Rooted in Real Economy for a New Chapter of Development - SSE Publicly Offered REITs Released 2025 Annual Reports

As of March 31, 2026, all 52 publicly offered REITs listed on Shanghai Stock Exchange (SSE) have completed the disclosure of 2025 annual reports. With steady expansion of market scale and product lineup, this year's disclosure reflects not only a comprehensive review of business performance over the past year, but also an important testament to the improvement in the SSE REITs platform and asset efficiency. Under the overall guidance of China Securities Regulatory Commission (CSRC) and in line with national development strategy, SSE REITs have demonstrated solid business fundamentals, surging investment return, and rising development momentum from their reports, delivering well-rounded results to the market.

Business Fundamentals Improved with Highlights Across Niche Sectors

In 2025, SSE publicly offered REITs fully aligned with national strategies and operated precisely in core areas of the real economy. The 52 products collectively achieved remarkable results: total revenue of RMB 14.5 billion, up 71% year-on-year, and distributable amount of RMB 8.8 billion, up 42% year-on-year, reflecting strong endogenous growth momentum.

By sectors, the consumer sector became a key growth engine. Boosted by stepped-up pro-consumption policies and improving household consumption demand, brick-and-mortar commercial complex regained strong vitality. Supported by targeted operation strategies including business model upgrade and IP campaigns, the average occupancy rate rose to 98%, both revenue and cash flow beating expectations. The rent collection rate approached 100%, showing rising market activity.

The affordable rental housing sector remained a market "stabilizer". Continuous population inflows into core cities and rigid rental demand from young people has laid a solid foundation. With a high occupancy rate of 95% and a 100% rent collection rate, the sector maintained steady performance resilient to market cycles.

The energy sector forged ahead with strong momentum. Supported by steady growth in nationwide electricity consumption and favorable green power policies in 2025, the sector recorded 4 billion kWh of settled electricity, with a revenue achievement rate of 106%, fully realizing the value of green power.

Industrial park and warehousing & logistics sectors improved quality and efficiency amid competition from existing assets. Despite short-term pressure on unit rents, overall occupancy stayed at a reasonable level. DNE REIT and JD Storage Logistics REIT achieved full occupancy, proving their anti-cyclical resilience. Overall business performance was close to forecasts and significantly outperformed the industry average.

Despite traffic network fluctuations, the expressway sector still demonstrated strong asset resilience, posting toll revenue of RMB 6.9 billion and an average daily traffic volume of 320,000 vehicles, with an overall cash flow achievement rate of 97%. Projects including Jiangsu Comm Holding REIT rebounded, consolidating an initial recovery momentum. In addition, data centers, municipal environmental protection and other segments delivered stable performance, with all cash flow achievement rates meeting targets. Together, they formed a sound ecosystem featuring multi-point support and coordinated development.

Rising Investment Value Brought Diverse Returns to Investors

Against a persistent low-interest-rate environment, SSE REITs, as independent asset allocation instruments featuring stable cash flows, have seen their "stabilizer" role widely recognized by the market in 2025. Their secondary-market performance was impressive throughout the year: the average ex-dividend price rose by 6.3%, and when dividend reinvestment was included, the adjusted price surged by as much as 11.9%, delivering substantial capital appreciation for investors. In terms of cash dividends, the market continued to strengthen investor returns, with 110 dividend distributions implemented over the year, totaling nearly RMB 7.8 billion, representing a year-on-year increase of 30%.

Among them, property REITs posted an overall distribution rate of 4.18%, demonstrating stable cash return capacity; concession REITs achieved a full-cycle internal rate of return (IRR) of approximately 4.05%, providing a predictable return anchor for long-term capital. Toll road projects contributed nearly 60% of total dividend distributions, establishing their benchmark status as high-dividend assets through sustained cash returns.

More importantly, with the coordinated efforts of fund managers, operating institutions and original equity holders, SSE REITs held nearly 100 events including roadshows and investor open days, forging in-depth connections between investors and underlying assets. Investors not only shared the dividends from asset operation but also gained an intuitive understanding of the growth logic of underlying assets, further enhancing their sense of investment gain and fostering a virtuous cycle between market value growth and investment confidence.

Follow-on Offering Mechanism Accelerates the Formation of a Multi-Tiered Market Structure

In 2025, the SSE REITs embraced the strategy of "initial + follow-on offering". The regular follow-on offering mechanism gradually matured. As of the end of March 2026, seven projects completed follow-on offering, including Zhangjiang REIT, Prologis REIT, Huaxia Beijing Affordable Housing REIT and Guotai Haitong Shanghai Lingang Innovative Intelligent Manufacturing Industrial Park Closed REIT, among others. The move has scaled up individual fund size and significantly diversified single-asset risks through asset portfolios. Follow-on offering pipeline is building up. The Xiamen Anju Affordable Rental Housing REIT project has been approved and is pending issuance, while five projects including JD REIT and Guotai Junan Urban Investment Kuanting Rental Housing REIT are undergoing fast-track review. A number of high-quality real estate assets are rapidly being securitized through REITs.

Meanwhile, a multi-tiered SSE REIT market is taking shape at an accelerated pace. As of the end of March 2026, the pilot program for commercial real estate REITs has advanced steadily, with 14 projects accepted totaling RMB 57 billion in scale. The institutional REIT market has also flourished, with 70 projects accepted worth nearly RMB 130 billion, of which 41 have been issued with an aggregate scale of RMB 73 billion. The formation of the multi-tiered SSE REIT market system has provided more diversified and targeted revitalization channels for assets of different types and scales, greatly expanding the depth and breadth of the market.

Market participants have made solid efforts on governance development. The "REITs Operations Officer" system has been widely implemented at the group level of the original equity holders, realizing full alignment from top-level decision-making to front-line execution. The incentive and restraint mechanism, now fully in effect, has directly linked excess returns to the management bonus, significantly stimulating operation enthusiasm. At the same time, all participants have worked hard to optimize governance structures, strengthen decision-making efficiency and risk control, injecting strong endogenous impetus into the sustainable development of the market.

Optimized Disclosure Standards Drive Information Transparency to A New Height

At the end of 2025, the SSE revised the guideline on REITs annual reports, which updated the annual report disclosure rules by setting detailed requirements for valuation verification and adjustment of distributable amount. As the first-year disclosure since the revision of the guideline, all new requirements have been fully met. Each project used alternative valuation methods to verify the appraisal results from the income approach, and clearly disclosed the items and reasons for adjusting distributable amount.

This year's disclosure also features "more industry-specific characteristics, more detailed data and clearer performance profiles". The reports disclosed trends of business indicators in detail, along with in-depth analysis combining industry cycles and outside competition, turning data into a "perspective lens" that truly reflects asset quality. Accountability has been further strengthened. Performance of fund managers and operators was disclosed in greater detail, presenting a more complete and vivid picture of their performance. The relevance and effectiveness of information disclosure have reached a new level.

Looking ahead to the new journey of the "15th Five-Year Plan" period, the SSE will give full play to the role of publicly offered REITs in serving the real economy. The SSE will enhance REITs capability in active management and strengthen system building as a REITIs platform to fully unlock asset value and stimulate multi-party coordination, aiming for the smooth launch of the pilot commercial real estate REITs. The SSE will strive to build an internationally competitive asset operation and management platform covering various asset classes, effectively revitalize existing assets, and make REITs a solid bridge connecting the capital market and the real economy, contributing greater "SSE strength" to the high-quality development of China's economy.