Core Insights - Chilton Capital Management's REIT Team is led by experienced co-portfolio managers Bruce Garrison and Matt Werner, focusing on publicly traded real estate investment trusts (REITs) and related entities primarily in North America [1] - The REIT Team emphasizes the advantages of public REITs, including liquidity, transparency, and total return characteristics, which enhance diversification across various dimensions [1] - The investment strategy combines real estate industry experience with traditional security analysis methods to make informed investment decisions [1] Company Overview - Chilton Capital Management is an independently owned firm established in 1996, providing investment advisory services to a range of clients including registered investment companies, private clients, family offices, endowments, foundations, retirement plans, and trusts [1] - The REIT Team manages Separately Managed Accounts (SMAs) for high net worth individuals and institutions, and serves as a sub-advisor for the West Loop Realty Fund [1] Investment Strategy - The REIT Team's investment approach focuses on traditional methods of security analysis, including research, critical thought, and analytical depth, which are essential to their investment process [1] - The property types targeted by the REIT Team include apartments, regional malls, shopping centers, lodging, office, industrial, self-storage, data centers/cell towers, and various healthcare-related facilities [1]

Their share prices have crashed in the past three years, even as their cash flows and dividends kept rising, and as a result, valuations are today at a near 10-year low:Your timing is perfect! We’ve just released our latest top investment picks for July 2025, and by joining today, you’ll gain immediate access to these exciting opportunities.We invest thousands of hours and over $100,000 annually into researching the most profitable investment opportunities—all to bring you real estate strategies at just a f ...

Core Viewpoint - The investment in old residential buildings' top floors presents both risks and opportunities, driven by factors such as school district value, renovation potential, and demolition compensation [3]. Group 1: Demolition Compensation - The ongoing urban renewal and demolition projects in various Chinese cities create a high-risk, high-reward scenario for investors in old residential buildings' top floors. Although the compensation per unit for top floors may be lower than for lower floors, the lower purchase cost offers a higher potential return [4]. - Investors can potentially achieve significant wealth growth by purchasing at lower prices and benefiting from demolition compensation, although the timing and occurrence of such demolitions are uncertain [4]. Group 2: Renovation Potential - Many cities are actively promoting the renovation of old residential buildings, with elevator installation being a key project. This enhances the living comfort and convenience for top-floor residents, thereby increasing market value [4]. - However, the overall real estate market is currently in a downturn, which may limit the appreciation potential of renovated top floors and could lead to risks of unsold properties [4]. Group 3: School District Value - Old residential buildings are often located in city centers with well-developed amenities, making them attractive as school district properties. The relatively low prices of top floors draw parents seeking school district homes, prompting investors to target this market for potential profits [5]. - Recent government policies aimed at curbing speculation in school district properties, such as random enrollment adjustments, increase the risks associated with relying on school district value for investment returns [5]. Group 4: Considerations for Buyers - Buyers should carefully evaluate the surrounding amenities and transportation options, as these directly impact living convenience and quality of life [7]. - Assessing the overall environment, safety, and property management quality of the community is crucial for a satisfactory living experience [7]. - Understanding the property management fees and service quality is essential to avoid future disputes and unexpected costs [7].

Financial Performance (Q4 2017) - Total revenue increased to $147.7 million, a 13% increase compared to $130.8 million in 2016[42] - Net income attributable to common shareholders was $54.7 million, a 5% increase from $52.2 million in 2016[42] - FFO as adjusted for common shareholders was $95.9 million, a 19% increase compared to $80.7 million in 2016[42] - Net income per share attributable to common shareholders decreased to $0.74, a 10% decrease from $0.82 in 2016[42] Financial Performance (Year Ended 2017) - Total revenue increased to $576.0 million, a 17% increase compared to $493.2 million in 2016[45] - Net income attributable to common shareholders was $234.2 million, a 16% increase from $201.2 million in 2016[45] - FFO as adjusted for common shareholders was $360.5 million, a 17% increase compared to $308.0 million in 2016[45] Capital Markets and Liquidity - Total debt was $3.0 billion as of December 31, 2017[50] - $210 million was outstanding on the $1 billion revolver at the end of 2017[52] - The company prepaid a secured mortgage note payable totaling $11.7 million with an interest rate of 6.19%[52] - The company redeemed all of the outstanding 7.75% Senior Notes due July 15, 2020 for the principal amount of $250 million plus a premium of $28.6 million[52] Investment and Disposition - 2017 investment spending totaled $1.6 billion[20] - Planned dispositions are projected to be between $350 million and $450 million[37]

Portfolio Highlights - The portfolio is concentrated in the DC to Boston corridor, the most densely populated region in the U S, with an average 3-mile population density of 200,000 people[1] - Grocers anchor 80% of the assets, generating sales of $900/ft[1,30] - Leased occupancy is 96 6%[7,10] - 90% of portfolio NOI is generated from properties situated in the D C to Boston corridor[19] Financial Performance and Growth - Targeting a long-term, annual growth rate of 4-5% per share in Funds from Operations as Adjusted[1] - A sector-leading pipeline of signed but not opened leases accounting for 9% of net operating income[4,68] - Redevelopment initiatives totaling $156 million, expected to deliver a 14% return[4,15,74,77] - Same-property NOI Growth with Redevelopment was 3 8% in 1Q25[9,15] - The company projects FFO as Adjusted to be between $1 37 and $1 42 per diluted common share for 2025[16,138] Strategic Capital Recycling - Since October 2023, the company acquired $552 million of high-quality shopping centers at a 7 2% cap rate and sold $452 million of non-core, low growth assets at a 5 2% cap rate[4,80,99]

