Rooted in Real Economy for a New Chapter of Development - SSE Publicly Offered REITs Released 2025 Annual Reports
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The 52 publicly offered REITs listed on the Shanghai Stock Exchange generated a combined distributable income of RMB 8.8 billion in 2025, up 42 percent from the previous year, according to annual reports released by the end of March.
Total revenue across the portfolio reached RMB 14.5 billion, a 71 percent increase. The figures reflect both market expansion — the number of listed products grew — and improved operating performance across most asset classes.
Consumer and rental sectors lead
The consumer sector emerged as the main growth driver. Brick-and-mortar retail complexes, buoyed by rising household spending, saw average occupancy climb to 98 percent. Rent collection approached 100 percent. The sector benefited from targeted operational measures including business model upgrades and promotional campaigns, though the report did not break out individual project contributions.
Affordable rental housing maintained its defensive character. With sustained population inflows into core cities, the sector recorded a 95 percent occupancy rate and a perfect 100 percent rent collection rate, underscoring its resilience to economic cycles.
The energy sector, supported by higher nationwide electricity consumption and green power policies, achieved 4 billion kilowatt-hours of settled electricity and a 106 percent revenue achievement rate against forecast.
Industrial and logistics assets hold ground
TWO
Industrial parks and warehousing logistics faced pressure on unit rents amid intensifying competition from existing stock. Nevertheless, overall occupancy remained at reasonable levels. Two logistics REITs — DNE and JD Storage Logistics — reported full occupancy, demonstrating counter-cyclical strength.
The expressway sector, despite fluctuating traffic volumes, posted toll revenue of RMB 6.9 billion with an average daily traffic of 320,000 vehicles. Overall cash flow achievement reached 97 percent. Several projects, including Jiangsu Comm Holding REIT, showed early signs of recovery.
Data centres and municipal environmental protection assets also met their cash flow targets, contributing to a diversified performance landscape.
Investor returns: dividends and price gains
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Against a backdrop of persistently low interest rates, SSE REITs delivered both income and capital appreciation. The average ex-dividend price rose 6.3 percent over the year. When reinvested dividends are included, the adjusted price gain reached 11.9 percent.
The market distributed a total of nearly RMB 7.8 billion in cash dividends across 110 payouts, up 30 percent year-on-year. Property REITs posted an average distribution rate of 4.18 percent. Concession-based REITs achieved a full-cycle internal rate of return of approximately 4.05 percent. Toll road projects alone contributed nearly 60 percent of all dividend distributions, cementing their status as high-yield anchors.
Follow-on offerings gain traction
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The regular follow-on offering mechanism matured in 2025. By the end of March 2026, seven REITs had completed secondary issuances, including Zhangjiang REIT, Prologis REIT and Huaxia Beijing Affordable Housing REIT. The mechanism allows funds to scale up and diversify single-asset risk through portfolio expansion.
A multi-tiered market structure is taking shape. Fourteen commercial real estate REIT projects, totalling RMB 57 billion, have been accepted for listing. In the institutional REIT segment, 70 projects worth nearly RMB 130 billion have been accepted, of which 41 have been issued with an aggregate scale of RMB 73 billion.
Disclosure standards tightened
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The exchange revised its annual report guidelines at the end of 2025, introducing detailed requirements for valuation verification and adjustments to distributable income. The 2025 reports, the first under the new rules, fully complied. Each project used alternative valuation methods to cross-check income-based appraisals and clearly disclosed line items and reasons for any adjustments to distributable amounts.
Fund managers and operators provided more granular disclosures on their performance, strengthening accountability. The exchange said the changes have improved the relevance and effectiveness of information available to investors.
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