The Shanghai Stock Exchange releases the annual report of publicly offered Real Estate Investment Trusts (REITs) in the Shanghai market for 2025: A total of 52 products generated a combined revenue of 14.5 billion yuan for the year, representing a 71% year-on-year increase.

On April 3, the Shanghai Stock Exchange released the Shanghai Public Offering REITs 2025 Annual Report. In 2025, Shanghai Public Offering REITs actively integrated into the national strategy, accurately matching the core links of the real economy. Throughout the year, a total of 52 products collectively delivered an income of 14.5 billion yuan, a year-on-year increase of 71%, with an amount available for distribution of 8.8 billion yuan, a year-on-year increase of 42%, presenting a strong internal growth momentum. The annual report highlights the steady progress and various bright spots in different sectors. In the consumer sector, under the dual drivers of consumer promotion policies and increased consumer willingness, the offline commercial scene saw a surge in vitality, with an average rental rate reaching 98%, revenue and cash flow exceeding expectations, and collection rate close to 100%, indicating a sustained market activity. In the affordable rental housing sector, the continuous influx of urban population and the rigid demand for leasing from young people have provided a solid foundation, with a high rental rate of 95% and rent collection rate of 100%, creating a stable base across the cycle. The energy sector saw growth leveraging the steady increase in national electricity consumption in 2025 and green power policies, achieving a settlement electricity amount of 4 billion kilowatt hours and a revenue completion rate of 106%, fully realizing the value of green electricity. Industrial parks and warehousing logistics sectors continued to improve efficiency in a competitive environment, maintaining reasonable overall rental rates despite short-term pressure on rental prices. Some projects achieved full occupancy, demonstrating resilience in the face of cyclical challenges and performing significantly better than the industry average. Although affected by fluctuations in the road network environment, the highway sector demonstrated strong asset resilience with toll revenue of 6.9 billion yuan and a daily average of 320,000 vehicles, with an overall cash flow completion rate of 97%. Some projects, such as Jiangsu Jiaokong REIT, showed signs of recovery, indicating a rebound trend. In addition, data centers and municipal environmental protection sectors demonstrated stable performance, with all projects meeting cash flow targets, contributing to a robust and coordinated development eco-system. The optimization and upgrade of investment value have brought various returns to investors. Against a backdrop of normalized low interest rates, Shanghai REITs proved to be a reliable asset allocation tool with stable cash flow characteristics. In 2025, the secondary market performed well with an average increase in ex-right prices of 6.3% and a re-investment-adjusted increase of up to 11.9%, providing substantial capital appreciation to investors. Dividend payouts were strengthened, with a total of 110 distributions throughout the year, amounting to nearly 7.8 billion yuan, a 30% increase from the previous year. Among them, property REITs showed a distribution rate of 4.18%, demonstrating stable cash return abilities. Operational REITs yielded an internal rate of return (IRR) of about 4.05% throughout the cycle, offering a predictable earning anchor for long-term capital. Toll road projects accounted for nearly 60% of total distributions, establishing a benchmark position in high dividend assets. Furthermore, through synergistic efforts between management teams, operating agencies, and original equity holders, Shanghai REITs have held nearly a hundred roadshows, investor open days, and other activities. This has facilitated a deep connection between investors and underlying assets, enhancing investor trust in the growing value of the assets, creating a positive feedback loop between asset growth and investor confidence. The continuous deepening of the expansion mechanism has led to an accelerated formation of a multi-level market structure in Shanghai. The "first issuance + expansion" strategy of Shanghai REITs has entered a phase of deepening, with the routine expansion mechanism gradually maturing. By the end of March 2026, seven expansion projects, including Zhangjiang, Prolos, Jingbao, and Lingang, had been successfully completed, effectively increasing the assets under management and enhancing risk resilience through portfolio diversification. Currently, the development of the expansion team has been fruitful, with the Xiamen Anju project approved for issue, and five projects, including JD and Chitou Kuntin, are in the fast lane of progress, accelerating the securitization of high-quality real estate properties through the REITs platform. Moreover, the multi-level market structure is rapidly taking shape in Shanghai. By the end of March 2026, commercial real estate REITs pilot projects were steadily advancing, with a total of 14 applications totaling 57 billion yuan; inter-institutional REITs market was also thriving, with a total of 70 applications and a scale of nearly 130 billion yuan, of which 41 had been issued, totaling 73 billion yuan. The formation of a multi-level REITs market system in Shanghai has provided a more diverse and precise revitalization path for assets of different types and scales, greatly expanding the depth and breadth of the market. In terms of governance system construction, market participants have continued to make efforts. The "REITs operating officer" system has been widely implemented among original equity groups, achieving full chain linkage from top-level coordination to frontline execution; incentive and constraint mechanisms have been effectively implemented, directly linking excess profits to management teams, significantly activating operational autonomy. Meanwhile, all stakeholders have continuously optimized governance structures, strengthened decision-making efficiency and risk control, injecting strong internal dynamics for the sustainable development of the market. The optimization and upgrade of disclosure standards have further enhanced transparency in information disclosure. By the end of 2025, the Shanghai Stock Exchange revised and released the REITs annual report guidelines, improving disclosure standards, especially in valuation verification and adjustments to distributable amounts. The first disclosure after the revision effectively implemented the new requirements, with projects using alternative valuation methods to validate income evaluations and clearly stating distribution adjustment matters and reasons. Furthermore, this year's annual report demonstrates a more distinct industry characteristic, finer data granularity, and clearer performance profiles. Projects not only detailed changes in operational indicators but also conducted in-depth analysis based on industry cycles, competitive landscapes, making data a true reflection of asset quality. Market participants' responsibilities have been further consolidated, with more detailed and specific reports from management and operating institutions, presenting a more vivid and transparent performance profile, leading to a more targeted and effective information disclosure process. Looking ahead to the new journey of the "15th Five-Year Plan," Shanghai Public Offering REITs will continue to anchor themselves in serving the real economy as their core responsibility, focusing on enhancing active management capabilities and optimizing platform construction. They will fully tap into asset value, enhance a multi-faceted and coordinated operational framework, strive to facilitate the stable landing of commercial real estate REITs pilot projects, aim to create an asset management platform covering various asset categories with international competitiveness. Their goal is to effectively revitalize existing assets, making REITs a solid bridge connecting the capital market with the real economy, contributing more "Shanghai power" to the high-quality development of the Chinese economy. This article is adapted from the Shanghai Stock Exchange release GMTEight editor: Chen Wenfang.