Financial Data and Key Metrics Changes - Brookfield Infrastructure Partners generated funds from operations (FFO) of $2.6 billion in 2025, reflecting a 10% increase compared to 2024 when normalized for asset sales and foreign exchange [4][5] - The fourth quarter FFO reached a record of $0.87 per unit, leading to a conservative payout ratio of 66% and a 6% increase in quarterly distribution to $1.82 per unit, marking the 17th consecutive year of distribution increases of at least 5% [5][6] Business Line Data and Key Metrics Changes - The transport segment generated FFO of $1.1 billion, consistent with the prior year after normalizing for $1.8 billion in capital recycling initiatives, with higher revenues in rail and toll road segments [6][7] - The midstream segment's FFO increased by 7% year-over-year to $668 million, driven by higher volumes in Canadian natural gas operations and a newly acquired US refined products pipeline [7][8] - The data segment's FFO surged over 50% to $502 million, attributed to new investments and strong organic growth, including the commissioning of 220 megawatts of capacity at hyperscale data centers [8][9] Market Data and Key Metrics Changes - The global data center platform has development potential of approximately 3.6 gigawatts, with contracted capacity exceeding 2.3 gigawatts [9] - In 2025, corporates invested around $500 billion into AI-related infrastructure, with expectations for further capital investment in the next two years [11][12] Company Strategy and Development Direction - The company is focused on a prudent, risk-focused approach to AI infrastructure investing, emphasizing long-term contracts and selective partnerships with investment-grade counterparties [12][13] - Brookfield Infrastructure aims to capitalize on structural themes such as digitalization, decarbonization, and deglobalization, positioning itself for a super cycle in infrastructure investment [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, anticipating a return to 10% or higher per unit growth, supported by resilient cash flows and a robust pipeline of investment opportunities [20][21] - The company highlighted the importance of maintaining a disciplined execution strategy to convert demand into durable returns, particularly in the data center sector [16][17] Other Important Information - The company achieved record liquidity of $6 billion at the end of 2025, bolstered by $3.1 billion in asset sale proceeds [9] - Significant new investments included a $125 million acquisition of a South Korean industrial gas business and a $300 million investment in a railcar leasing platform [19] Q&A Session Summary Question: Can you elaborate on your contract approach to mitigate technology risk in data centers? - Management explained that long-term contracts (around 15 years) help avoid technology risks by ensuring that any necessary infrastructure changes are not at their cost [28][30] Question: What is the expected return on new data center developments? - Management indicated that new data centers yield a return of 9% to 10%, with monetization at cap rates of 5.5% to 6%, leading to potential equity returns in the high teens or twenties [26][27] Question: Can you provide details on the KKR acquisition of data centers? - Management stated that they cannot disclose specific transaction details but confirmed joint ventures with institutional investors across North America and Europe, totaling about 850 megawatts [35][36] Question: What is the outlook for inflation indexation across geographies in 2026? - Management expects inflation indexation in OECD markets to average between 2% and 3%, with emerging markets like India and Brazil ranging from 2% to 4% [46][47] Question: How is the capital backlog in data operations expected to evolve? - Management noted a significant increase in the capital backlog, driven by hyperscale projects, and expects about $1.5 billion to come online in 2026 [51][59]

