Financial Data and Key Metrics Changes - The company reported a Normalized FFO per share growth of 8.9% year-over-year for Q4 2025, with a full-year growth of 10.6% [4][22] - Total FAD increased by 13.7% year-over-year, reaching $232.1 million for the full year [23] - Net income per share for Q4 was $0.80, a decrease of 15.8% from the prior year, primarily due to prior year gains from derivative accounting [21] Business Line Data and Key Metrics Changes - The Seniors Housing Operating Portfolio (SHOP) platform saw a total NOI increase of 125% year-over-year, with same-store growth of 7.6% [4][5] - Cash rental income from the triple net portfolio increased by approximately 7% year-over-year [4] - SHOP NOI for Q4 increased by 124.9% to $7.3 million compared to the prior year [24] Market Data and Key Metrics Changes - There were fewer than 25,000 units under construction in Q4, representing just 2.2% of total inventory, the lowest level since 2012 [7] - Demand for senior housing is accelerating as the first baby boomers turn 80 this year, indicating favorable industry tailwinds [7] Company Strategy and Development Direction - The company plans to allocate 70% of its investment activity in 2026 to SHOP, targeting need-driven senior living communities in secondary suburban markets [9] - The company is focusing on partnerships with operators that demonstrate high resident satisfaction and is expanding its SHOP capabilities [8][9] - A new Board member, Lilly Donohue, was welcomed, bringing extensive experience in senior living operations [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of FFO per share and the attractiveness of senior housing industry fundamentals [12] - The company anticipates a 1.2% growth in Normalized FFO per share for 2026, with an adjusted growth rate estimated at 5%-6% [11] - Management highlighted the importance of maintaining a strong balance sheet and a lower leverage policy to support growth [28] Other Important Information - The company announced a dividend of $0.92 per share for shareholders of record on March 31, 2026 [28] - The company has a robust liquidity position with approximately $875 million available, including cash and revolver capacity [27] Q&A Session Summary Question: Same-store SHOP guidance for 2026 - Management indicated that the guidance reflects current expectations and future plans for corrective measures, with potential for upside [32][34] Question: NHC lease negotiations - Management described the current posture as being in a quiet period regarding NHC lease negotiations [40] Question: SHOP growth and performance - Management noted that the new SHOP portfolio is expected to perform well, with double-digit growth anticipated [53] Question: Pricing power in secondary markets - Management emphasized that pricing power varies by market, but they expect to achieve 7%-8% growth through effective rate increases [57] Question: Dispositions and capital recycling - Management explained that the higher volume of dispositions is driven by reallocating resources to more strategic relationships [61]

Financial Data and Key Metrics Changes - The company reported FFO of $0.90 per share for Q4 2025, including $0.06 from land sale gains, resulting in a full-year FFO of $3.48 per share, which is 2% higher than the midpoint of the original outlook for 2025 [8][24] - Net income for Q4 was $28.7 million, or $0.26 per share [24] - The initial 2026 FFO outlook is set at a midpoint of $3.54 per share, which is 5.7% higher than the initial 2025 outlook [8][26] Business Line Data and Key Metrics Changes - The company leased 526,000 sq ft of second-generation space in Q4, including 221,000 sq ft of new leases, with a total of 3.2 million sq ft signed for the year [8][19] - The development pipeline is now 78% pre-leased, up from 72% last quarter and 56% one year ago [9] - Cash rent spreads were positive, with GAAP rent spreads in the mid-teens, and net effective rents were 20% higher than in 2024 [9][19] Market Data and Key Metrics Changes - The Sun Belt markets are experiencing strong demand, with limited new supply and positive net absorption [18][20] - Charlotte generated more nominal jobs than any other metro area except New York City in 2025, indicating robust economic activity [20] - Dallas is noted as the number one market to watch, with significant net absorption and a strong Class A office market [22] Company Strategy and Development Direction - The company is focused on investing in high-quality office and BBD locations in the Sun Belt, with a projected NOI growth potential of $50 million-$60 million across eight buildings [6][7] - Future investments are expected to drive additional growth, with approximately $800 million invested over the past 12 months [7] - The company plans to complete $190 million-$210 million of additional dispositions by mid-year 2026 to fund acquisitions and maintain a leverage-neutral position [16][26] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the next few years due to strong fundamentals in core markets, limited new supply, and ongoing demand from companies [5][6] - The company expects to drive occupancy higher by roughly 200 basis points from the end of 2025 to the end of 2026 [6] - Management noted that expansions outpaced contractions 2.5-to-1 for Q4 and over 3-to-1 for the year, indicating a positive leasing environment [19] Other Important Information - The company has filed a new S-3 shelf registration statement with the SEC, allowing for future capital market transactions [32] - The company plans to fund recent acquisitions on a leverage-neutral basis, primarily through the sale of non-core assets [25][26] Q&A Session Summary Question: When does the company expect to realize elevated growth rates from capital recycling? - Management indicated that the impact on 2026 numbers is one-time in nature, with growth expected to normalize in 2027 [34][35] Question: How is demand for the remaining leasing in the development pipeline? - Management reported strong demand, with continued progress in leasing throughout 2025 [37] Question: Has the company seen any impact from AI-related layoffs in its markets? - Management stated that they have not observed any significant impact from AI-related layoffs, with continued demand for office space [41][42] Question: What is the expected occupancy bridge throughout the year? - Management expects occupancy to improve steadily throughout the year, despite some initial drag from recent acquisitions [54][56] Question: What percentage of the $200 million non-core sales is related to land sales? - Management clarified that none of the $200 million is related to land sales, which are expected to occur later in the year [52] Question: What is the leasing target to grow occupancy? - Management indicated that approximately 700,000 to 750,000 sq ft of new leasing is needed to achieve the year-end occupancy target of 87.5% [73][75]

