CITIC Construction Investment: The resilience of the outlet mall industry is evident; optimistic about leading operators and their REITs

CITIC Construction Investment pointed out that the official launch of commercial real estate REITs opens up financing channels for high-quality retail assets such as outlet malls, with two outlet mall commercial real estate projects already accepted. As a representative retail format of “luxury at a lower price” and “high cost performance,” outlet malls demonstrate significant operational resilience amid economic cycle fluctuations. The industry has formed a competitive landscape characterized by leading concentration and regional differentiation, with leasing ability and merchandise control building core competitive advantages for enterprises. In terms of operating models, the joint operation model achieves profit sharing and risk sharing, combined with low property costs and property tax advantages, making it a high-quality underlying asset with strong resilience under the expansion of commercial real estate REITs. Regarding valuation, the discount rates for the first batch of outlet mall projects are relatively reasonable, with a forecasted distribution rate of 4.6%–5.5% by 2026. These projects are mature in operation, possess high-quality assets, and have high investment value.