Cailian, October 27 (Reporter Liu Chaofeng) The camp of public REITs is constantly expanding.
At present, there are 20 public infrastructure REITs listed in the A-share market, with a cumulative financing scale of 61.8 billion yuan, and the primary market is sought after by institutional funds, and the offline subscription multiple frequently exceeds 100. As of October 26, the closing price of these 20 public REITs increased by an average of 24.48% compared with the issue price. In addition, 12 public REITs in the market paid dividends 22 times, with a total dividend payment of RMB2.386 billion.
Public REITs can be divided into franchise REITs and property REITs, the former has more obvious debt nature and high dividend yields, such as Ping An Guangzhou Guanghe REIT and Zhejiang Shanghai-Hangzhou-Ningbo REIT, with total dividends of 748 million yuan and 532 million yuan respectively; Property REITs, on the contrary, have low dividend yields, but there is more room for value-added in the secondary market, with the secondary markets of Huaan Zhangjiang Guangda REIT, CCB Zhongguancun REIT, and Hongtu Yantian Port REIT all rising by more than 40%.
Infrastructure public REITs continue to expand, Huatai Jiangsu Traffic Control REIT will be officially launched on October 28, and CICC Anhui Traffic Control REIT will launch offline inquiry on the same day, both REIT infrastructure assets are highways. In addition, the REIT of Huaxia Heda Hi-Tech Industrial Park is still in the review stage.
20 public REITs raised more than 60 billion
Since the first batch of public REITs were listed and traded in June 2021, the pilot of domestic public REITs is gradually landing. As of October 25, there were 20 publicly offered REIT products listed on the A-share market, with a cumulative financing scale of 61.8 billion yuan, and offline subscription multiples frequently exceeded 100.
Not only is the issuance market hot, but the secondary market of public REITs is also highly sought after by funds. As of the close of trading on October 26, the 20 listed public REITs increased by an average of 24.48% compared with the issue price, among which Huaan Zhangjiang Everbright REIT, CCB Zhongguancun REIT, and Hongtu Yantian Port REIT all rose by more than 40%, while Bosera Shekou Industrial Park REIT, Penghua Shenzhen Energy REIT, Guotai Junan Lingang Innovation Industrial Park REIT, CICC GLP REIT, Guotai Junan Dongdongjiu New Economy REIT, and Fu Quoc Capital Water REIT also rose by more than 30%.
Among the REITs with the highest growth in the secondary market, the park infrastructure is more eye-catching. Parks and transportation infrastructure are also the main asset types in public REITs, accounting for more than 60% of the total.
Public REITs can be divided into franchise REITs and equity REITs. The investment logic of the two is not exactly the same, franchise REITs are more debty, the dividend yield is high, but the price elasticity is small; On the contrary, equity REITs have relatively low dividend yields, but the secondary market has greater price elasticity and room for appreciation, which is biased towards equity.
At present, there are 12 public REITs in the market that have paid dividends, with a cumulative dividend payment of 22 times, with a total dividend of 2.386 billion yuan. Ping An Guangzhou Guanghe REIT and Zhejiang Shanghai-Hangzhou-Ningbo REIT are typical franchise REITs, which have paid dividends 3 times and 2 times respectively since their establishment, with a total dividend of 748 million yuan and 532 million yuan respectively. Ping An Guangzhou Guanghe REIT's total dividends even account for 30% of the entire market. Although there are many dividends, the secondary market is not very flexible, as of October 27, the closing price of Ping An Guangzhou Guanghe REIT and Zhejiang Shanghai-Hangzhou-Ningbo REIT increased by -11.25% and 2.16% compared with the issue price.
The secondary market of Huaan Zhangjiang Everbright REIT, CCB Zhongguancun REIT and Hongtu Yantian Port REIT rose by more than 40%, but the cumulative dividend amount did not exceed 100 million yuan, 70.22 million yuan, 40.91 million yuan and 46 million yuan respectively, which was the "crane tail" on the dividend list of REITs.
REITs continue to expand their staff
Infrastructure public REITs will usher in expansion. Huatai Jiangsu Traffic Control REIT will be officially launched on October 28, which will be the 21st REITs in the market and the first public offering of expressway REITs in Jiangsu Province. On the same day, CICC Anhui Traffic Control REIT will conduct an offline inquiry, and the infrastructure assets of these two REITs are highways.