Financial Data and Key Metrics Changes - In 2025, Brookfield Infrastructure generated funds from operations (FFO) of $2.6 billion, reflecting a 10% increase compared to 2024 when normalized for asset sales and foreign exchange [4] - The fourth quarter FFO reached a record of $0.87 per unit, leading to a 6% increase in quarterly distribution to $1.82 per unit, marking the 17th consecutive year of distribution increases of at least 5% [4][5] Business Line Data and Key Metrics Changes - The transport segment generated FFO of $1.1 billion, consistent with the prior year after normalizing for $1.8 billion of capital recycling initiatives, with revenue growth in rail and toll road segments averaging 2% and 3% respectively [5] - The midstream segment's FFO increased by 7% year-over-year to $668 million, driven by higher volumes in Canadian natural gas operations and a newly acquired US refined products pipeline [6] - The data segment saw FFO of $502 million, a more than 50% increase compared to the previous year, attributed to new investments and strong organic growth in data storage [6] Market Data and Key Metrics Changes - The company reported record liquidity of $6 billion at the end of 2025, bolstered by $3.1 billion in asset sale proceeds [8] - The global data center platform has development potential of approximately 3.6 gigawatts, with contracted capacity exceeding 2.3 gigawatts [7] Company Strategy and Development Direction - Brookfield Infrastructure is focusing on AI infrastructure investing, leveraging sector tailwinds to create durable value for unitholders [2][10] - The company is applying a risk-focused approach to AI infrastructure, emphasizing long-term contracts and selective investment in strong counterparties [11][12] - The strategic initiatives include deploying approximately $1.5 billion into new investments and maintaining a robust pipeline of opportunities across sectors and geographies [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a constructive backdrop for infrastructure in 2026, driven by digitalization, decarbonization, and deglobalization trends [19] - The company anticipates returning to a growth target of 10% or higher per unit in 2026, supported by resilient cash flows and a strong capital deployment outlook [20] Other Important Information - The company completed approximately $16 billion in financings to de-risk operating company balance sheets [3] - The company has secured two transactions expected to generate attractive returns, including a sale of a Brazilian electricity transmission concession and a capital partnership for data centers in North America [9] Q&A Session Summary Question: Can you elaborate on your contract approach to mitigate technology risk in data centers? - Management explained that long-term contracts (15 years) help manage technology risk by ensuring that any necessary infrastructure changes are not at their cost, allowing them to focus on core infrastructure [24][28] Question: Can you provide details on the KKR acquisition of a stake in a portfolio of data centers? - Management stated they cannot disclose specific transaction details but confirmed joint ventures with institutional investors, including KKR, across various markets [32][34] Question: What is the expected inflation indexation across geographies in 2026? - Management indicated that inflation indexation in OECD markets is expected to average between 2% and 3%, while emerging markets like India and Brazil may see inflation pass-through in the range of 2%-4% [45] Question: Can you provide an update on the capital backlog and its drivers? - Management noted that the data center platform saw significant growth, with a backlog increase driven by new contracts and acquisitions, particularly in North America and Europe [49][51] Question: How does the Canada-Alberta MOU impact midstream investments? - Management stated it is too early to determine the MOU's impact but noted existing growth initiatives and a strong operational environment in Canada [64][66]

Core Insights - Brookfield Infrastructure Partners L.P. reported a net income of $1.1 billion for the year ended December 31, 2025, significantly up from $391 million in 2024, driven by strong operational performance and capital recycling activities [2][3][31] - The company achieved funds from operations (FFO) of $2.6 billion, or $3.32 per unit, representing a 10% increase over normalized FFO and a 6% increase compared to 2024 [3][4][41] - The company expects FFO to increase further in 2026 as new investments contribute to results and the growth pipeline expands to include AI infrastructure [2][8] Financial Performance - Net income attributable to the partnership for 2025 was $1.1 billion, with a per unit income of $0.90, compared to $0.04 in 2024 [2][31] - FFO for 2025 was $2.6 billion, or $3.32 per unit, compared to $2.5 billion, or $3.12 per unit, in 2024 [3][41] - Revenues for 2025 reached $23.1 billion, up from $21.0 billion in 2024, while direct operating costs increased from $15.7 billion to $16.9 billion [31][53] Segment Performance - The utilities segment generated FFO of $786 million, a 7% increase year-over-year, benefiting from inflation indexation and new capital commissioned [4][5] - The transport segment's FFO was $1.1 billion, consistent with