The average increase and daily turnover rate of REITs in the four industrial parks are better than the average of the first and second batch of public offering REITs, of which CCB Beijing Centergate Technologies (Holding) Co.Ltd(000931) reit has performed prominently: as of March 7, 2022, all 11 public offering REITs products of infrastructure have achieved positive returns driven by short-term funds, scarcity of related products, investment risk preference and other factors, Among them, REITs of four industrial parks recorded an average increase of 37.3% and an average daily turnover rate of 2.3%.
The stock assets of China’s industrial parks are large: by the end of February 2022, there were 665 national development zones, mostly involving chemical, automobile and other industries; 2069 provincial development zones, mainly in new materials, energy conservation and environmental protection industries; There are more than 80000 broad professional industrial parks, mainly focusing on logistics, cultural creativity and e-commerce industries. From the perspective of distribution area, the stock industrial parks are mainly concentrated in East China and Central South China; From the perspective of provinces, Guangdong, Jiangsu, Zhejiang and Shandong have strong industrial agglomeration effect.
The development of industrial parks has stepped into the period of stock reform + innovative development, from land operation to diversified income generation, from rough development to professional operation and characteristic agglomeration; Upgrading from development, lease and sale to asset management: China’s industrial parks have diversified profit models, mainly focusing on land operation income; However, due to the large initial investment and long development cycle of industrial parks, diversified value-added services and financial investment integration services have become the new growth pole of the profits of industrial parks, and the revenue of these two services accounts for 5% – 35% of the revenue. At present, the development of China’s industrial parks has entered the stock reform + innovation development period. Compared with the early blind expansion and extensive homogeneous management, most types of industrial parks tend to the development mode of “specialization, characteristics and scientific innovation”. With the continuous development of the investment and financing mode of the industrial park, the developers of the industrial park have gradually transformed from developers to asset managers, and the financing mode has also transformed from the traditional “developers’ own funds + bank loans” to “funds + REITs”.
The industrial attributes of industrial parks are highly consistent with the issuance characteristics of public REITs: for local governments, industrial parks have become an important engine of economic growth and an important booster of regional and urban development. The revitalization of stock industrial parks is of great significance. Through the introduction of external capital, we can improve market transparency and re stimulate market vitality; For the original equity holders, the logic of asset appreciation lies in “accelerating capital turnover, expanding asset scale, improving operation efficiency and optimizing asset reserves”. REITs accelerates the transformation of Industrial Park developers to asset managers, broadens asset life cycle, improves asset liquidity and moves towards asset light; In terms of investment products, the industrial park has the characteristics of clear ownership, stable long-term income, sufficient raised reserves and large value-added space. It is a new financial product with neutral risk income and good growth.
REITs helps the market to re recognize the value of stock assets: the issuance and evaluation value-added rate of REITs target projects in the four industrial parks is in the range of 81.4% – 421.2%. In addition to the difference between the fair value and book value of the asset portfolio, REITs tends to bring a certain degree of value appreciation by promoting the improvement of asset liquidity and operation management efficiency. However, from the perspective of valuation logic itself, REITs makes managers pay attention to the important factors of portfolio appreciation such as subsequent capital turnover, operation management and raised reserves.
Investment suggestion: the stock assets of China’s industrial parks are large, and the industrial attributes are highly consistent with the issuance characteristics of public REITs. With the upgrading of stock parks to specialization and characteristics, and the frequent superposition of favorable policies such as pilot expansion of REITs and tax incentives, public REITs have a great leveraging investment value in stock assets. It is expected that under the condition of selecting the best and accelerating the transformation, the issuance of public REITs in China’s industrial parks will take advantage of the trend.
Pay attention to the role of REITs development in reshaping the valuation of the stock operation sector. It is suggested to pay attention to the mature and stable stock assets such as industrial real estate and commercial real estate, and the subject matter of the issuer (Manager) is high-quality and reliable. Recommend China Vanke Co.Ltd(000002) / Vanke enterprises, China Jinmao, Seazen Holdings Co.Ltd(601155) , Poly Developments And Holdings Group Co.Ltd(600048) , Gemdale Corporation(600383) , China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) , China Overseas Hongyang group, China Resources Land, Longhu group and Yuexiu real estate.
Risk analysis: the operating performance of REITs project is lower than the expected risk, market liquidity tightening risk, REITs market performance is lower than the expected risk, termination of listing risk, etc.
