Group 1 - The Guangzhou land auction market is becoming more cautious following rumors of tightened regulations, with several prime plots remaining unsold in the first half of the year [1] - In July, Guangzhou is promoting a new batch of land listings, including seven prime plots from Yuexiu, Tianhe, Liwan, and Huangpu districts, aiming to stimulate enthusiasm in the land auction market for the second half of the year [1] Group 2 - A specific plot has an area of 61,879 square meters and a planned construction area of 77,755 square meters, with a listing price of 1.137 billion yuan and a floor price of 14,268 yuan per square meter [2] - The plot is strategically located near key transportation routes and amenities, including proximity to the Guangzhou Railway Station and major highways, enhancing its attractiveness for development [5][17] Group 3 - The surrounding area of the plot boasts a well-developed living environment, with educational resources such as Guangzhou Zhujiang High School and other schools nearby, as well as commercial facilities like shopping centers [9][11] - The healthcare infrastructure includes Guangzhou Rentai Hospital, ensuring that residents have access to medical services [12] Group 4 - The Tianhe district is set to launch several residential plots, with three located in Tianhe and two in Liwan, indicating a focus on residential development in these areas [12][13] - The land supply in the surrounding areas has been limited, leading to a scarcity of new housing options, which may drive demand and prices higher [17][29]

Core Viewpoint - The real estate market in Shenyang's Shenbei New District is showing signs of recovery and growth, driven by various positive factors and a focus on quality housing standards [3][4][11]. Market Performance - Shenbei New District's real estate sales have consistently ranked among the top three in the city, with a slight increase in the average price of new residential properties since 2025, indicating a stabilization of prices [3]. - The supply-demand relationship in the district is becoming balanced, leading to a faster inventory turnover and a healthy interaction between supply and demand [3][4]. - In 2025, 16 real estate companies are planning new developments, with 8 new projects and 8 ongoing projects, injecting vitality into the market [3]. Industrial Integration - The district's industrial strength, particularly in advanced manufacturing, information technology, and biomedicine, is a significant advantage, attracting businesses and creating job opportunities [6]. - A virtuous cycle is being established through the integration of industry, talent, and housing, promoting economic growth and real estate development [6]. Quality Housing Transformation - The real estate market is entering a "product power era," with a growing emphasis on housing quality [8]. - New projects in Shenbei, such as Zhongjin Yihua and Rongxin Forest, reflect a commitment to high-quality housing, aligning with new housing standards [8]. - The government is taking measures to guide real estate companies in enhancing product quality through planning, design, and quality supervision [8]. Improvement Housing Standards - The Daoyi area is highlighted as a representative of the district's improvement housing development, featuring strong transportation links and comprehensive commercial facilities [10]. - Projects like Huizhi Shangdao and Zhongjin Yihua are recognized as benchmarks for high-quality residential offerings in the district [10]. Future Development Strategy - Shenbei New District is focusing on "industry as the foundation, quality as the soul, and ecology as the shape," aiming to create a vibrant urban environment that supports long-term development [11].

Group 1 - The real estate market is experiencing significant price declines, with properties in various regions seeing drastic reductions in value, such as a drop from 220,000 to 110,000 in a school district in Beijing [1] - In Shenzhen, high-demand properties have seen prices fall from 120,000 to 70,000, with a substantial increase in unsold inventory, reaching over 150,000 listings [3] - In smaller cities, properties purchased for 5.8 million are now struggling to sell for 3 million, with a vacancy rate of around 70% due to high inventory levels [5] Group 2 - The decline in property prices is attributed to a lack of purchasing power among younger generations, with a significant decrease in the number of school-age children leading to reduced demand for school district properties [6] - The elderly population, many of whom own multiple properties, is also facing challenges in selling their homes, leading to further price reductions in the market [6] - The government has accumulated 6 million housing units, and major developers are facing financial difficulties, with 127 companies going bankrupt in the first half of the year [8] Group 3 - There is a clear distinction in the market, where properties in first-tier cities like Beijing and Shanghai still have some liquidity despite price drops, while third and fourth-tier cities are experiencing severe stagnation [10] - The market is becoming increasingly polarized, with younger buyers opting to rent rather than purchase, and older homeowners unable to sell their properties, leading to a growing trend of "price without market" [10] - Innovative developments, such as smart communities, are performing better in sales compared to older properties lacking modern amenities, indicating a shift in buyer preferences [8]