the previous year after normalizing for asset sales and foreign exchange [5][6] - The midstream segment reported FFO of $668 million, reflecting a 7% year-over-year increase due to higher volumes and activity levels [6] - The data segment saw a significant increase in FFO to $502 million, over 50% higher than the previous year, driven by new investments and strong organic growth [7] Strategic Initiatives - The company exceeded its $3 billion capital recycling target in 2025 and completed $1.5 billion in new investments [2][8] - Asset sales reached a record $3.1 billion in 2025, with expectations to continue this momentum into 2026 [12][13] - The company has secured additional projects under a framework agreement with Bloom Energy, totaling approximately 230 MW of power generation [9] Dividend and Distribution - The Board of Directors declared a quarterly distribution of $0.455 per unit, a 6% increase compared to the prior year, payable on March 31, 2026 [16][44] - The equivalent quarterly dividend for Brookfield Infrastructure Corporation's shares was also declared at $0.455, aligning with the distribution for BIP units [44][45]

Financial Data and Key Metrics Changes - For Q4 2025, the diluted FFO per share was $2.16, and for the full year, it was $9.01, aligning with prior guidance [7] - Same property net operating income (NOI) decreased by 6% for Q4 and 3.5% for the full year [10][11] - Occupancy at the end of 2025 was 90.9%, up 30 basis points from the previous quarter [9] Business Line Data and Key Metrics Changes - The company completed $1.5 billion in dispositions across 26 transactions and achieved 1.2 million sq ft in leasing volume for Q4, the highest in the last year [7] - Leasing volume for Q4 was up 14% compared to the prior four-quarter average [8] - Free rent and rental rate changes were under pressure, reflecting market realities [8] Market Data and Key Metrics Changes - The company noted a significant increase in leasing activity in the Greater Boston region, with an 11% increase in tenants [44] - The public biotech sector showed a notable decline in leasing activity, which is critical for the company's future growth [33][69] Company Strategy and Development Direction - The company plans to focus on timely execution of its strategic plan, emphasizing dispositions and maintaining a strong balance sheet [5] - The strategic path forward includes reducing capital expenditures and completing a large-scale non-core disposition plan in 2026 [16][20] - The company aims to recycle capital from dispositions to support funding needs, particularly in residential developments [22][58] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the leasing environment, noting that decision-making is still taking longer due to market conditions [32] - The company anticipates a dip in occupancy in Q1 2026, primarily due to key lease expirations [10] - Management highlighted the importance of the public biotech sector for future leasing demand and expressed concerns over the current lack of IPO activity [69] Other Important Information - The company achieved $51.3 million in general and administrative cost savings, representing a 30% reduction compared to the prior year [15] - The company has a strong liquidity position of $5.3 billion and a modest leverage ratio of 5.7x for net debt to adjusted EBITDA [18] Q&A Session Summary Question: Impact of VC funding on leasing outlook - Management noted that while there is sustained funding in private biotechnology, the overall environment remains cautious, and decision-making is slower [30][32] Question: Strategy regarding The Fenway office property - Management confirmed that retaining The Fenway office property for leasing as office space is a strategic decision based on demand [34][35] Question: Cap rate trends for dispositions - Management indicated that cap rates for non-core assets are in the mid-sixes to mid-nines, depending on market conditions [40] Question: Leasing pipeline and notable groups - Management highlighted that smaller spaces under 50,000 sq ft are in demand, but there is a lack of activity from public biotech companies [42] Question: Guidance for FFO in Q4 2026 - Management reaffirmed guidance for Q4 2026 FFO of $1.40-$1.60, indicating it represents a trough for the year [48][49] Question: Capital allocation priorities - Management stated that the priority is on debt reduction before considering stock buybacks [87] Question: Non-real estate investments - Management aims to achieve a net neutral position on non-real estate investments moving forward [91]