According to the Offering Announcement, after excluding invalid offers, Huatai Jiangsu Communications Control REIT has 73 effective offline investors, 235 placed objects under management, and the total number of proposed subscriptions is 8,553.4 million, which is 122.19 times the initial number of offline offering shares. The initial offering of infrastructure public REITs is still hot, and the subscription multiple frequently exceeds 100.
The underlying asset of Huatai Jiangsu Traffic Control REIT is the Shanghai-Suzhou-Zhejiang Expressway, which is located in Wujiang District, Suzhou City, Jiangsu Province, Qingpu District of Shanghai in the east, and Huzhou City of Zhejiang Province in the west, which is an important transportation link in the development strategy of "Yangtze River Delta Integration". According to the financial statements of the fee-charging company Shanghai, Suzhou and Zhejiang, in the past three years, in addition to the loss of 14.15 million yuan in 2020, the other two years have net profit, with net profits of 82.82 million yuan and 61.05 million yuan in 2019 and 2020 respectively, and a net profit of 48.58 million yuan in the first half of this year.
The original owner of the REIT is Jiangsu Yanjiang Expressway Co., Ltd., a subsidiary of Jiangsu Traffic Control. Jiangsu Traffic Control is the largest expressway operator in Jiangsu Province, with total assets of 739.6 billion yuan, revenue of 61.8 billion yuan and net profit of 18.7 billion yuan in 2021, making it the only enterprise in the domestic provincial transportation group with an annual profit of more than 10 billion yuan in the past three years.
The original equity owner of CICC Anhui Traffic Controls REIT is Anhui Traffic Holdings, which intends to raise 1 billion shares, and the offline inquiry range is 10.188 yuan / share - 11.716 yuan / share, and the subscription price of the fund share of the fund will be finally determined through the offline inquiry. The underlying asset of the REIT is the Wuhu-Anqing section of the Yanjiang Expressway, with positive net profits in the past three years, achieving net profits of RMB360 million, RMB256 million and RMB482 million respectively from 2019 to 2021, and a net profit of RMB268 million in the first half of this year.
There is also a REIT awaiting review. On September 14, the REIT of Huaxia Heda Hi-Tech Industrial Park was accepted by the China Securities Regulatory Commission and the Exchange and is in the review stage. The infrastructure type of the project is an industrial park, which will become "the first biomedical industrial park infrastructure public offering REITs in China" after approval.
Revitalize existing assets
For financial institutions, public REITs are an important link to serve the real economy, and have a positive effect on revitalizing existing assets, optimizing financial structure, and reducing leverage levels.
In terms of operation and operation mode, the operation of infrastructure asset capital platform through REITs will help enterprises achieve the full-cycle operation and operation model of "light asset + heavy operation". The long-term equity funds of REITs can also help enterprises improve the operation and management level of underlying assets, from extensive management to precise decision-making.
In terms of revitalizing existing assets, the domestic infrastructure sector has accumulated a huge amount of stock assets after decades of rapid growth, and REITs will transform illiquid infrastructure stock assets into liquid financial products, which will greatly improve the efficiency of capital utilization. At the same time, the extensive participation of institutional investors and public investors in REITs projects will help jointly promote the preservation and appreciation of state-owned assets.
In terms of reducing the level of leverage, REITs can provide enterprises with capital exit channels, reduce the company's asset-liability ratio, and increase current profits and cash flow. At the same time, REITs represent an important direction of investment and financing reform in the domestic infrastructure sector, providing another equity financing method for the revitalization of infrastructure assets, and effectively solving the corporate debt problem by reducing the dependence on traditional debt financing.
Generally speaking, REIT fund managers must have investment banking capabilities and asset management capabilities, not only to assist financiers to complete the securitization of real estate, but also to win long-term stable returns for investors through asset management. Securities asset management with rich experience in the operation of underlying assets has an innate advantage as a fund manager of public REITs. Some securities asset management firms have both asset management and public fund business licenses, and can act as fund managers and special plan managers at the same time in the development of public REITs business, so that the primary and secondary markets and the investment and financing markets are fully connected.
This article comes from Cailian News Agency reporter Liu Chaofeng