China Securities Co., Ltd.: How to compare the pricing of non-standard interbank REITs?

China Securities Co., Ltd. released a research report stating that the expansion of supply opens up allocation space, and suggests focusing on three types of projects: high win rate, high odds, and high efficiency. The richness of REITs projects among institutions has increased, and the investment framework can gradually shift from early case judgement to comparable pricing. The stable bottoming type with high win rate is suitable for low-volatility long-term funds; the profit-enhancing type with high odds is suitable for funds with the ability to verify terms; the cultivation and exit type with high efficiency is suitable for funds with asset cultivation, stage exit or liquidity management demands. The main points of China Securities Co., Ltd. are as follows: Institutional REITs continue to grow rapidly, improving liquidity structure Since 2025, the issuance of institutional REITs has significantly accelerated, with annual issuance numbers and scale temporarily surpassing public REITs. The underlying assets cover a variety of formats such as highways, energy, and bridges, with participation from central state-owned enterprises, local state-owned enterprises, private enterprises, and foreign capital. The concentration of top management effects is significant. In the secondary market, with the expansion of the existing scale, improved investor awareness, and the implementation of arrangements such as open exit and pre-emptive rights, transaction volumes have significantly improved compared to earlier stages, but there is still significant differentiation in liquidity among different projects. How to define the investment value of institutional REITs: Valuing assets as the anchor point, reshaping odds with terms and credit The investment value of institutional REITs is determined by a dynamic game between assets, terms, and credit. On the asset side, it can be dissected from two dimensions of industry cycle beta and operational ability alpha. Cash flow stability, operational elasticity, and operational capabilities collectively determine the core of income; on the terms side, it revolves around income guarantee and distribution, liquidity support and asset operation, governance structure and risk control; the credit side focuses on actual performance ability. Strong credit projects focus more on stability, while weak credit or growth projects rely more on terms and income compensation. As the sample of institutional REITs projects expands gradually, the three-dimensional framework of assets, terms, and credit can further support the controlled variable comparison of similar projects, helping investors identify pricing differences of different projects. Institutional REITs use static valuation methods to smooth market value fluctuations, with liquidity compensation compared to public REITs Primary asset valuation focuses on income approach (with a weight of not less than 50%) and can be combined with market comparison method for comprehensive evaluation; issuance pricing is based on asset valuation, forming a price consensus through market inquiry and book-building issuance; secondary securities valuation uses static spread method, and its valuation stability partially comes from inactive trading, term smoothing, and valuation method characteristics, and cannot simply be equated with lower underlying asset risk. Compared to similar public REITs, institutional REITs have a liquidity compensation premium. Risk Analysis 1. Risk of approval and issuance progress falling short of expectations; 2. Risk of policy issuance falling short of expectations; 3. Risk of market fluctuations in the secondary market.