Core Insights - Highwoods Properties (HIW) has updated its investment activities to support long-term growth by acquiring Bloc83 in Raleigh and The Terraces in Dallas [1][8] Investment Details - Highwoods holds a 10% interest in Bloc83, acquired through a joint venture with the North Carolina Investment Authority, with a total investment of approximately $210.5 million. The mixed-use asset covers 492,000 square feet and includes two 10-story office buildings, with 27,000 square feet of retail space. As of December 31, 2025, the property was 97% leased with a weighted average lease term of 6.5 years [2] - Highwoods owns an 80% interest in The Terraces, acquired in a joint venture with Granite, totaling around $109.3 million. The company also contributed $12.9 million in preferred equity. This 12-story office building spans 173,000 square feet and was 98% leased as of December 31, 2025, with a weighted average lease term of seven years [3] Funding Strategy - The acquisitions will be funded through the sale of select non-core assets, making them leverage-neutral. The buyouts are expected to be immediately accretive to cash flows and neutral to the near-term FFO run rate for the company [4][8] Financial Projections - For 2026, Highwoods anticipates generating a GAAP net operating income (NOI) of approximately $9 million and cash NOI of $7.5 million from these investments, along with an additional $0.8 million from the preferred equity investment in The Terraces [4][8] Strategic Positioning - Highwoods' disciplined capital-recycling strategy, which involves shedding non-core assets and reinvesting in premium properties, enhances portfolio quality and positions the company for sustained growth [5]

Core Insights - Whitbread's German business showed strong performance in Q3, with total accommodation sales up 12% and RevPAR increasing by 7% in local currency, indicating a path to profitability this year [1] - UK food and beverage sales met expectations as part of Whitbread's growth plan, focusing on enhancing guest experience and improving returns by transforming lower-returning restaurants into hotel extensions [2] - In the early part of Q4, UK performance improved, with total accommodation sales and RevPAR both up 4% compared to Q3, attributed to product consistency and brand strength [3] UK Performance - UK occupancy remained high at 83% with RevPAR up 3% in Q3, maintaining a healthy premium over the mid-scale and economy market [6] - London was a key driver for growth, with RevPAR increasing by 7% year over year, and management expressed confidence in London's consistent performance [5] - Despite RevPAR growth, occupancy was slightly down year over year, but management emphasized a focus on optimizing room usage [4] Efficiency and Cost Management - Whitbread's efficiency program is ahead of expectations, with projected FY26 savings increased by GBP 10 million to a range of GBP 75 million to GBP 80 million, focusing on real efficiencies rather than mere cost-cutting [9][10] - The company adjusted its estimate of the cost impact from UK business rates for FY27 to approximately GBP 35 million, down from GBP 40 million to GBP 50 million [11] - Management is exploring various options to enhance profits and margins, with a five-year plan to be detailed in April [15] Capital Recycling and Strategic Initiatives - Whitbread is on track to achieve GBP 253 million in disposal proceeds for the year, including a recent transaction with LondonMetric valued at GBP 89 million [13] - Proceeds from disposals are intended to support investments in higher-return projects, with the growth program expected to generate high teens returns on capital [14] - Management is reviewing strategic options and will consider shareholder views in its ongoing evaluation [15] Future Outlook - The company anticipates that additional efficiency savings will positively impact the bottom line, with continued trading strength potentially providing upside against previous forecasts [16] - Forward visibility for the UK remains limited, but bookings for FY27 are ahead of last year, with positive long-lead leisure bookings [17]