Group 1 - iREIT® on Alpha provides in-depth research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers, with a tracker covering over 250 tickers [1] - The investing group iREIT®+HOYA Capital, led by Brad Thomas and HOYA Capital, focuses on income-oriented alternatives and has a team of analysts with over 100 years of combined experience [1] - Brad Thomas has over 30 years of experience in real estate investing, having been involved in over $1 billion in commercial real estate transactions [2]

Group 1 - The article emphasizes a strong interest in Real Estate Investment Trusts (REITs) and an overweight position in the real estate sector, reflecting a long-term commitment to this investment area [1] - The company has over three decades of experience in building and managing wealth, indicating a deep understanding of market dynamics and investment strategies [1] Group 2 - iREIT® offers comprehensive research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers, showcasing a broad analytical approach [2] - The iREIT® Tracker provides data on over 250 tickers, including quality scores, buy targets, and trim targets, which aids investors in making informed decisions [2] - A new Ratings Tracker called iREIT Buy Zone has been introduced to assist members in screening for value, enhancing the research capabilities available to investors [2]

Group 1 - The article emphasizes the importance of investing in less popular, stable businesses that can yield significant returns over time [1] - A quote from a friend highlights the idea that those who stand out or attract attention may face challenges, suggesting a preference for more discreet investment strategies [1] Group 2 - iREIT® offers comprehensive research on various investment vehicles including REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers [2] - The iREIT® Tracker provides data on over 250 tickers, including quality scores, buy targets, and trim targets, enhancing investment decision-making [2] - A new Ratings Tracker called iREIT Buy Zone has been introduced to assist members in identifying value opportunities [2]

Core Insights - The article discusses the rising popularity of old residential buildings' top floors among young buyers, highlighting five key reasons for this trend. Group 1: Price Advantage - The price of top-floor units in old residential areas is significantly lower than that of new buildings, often by several thousand yuan per square meter, making it an attractive option for young buyers with limited budgets [3]. Group 2: Location Advantage - Old residential buildings are typically located in city centers with well-developed amenities such as schools, hospitals, supermarkets, and public transport, making them more appealing than new developments in suburban areas [6]. Group 3: Unique Living Experience - The top floors offer unique advantages, including spacious terraces for personal use, excellent lighting and ventilation, and a quieter living environment, which aligns with modern health-conscious lifestyles [5]. Group 4: Potential for Urban Renewal - Many cities are actively promoting the renovation of old residential areas, including the installation of elevators, which enhances living comfort and increases property value, making top-floor purchases a bet on future appreciation [5]. Group 5: Speculative Investment - Some young buyers view purchasing top-floor units as a high-risk, high-reward investment, hoping for substantial compensation in case of future demolition projects, with potential returns significantly exceeding initial investments [8].

Portfolio Overview - The company has a portfolio of 39 properties with 4.0 million sq ft of GLA and a leased occupancy of 95.4%[4] - The ground lease portfolio covers 145.5 acres with a weighted average lease term of 13.7 years[4,55] - The company's TTM NOI is $128.9 million, with Retail/Grocery contributing 63% ($81.3 million), Industrial 18% ($22.7 million), and Ground Lease 16% ($20.7 million)[26] Market Dynamics - Honolulu's household income is the highest out of all comparable markets[13] - Conservation land accounts for 48% (1,973,792 acres) and agricultural & rural land accounts for 47% (1,937,698 acres) of the state acreage[20] - Urban land only accounts for 5% (200,898 acres) of the state acreage[20] Retail Portfolio - The retail portfolio consists of 21 properties with 2.5 million GLA and a leased occupancy of 95.2%[28] - The retail portfolio's NOI is $21.6 million with an ABR PSF of $37.62 and a weighted average lease term of 6.1 years[28] - The average retail SS NOI growth since REIT conversion is 3.7%[28] Industrial Portfolio - The industrial portfolio includes 14 properties with 1.4 million GLA and a leased occupancy of 97.3%[45] - The industrial portfolio's NOI is $5.6 million with an ABR PSF of $16.79 and a weighted average lease term of 4.0 years[45] - The average industrial SS NOI growth since REIT conversion is 4.8%[45] Ground Lease Portfolio - The ground lease portfolio covers 145.5 acres and generates $5.0 million in NOI[55] - The 5-year NOI CAGR for the ground lease portfolio is 5.7% with a weighted average lease term of 13.7 years[56] Capital and Liquidity - The company has total liquidity of $324 million, including $17 million in cash and $307 million in undrawn revolver capacity[121] - Total debt is $453 million, with 97.1% at fixed rates and a weighted-average interest rate of 4.65%[121,122] Guidance - The company's full-year 2025 guidance for FFO per diluted share is $1.17 to $1.23[129] - The company's full-year 2025 guidance for CRE Same-Store NOI is 2.4% to 3.2%[129]