In the second half of 2022, mainland public infrastructure investment funds (REITs) will accelerate the pace of listing and product launch.
Taiyi Holding Group learned that following the listing of China Communications and Construction REIT in April 2022, in July, the mainland once again listed two public REITs: IFC China Railway Construction REIT (July 8) and Penghua Shenzhen Energy REIT (July 26).
Among them, Penghua Shenzhen Energy REIT closed up 25.12% on the first day of listing, with a cumulative transaction of 498 million yuan on the same day, which aroused great concern in the market.
01
The first REITs in the clean energy sector
The reason why Penghua Shenzhen Energy REIT was able to soar on the first day of listing was due to the fact that in the context of carbon neutrality, the clean energy sector was highly sought after by investors.
According to the product information of the fund, Penghua Shenzhen Energy is the country's first infrastructure REITs in the field of clean energy, and its underlying asset is the Shenzhen Energy East Power Plant (Phase I) project, located in Dapeng New District, Shenzhen, relying on clean fuels, using gas-steam combined cycle power generation technology.
During the peak period of summer electricity consumption, the clean power sector itself has attracted market attention, and the project is located in Shenzhen, which belongs to the economically developed area, which can be described as a proper core asset.
It is worth noting that after the listing of Penghua Shenzhen Energy REIT, on July 28, the Shenzhen Stock Exchange said that it will promote the issuance and listing of more low-carbon infrastructure REITs. Deepen the pilot of infrastructure REITs, and support the application and issuance of infrastructure REITs for projects that conform to the concept of low-carbon sustainable development, such as clean energy, low-carbon parks, low-carbon transportation, and ecological environmental protection.
It can be seen that in the future, low-carbon investment will only attract more and more attention, and the product type will continue to expand, which is worth the attention of investors.
02
Review of the past year
Looking back, since the first batch of 9 public REITs landed on A-shares on June 21, 2021, this more special product has entered everyone's attention just over the past year and has become a new choice in the asset allocation of the majority of investors. From experimentation to familiarization to accelerated listing supply, the asset allocation value of public REITs has been recognized by the market, and its allocation attributes have been continuously improved.
As of July 29, there were 14 public REITs in the market. In addition, on July 22, the Shenzhen Stock Exchange accepted a REITs, the REIT of Huaxia Hefei High-tech Innovation Industrial Park. This means that new REITs will be available.
Source: Oriental Fortune Network
As of July 29, most of the 14 public REITs products in the market have achieved positive returns since their listing (13) based on the issue price on the listing date, and only Ping An Guangzhou-Trade Guanghe Expressway REIT has had negative returns since its listing (-3.99%).
Among them, the three products of Jianxin Zhongguancun Industrial Park REIT, Laterite Innovation Yantian Port Warehousing and Logistics REIT, and Boshi Merchants Shekou Industrial Park REIT have increased by more than 40%, and the average increase of 14 public REITs in the whole market has reached 23.73%, and its configuration cost performance is not bad.
Since the beginning of this year, 10 of the 14 public REITs products in the market have reached positive returns, an average increase of 5.75%. During the same period, the increase or decrease of the CSI 300 was -15.59%.
The better performance is mainly concentrated in the underlying assets such as industrial parks and warehousing and logistics, while the lower performance is concentrated in the field of highways, and the main logic behind it is still affected by the epidemic factors. The rental income of industrial parks is relatively small due to the impact of the epidemic, and the income is relatively stable. Highways, on the other hand, face the risk of lockdowns and reduced tolls.
Moreover, looking back, due to the lack of previous products, such assets were over-hyped, in the first quarter of this year, the batch of public REITs listed last year generally pulled back, and the REITs represented by Fuguo Capital Water began to fall from the high. Before the correction, as of February 17 this year, the increase in this batch of public REITs can only be described as exaggerated.
03
Pandemic factors
As of July 29, in addition to the recently listed IFC China Railway Construction REIT and Penghua Shenzhen Energy REIT, 12 listed REITs have released second quarter reports.
As some areas in the second quarter were affected by the new crown epidemic and some asset performance was under pressure, from the perspective of spin-offs, the transportation infrastructure REITs were relatively affected by the epidemic in the second quarter, the operating performance of the park facilities REITs was differentiated, the operation of warehousing and logistics and ecological environmental protection was stable, and the overall impact of the epidemic was controllable.
For example, Ping An Guangzhou Guanghe REIT's undistributed unearned profit fell by 15.96% month-on-month, mainly due to the continuation of the epidemic in many parts of the country, and the epidemic also occurred in Guangzhou in April, which had an impact on highway traffic and toll revenue more than expected. The Huaxia Yuexiu REIT achieved toll income of 47.8231 million yuan, down 12% year-on-year, due to the local epidemic in Wuhan in early April, the temporary closure and control of roads, and the recurrence of the epidemic in many places outside Hubei Province from May to June.
Revenue from REITs projects such as parks, warehousing and logistics was only slightly affected. For example, the undistributed uneasted profit of Hua'an Zhangjiang Industrial Park REIT in the second quarter was slightly higher than that in the first quarter. Boshi Shekou Industrial Park REIT and Jianxin Zhongguancun Industrial Park REIT due to the impact of the epidemic, the rental rate only decreased by 2.16% and 6.87% month-on-month.
Nowadays, with the continuous expansion of public REITs products and the "precipitation" of time, the intraday trading of such products is not very active, and the daily rise and fall is relatively small compared to stocks. If investors want to make money from the perspective of public REITs from a trading perspective, it is best to dispel this idea as soon as possible.
Public REITs should be selected as a medium- and long-term allocation of assets, stable and not low cash dividends are the fundamental attraction of such products, and their long-term ability to cross the cycle should be valued by everyone.
Taking the CICC Pros Warehousing logistics REIT as an example, on April 7, 2022, the REIT paid the first dividend of the year, distributing 0.4843 yuan per 10 shares, and the cash dividend ratio reached 99.98%, which can be said to be unreserved.
Written by | The sky is in the water
Edit | Zheng Zheng upwards
Editor| Leyla