Market Overview - The real estate market in Guangzhou is currently experiencing a downturn, with only 3,101 units signed online as of July 20, which is significantly lower than last year's 5,596 units [1][3] - The average price per square meter is 32,569 yuan, which is slightly better than the previous month but still reflects a cooling market [2][3] Market Dynamics - June saw the highest number of transactions for the year at 6,707 units, driven by projects pushing for mid-year performance [3] - July is traditionally a slow month for real estate, compounded by high temperatures and school vacations, leading to decreased buying activity [3] - The market lacks new launches aside from a few projects, contributing to the overall stagnation [3] Government Initiatives - The Guangzhou government is actively stabilizing the market by utilizing a substantial fund to acquire existing residential properties, which is expected to provide a safety net for the market [8] - The government is also focusing on releasing quality land in core urban areas, which has shown positive results in attracting buyers and generating revenue for developers [8][9] - New regulations on housing design are being implemented to improve living conditions and address issues related to property safety and privacy [9] Economic Indicators - Guangzhou is witnessing a surge in urban vitality, with significant corporate investments and the establishment of major company headquarters, which is expected to enhance the city's attractiveness [11][12] - The city has seen a consistent increase in subway ridership, indicating a growing population and economic activity [12] Future Outlook - The ongoing urban renewal projects are expected to sustain purchasing power in the market, although the long-term sustainability of this demand remains uncertain [5] - The combination of government support, urban development, and new purchasing power from residents is seen as a positive sign for the market's recovery [15]

Financial Performance - AMREP Corporation reported a net income of $12,716,000, or $2.37 per diluted share, for the fiscal year ended April 30, 2025, compared to a net income of $6,690,000, or $1.25 per diluted share, for the same period in the prior year [1] - Revenues for fiscal 2025 were $49,694,000, down from $51,369,000 in fiscal 2024 [1][5] - Basic income per share increased to $2.39 in 2025 from $1.26 in 2024, while diluted income per share rose to $2.37 from $1.25 [5] Company Overview - AMREP Corporation is a major holder of land, a leading developer of real estate, and an award-winning homebuilder located in New Mexico [3]

