China Fund News reporter Zhang Yanbei and Sun Xiaohui
The public REITs market has added another blockbuster new product.
On April 30, CICC SCP REIT will be officially listed for trading. With the listing of this REIT, the first batch of 4 consumer infrastructure REITs have all been successfully listed.
It is worth mentioning that just a few days ago, the three listed consumer REITs have just released their first report cards, and the distributable amount in the first quarter basically met expectations, and the occupancy rate of the underlying assets remained at a high level.
The fourth consumer REIT will be listed tomorrow
According to the Shenzhen Stock Exchange, CICC SCP Consumer REIT will be listed on the Shenzhen Stock Exchange from April 30, becoming the fourth listed consumer infrastructure public REIT.
According to the listing and transaction announcement, the total number of shares of CICC SCPG Consumer REIT Fund reached 1 billion, and the duration was set at 25 years. In the previous issuance stage, CICC SCPG Consumer REIT was sought after by subscription funds, and the public offering part ended early.
According to the announcement, the total amount of funds raised by CICC SCPG Consumer REIT is 3.26 billion yuan, and its investment goal is mainly to obtain stable cash flow such as rents and fees for infrastructure projects. The Fund's investment strategy stipulates that the proportion of investment in infrastructure asset-backed securities is not less than 80% of the Fund's assets to ensure the stability and profitability of the portfolio.
As of April 23, 2024, institutional investors held 96.21% of the fund, while retail investors held 3.79%. Among the top 10 holders, there are well-known enterprises such as SCPG Commercial Real Estate Co., Ltd. and Shenzhen Metro Group Co., Ltd.
From the perspective of Hangzhou Xixi Impression City, the underlying asset of CICC SCP Consumer REIT, its annual weighted average occupancy rate from 2014 to 2022 was 98.2%, the weighted average occupancy rate in the past five years was about 98.1%, and the occupancy rate has reached 99.6% as of September 30, 2023. Since its opening in 2013, the project's turnover has been on an upward trend, with a total turnover of more than 3.5 billion yuan in 2022, and a record high of more than 3.2 billion yuan from January to September 2023.
As a shopping mall development and operation platform under Vanke, SCPG has operated and managed more than 164 projects in 53 cities across the country as of October 2023, with a management area of nearly 12 million square meters and assets of nearly 100 billion yuan.
At the end of last year, the first batch of four consumer infrastructure REITs were officially approved, and in the first quarter of this year, three consumer REITs, namely ChinaAMC Jinmao Commercial REIT, Jiajin Meimei Consumer REIT and ChinaAMC China Resources Commercial REIT, were successfully listed and traded in mid-March.
Judging from the performance of the three listed consumer REITs, Jia's physical beauty consumer REIT has performed the best, rising by more than 4% since its listing for more than a month, and ChinaAMC China Resources Commercial REIT has also achieved positive gains.
The first quarterly report of the first batch of consumer REITs was in line with expectations
One month after the listing, the first quarterly reports of the first batch of three consumer infrastructure public REITs listed in mainland China were announced, and the report cards handed over for the first time were basically in line with expectations.
On the whole, the distributable amount of the three projects of Jiamart Consumer REIT, Huaxia Jinmao REIT and Huaxia China Resources Commercial REIT basically met expectations in the first quarter, among which Wumart Consumer REIT had the highest achievement rate of the distributable amount.
According to the first quarterly report, since its establishment on January 31 this year, Jia's physical beauty consumer REIT has a revenue of 18.8758 million yuan, a net profit of 6.6393 million yuan, and a distributable amount of 12.1132 million yuan. According to the previous prospectus, the predicted value of the distributable amount in 2024 is 66.9955 million yuan, and the predicted cash distribution rate is 6.68%, and if weighted according to the proportion of the establishment time in the whole year, the completion rate of the distributable amount during the reporting period is 18%.
Huaxia Jinmao Commercial REIT reported a revenue of 14.6213 million yuan in the first quarter, a net profit of 2.8187 million yuan, an amount of 8.8727 million yuan available for distribution in the current period, and a forecast value of 52.5429 million yuan in 2024, 16.88% of which was achieved in two months after its establishment.
As the largest consumer REIT in the current market, ChinaAMC China Resources Commercial REIT has achieved a distributable amount of 51.2289 million yuan since its establishment on February 7, and the prospectus shows that the annual forecast value is 341 million yuan, accounting for 15%.
It is worth mentioning that during the reporting period, Huaxia China Resources Commercial REIT achieved revenue of 100 million yuan and net profit of -4.2658 million yuan. According to the prospectus, the net profit forecast for 2024 is -41.8336 million yuan, and the annual core expenditure is used to purchase the equity of the project company. In 2025, this forecast will return to 13.3228 million yuan.
According to the first quarterly report, the occupancy rate of the three consumer REITs projects remained high, exceeding 98%.
The underlying infrastructure projects of Jia Renmei REIT are community businesses with supermarkets as the main stores, including the Dacheng Project, the Yufeiqiao Project, the Huatian Project and the Deshengmen Project in Beijing. As of the end of March 2024, the overall occupancy rate of the above assets was 98.33%, and the prospectus shows that the total occupancy rate of the four projects was 88.71% at the end of June 2023.
As the underlying asset of China Resources Commercial REIT, Qingdao MixC had an occupancy rate of 99.16% as of the end of the first quarter, a further increase from 98.49% in the middle of last year. The occupancy rate of Changsha Lanxiu City, the underlying asset of China AMC Jinmao REIT, remained at 98.26% at the end of the first quarter.
It is worth mentioning that from the perspective of the entire public REITs market, the occupancy rate of the three consumer REITs in the first quarter ranked relatively high. Consumer REITs have a relatively stable tenant structure and a high degree of diversification in the underlying assets, and the risk of concentrated lease surrender is lower than that of property rights assets.
In addition, the first quarterly report shows that many consumer REITs regard drainage, income and brand enhancement as the core direction of the operation of underlying assets. For example, Huaxia Jinmao REIT reported in the first quarter that the Changsha Lanxiu City project made reasonable use of the space in the market, enriched the consumption scene and broadened the source of income through multi-business and joint agency business. China Resources Commercial REIT pointed out that Qingdao MixC is actively optimizing and adjusting local business formats and renovating to further improve the asset value and income level of the project.
Editor: Captain
Review: Chen Mo