Public offering REITs' valuations have returned to historical lows, and institutions expect the value of allocation to become more prominent.

After the early-stage pullback, positive signals are emerging in the secondary market of public REITs. Multiple brokerage institutions have analyzed that the domestic public REITs market has entered a historically low valuation range. With the landing of index funds, the warming expectation of insurance capital entering the market, and other favorable factors, the supply-demand pattern of the market is likely to improve in the future, enhancing the long-term allocation value. Data shows that as of June 30th, the spread between the distribution rate of property REITs and the yield of the ten-year government bond has reached the levels of the market bottoms in early 2024 and early 2025. Historically, when this spread is in a high range, REITs markets will undergo varying degrees of valuation recovery. This means that after the previous adjustment, the REITs market is gradually digesting short-term bearish pressures, and the valuation safety cushion continues to strengthen.