Financial Data and Key Metrics Changes - Total revenues increased by 6.8% year over year, reaching $67 million, primarily driven by rental income from new leases and inflationary adjustments [17] - Adjusted net operating income rose by 7.2% to €61.8 million, with an adjusted NOI margin of 94.5% [18] - Adjusted EBITDA increased by 9% year over year to €55 million, with a margin expansion of 137 basis points to 84.1% [18] - Pre-tax income decreased to $54.5 million compared to $131.8 million in 2024, mainly due to lower gains on valuation of investment properties [19] - Funds from operations (FFO), excluding current tax, increased by 12.9% year over year to $43.1 million [19] - Cash and cash equivalents stood at $65.2 million, with total debt increasing to $900 million [20] Business Line Data and Key Metrics Changes - New leasing activity totaled 1.8 million square feet, including 411,000 square feet in new contracts, reflecting a sequential increase from the first quarter [9] - Strong retention rates of 84% were reported, with rent increases of 20% to 30% in some cases [10] - The tracking 12-month spread reached 13.7%, indicating a significant increase in the mark-to-market portfolio strategy [10] Market Data and Key Metrics Changes - The portfolio ended the quarter with a stabilized occupancy of 95.5%, with rents indexed to inflation [8] - The company noted an uptick in vacancy in markets such as Tijuana and Juarez, but rents have maintained or increased in some cases [23] - The company has approximately 2 million square feet in lease-up stage across different regions [25] Company Strategy and Development Direction - The company is focused on extracting value from core operations and managing assets with discipline, emphasizing tenant retention and strategic positioning [12] - The strategy includes completing existing projects and strategically expanding the land bank in line with Route 2030 [11] - The company aims to reinforce its foundation to scale confidently when the environment normalizes, with a focus on energy infrastructure planning and streamlining permitting [12] Management's Comments on Operating Environment and Future Outlook - Management views the current slowdown in leasing as a temporary deceleration rather than a structural change, with companies exercising caution rather than canceling plans [14] - The company expects recent deliveries of income-producing properties to contribute to revenues in the second half of 2025 [15] - Management remains optimistic about the long-term growth potential in Mexico, particularly in light of industrial realignment [16] Other Important Information - The company acquired 128.4 acres in Guadalajara and finalized a 20.2-acre acquisition in Monterrey, enhancing its strategic footprint [20] - The company paid a cash dividend of $0.38 per ordinary share for the second quarter [21] Q&A Session Summary Question: Development pipeline progress ahead of USMCA review - Management noted an uptick in vacancy in some markets but expressed confidence in rent stability and pent-up demand as negotiations progress [23][24] Question: Leasing activity in Monterrey - Management highlighted strong net absorption in Monterrey and expressed confidence in leasing up new properties due to their prime locations [30][31] Question: Yield on cost for projects under construction - Management confirmed attractive yield on costs above 10% and noted stable construction costs with minor adjustments [39] Question: Land acquisitions and leverage by year-end - Management indicated a healthy leverage position and confidence in sustaining land acquisition strategies without compromising financial ratios [48] Question: Increase in leasing activity pipelines - Management observed increased visits to industrial parks and anticipated more leasing activity in the second half of the year [52] Question: Leasing spreads and development starts - Management expects continued strong leasing spreads and will be cautious with new development starts until existing properties are leased up [58][63] Question: Land bank and shovel-ready status - Management confirmed that recent land acquisitions are mostly shovel-ready, with some permits already in place [68][72] Question: Dynamics in absorption, vacancy, and rents - Management reported stable to positive rent growth in Tijuana and Ciudad Juarez, with expectations for increased leasing activity in the second half [80][81] Question: Renewals and market gaps - Management indicated approximately 3% of GLA expiring this year, with expectations for high renewal rates and rent increases [85][86] Question: Regional footprint and market priorities - Management emphasized the priority of leasing up vacant space in key markets like Monterrey and Ciudad Juarez before new developments [93]

