Source of this article: Times Finance Author: Liu Ziqi
Image source: Tuworm Creative
At the beginning of 2023, public REITS ushered in a "good start".
On the evening of January 9, Harvest Fund disclosed the subscription results of "Harvest JD Storage Infrastructure REIT (508098)".
From the perspective of the offering, the total number of shares raised by the product to public investors was 45 million, the subscription price was 3.514 yuan per share, and the public subscription amount exceeded 34.1 billion yuan. In terms of placement ratio, the final public offering placement ratio was 0.46%.
According to the announcement, Harvest JD Warehousing Infrastructure REIT plans to raise a total of 1.757 billion yuan, and the final offering has attracted a total of 71.8 billion yuan of capital participation.
"After spending 10,000 yuan, I was placed with 46 yuan", "If I win a copy, can the money I earn be a handling fee?" "Without 1 million funds, do not participate in new development, the placement rate is 0.46%, which is equivalent to 1 million can only win 4600 yuan. "In the fund bar of this product, many investors complained.
Absorb more than 70 billion yuan
Times Finance learned that Harvest JD warehousing infrastructure is the first private enterprise warehousing and logistics public offering REIT in the Shanghai and Shenzhen markets, and the official approval for issuance by the CSRC was on December 26, 2022.
The fund was well received by institutional and ordinary investors during the fundraising period, and finally attracted a total of RMB71.816 billion before the proportional placement of strategic placement, offline placement and public placement, almost 40 times the total amount previously planned (1.757 billion yuan).
According to the prospectus, the underlying assets of Harvest JD.com's warehousing infrastructure REIT are JD.com's three high-standard warehouses in Chongqing, Langfang and Wuhan, with a total construction area of 351,000 square meters.
On January 10, Yue Xiangyu, a researcher at the China Institute of Economic Thought Development of Shanghai University of Finance and Economics, told Times Finance that the establishment of Harvest JD.com's warehousing infrastructure REIT will bring incremental investment funds to the warehousing and logistics industry.
Times Finance noted that this product is the first REIT issued by Harvest Fund.
It is worth mentioning that the 4 fund managers proposed by Harvest JD Storage Infrastructure REIT are all experienced. Among them, Wang Yijun, as the head of the investment management department of Harvest Fund's infrastructure fund, has more than 5 years of experience in infrastructure investment management, and concurrently serves as an expert in the PPP expert database of the National Development and Reform Commission and a member of the Asset Securitization Professional Committee of the Asset Management Association of China. The remaining three proposed fund managers are Wei Chenxi, Sun Lei and Zhang Zhuo, all of whom meet the requirements of more than 5 years of experience in infrastructure operation and management.
The fund has attracted much attention from the market, or it may be related to the scarcity of warehousing and logistics assets.
Times Finance noted that among the 24 public REITs currently listed, only 2 are warehousing and logistics, namely Red Earth Innovation Yantian Port REIT (180301) and Zhongjin Prosper REIT (508056), both issued in 2021, with an issuance scale of 1.84 billion yuan and 5.835 billion yuan respectively.
At present, there are two main sources of income for domestic infrastructure public REITs: one is the dividends available for distribution cash of the underlying assets, which directly depend on the quality of the assets of the projects involved; Second, the price of secondary market transactions rose and fell after the establishment of the issuance.
Choice data shows that as of January 12, the above two warehouse logistics REITs have risen by 32.96% and 32.79% respectively since their establishment. In the case of market volatility, the annual growth rate in 2022 was 2.56% and 13.94% respectively.
8 REITs started the year with positive returns
2022 is a big year for the expansion of public REITs, and a total of 13 newly listed REIT products were established this year.
According to Choice data, as of January 11, 2023, a total of 25 infrastructure public REITs have been approved for registration in the market, of which 24 REITs have been listed for trading, raising a cumulative scale of 78.455 billion yuan.
In the secondary market, from December 31, 2022 to January 12, 2023 (10 trading days), 8 of the above 24 REITs achieved positive returns, of which the largest increase was Zhejiang Shanghai-Hangzhou-Ningbo REIT, which increased by 2.70%. However, at the same time, there were also 8 products that fell by more than 2%, with the largest decline of 4.87%.
If we extend the timeline, a total of 6 REIT products fell by more than 10% in 2022, of which Red Earth Innovation Shenzhen Talent Settlement REIT (180501), which was listed on August 31, 2022, fell by 15.79% during the year.
Some public fundraisers told Times Finance that public REITs usually cannot chase prices based on short-term market performance, and for investors, do not have the mentality of "getting rich overnight".
Why are public REITs sought after by fund companies and investors?
Yue Xiangyu told Times Finance that public REITs invest in infrastructure-type real estate, such as industrial parks, long-term rental apartments, highway toll rights, pollution discharge rights and so on. Although the securities market is large and the social attention is very high, in fact, in a country's overall social balance sheet, real estate is the largest asset, that is, land, houses, prospecting rights and other immovable property.
"For residents and financial institutions, public REITs increase the number of investable targets and help alleviate the problem of asset shortage. After a period of understanding, the market gradually recognized the investment value of public REITs. Yue Xiangyu said.
According to the analysis of Tianxiang, from the perspective of the operation of public REITs issued in the early stage, although affected by the impact of the epidemic and the decline in economic growth, the overall operation is still relatively stable. Judging from the regular reports disclosed in 2022, the amount available for distribution of public REITs is also basically in line with expectations, which indicates that public REITs can provide investors with a relatively stable source of income under the current volatility of the equity market.
Regarding the future development of public REITs, Han Zhifeng, deputy director general and first-level inspector of the Investment Department of the National Development and Reform Commission, said at the recently held 7th China PPP Forum, "We hope that by the end of 2023, there will be more than 60 infrastructure REITs, with a total issuance scale of more than 200 billion yuan." ”
If calculated according to this calculation, the number of public REITs issued in 2023 will reach at least 36. Following the approval of Harvest JD Warehousing and Logistics REIT on December 26, 2022, on December 29, CSC Fund, CICC Fund and AVIC Fund each had a public REIT.