Shanghai Securities News｜Quality and Speed Enhancement in the Normalized Issuance of the REIT Market: the SSE Accelerates Growth into a New Development Hub for REITs

Translated from Shanghai Securities News

With the listing of Huatai Nanjing Jianye REIT on December 3, the Shanghai Stock Exchange (SSE) now boasts 34 publicly offered real estate investment trust (REIT) products, capturing nearly 70% of the total market share in terms of both the number of listed products and total financing scale. Over the past three years, REITs on the SSE have performed in line with market expectations, offering investors stable dividends, thus gradually improving market fundamentals and maintaining overall operational stability.

The reporter learned that 23 REITs products have been launched market-wide this year, including 14 on the SSE, with several approved REIT products poised for listing.

According to publicly available data, the reporter found that throughout 2023, the performance of REITs on the SSE met market expectations, with a distribution completion rate hitting the annual forecast at 100%. Notably, the guaranteed rental housing and warehousing logistics sectors achieved rates of 115% and 113%, respectively. As of December 3, REITs on the market have declared over 90 dividend instances this year, marking nearly a 100% rise compared to the same period last year. More than half of these products distributed dividends more than twice this year, significantly enhancing investors' returns.

According to public data, since the launch of the first batch of publicly offered infrastructure REITs, as of December 3, 2024, a total of 52 REITs have been listed across the market, with the total financing amount reaching approximately 152.5 billion yuan. Furthermore, the SSE is actively promoting the expansion of the REITs market in Shanghai, encouraging existing projects to grow larger and stronger through increased fundraising, contributing to the high-quality development of the REIT market. Out of the 34 REITs listed on the SSE, 6 have already issued announcements for fundraising expansion.

Since the beginning of this year, the innovation and refinement of the REITs system and mechanisms have continued. The SSE has further optimized the regulatory framework regarding review, issuance, and information disclosure, forming a comprehensive regulatory framework consisting of "business measures + guidelines + guides." The REITs market's institutionalization, standardization, and normalization are expected to progress further.

Over a longer period, after over three years of development, the publicly offered REITs market has transitioned from pilot projects and short-term adjustments to a steady upward trajectory, with a gradual improvement in market fundamentals, growing activity, and more rational investor behaviors.

From Shanghai Securities News—www.cnstock.com on December 4, 2024

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The above information is provided for reference purposes only and does not constitute investment advice.