The secondary market for publicly offered Real Estate Investment Trusts (REITs) experienced a week-on-week adjustment last week. As of last Friday (July 17), the CSI REITs (Closing) Index closed at 727.61 points, and the CSI REITs Total Return Index closed at 970.03 points, both declining by 1.09% compared to the previous week.
Data from Guosen Securities shows that in a comparison of major index weekly performance, the CSI Aggregate Bond Index outperformed the CSI REITs Index, which in turn outperformed the CSI Convertible Bond Index and the CSI 300 Index.
According to Wind data, among the 86 listed public REIT products, the number that increased week-on-week decreased to 18. The top three performers were CICC Anhui Transportation REIT, Ping An Ningbo Transportation REIT, and AVIC Beijing Changbao Rental Housing REIT, with weekly gains of 2.01%, 1.89%, and 1.76%, respectively. Those that declined week-on-week numbered 67, with one remaining flat. The three worst performers were China Merchants Science Park REIT, Huatai Nanjing Jianye REIT, and Chuangjin Hexin Shounong REIT, with weekly declines of 12.70%, 6.83%, and 5.72% respectively.
Statistics from China Securities (CSC) show that as of July 18, a total of 34 public REITs have disclosed their second-quarter operational data, interim operational announcements, or quarterly reports. The performance across different sectors continued to diverge: industrial parks and warehousing/logistics remained under pressure, while consumer infrastructure and affordable rental housing remained relatively stable.
Last week, the public REITs secondary market declined on lower trading volume. As of last Friday (July 17), the CSI REITs (Closing) Index closed at 727.61 points, down 1.09% week-on-week; the CSI REITs Total Return Index closed at 970.03 points, also down 1.09%.
Data from Kaiyuan Securities indicates that last week, the returns for affordable housing, environmental protection, highways, industrial parks, warehousing/logistics, energy, and consumer REITs were -0.85%, -1.38%, 0.01%, -3.09%, -1.77%, -1.9%, and -1.14%, respectively. Sectors that had previously shown significant gains, such as warehousing/logistics and industrial parks, experienced larger declines last week.
Looking at individual products, among the 86 listed public REITs, only 18 posted week-on-week gains. The top three performers were CICC Anhui Transportation REIT, Ping An Ningbo Transportation REIT, and AVIC Beijing Changbao Rental Housing REIT, with weekly gains of 2.01%, 1.89%, and 1.76%, respectively.
The number of products that declined week-on-week increased to 67, with one remaining flat. Among these, the three worst performers were China Merchants Science Park REIT, Huatai Nanjing Jianye REIT, and Chuangjin Hexin Shounong REIT, with weekly declines of 12.70%, 6.83%, and 5.72%, respectively.
Data from Tianfeng Securities shows that last week, the total REITs trading volume (5-day moving average) was 426 million yuan, down 11.3% from the previous week. Trading volume for equity REITs and contractual right REITs was 275 million yuan and 151 million yuan, respectively, down 13.0% and 8.0% week-on-week.
Breaking it down, transportation infrastructure REITs accounted for the largest share of trading volume last week at 19.4%.
There were several significant developments in the industry last week.
First, as of July 18, 34 public REITs have disclosed their second-quarter operational data, interim operational announcements, or quarterly reports, releasing a total of 36 performance announcements. Performance across sectors continued to diverge, with industrial parks and warehousing/logistics remaining under pressure, while consumer infrastructure and affordable rental housing remained relatively stable.
Analysis from CICC pointed out that last week, several more REITs disclosed interim announcements regarding their second-quarter operational status. Overall, affordable rental housing and consumer sectors maintained stability; performance in the warehousing/logistics sector varied significantly, with SF REIT and Waigaoqiao REIT, which reported better-than-expected lease renewals and new leasing, closing higher last week (while other warehousing/logistics REITs closed lower). The energy and industrial park sectors had relatively more negative interim announcements and led the declines last week.
Second, regarding review progress, three more public REITs made headway with their initial offerings or expansion applications last week.
Specifically, the Orient Hongyuan Shenergy New Energy REIT application was accepted by the Shanghai Stock Exchange. Its underlying core asset is the 200MW onshore wind power project in Wulan Huayang, Qinghai, a relatively large-scale onshore wind power project under Shenergy. Located in the large-scale wind power base in Wulan County, Haixi Prefecture, Qinghai Province, the total expected fundraising size is approximately 1.604 billion yuan. The expansion application for Bosera Shekou Industrial Park REIT received a review inquiry, and the expansion application for Southern Runze Technology Data Center REIT was also accepted.
Furthermore, on July 15, the first approved central state-owned enterprise commercial property public REIT, ChinaAMC Poly Commercial REIT, officially launched its offering. This project uses two core properties in Guangzhou's Zhujiang New Town and Foshan's Qiandeng Lake as underlying assets, with a planned fundraising scale of approximately 1.797 billion yuan.
On the policy front, on July 14, the Pingliang Development and Reform Commission issued the "Several Measures to Vigorously Promote High-Quality Development of Private Investment," proposing active support for private investment projects to issue infrastructure REITs and providing provincial-level major project preliminary expense support in accordance with laws and regulations for successfully issued projects.
Comments