Fixed Income | 【In-depth observation of REITs】The first high-speed REITs with attribute changes were listed - public REITs July 2024 report

REITs, property changes, highways

In terms of primary market issuance, in June 2024, ICBC Hebei Expressway REIT was listed, and it closed up on the day of listing, and its infrastructure project Rongwu Expressway was restructured from a government loan repayment highway to an operating highway in 2022. Huaxia TBEA New Energy REIT ended its fundraising ahead of schedule, with a public placement ratio of only 0.223%, a record low; Huaxia Shenzhen International Warehousing and Logistics REIT and Huaan Bailian Consumer Infrastructure REIT were officially launched; 3 public REITs were declared, of which 1 was a water conservancy infrastructure project, with strong project operation stability; 1 is only a highway project, with good location advantages and high historical traffic growth rate; 1 is only for energy infrastructure projects, and the revenue composition of China's subsidy accounts for more than 50% of the revenue, and the downward pressure will be greater in the future. This month, 4 public REITs were approved, including warehousing and logistics, energy infrastructure, consumer infrastructure and industrial parks, with an average valuation decrease of 11.10% compared with the time of filing. 2 REITs received regulatory feedback, and the focus of the inquiry included the historical operation of the project, the selection of valuation parameters, etc.

In terms of policy, China Securities Index Company released the real-time market of REITs on June 24 to help the investment ecology of the REITs market. Hangzhou, Zhejiang Province encourages regional state-owned enterprises to issue REITs in related fields, and Henan promotes the issuance of REITs by cultural and tourism enterprises.

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