Financial Data and Key Metrics Changes - Total revenues increased by 6.8% year over year, reaching $67 million, primarily driven by rental income from new leases and inflationary adjustments [14] - Adjusted net operating income rose by 7.2% to €61.8 million, with an adjusted NOI margin of 94.5% [15] - Adjusted EBITDA increased by 9% year over year to €55 million, with a margin expansion of 137 basis points to 84.1% [15] - Pre-tax income decreased to $54.5 million compared to $131.8 million in 2024, mainly due to lower gains on investment property valuations [16] - Funds from operations (FFO), excluding current tax, increased to $43.1 million from $38.2 million in Q2 2024, a 12.9% year-over-year increase [17] - Cash and cash equivalents stood at $65.2 million, while total debt increased to $900 million [17][18] Business Line Data and Key Metrics Changes - New leasing activity totaled 1.8 million square feet, including 411,000 square feet in new contracts, reflecting a sequential increase from Q1 [6][7] - Retention rates remained strong at 84%, with successful rent increases of 20% to 30% in some cases [7] - The tracking 12-month spread reached 13.7%, indicating a significant increase in the mark-to-market portfolio strategy [7] Market Data and Key Metrics Changes - The portfolio ended the quarter with a stabilized occupancy rate of 95.5%, with rents indexed to inflation [10] - The company noted a cautious leasing environment, particularly in export-linked markets, but highlighted resilience in renewals and releasing activity [5][6] - The company acquired 128.4 acres in Guadalajara and 20.2 acres in Monterrey, enhancing its strategic footprint [9][18] Company Strategy and Development Direction - The company is focused on long-term growth, emphasizing tenant retention, strategic positioning, and the intrinsic value of its existing portfolio [10] - The strategy includes completing existing projects and strategically expanding the land bank in line with Route 2030 [9] - The company aims to reinforce its foundation to scale confidently when the environment normalizes, including accelerating energy infrastructure planning [10][12] Management's Comments on Operating Environment and Future Outlook - Management views the current slowdown in leasing as a temporary deceleration rather than a structural change, with companies exercising caution rather than canceling plans [12] - The company expects recent deliveries of income-producing properties to contribute to revenues in the second half of 2025 [13] - Management remains optimistic about the long-term outlook, citing trade policy stabilization and manufacturing resilience as positive indicators for future growth [14] Other Important Information - The company paid a cash dividend of $0.38 per ordinary share for Q2 2025 [19] - The company maintains a healthy leverage position with a net debt to EBITDA ratio of four times and a loan to value ratio of 22.4% [18] Q&A Session Summary Question: Development pipeline progress ahead of USMCA review - Management noted an uptick in vacancy in some markets but expressed confidence in stable or increasing rents, indicating pent-up demand [20][22] Question: Leasing in Monterrey with weak net absorption - Management highlighted strong net absorption in Monterrey and expressed confidence in leasing up new properties due to their prime locations [28] Question: Yield on cost for projects under construction - Management confirmed attractive yield on costs above 10% and noted stable construction costs with minor adjustments [36][38] Question: Land acquisitions and leverage by year-end - Management reassured that leverage remains healthy and that land acquisitions align with their long-term strategy [42][46] Question: Increase in leasing activity pipelines - Management observed increased visits to industrial parks and anticipated more leasing activity in the second half of the year [50] Question: Leasing spreads expectations - Management expects continued strong leasing spreads and proactive management of tenant relationships [58] Question: Priorities for regional footprint and new starts - Management emphasized leasing up existing properties as a priority before considering new developments [90] Question: Impact of exchange rates on net income - Management clarified that most properties are dollar-denominated, and the impact on net income is primarily from financial adjustments rather than exchange rates [96][99] Question: Expected leasing activity from upcoming projects - Management expects high-quality assets to attract leasing activity within three to twelve months after delivery [104] Question: Exposure to manufacturing and logistics - Management indicated a balanced strategy between manufacturing and logistics, with a focus on long-term leases with high credit-rated companies [112] Question: Vertical integration and tenant demands - Management confirmed existing vertical integration and expressed interest in renewable energy solutions for tenants [120][122]

Core Points - Shanghai's new land king was established on July 25, with Shanghai Qixiang Wangyu Real Estate Co., Ltd. winning the bidding for the XH-02(TPL) unit 051-11 plot in Xuhui District for a total price of 1.225 billion yuan, translating to a floor price of 200,300 yuan per square meter, breaking the previous record of 131,000 yuan per square meter set by Greentown in August last year [1][9][12] Group 1: Land Acquisition Details - The XH-02(TPL) unit 051-11 plot was auctioned with a starting price of 1.001 billion yuan and a minimum bidding increment of 2 million yuan, with the final bid reaching 1.225 billion yuan after 28 rounds of bidding [2][4] - The plot was previously designated for mixed-use commercial and office purposes but was changed to residential use, with a total area of 4,707 square meters and a maximum building height of 15 meters [6][14] Group 2: Market Context - The Xuhui District is known for its historical and cultural significance, with the area surrounding the plot featuring numerous historical buildings and a high density of historical architecture [8][4] - The recent auction reflects a trend in Shanghai's real estate market, where the city has dominated the top ten highest land prices in the country, with eight out of ten plots located in Shanghai [11][12] Group 3: Future Implications - Analysts suggest that the high floor price indicates a potential future selling price for new homes in the area, estimating that prices could reach at least 280,000 yuan per square meter, with some predictions suggesting a conservative estimate of 250,000 yuan per square meter [15]