Core Insights - Air Lease (AL) advanced its fleet strategy in Q4 2025 by taking delivery of 10 new aircraft, focusing on modern, fuel-efficient models from Airbus and Boeing [1][8] - The company invested approximately $920 million during the quarter, with most spending concentrated in the second half, reflecting disciplined capital deployment aligned with delivery schedules [1] - Air Lease sold 23 aircraft to third-party buyers, generating about $1 billion in proceeds, exceeding quarterly aircraft investments and demonstrating management's ability to capitalize on strong demand in the secondary aircraft market [2][8] - These actions strengthened AL's financial flexibility and balance-sheet position, limiting net expansion while maintaining a robust order book of 218 aircraft scheduled for delivery through 2031 [3][8] - The company's share price has risen 42.5% over the past year, outperforming the Transportation - Equipment and Leasing industry's growth of 18.5% [4] Financial Performance - Air Lease's investment of approximately $920 million in Q4 2025 was strategically timed to align with aircraft delivery schedules [1] - The sale of 23 aircraft generated about $1 billion, highlighting effective capital recycling and strong demand in the secondary market [2] - The balance between fleet growth and asset sales has allowed the company to maintain a robust order book while managing fleet age and composition [3] Market Position - Air Lease currently holds a Zacks Rank 3 (Hold), indicating a stable outlook in the market [6] - Investors in the Zacks Transportation sector may also consider Expeditors International of Washington (EXPD) and Global Ship Lease (GSL) as potential investment opportunities [7]

Summary of Hong Kong Property Market Conference Call Industry Overview - **Focus**: Hong Kong Property Market, specifically Office and Retail sectors - **Key Preference**: Office sector is preferred over retail due to improving vacancy rates and rental conditions in Central Hong Kong [1][10] Key Insights on Office Sector - **2026 Rental Forecast**: Central office rents expected to increase by +3% (compared to -2% in 2025), while overall office rents projected to decline by -3% [3] - **Demand Drivers**: Increased demand from tech companies, asset management, and wealth management firms is anticipated to help cap rate compression [3][9] - **Vacancy Trends**: Office vacancies are declining, with Central benefiting first from the recovery [10] Key Insights on Retail Sector - **2026 Sales Forecast**: Retail sales expected to rise by +3% (up from +2% in 2025), but rental rates projected to decrease by -3% [4] - **Visitor Trends**: Increased visitation from mainlanders to Hong Kong is noted, but challenges include competition from Shenzhen and mainland e-commerce [4] - **Risks**: Rising unemployment rates pose a risk to retail sales recovery [4] Company-Specific Updates Hongkong Land (HKLD.SI) - **Rating**: Upgraded to Overweight with a price target of USD 7.60 (previously USD 6.50) [5][20] - **Key Drivers**: Strong execution in capital recycling, stabilizing rentals in Central, and transformation into an asset manager [20][21] - **Earnings Revisions**: Slight adjustments in EPS estimates for FY25/FY26/FY27E, with a projected mid-single-digit growth in DPS [25][26] Hang Lung Properties (HLP) - **Rating**: Overweight with a price target of HKD 10.70 (previously HKD 10.50) [5][42] - **Growth Drivers**: Positive tenant sales growth in China, expansion of retail space, and a new capital-efficient strategy [42][43] - **Earnings Revisions**: Adjustments in EPS estimates reflecting improved operating conditions [48][49] Swire Properties - **Rating**: Upgraded to Overweight with a price target of HKD 23.00 (previously HKD 20.00) [5][52] - **Key Factors**: Improving office fundamentals, resilient retail sales in China, and active capital recycling initiatives [52][53] - **Earnings Revisions**: Slight increases in profit estimates for FY25/FY26/FY27E [59][61] Hysan Development - **Rating**: Upgraded to Equal-weight with a price target of HKD 19.00 [5][63] - **Market Position**: Gaining market share in Causeway Bay, with new developments expected to enhance foot traffic [63] - **Concerns**: Potential negative rental reversion and dividend cut risks due to financial obligations [63] Link REIT - **Rating**: Downgraded to Equal-weight with a price target of HKD 37.00 (previously HKD 48.00) [5][28] - **Challenges**: Persisting negative rental reversion and competition from e-commerce and rising unemployment [28][36] - **Earnings Revisions**: Adjustments in EPU and DPU estimates reflecting ongoing challenges in the retail sector [39][40] Wharf REIC - **Rating**: Underweight due to market share losses and persistent negative reversion [5][14] - **Risks**: Tenant retention issues and competition from luxury retail in mainland China [14] Conclusion - The Hong Kong property market is showing signs of recovery, particularly in the office sector, while the retail sector faces significant challenges. Companies with strong capital recycling strategies and exposure to the Central office market are favored for investment.

