Huatai Securities: Bullish on Investment Opportunities in the Commercial Real Estate Sector in 2025.

Huatai Securities pointed out that in 2024, the commercial real estate sector faces challenges, but leading enterprises have outperformed the industry in both scale expansion and operational efficiency. They are optimistic about the investment opportunities in the commercial real estate sector in 2025, mainly based on the following reasons: 1) under policy catalysis, the consumption market is expected to continue to recover, giving commercial real estate a more solid terminal market foundation; 2) Consumption REITs promote asset realization and liquidity, premium management, and the extension of light asset operation space for operators; 3) The relative management advantage of leading operators continues to improve, strengthening alpha attributes, and continuing to interpret the logic of concentration improvement; 4) Valuation advantages are highlighted, with the valuation of the property holding sector basically equivalent to market value, and the market value of some heavy asset operators' development businesses is already lower than the reasonable valuation of the property holding sector, further enhancing the investment value of enterprises.