China REITs Classification

Classification system based on 75% threshold standard for operating models and asset types

Rental Income > 75%

REITs whose income mainly comes from passive income such as merchant rent (greater than 75%).

Industrial Park REITsAffordable Rental Housing REITsConsumer Infrastructure REITs

High income stability, relatively less affected by economic cycles
Strong cash flow predictability, suitable for investors seeking stable dividends
Asset appreciation mainly from rent growth and property value increase
Key indicators: occupancy rate, rent per unit, lease expiration distribution

Operating Income Based

Income mainly from operating income, such as highway tolls, directly charging end market users.

Highway REITsEnergy Infrastructure REITsEco-environmental REITs

Income directly related to usage/traffic volume, higher volatility
Significantly affected by macroeconomic and seasonal factors
Growth potential depends on infrastructure usage demand
Key indicators: traffic volume, power generation, processing volume, fee standards