Haitong: China's warehouse and logistics parks are advancing towards intelligent upgrades. The development potential of warehouse and logistics REITS is significant.

Haitong released a research report stating that the commercial model of warehousing and logistics parks is undergoing a deep transformation from "logistics facilities" to "logistics ecosystem", demonstrating a strong trend of China's supply chain management transitioning from "extensive" to "refined" and "intelligent". In the future, the industry will continue to benefit from dual policy and capital support, providing strong support for efficient economic operation. Warehousing and logistics REITs are not only a form of asset securitization, but also an important foundation for optimizing the supply chain and improving logistics efficiency in the future, receiving strong support from the government in recent years. Key points from Haitong include: Transportation, warehousing, and postal services are important components of the national economy. From 2004 to 2023, the investment growth rate in this field has experienced fluctuations: in 2009, amid the aftermath of the global financial crisis, the Chinese government introduced a large-scale economic stimulus plan, leading to a high year-on-year investment growth rate of 48.3%, driving the overall acceleration of infrastructure construction. However, in recent years, with changes in the economic environment, the investment growth rate in the industry has gradually slowed down, and even experienced a negative growth of -1.6% in 2021. However, it is worth noting that in 2022 and 2023, with the post-pandemic economic recovery and the implementation of logistics network optimization policies, the industry's investment growth rate has rebounded to 9.1% and 10.5% respectively. This rebound trend signifies the resurgence of the warehousing and logistics sector in the new era, providing a solid investment foundation and a broad market space for the development of warehousing and logistics REITs. These data not only serve as a footnote to the industry's development, but also as a leading indicator in economic adjustments, revealing that the warehousing and logistics industry will continue to receive dual policy and capital support, providing strong support for efficient economic operation. The commercial model of warehousing and logistics parks is undergoing a deep transformation from "logistics facilities" to "logistics ecosystem". The differentiation of functional positioning meets the diversified needs of the industry, the market-oriented development mode reflects the interaction between policy guidance and enterprise spontaneity, and the upgrade of infrastructure injects competitiveness into the parks. In the future, warehousing and logistics parks with diverse functions supporting multimodal transportation will no longer be just a node in the logistics process, but will become the core platform for regional supply chains and value chains. For REITs investors, these ecologically featured parks will be high-potential investment targets, not only bringing stable rental returns but also benefiting from long-term capital appreciation resulting from the upgrading of the logistics industry. The development of warehousing and logistics parks is demonstrating a strong trend of China's supply chain management transitioning from "extensive" to "refined" and "intelligent". Under the dual drive of policy guidance and technological innovation, the intelligent transformation of warehousing and logistics is accelerating, with green efficiency becoming a new benchmark for industry development. The popularization of intelligent warehousing and smart logistics is not simply about equipment upgrades, but a deep reform of traditional logistics models: technologies such as automated management, real-time data analysis, and unmanned operations greatly enhance resource utilization efficiency and operational accuracy, driving the industry's transformation from labor-intensive to technology-intensive. At the same time, the introduction of green and low-carbon concepts has pushed warehousing and logistics parks to become more stringent in energy consumption and emission control, aligning with the global trend of sustainable development and becoming a key factor for companies to enhance competitiveness and win market share. Warehousing and logistics REITs (Real Estate Investment Trusts) are not only a form of asset securitization, but also an important foundation for optimizing the supply chain and improving logistics efficiency in the future. In the current context of increased uncertainty in global capital markets, REITs serve as a stable investment tool, providing investors with relatively high dividends and capital appreciation. By allowing investors to participate in warehousing assets at lower costs, REITs make these infrastructure assets more liquid and provide room for value appreciation. Against the backdrop of current economic fluctuations, warehousing and logistics REITs, with their stable cash flow and low risk, have become an indispensable "safe haven" in the capital market. In recent years, the Chinese government has strongly supported the development of REITs, especially in the infrastructure and public asset sectors. By issuing warehousing and logistics REITs, the government aims to introduce social capital into infrastructure construction to relieve fiscal pressure and achieve diversified financing. This aligns with the strategic goal of strengthening modern logistics infrastructure construction proposed in the national "14th Five-Year Plan", helping to improve supply chain efficiency and promote industrial upgrading. The issuance of REITs is not only a financial innovation, but also a tool for government policy-guided economic transformation, assisting the government in achieving the goal of "deleveraging and increasing efficiency". Risk Warning: Logistics growth may fall short of expectations, park construction may fall short of expectations, and park profit growth may fall short of expectations.