Investment Rating - The report indicates a stable outlook for the Perth CBD office market, with expectations of a decline in vacancy rates starting from 2026 [2][25]. Core Insights - The vacancy rate in Perth CBD has risen to 17.0% in the first half of 2025, marking the highest level since H2 2020, primarily due to the completion of new supply [7][23]. - Despite a slight decline in net absorption in Q1 2025, high-end properties continue to see strong demand, with a net absorption of 23,084 square meters [8][13]. - Average prime rents in Perth have increased to $729 per square meter, reflecting a 1.7% quarter-on-quarter growth and a 4.2% year-on-year increase [9][36]. Market Indicators - Total inventory in Perth CBD stands at 1,833,164 square meters, with a vacancy rate of 17.0% [10]. - The net absorption over the past 12 months is positive at 20,587 square meters, although recent data shows a negative trend [10][12]. - Incentives for prime properties remain around 46.8%, with effective rents slightly declining due to increased incentives [9][37]. Economic Outlook - The economic outlook for Western Australia is cautious, with a projected GSP growth of only 0.9% in 2025, following a contraction of -0.3% in 2024 [11][12]. - A more optimistic forecast suggests that GSP growth could exceed 3.0% annually from 2026 to 2029, which may support improved net absorption in the Perth CBD [12]. Supply and Demand Dynamics - The report highlights a lack of new supply in the market, with no significant projects expected to commence until at least 2030 [24]. - The demand for quality buildings remains strong, with a preference for prime locations, as evidenced by the positive net absorption figures for high-grade properties [13][36]. Investment Activity - The investment market in Perth CBD has been relatively quiet, with limited major transactions in the first half of 2025. The most notable transaction was the acquisition of 66 George Street for $75 million [55][60]. - The report notes a stable yield for prime properties at 7.58%, while secondary yields have slightly increased to 8.64% [58][59].

Investment Rating - The report maintains a "Recommended" investment rating for Swire Properties (01972.HK) [1][6]. Core Views - The report highlights the significant advantages of Swire Properties in prime shopping districts, with retail sales in major shopping centers showing continuous improvement. For instance, retail sales in Shanghai's Xinyi Taikoo Hui, Beijing's Sanlitun Taikoo Li, and Shanghai's Qiantan Taikoo Li increased by 13.5%, 6.8%, and 4% year-on-year, respectively, in the first half of 2025 [1][6]. - The report anticipates that the company's rental income will continue to grow due to its strong operational and leasing capabilities, with projected net profit growth of 449%, 54%, and 37% for 2025, 2026, and 2027, respectively [1][6]. Financial Summary - Total revenue is projected to increase from HKD 14,428 million in 2024 to HKD 18,638 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 24.3% [1][7]. - The net profit attributable to shareholders is expected to recover from a loss of HKD 766 million in 2024 to HKD 5,671 million by 2027, indicating a significant turnaround [1][7]. - Earnings per share (EPS) is forecasted to rise from -0.13 HKD in 2024 to 0.99 HKD in 2027, demonstrating a strong recovery trajectory [1][7]. Market Performance - The report notes that Swire Properties' shopping centers in Hong Kong have maintained full occupancy, with retail sales growth improving sequentially. For example, retail sales growth for Taikoo Place and Taikoo City Centre was 1.4% and 2%, respectively, in the first half of 2025 [1][6]. - The overall office market in Hong Kong remains relatively weak due to ongoing downward pressure on rents from new supply, but the company has managed to maintain stable rental rates for its office spaces [1][6]. Valuation - The report estimates a target price of HKD 23.92 per share, with a current price of HKD 20.50, suggesting a potential upside [2][6]. - The dividend discount model (DDM) indicates a current per-share net present value of HKD 23.92, corresponding to a dividend yield of 5.6% for 2025 [1][6].

Financial Data and Key Metrics Changes - The company reported same store revenue growth of 3.9% and NOI growth of 5.5% year over year, driven by stronger rent growth in the Washington Metro portfolio and favorable real estate tax appeals in Atlanta [15] - The annualized net debt to adjusted EBITDA was 5.6 times during the first quarter, with over 60% of total capacity available on the line of credit and no secured debt [16] Business Line Data and Key Metrics Changes - Same store multifamily occupancy averaged 94.8% during the first quarter, up 50 basis points year over year [11] - The company achieved 1.9% same store blended lease rate growth during the quarter, with an initial estimated blended rate growth for April at 2.6% [11] Market Data and Key Metrics Changes - In the Washington Metro area, annual supply peaked at 2.2% annual net inventory growth, below the national average of 2.9%, with new construction starts down over 70% from their peak [8] - Northern Virginia's private sector job growth was two and a half times that of the broader Washington Metro Region over the past four years [6] Company Strategy and Development Direction - The company is undergoing a formal evaluation of strategic alternatives to maximize shareholder value, initiated from a position of strength [9] - The managed WiFi program is expected to generate additional NOI of $600,000 to $800,000 in 2025, with potential for $1,500,000 to $2,000,000 annually once fully integrated [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals of the portfolio and business, despite a volatile macro environment [16] - The company anticipates improvement in bad debt to contribute more significantly to revenue growth in 2025 than initially expected [15] Other Important Information - The company completed 88 renovations during the quarter with an ROI of approximately 18% and plans to complete over 500 full renovations in 2025 [13] - Eviction delays in Atlanta are decreasing, supported by improved processing efficiency and legislative changes [12] Q&A Session Summary Question: Insights on the multifamily transaction market in DC - Management noted that the living sector is performing well with continued capital flows and active lenders, observing cap rates ranging from 4.25% to 5.25% depending on buyer profiles [20][22] Question: Addition of Ron to the Board and its timing - The strategic review was initiated last year, and Ron was seen as an appropriate candidate for the Board due to his skills and operating history [24][25] Question: Acceleration of the WiFi initiative income - The rollout of the Managed WiFi initiative has progressed faster than anticipated, allowing for quicker income generation [30] - There will be associated expenses, but they are expected to be less significant compared to the income generated [31] Question: Shift in revenue composition and guidance - Management confirmed that while the first quarter exceeded expectations, guidance remains unchanged as the busy leasing season approaches [34]

Core Insights - The Australian housing market is expected to continue rising due to anticipated interest rate cuts by the central bank and tight housing supply [1][5] - In April, the national home value index increased by 0.3%, marking the third consecutive month of growth, with the median house value rising approximately AUD 2,720 [3][4] Housing Price Trends - The current national median house price stands at AUD 825,349, with Sydney having the highest median at AUD 1,194,709 and Darwin the lowest at AUD 526,410 [3][4] - All capital cities experienced price increases in April, with Darwin showing the largest growth at 1.1% [3][4] - Over the past year, all states except Melbourne and Canberra saw price increases, with Melbourne experiencing a decline of 2.2% and Canberra a slight drop of 0.6% [4] Regional Performance - Perth recorded the highest annual price increase at 10%, while Brisbane and Adelaide also showed significant growth at 7.8% and 9.8% respectively [5] - Detached houses continue to outperform apartments in value growth, with a 1.1% increase in the last three months compared to 0.5% for apartments [5] Rental Market Insights - The national rental index rose by 0.6% in the quarter, with a seasonally adjusted increase of 0.4% in April, indicating a slowdown compared to previous years [6][7] - Despite high rental prices, the growth rate has significantly decreased from the 8% to 10% increases seen in 2021, 2022, and 2023 [6][7]