August 15, 2025 11:21 AM GMT China Property | Asia Pacific Sales Decline Widened in July; Weak Trends to Continue Property sales recorded a deeper y-y decline in July amid weakened construction. We stay cautious on the physical market and expect the weak sales trend to continue in the coming months, given worsened resident sentiment, higher secondary inventory, and muted policy. July property sales recorded a deeper decline: Rebased national sales were -14.1% y-y in value and -7.8% y-y in volume, widening t ...

ab 14 August 2025 Global Research Private REITs provide a new channel to recycle capital, although this depends on the assets available to be spun off (remaining years of land use rights and developers' willingness). Potential beneficiaries are CR Land (our Top Pick, transitioning to an asset manager), Seazen (upgrade to Buy), Hang Lung Properties (unlocking value), Swire Properties (a track record of capital recycling), CapitaLand Investment (transitioning to an asset-light model) and GDS (capital recyclin ...

Summary of China Resources Land Conference Call Company Overview - **Company**: China Resources Land (CR Land) - **Industry**: Real Estate Development in China Key Points and Arguments Business Model Transformation - CR Land is undergoing a five-stage business model transformation due to a shrinking new home market and the development of public and private REITs [2][3] - **Stage 1**: Increasing earnings from recurring income business, expected to rise from 41% in 2024 to over 50% by 2029 [12] - **Stage 2**: More assets to be spun off to REITs, with 80% of malls in tier 1-2 cities available for spin-off, estimated at Rmb256 billion NAV [15] - **Stage 3**: Reduced capital redeployment into development property (DP) business due to declining new home sales [20] - **Stage 4**: Potential change in dividend policy from a percentage of earnings to absolute DPS, enhancing dividend visibility [24][25] - **Stage 5**: Evolving into asset management and investment management, similar to Link REIT and Goodman fund models [29][31] Valuation and Market Position - CR Land is trading at a 50% discount to NAV and 8.1x 2026E PE, indicating it is underappreciated by the market [1][8] - Price target raised by 14% from HK$37.00 to HK$42.00, based on a 36% discount to SOTP-based 2026E NAV [4][40] - Compared to peers, CR Land's 2026E dividend yield is 4.6%, higher than the sector average of 3.0% [4][42] Financial Projections - **Revenue Growth**: Expected revenues to increase from Rmb207,061 million in 2022 to Rmb251,137 million in 2023 [5] - **Net Earnings**: Projected net earnings to remain stable around Rmb27,000 million in 2022 and Rmb27,770 million in 2023 [5] - **DPS**: Expected to be Rmb1.40 in 2022, increasing to Rmb1.44 in 2023 [5] Investment Opportunities - The transformation creates uncertainty, which may present investment opportunities if CR Land follows a positive development path [3] - The potential cancellation of the presale system could further reduce capital needs in the DP business, allowing for more capital allocation towards dividends [20] Risks and Considerations - The ongoing downcycle in the residential property market may continue to affect investor sentiment towards CR Land [8] - The company’s reliance on the DP business, which only accounts for 21% of NAV, raises concerns about capital deployment in this segment [8] Additional Insights - CR Land's dividend policy currently stands at 37% of core earnings, with a significant portion generated from the DP business [8][26] - The company has plans to spin off additional assets to public REITs, enhancing capital recycling and supporting core earnings growth [15][11] Conclusion - CR Land is positioned for a significant transformation that could unlock value through strategic asset management and a shift in dividend policy. The current market undervaluation presents potential investment opportunities, contingent on successful execution of its business model transformation.

