Decoding the risky strategy of "hoarding properties": Economics of renting properties becomes a tool to resist economic fluctuations.

Recently, the acquisition of Shanghai Songjiang Pomelo Community by Youbang Insurance has attracted attention to the insurance funds "buying properties" in the market. Against the backdrop of declining interest rates and scarce high-quality assets, insurance funds continue to increase their investment in high-quality real estate. Information disclosed by the China Insurance Industry Association shows that as of July 22, a total of 4 insurance companies have announced 13 real estate investments involving 6 real estate projects, with a total new investment approaching 5 billion yuan, a significant increase compared to the same period last year. In addition, many insurance funds are also investing in real estate through funds or investing in public REITs. Unlike before, where insurance funds heavily invested in real estate stocks, they are now more focused on holding shopping centers, office buildings, and long-term rental apartments to receive long-term and stable rental income. Industry insiders say that insurance funds are increasing their investment in real estate to alleviate the pressure of asset returns not covering debt costs. High-quality real estate assets have characteristics such as long duration, low volatility, and stable cash flow, which meet the investment needs of insurance funds. However, when investing in real estate, insurance funds need to strengthen their investment research capabilities and consider issues such as exit strategies.