GDS Holdings Limited - ADR

Strong operational momentum in 3Q’25 (growth, utilization, bookings) - Revenue +10.2% YoY in 3Q’25; adjusted EBITDA +11.4% YoY. - Gross additional area utilized ~23,000 sqm in 3Q’25; company is “on track” to achieve its highest annual move-in. - Backlog remains meaningful: despite shortening the book-to-build period and reducing backlog through selectivity, management still sees >70,000 sqm of move-in visibility next year from backlog.

Bookings inflect higher but demand mix is AI-heavy; next-year growth expected despite softer 2Q’25 - Total new bookings (first 9 months): 75,000 sqm / 240 MW. - Full-year 2025 expectation: nearly 300 MW (i.e., clear step-up vs “past few years”). - ~65% of 2025 bookings are AI-related (Tier 1 markets), primarily AI inferencing, sometimes inferencing + training depending on deployments. - Management expects higher bookings in 2026, but acknowledges bookings were relatively subdued since 2Q’25, which could temper growth the next year unless demand ramps as projected.

Capital strategy is a core differentiator: C-REIT started trading and improves recycling capacity - C-REIT began trading Aug 8 (Shanghai Stock Exchange). As of the prior day’s close: RMB 4.375, +45.8% vs IPO price. - Trading multiple: ~24.6x EV / projected 2026 EBITDA; implied dividend yield ~3.6% (per the offering memo). - Strategy: recycle capital repeatedly by injecting assets into REIT over a 5–6 year investment cycle once track record qualifies. - Timeline for next injection: under current rules, first post-IPO asset injection ~6 months after Aug 8 (2Q’26), with regulatory review taking additional time. - Unit economics (management’s framing): new investments typically generate ~11%–12% cash-on-cash yield; low-to-mid teens IRR over 5–6 years, with levered ROE in the 20s (even under conservative exit assumptions).