The first REITs for the expressway around the city was approved, marking another milestone in quality improvement and expansion

Recently, China Nanjing Expressway REITs became the 12th approved expressway REITs in the whole market, with the underlying assets being the Southeast Expressway of Nanjing Ring Expressway. The project is located in Jiangning District and Yuhua District of Nanjing, with a total length of 41.215 kilometers, which is an important part of Nanjing's "second ring expressway". It has been in operation since 2009, with a compound annual growth rate of 9.45% in traffic volume. The annualized cash distribution rates are expected to be 9.43% and 11.03% in 2024 and 2025, respectively.

Nanjing Transportation Group and its wholly-owned subsidiary Nanjing Expressway Group, as the sponsor and operating management institution, have rich experience in the management of expressways. Currently, Nanjing Transportation Group and its subsidiaries manage 21 road and bridge assets, with a total length of about 747 kilometers, providing potential assets for the expansion of REITs.

The approval of China Nanjing Expressway REITs not only provides investors with a new channel to share the dividends of expressway development but also further promotes the expansion of public REITs with toll roads as underlying assets. The number of approved REITs in the Shanghai Stock Exchange has increased to 37, and the total number of REITs in the market has reached 55, showing an accelerated trend of regular issuance of REITs.