Investment Rating - The report provides an investment rating of 17.16% for the industry in 2024, indicating a positive outlook for growth [2][7]. Core Insights - The industry is projected to reach a market size of ¥13,679.92 billion by 2025, with a significant growth rate of 17.16% [7]. - The GDP growth rate is expected to be 5.1% in 2024, with a slight increase in CPI by 0.1% [2]. - The report highlights a strong performance in the TMT (Technology, Media, and Telecommunications) sector, which is expected to contribute significantly to the overall growth [3][7]. Summary by Relevant Sections - **Market Size and Growth**: The industry is anticipated to grow to ¥13,679.92 billion by 2025, with a compound annual growth rate (CAGR) of 17.16% from 2024 [7]. - **Sector Performance**: The TMT sector shows a robust growth trajectory, with specific segments projected to grow at rates exceeding 20% [3][7]. - **Economic Indicators**: The report notes a GDP growth of 5.1% and a CPI increase of 0.1% for 2024, suggesting a stable economic environment for the industry [2].

Core Viewpoint - The office leasing market remains highly competitive, with SOHO China experiencing a decline in revenue and net profit due to rising vacancy rates and falling rental prices in major cities [2][3]. Financial Performance - SOHO China reported a revenue of approximately 1.54 billion yuan, a year-on-year decrease of about 8% [2]. - The net profit attributable to shareholders was approximately 278 million yuan, while the company faced a net loss of about 113 million yuan [2]. - The gross profit margin for the property leasing business was 83%, with an annual gross profit of approximately 1.28 billion yuan [3]. Market Conditions - The leasing market is characterized by a strategy of "price for volume," leading to continuous rental declines [2]. - Vacancy rates for Grade A office spaces in Beijing and Shanghai have reached recent highs, intensifying market competition [2]. Rental Strategy - SOHO China adjusted its leasing policies starting from the third quarter, aiming to stabilize the occupancy rate at 78% by the end of 2024 [2]. - The average occupancy rate was approximately 76% in mid-2024, with specific projects showing lower rates, such as 54% and 57% for certain Beijing properties [2]. Tax and Debt Issues - SOHO China is facing significant tax liabilities, including an unpaid land value-added tax of 2.305 billion yuan and related penalties [3][4]. - The company has a total bank loan of approximately 15.556 billion yuan, with 4.144 billion yuan in cross-defaults due to tax issues [4]. - The company has entered into supplementary agreements with lenders to modify repayment plans, reducing the principal repayment requirement to 1.25 billion yuan by the end of 2025 [4]. Liquidity and Future Outlook - SOHO China is actively communicating with tax authorities to resolve tax issues and is selling commercial properties to pay part of the land value-added tax [5]. - The company forecasts sufficient operating funds for the next year, assuming successful refinancing of bank loans [5].

Core Insights - Newmark Group, Inc. has appointed Justin Shepherd as Co-Head and Vice Chairman of its U.S. Healthcare Capital Markets practice, enhancing its leadership team in the healthcare sector [1][2][4] - The U.S. Healthcare Capital Markets practice has successfully advised on nearly $40 billion in healthcare real estate transactions since its inception in 2021, indicating strong market performance and expertise [2][3] - Justin Shepherd brings 15 years of experience and has facilitated over $20 billion in healthcare real estate transactions, which will further strengthen Newmark's capabilities in this sector [3][4] Company Overview - Newmark Group, Inc. is a leading commercial real estate advisor and service provider, generating revenues of over $2.7 billion for the twelve months ended December 31, 2024 [5] - The company operates approximately 170 offices with more than 8,000 professionals across four continents, showcasing its extensive global reach and market intelligence [5]

Financial Data and Key Metrics Changes - GAAP net income allocable to common shares for Q4 2024 was $4.1 million or $0.52 per share diluted [19] - Earnings available for distribution (EAD) for Q4 2024 was $0.48 per share, compared to $0.24 per share for Q3 2024 [22] - Operating GAAP book value per share increased to $28.87 on December 31, 2024, from $27.92 on September 30, 2024 [22] Business Line Data and Key Metrics Changes - Loan payoffs during the period were $107.5 million, with a net reduction of the loan portfolio of $81.8 million [11] - The weighted average spread of floating rate loans in the $1.5 billion commercial real estate loan portfolio is 3.73% over one-month term SOFR rates [12] - The total balance for credit losses at December 31 was $32.8 million, representing 2.2% of the $1.5 billion loan portfolio [22] Market Data and Key Metrics Changes - The company ended the quarter with $1.5 billion of commercial real estate loans across fifty-three individual investments [12] - The weighted average risk rating increased to 2.9% at December 31, 2024, from 2.7% at September 30, 2024 [13] Company Strategy and Development Direction - The company is focused on developing a pipeline of high-quality investments and actively managing the portfolio to grow earnings and book value [11] - The strategy includes monetizing equity investments and redeploying capital into the loan book through active origination [28] - The company aims to drive mid-teens return on equity (ROE) and maintain a leverage profile of three and a half to four turns [29] Management's Comments on Operating Environment and Future Outlook - Management expects to see an increase in loan payoffs as properties stabilize and refinancing options become available [40] - The company anticipates that the portfolio will grow to between $1.8 billion and $2 billion by the end of the year [41] - Future gains from real estate operations are expected to be recycled back into the loan book [53] Other Important Information - The company purchased $2.3 million from its previous repurchase plan and approved an additional $5 million for buybacks [23] - Available liquidity at December 31 was $76.9 million, comprising $56.7 million of unrestricted cash [25] Q&A Session Summary Question: Expectations for additional payoffs from two-rated loans - Management expects more payoffs on higher-rated loans, with several already occurring in Q1 [40] Question: Opportunities in the market - The company is seeing increased activity in multifamily refinancings and other asset classes like hospitality and self-storage [44] Question: Gains from remaining real estate operations - Management is cautious about predicting specific gains but believes future sales will lead to capital being recycled back into the loan book [53] Question: Increase in real estate expenses - The increase is attributed to one-time cleanup items and is not expected to recur in 2025 [59]

FOURTH QUARTER 2024 EARNINGS PRESENTATION March 5, 2025 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are not historical facts but rather are based on ACRES Commercial Realty Corp.'s ("ACR's" or the "Company's") current beliefs, assumptions and expectations. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to ACR o ...

Start Time: 10:00 January 1, 0000 10:18 AM ET ACRES Commercial Realty Corp. (NYSE:ACR) Q4 2024 Earnings Conference Call March 06, 2025, 10:00 AM ET Company Participants Mark Fogel - President and CEO Eldron Blackwell - CFO Andrew Fentress - Chairman Kyle Brengel - VP, Operations Conference Call Participants Matthew Erdner - Jones Trading Chris Muller - Citizens Bank Operator Please standby. Your program is about to begin. Good day, ladies and gentlemen. And welcome to the Fourth Quarter 2024 ACRES Commercia ...