INVESTOR TELECONFERENCE PRESENTATION FOURTH QUARTER 2025 FEBRUARY 5, 2026 Avalon Ocean Avenue San Francisco, CA [FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, For the reasons described in the referenced forward-looking statements, our historical results may not be indicative of future results. Avalon Belltown Towers Seattle, WA [FAVORABLE SUPPLY BACKDROP FOR ESTABLISHED REGIONS PERSISTS, WHILE THE SUNBELT CONTINUES TO DIGEST STANDING INVENTORY] [SUBURBAN COASTAL PORTFOLIO POSITIONED TO OUTPERF ...

Core Insights - Healthpeak Properties, Inc. (DOC) has a market capitalization of $12.2 billion and focuses on high-quality healthcare real estate across the U.S. with a diversified portfolio of 703 assets as of September 30, 2025 [1] Performance Overview - Over the past 52 weeks, DOC shares have declined by 21.6%, underperforming the S&P 500 Index, which increased by 17.7% during the same period [2] - Year-to-date, DOC shares are down nearly 13%, while the S&P 500 has risen by 15.7% [2] - Compared to the Real Estate Select Sector SPDR Fund (XLRE), which decreased by 6.9% over the past 52 weeks, DOC's underperformance is more pronounced [3] Financial Results - Following the Q3 2025 results released on October 23, DOC shares rose by 1.2% as the company reported an AFFO of $0.46 per share and revenue of $705.9 million, both exceeding expectations [4] - The company experienced a 0.9% year-over-year growth in total merger-combined same-store cash NOI, with outpatient medical and CCRC segments growing by 2.0% and 9.4%, respectively [4] - Healthpeak reaffirmed its 2025 FFO guidance of $1.81 to $1.87 per share [4] Analyst Ratings and Price Targets - For the fiscal year ending December 2025, analysts project a 1.1% year-over-year increase in AFFO per share to $1.83 [5] - Healthpeak has a positive earnings surprise history, having met or exceeded consensus estimates in the last four quarters [5] - Among 20 analysts covering the stock, the consensus rating is a "Moderate Buy," with nine "Strong Buy" ratings, three "Moderate Buys," and eight "Holds" [5] - RBC Capital's Michael Carroll reaffirmed a "Buy" rating on Healthpeak with a price target of $21, while the mean price target of $20.72 indicates a 16.9% premium to current price levels [6] - The highest price target of $29 suggests a potential upside of 63.6% [6]

Group 1 - The commercial real estate sector is facing unprecedented challenges due to economic slowdown and weak consumer demand, leading to rising vacancy rates and shrinking rental negotiation space [1][2] - Historical experiences from markets like the US and Japan indicate that commercial real estate is a "slow-moving asset" that typically lags behind macroeconomic recovery, often requiring two years or more to stabilize after an economic downturn [2][3] - In China, the retail and dining sectors are experiencing the slowest recovery, with shopping center vacancy rates nearing 20%, while office buildings and hotels are rebounding faster due to the resumption of business activities [2][3] Group 2 - State-owned enterprises (SOEs) are deemed essential for urban renewal projects due to their ability to handle large-scale funding and long-term investment cycles, providing necessary stability during economic uncertainty [2][3] - The role of SOEs is not seen as excessive intervention but rather as a necessary responsibility to support urban renewal efforts [3] - The operational phase of urban renewal, which is crucial for project success, requires the flexibility and responsiveness of private enterprises, as they can adapt quickly to market changes [4][6] Group 3 - The current slow progress in urban renewal is attributed to misaligned governance structures, where operational teams are often integrated into engineering logic, hindering independent decision-making [7][8] - Data shows that companies like China Resources Land and Longfor Group have demonstrated stable revenue growth and high occupancy rates, indicating the importance of effective operational management in the current market [7][8] - The shift from ROI to NOI and cash flow metrics is necessary for evaluating the viability of projects in the current market environment [11][12] Group 4 - To resolve existing contradictions in urban renewal, adjustments are needed across five levels: organizational independence, administrative management transformation, government coordination, financial evaluation methods, and capability upgrades [8][9][11] - A clear division of responsibilities is essential, with SOEs providing a safety net, private enterprises driving innovation, and government facilitating coordination to enhance overall urban asset efficiency [13]