Core Insights - Alpine Income Property Trust (PINE) achieved a record $277.7 million in investment activity for 2025, alongside $82.8 million in property dispositions, indicating a proactive year in portfolio repositioning [1][7] - The company aims to enhance long-term cash flow generation by selling certain assets and reinvesting in higher-yielding structured investments and acquisitions [1] Investment Activity - In Q4, Alpine completed $142.1 million in acquisitions and structured investments with a high weighted average initial cash yield of 11.7%, including new first mortgage loan commitments [2] - The full-year investments yielded a 10.3% weighted average initial cash yield, reflecting strong cash return expectations [2] Portfolio Management - Disposition activities included sales of net-lease properties and structured investment participation interests, allowing for capital recycling into assets with better return profiles [3] - The company maintained a 99.4% occupancy rate with an 8.4-year weighted average remaining lease term as of December 31, 2025, supporting stable rent streams [3] Tenant Composition - Walmart has become the fourth-largest tenant, joining high-credit tenants like Lowe's and Dick's Sporting Goods, which increases exposure to strong, investment-grade rent sources [4] - Walgreens has slipped to the ninth position by annualized base rent, with five remaining leased properties in the portfolio [4] Strategic Outlook - Alpine's transaction activity in 2025 reflects a strategy focused on capital recycling and yield enhancement, positioning the REIT for resilient cash flow and income stability [5] - The company’s robust occupancy, long lease term profile, and increasing investment-grade tenant exposure indicate thoughtful portfolio management aimed at strengthening returns amid changing market conditions [5] Stock Performance - Shares of Alpine Income Property Trust have increased by 22.8% over the past three months, outperforming the industry, which saw a decline of 1.8% [6] - Analysts have revised consensus estimates for funds from operations (FFO) per share upward for both 2025 and 2026, suggesting year-over-year increases of 4.62% and 7.29%, respectively [6]

Core Insights - Ventas (VTR) shares have increased by 24.5% over the past six months, significantly outperforming the industry, which saw a decline of 0.2% [1][8] Group 1: Company Performance - Ventas has a diverse portfolio of healthcare real estate assets in key markets, including the U.S. and the U.K., which positions the company to benefit from favorable industry fundamentals [2] - The senior housing operating portfolio (SHOP) is expected to see growth due to an aging population and increased healthcare spending by seniors, with the U.S. population aged 80 and above projected to grow by 28% over the next five years [5][6] - In Q3 2025, Ventas reported a 15.9% year-over-year growth in same-store cash NOI within the SHOP portfolio, indicating strong demand and healthy occupancy levels [6][8] Group 2: Financial Position - As of September 30, 2025, Ventas had approximately $4.1 billion in liquidity and improved its net debt to further adjusted EBITDA ratio to 5.3X from 6.3X year-over-year, enhancing its financial strength [10] - The company follows a disciplined capital-recycling strategy, selling non-core assets and reinvesting in premium acquisitions, which supports its financial position [9] - In Q3 2025, Ventas sold properties in its OM&R segment for $9.8 million and five senior housing communities for $68.1 million, while acquiring 20 senior housing communities for $1.1 billion [9] Group 3: Market Trends - The outpatient medical (OM) portfolio is well-positioned to benefit from increasing outpatient visit trends, with the 65+ aged population expected to grow by approximately 30% from 2020 to 2030 [7] - Analysts have a positive outlook on Ventas, with the Zacks Consensus Estimate for its 2025 FFO per share revised to $3.48, reflecting a marginal upward adjustment [3]