Study on Selection Decision of the Underlying Assets of Infrastructure REITs

This study takes the development stage of China's REITs market as the background, and makes a case study by setting 5 primary and 6 secondary underlying asset evaluation indicators. In this study, a multi-angle radar model is constructed to observe the concerns and considerations of original equity holders in the selection of the underlying assets of infrastructure REITs projects, and to analyze their issuance strategies. This article categorizes the 27 Chinese Real Estate Investment Trusts (REITs) issued as of May 1st into four distinct types: Missing angle type I, Missing angle type II, Similar type, and Other type. The asset selection analysis examines the five key factors of asset yield ability, asset risk level, asset size or scale, geographic location of assets, and the original equity holders’ purchase ratio. The article also analyzes the characteristics and issuance strategies of corresponding assets according to different industry categories. The set of asset evaluation system designed in this study can help investors and original equity holders have a more concrete assessment and understanding of asset quality. It facilitates their asset selection process and can also serve as a reference for existing asset models when considering their own investment portfolios.