Core Viewpoint - AvalonBay Communities reported strong Q2 FY2025 earnings, with Core FFO per share of $2.82, exceeding analyst estimates significantly, indicating robust operational performance despite moderating growth trends [1][5][14] Financial Performance - Core FFO per share increased by 1.8% year-over-year from $2.77 in Q2 2024 to $2.82 in Q2 2025 [2] - GAAP EPS rose to $1.88, a 5.6% increase from $1.78 in Q2 2024 [2] - Residential revenue reached $689.1 million, up 3.0% from $669.1 million in Q2 2024 [2] - Same Store Residential Net Operating Income (NOI) grew by 2.7% to $477.2 million [2][5] Business Overview - AvalonBay specializes in multifamily rental communities in high-demand U.S. metro regions, holding interests in 315 properties with a total of 97,212 apartment homes [3] - The company focuses on high-barrier and expansion markets, targeting areas with strong job growth and high housing costs [3] Operational Strategy - The business model emphasizes in-house development and redevelopment of apartment properties, with a focus on operational efficiency and technology adoption [4] - Recent capital reallocations target expanding regions such as Texas, Florida, and the Carolinas, alongside established coastal markets [4] Development Activities - AvalonBay completed the Avalon Princeton on Harrison project with 200 homes at a total capital cost of $79 million and initiated new projects in Florida and North Carolina totaling 624 homes and $210 million [7] - The company is currently managing 20 wholly owned developments with 7,299 homes and a total cost of $2.78 billion [7] Financial Position - As of Q2 2025, AvalonBay had $102.8 million in unrestricted cash and no borrowings under its $2.5 billion credit facility, indicating strong liquidity [10] - The company issued $400 million in unsecured notes in July 2025 to extend its debt maturity profile [11] Future Outlook - For FY2025, management provided Core FFO per share guidance of $11.19–$11.59, with a midpoint of $11.39, indicating stability [14] - Same Store portfolio growth is expected between 2.3% and 3.3% for revenue, with operating expense growth projected at 2.6%–3.6% [14]

Financial Performance - Core FFO per share growth for Q2 2025 was 18% year-over-year, and 33% for the first half of the year[10] - Same Store Residential revenue growth was 30% year-over-year for both Q2 2025 and the first half of the year[10] - The company raised $13 billion in capital year-to-date at a weighted average initial cost of capital of 50%[9, 10] - The initial outlook projected full year Same Store Residential revenue growth was revised from 30% to 28%, partially due to changes in the composition of the Same Store segment[22, 37] Market Dynamics - Established Regions are expected to be insulated from standing inventory overhang, with new supply expected to decline to historically low levels in 2026[17] - Market occupancy in Established Regions was 948% in June 2025, compared to 895% in Sunbelt Regions[18] - Projected new market rate apartment deliveries in Established Regions for 2026 are expected to be 08% of inventory, compared to 18% in Sunbelt Regions[20] - Expansion Regions are projected to represent approximately 7% of Same Store Residential revenue in 2025, while Established Regions are projected to represent approximately 93%[48] Development Activity - Approximately $3 billion of Development is underway, expected to provide incremental earnings and value creation upon stabilization[9] - Total capital cost for development starts is projected at $17 billion for the full year 2025[22] - Projected NOI from development communities is expected to be $25 million for 2025, a decrease from the initial outlook of $30 million due to delayed occupancies[22] - Projected initial stabilized yields for development communities are trending above underwriting, with a spread of 100-150 bps to the cost of capital[56]

Financial Results - Elme Communities reported a net loss per diluted share of $0.05 for Q1 2025, compared to a loss of $0.04 in Q1 2024 [2][21] - Core FFO per diluted share increased to $0.24 in Q1 2025 from $0.23 in Q1 2024 [2][21] Operational Highlights - Same-store multifamily NOI increased by 5.5% year-over-year, driven by higher rental revenue and successful property tax assessment appeals [7][8] - Average occupancy for the same-store portfolio rose to 94.8%, up 0.5% from the prior year [7][8] - Retention rate during the quarter was 62%, aligning with expectations [7] Balance Sheet - As of March 31, 2025, available liquidity was $324 million, consisting of cash and availability under the revolving credit facility [7] - The annualized Net Debt to Adjusted EBITDA ratio was 5.6x, indicating a strong balance sheet with only $125 million of debt maturing before 2028 [7] Strategic Review - The board of trustees initiated a formal review to evaluate strategic alternatives for maximizing shareholder value, with no set deadline for completion [6] 2025 Guidance - Elme expects Core FFO for 2025 to range from $0.91 to $0.97 per fully diluted share [9][10] - Same-store multifamily revenue growth is projected between 2.1% and 3.6%, with NOI growth expected to be between 1.5% and 3.5% [10] Dividends - Elme Communities paid a quarterly dividend of $0.18 per share on April 3, 2025, and announced another dividend of the same amount to be paid on July 3, 2025 [12]