On April 29th, Huatai Securities pointed out that commercial real estate will face challenges in 2024, but top enterprises will outperform the industry in terms of scale expansion and operational efficiency. I am optimistic about the investment opportunities in the commercial real estate sector in 2025, mainly based on the following reasons: 1) Under the catalysis of policies, the consumer market is expected to continue to recover, giving commercial real estate a more solid terminal market soil; 2) Consumer REITs drive operators to achieve asset monetization, liquidity and management premium, and light asset operation space extension; 3) The relative management advantages of top operators continue to improve, strengthening the alpha attribute and continuing to demonstrate the logic of increasing concentration; 4) The valuation advantage is highlighted, and the valuation of the property holding sector is basically equivalent to the market value. The market value of some heavy asset operators’ business development sectors is already lower than the reasonable valuation of the property holding sector, further strengthening the investment value of the enterprise.
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