On August 16, the first batch of three affordable rental houses REITs were officially put on sale. At this point, the number of publicly offered REITs products will be expanded to 17. So today, Bian Xiao is here to sort out the relevant knowledge of the fund for everyone. Let's have a look!
The overall operation is stable.
In the first half of 2022, public offering REITs experienced many challenges. Compared with ordinary funds that invest in stocks or bonds, the epidemic has a more obvious impact on REITs. As can be seen from the second quarterly report, the biggest impact is the rent collection in industrial parks, highway charges, and even garbage disposal plants are affected by the limited consumption of catering.
Sun Guiping, a senior analyst at Shanghai Securities Fund Evaluation and Research Center, analyzed the earnings before interest, tax, depreciation and amortization (EBITDA) as an indicator. Bo Shi Merchants Shekou Industrial Park, Jianxin Zhongguancun REIT and AVIC Shougang Green Energy REIT achieved double-digit growth in the second quarter. However, some REITs were greatly affected by the epidemic, and their business performance declined in the second quarter. For example, the EBITDA of Wusuyuan industrial REITs in Rudong and Hangzhou-Ningbo-Hangzhou emblem REITs in Zheshang decreased by 55.50% and 39.43% respectively in the second quarter, mainly because most of their infrastructure assets were located in the Yangtze River Delta region, which was directly affected by the spread of Shanghai epidemic. In addition, other toll road projects were also affected by the spread of the epidemic to varying degrees, and their operating performance declined slightly.
"At present, most of the clustered epidemics are sporadic, and the impact on REITs is not sustainable. Investors need not worry too much. Moreover, at present, all the infrastructure assets held by listed REITs have good geographical dispersion and industry dispersion, which may have an impact on a REITs in the short term, but it has little impact on the overall market of REITs. " In an interview with Caijing, Sun Guiping said that if investors are too worried about the impact of the epidemic, they can hold multiple REITs at the same time to spread the risks, thus realizing the geographical dispersion and industry dispersion of infrastructure assets in the REITs portfolio.
Although the first half of the year was repeatedly affected by the epidemic, the overall operating conditions of public offering REITs remained stable.
It is worth noting that among the above-mentioned four industrial parks, the REITs of Bosera Merchants Shekou Industrial Park and Wu Dong Suyuan Industrial Park have all taken rent reduction measures, while the REITs of Jianxin Zhongguancun and Huaan Zhangjiang Everbright have not.
On-site average premium is 26%
On June 2 1, the first batch of REITs was established for one year, and there was no impact caused by the lifting of the ban that the market was worried about before. On the whole, the site price is still at a premium. According to the closing data of August 15, the average premium rate reached 26%, and only Ping An Guangzhou Guanghe REIT was discounted. Among them, the premium rates of AVIC Shougang Green Energy REIT, Jianxin Zhongguancun REIT, Hongtu Yantian Port REIT and Huaan Zhangjiang Everbright REIT all exceeded 40%.
In addition to the premium of listed REITs, the proportion of newly issued REITs for public investors has also continued to decline. The average allotment ratio of the first batch of REITs was 6.27%, and the second batch has dropped to about 2%. REITs issued since then are around 1%.
"REITs have the characteristics of relatively stable cash return, high coupon rate, anti-inflation, high long-term return and scattered risks. Coupled with the scarcity and quality of assets in the pilot stage of REITs, infrastructure REITs are in a high premium trading state after listing. " Sun Guiping believes that although REITs are long-term closed-end funds, the liquidity of the secondary market is good. In the past, the phenomenon of long-term liquidity discount of closed-end funds did not appear. It can be said that the current REITs premium reflects the needs of investors and market expectations, which is reasonable.
However, some REITs have also seen a big retreat, and the risk of price fluctuation cannot be ignored. Wind data shows that since its listing, the largest retracement of REITs in waters initiated by Guo Fu has reached 36%, that of Yantian Port in laterite has reached 29%, and that of REITs in Huaan Zhangjiang Everbright and Jianxin Zhongguancun has also exceeded 20%.
"In the first batch of REITs that were lifted, insurance funds and industrial capital accounted for a relatively high proportion, accounting for an average of 43.35%. Due to factors such as debt end and investment preference, the investment of insurance funds and industrial capital is generally based on long-term allocation. Bank wealth management, fund companies, trusts, brokerage asset management, etc. It is a transactional institution and has a strong motivation to cash in income. " According to Zhongtai Securities's analysis, judging from the ups and downs after the lifting of the ban, most of the valuations of the first batch of public offering REITs still rose after the lifting of the ban. Only the water REITs pioneered by rich countries fell, and fund companies accounted for 42% of the lifting of the ban. Since listing, real estate investment trust funds have increased substantially, and institutions have a strong incentive to cash in their profits.
"overall, the current public offering of REITs is in short supply. The first batch of superimposed REITs has good qualifications and a high dividend ratio. The lifting of the ban on selling may have a certain impact on the price, but overall, the expected range will not be too large. However, it should still be noted that the deviation between the price and valuation of some public offerings of REITs is already high, and it is necessary to pay attention to the excessive speculation risk caused by small liquidity. " Zhongtai Securities said.
Good policy. Go on.
"The current real estate investment trust market is more active than expected. The reason may be that the yield of publicly offered REITs products that have been issued at present is generally considerable. The policy's attitude towards infrastructure REITs is more clear, which makes all kinds of market participants look forward to the development prospects of REITs products. " Hong Yan said.
After the first public offering of REITs was listed in June, 20021year, a number of important policy documents related to REITs were issued intensively, covering many aspects such as project warehousing, insurance funds entering the market, tax pilot and fundraising mechanism, which helped the development of REITs.
202 1, 1,1,China Banking and Insurance Regulatory Commission, China issued the Notice on Issues Concerning Public Offering of Infrastructure Securities Investment Funds with Insurance Funds, allowing insurance funds to invest in public REITs, focusing on the standardization of insurance fund investment, and putting forward corresponding requirements on the operation form of investment targets, the qualification and management of investment subjects, etc.
The Announcement of the Ministry of Finance on Tax Policy of Real Estate Investment Trust Funds (REITs) in Infrastructure aims at the immature tax saving policy of REITs at present, ensuring that the tax will be paid after the REITs are issued successfully, reducing the tax burden in the initial stage of REITs issuance and promoting the further development of REITs.
On June 28th, 2022, Shanghai Stock Exchange, Shenzhen Stock Exchange and China Clearing Company issued guidelines on fund raising business, which facilitated the off-site share transfer of public infrastructure securities investment funds and other funds, and supplemented the exit channels for investors who needed to publicly issue REITs off-site. In addition, the 2022 legislative work plan issued by the CSRC also includes the Measures for Real Estate Investment Trust Funds, and REITs related laws and regulations will be further improved.