Core Viewpoint - The planning for the 8th plot in the Jinghu Huangjiu Town has been officially announced, with the land acquired for a total price of 959 million yuan, resulting in a floor price of approximately 11,465 yuan per square meter [1]. Group 1: Project Details - The project is located south of Xilin Middle School and is being developed by Shaoxing Huangjiu Town Construction Investment Co., Ltd. [1] - The project will feature a low plot ratio of 1.05, with plans for 32 three-story row houses, 13 five to six-story stacked villas, and 6 eight to nine-story apartment buildings [5]. - The design of the apartments includes large south-facing windows for better lighting, and the roofs will have sloped eaves to protect the walls from rain and enhance harmony with the surrounding environment [8]. Group 2: Product Features - The stacked villas will include a rooftop starry terrace, providing significant private space for residents to engage in activities such as gardening or hosting gatherings [11]. - The row houses will adopt a traditional Chinese style with large terraces, and the sloped roof design will offer semi-outdoor spaces for rainy days, ensuring privacy and ventilation [13]. Group 3: Location Advantages - A significant advantage of the project is its proximity to a subway station, with the planned East Pu Station of Line 4 located to the north of the project, featuring four entrances [15]. - The planned extension of the station front avenue to Yangjiang West Road will further enhance future transportation convenience [17].

Summary of Key Points from the Conference Call Industry Overview - **Real Estate**: The 30-city property sales in China declined by -26% YoY in the first 19 days of July, a significant drop from -8% YoY in June, with tier 1 and tier 2 cities experiencing declines of -30% and -27% respectively, while tier 3 cities remained weak at -17% YoY [2][21] - **Steel Production**: Steel production showed a slight improvement, declining by -4% YoY in the first 10 days of July compared to -5% YoY in June [2][20] - **Port Activities**: Port cargo throughput growth increased to 12% YoY in early July, although container throughput growth decreased to 3% YoY [2][12] - **Auto Sales**: Auto retail sales growth softened to 7% YoY in the first 13 days of July from 15% YoY in June, while wholesale growth increased to 34% YoY from 14% YoY [2][17] Economic Indicators - **GDP Growth**: Q2 real GDP growth remained robust at 5.2% YoY, slightly down from 5.4% YoY in Q1, supported by improving retail sales and solid export growth [3] - **Deflation Pressure**: The GDP deflator showed a larger decline of -1.2% YoY in Q2 compared to -0.8% YoY in Q1, indicating ongoing deflationary pressures [3] - **Investment and Consumption**: FAI growth decelerated to 2.1% YoY, with industrial production growth slightly slowing to 6.2% YoY [3][29] Forecasts and Expectations - **2025 GDP Forecast**: The GDP forecast for 2025 has been upgraded to 4.7% from a previous projection of 4%, with expectations of economic deceleration in H2, particularly in Q4 [4] - **CPI and Currency Outlook**: Full-year CPI is expected to decline to -0.2%, with the CNY potentially strengthening in the near term but facing risks from trade uncertainties [4] Policy and Government Actions - **Urban Development**: The central urban work conference emphasized urban renewal and infrastructure investment, with a focus on upgrading old urban pipelines and tunnels [5][7] - **Sector Support Plans**: The Ministry of Industry and Information Technology plans to unveil new action plans in 2025 to stabilize growth in ten key sectors, including steel, petrochemical, and automotive industries [7] Trade and International Relations - **Trade Deals**: A new trade deal with Indonesia was announced, with a tariff rate of 19% and commitments for significant purchases of US goods [8] - **Technology Exports**: The US government is expected to grant licenses for Nvidia to export H20 GPUs to China, indicating a potential easing of restrictions [8] Additional Insights - **Market Sentiment**: The upcoming July Politburo meeting is anticipated to maintain a supportive macro policy tone, but major additional stimulus measures are unlikely due to robust Q2 GDP growth [9] - **Investment Risks**: Key risks to the economic outlook include the progress of US-China trade talks and the ongoing property market downturn [4][9]