REITs Analysis of Industrial ParksTake CCB Zhongguancun Industrial Park REIT for Example

Abstract

In 2021, China's public offering infrastructure REITs officially set sail. The 21 public offering REITs products and projects that have been issued have excellent qualifications and are popular among institutional and individual investors, laying a solid foundation for the healthy development of the subsequent REITs market. Industrial parks usually have the advantages of clear property rights, stable income and value-added potential, and are an important part of the infrastructure REITs pilot. This paper reviews the market performance and typical characteristics of industrial park REITs since establishment, and, on this basis, analyzes the valuation methods applicable to industrial park REITs. Taking CCB Zhongguancun REIT as an example, starting from the location and operating status of the underlying assets and through the fundamental comparison of similar projects and P/FFO valuation, the research concluded that the market valuation of the project was at a high level in the industry and reached the average valuation level of industrial REITs in the United States, the good operating performance supported its market valuation. Finally, the future growth potential, operation management, and investment prospects of the industrial park REITs are prospected.