Huatai Securities: Bullish on the sustainable operation of rent REITs and the consolidation of dividend properties, consolidating the value of configuration.

Huatai Securities pointed out that since 2025, the housing rental market has maintained a slight downward trend in market-oriented rents under the influence of continued increase in supply. With the support of the positioning of affordable housing for essential needs, it still maintains stable operation. Its operating performance consolidates its dividend attributes and also drives market valuation to the highest level among various sectors of C-REIT. Looking ahead, it is expected that the scale of rental housing REITs will accelerate expansion. From the demand perspective, housing demand is rigid, coupled with new policies may enhance consumer recognition of the housing rental market, rental demand is expected to increase; in terms of supply, the new force is gradually weakening at the margin, and the supply method is gradually shifting towards the transformation of existing housing, acquisition of commercial properties for housing, etc., laying the foundation for the high-quality development of rental housing REITs. Positive about the sustainability of the stable operation of rental housing REITs, combined with stable dividends, consolidating its allocation value.