accounted for 92.98% of the leased area and 97.79% of the 2024 revenue. Kuaishou built its global headquarters in the project through lease - purchase combination, and Xiaomi's global headquarters is adjacent to the project [29][31][32]. - **The project occupancy rate is about 95%, with an expected new supply of 390,000 square meters of R & D office space in the surrounding area**: From 2022 to 2024, the occupancy rate was 96.7%, 96.5%, and 94.5% respectively, higher than that of comparable REITs. There are 3 planned projects in the Shangdi area in the next three years, with a total construction area of 390,000 square meters [35][38]. - **High effective rent, with the rent increase time postponed**: In 2024, the average monthly rent was 197 yuan per square meter, relatively high among surrounding competitors. In 2024 and 2025, the company signed supplementary lease agreements with tenants, postponing the rent increase time [39][41]. - **Long - term lease agreements with scattered expiration times in the next 5 years**: As of May 31, 2025, over 80% of the leased area had lease terms of more than 5 years, and more than 60% of the lease agreements will expire in 2032 or later [42]. 3.5 Project Valuation Comparison - **Predicted distribution rates of 8.29% and 8.23% for the second half of 2025 and 2026 respectively, significantly high**: Based on the Prospectus, the predicted distributable amounts for the second half of 2025 and 2026 are 254.65 million and 252.58 million yuan respectively. With an assumed raised fund of 3.0701 billion yuan, the predicted net cash flow distribution rates are 8.29% and 8.23% respectively, significantly higher than those of other industrial park REITs [46]. - **Project discount rate of 6% and asset valuation increase of 74.21%**: The discount rate is 6.00%, lower than the average of industrial park REITs (6.69%) and the recently issued CICC Yizhuang Industrial Park REIT (7.25%). The project valuation is 3.066 billion yuan, with a valuation increase rate of 74.21%, lower than the comparable REITs average (104%) [48][51]. - **P/NAV of 1.00 - 1.66 times and P/FFO of 16.25 - 27.08 times**: As of December 31, 2024, the NAV is 2.3106 yuan, and the FFO is 0.1417 yuan. Based on the preliminary inquiry range, the P/NAV is 1.00 - 1.66 times, and the P/FFO is 16.25 - 27.08 times, comparable to listed industrial park REITs. The premium rate of the initial offering valuation compared to the assessment value ranges from - 24.89% to 25.18% [52]. - **Predicted capitalization rates of 9.19% and 9.48% for 2025 and 2026 respectively**: According to the Prospectus, the target operating net income for 2025 and 2026 is 281.8806 million and 290.5346 million yuan respectively, corresponding to capitalization rates of 9.19% and 9.48%. The 2025 capitalization rate is higher than the predicted value of CICC Yizhuang Industrial Park REIT (7.99%) [56].