April 8, HuaxiaFund announcementSaid that the first public REITs project in 2022 – HuaxiaCCCCThe effective subscription scale of the public investors of REIT (code 508018) has exceeded the initial fundraising scale of this public investor, and the public investor subscription has been terminated ahead of schedule. Investors on public REITsfundThe popularity of the subscription is evident.
In fact, since the beginning of this year, public REITs with low correlation with stocks and bonds have gone out of a wave of independent market, and they have also received a lot of long-term funds.Insuranceagency’s attention.But currentlyInsuranceInstitutions’ participation in the product is still low, and there are many questions to be answered: What are the configuration values and advantages of public REITs, what key indicators should be paid attention to when configuring, and how to prevent risks?
Based on the above problems, “securitiesA reporter from the Daily recently interviewed Zhu Peijun, the chief investment officer of Taikang Asset Financial Products and the head of the financial product investment department, the relevant person in charge of a leading insurance institution with assets under management exceeding 2.7 trillion yuan. In his view, the market of publicly offered REITs has broad prospects, and the market size is expected to exceed one trillion yuan. “From the perspective of the current allocation value, public REITs with underlying asset cash flow and a certain stable dividend payout have a high cost performance.” However, he also suggested that individual investors should not blindly follow the trend and hype, and be alert to the overheating risk of some REITs.
Public REITs have high cost performance
Since the listing of the first batch of infrastructure public REITs in China in June 2021, public REITs have gone out of a wave of independent market and have been continuously sought after by the market.
In terms of market prospects, Zhu Peijun said that the market size of publicly offered REITs is expected to exceed one trillion yuan. The market size of this product is based on China’s over one trillion yuan of stock infrastructure assets. With the strong support of the state, it is expected that REITs will achieve rapid development in the future. .
From the perspective of configuration value, Zhu Peijun believes that the currentinterest rateOperating at a low level and inflationary pressure is high. In such an environment, public REITs with underlying asset cash flow and a certain stable dividend payout are more cost-effective.
“Public REITs, as a new type of investment in infrastructure projects and real estate projects, provide a new way to participate in high-quality stock assets, and have attracted a lot of attention, which will also play a certain role in promoting the formation of premiums.” Zhu Peijun said.
Of course, behind the enthusiasm of investors, it is also necessary to participate rationally in investment. Zhu Peijun said that the current public offering of REITs is relatively small, and a single tradable market is basically less than 1 billion yuan. It is easy to form a high premium in the pursuit of funds. The high premium in the short term can be explained by liquidity, but whether the high premium can be maintained in the long run depends on the Look to fundamentals for answers. In addition, due to differences in assets, public REITs have large income deviations. The high ones can currently reach 70%, and the low ones are in the single digits.
Therefore, Zhu Peijun reminded individual investors to pay attention to three aspects when participating in public REITs: First, pay attention to distinguish whether the high premium of REITs is supported by solid fundamentals; second, select REITs projects with better asset quality for investment; third, currently The overall valuation of publicly offered REITs has a premium of about 30% compared to the time of issuance, while the fundamentals have not changed that much. Therefore, he suggested that individual investors should not blindly follow the trend of speculation and be alert to the overheating risk of some REITs.
Public REITs are the target of high-quality allocation of insurance capital
In addition to the current configuration value and related risks, Zhu Peijun also talked aboutInsuranceThe significance of funds participating in public REITs.
“At present, the China Banking and Insurance Regulatory Commission classifies public REITs as real estate in the insurance fund investment classification, and does not occupy the equity quota, which fully reflects the attitude of the China Banking and Insurance Regulatory Commission to encourage insurance funds to participate in the investment of public REITs.” Zhu Peijun said.
Regarding the allocation value of insurance funds, Zhu Peijun said that from the perspective of the nature of insurance funds, insurance institutions have a longer duration on the liability side, generally reaching 5-10 years. Therefore, on the asset side, they are willing to participate in projects with a longer term and stable cash flow. However, public REITs fully meet the insurance company’s requirements for term and stability, and are high-quality allocation targets.
As for how to choose public REITs, Zhu Peijun said, “The core focus is on the attributes of cash flow. High-quality cash flow can correspond to higher valuations, so institutions will pay more attention to industries and assets in the investment process. Currently more optimistic areas It also includes high-quality assets such as logistics, IDC, and new energy that are in line with the future development direction of the country.”
As for Taikang’s asset allocation strategy, Zhu Peijun said that the company’s strategy in public REITs is still based on the logic of allocating core assets, holding high-quality assets for a long time to obtain continuous and stable cash flow, and focusing on examining the fundamentals of public REITs.
Zhu Peijun further analyzed, “For core assets, the greatest value is still its ability to continuously create cash flow, and short-term game market fluctuations are not the core investment direction of insurance funds for infrastructure projects. The core advantage of Taikang Assets lies in the long-term. Participating in the investment in the infrastructure industry and real estate industry has a relatively deep understanding of the relevant industries. Therefore, seeking and holding high-quality assets is in line with Taikang Assets’ professional ability. Therefore, Taikang Assets’ strategy for public REITs is still around holding high-quality assets in the medium and long term. to invest.”
Finally, Zhu Peijun also suggested that regulators and relevant participants can formulate new official valuation methods to disclose the fundamental value of REITs in real time based on the assets themselves rather than market prices, so that financial institutions with the purpose of long-term holding can reduce the risk of REITS The impact of market fluctuations on net worth and statements.
(Article Source:securitiesDaily Network)