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **Chinese property sector** and its broader economic implications, particularly in the context of **anti-involution policies** and **fiscal stimulus** [1][2][3]. Core Insights and Arguments 1. **Economic Slowdown**: July data indicates a broad-based slowdown in economic activity, with retail sales and fixed asset investment (FAI) missing expectations significantly. This is attributed to weaker domestic demand and the fading impact of fiscal stimulus [2][3]. 2. **Retail Sales Decline**: Retail sales growth slowed to **3.7% year-on-year** in July from **4.8% in June**, driven by factors such as a deteriorating housing market and the effects of the anti-involution campaign [4][23]. 3. **FAI Contraction**: FAI contracted by **5.1% year-on-year** in July, marking the lowest level since March 2020. Property investment saw a significant decline of **17% year-on-year**, the steepest drop in over two years [11][28]. 4. **Corporate Loan Demand**: There was a notable decline in corporate loan demand, reaching a post-global financial crisis low, indicating increased caution among corporates regarding borrowing and capital expenditure [11][19]. 5. **Industrial Production (IP) Weakness**: IP growth moderated to **5.7% year-on-year** in July from **6.8% in June**, with contractions in traditional sectors like coal and steel, highlighting the adverse effects of anti-involution policies [20][29]. 6. **Property Market Challenges**: The property market continues to face significant challenges, with property sales declining by **7.8% year-on-year** in July, and new home prices falling **0.3% month-on-month** [28][29]. Additional Important Insights 1. **Trade-in Subsidy Impact**: The slowdown in retail sales was exacerbated by the exhaustion of trade-in subsidy funds for consumer goods, particularly in the auto and appliance sectors [4][24]. 2. **Sector-Specific Investment Trends**: Investment in manufacturing has shifted towards new growth drivers, with notable increases in sectors like aerospace and information services, despite an overall decline in manufacturing investment [26]. 3. **Government Policy Support**: Despite the current economic challenges, government policy support is expected to stabilize growth around **4.5%** for the year, with a potential recovery in retail sales anticipated in August as new subsidy funds are deployed [3][4]. This summary encapsulates the critical developments and insights from the conference call, focusing on the challenges and dynamics within the Chinese economy and property sector.

Summary of the Conference Call on China's Property Market Industry Overview - The conference call discusses the property market in China, specifically focusing on the data from the National Bureau of Statistics (NBS) regarding house prices in 70 cities. Key Points 1. **Property Price Trends** - The weighted average property price in the primary market fell by **2.0% month-over-month (mom) annualized** in July, following a decline of **2.5% in June**. Year-on-year (yoy), the price decreased by **2.7%** in July compared to **3.1%** in June [2][8][11]. 2. **Divergence Between City Tiers** - Tier-1 cities experienced a **0.2% increase** in primary home prices in July, contrasting with Tier-2 and Tier-3 cities, which saw declines of **2.4%** and **2.3%** respectively [8][11]. 3. **Secondary Market Performance** - Secondary market data indicates price declines ranging from **5% to 20%** over the past year, highlighting a significant drop in market activity [1][8]. 4. **Market Dynamics** - The number of cities with sequentially higher property prices decreased in both primary and secondary markets in July, indicating a broader market slowdown [8][14]. 5. **Transaction Volume Decline** - A high-frequency tracker noted that the **30-city new home transaction volume declined by 20% yoy** in August month-to-date, with inventory months in major cities increasing to **26.3** in August from **25.9** in July, primarily driven by Tier-3 cities [11]. 6. **Policy Measures** - Policymakers have implemented measures to stabilize the property market, including relaxing home purchase restrictions in the outskirts of Beijing and potential state-owned enterprise (SOE) purchases of unsold homes totaling **RMB 300 billion**. However, a repeat of the previous shantytown redevelopment program is deemed unlikely [11][12]. 7. **Market Challenges** - The property markets in lower-tier cities continue to face significant challenges due to weaker growth fundamentals and severe oversupply issues compared to top-tier cities [8][11]. Additional Insights - The analysis emphasizes that the data presented is specific to primary market transactions (new home sales) and does not encompass the broader secondary market dynamics [1][8]. - The report indicates that despite easing policies, the overall sentiment in the property market remains cautious, particularly in lower-tier cities where the economic fundamentals are weaker [8][11]. This summary encapsulates the critical insights from the conference call regarding the current state and challenges of the property market in China, highlighting the ongoing divergence between different city tiers and the impact of recent policy measures.

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Dubai is seeing a wave of outlandish new developments as its real estate market booms. The question is, is it a bubble ready to burst. Ewa, a 21-story residential tower designed to look like the Halleluja Mountains from the Avatar movies, is currently under construction.Developments like this have some observers wondering if they're well timed entries into a roaring market or warning signs of a coming slowdown. Foreign professionals continue to flood into Dubai, pushing prices ever higher. House prices have ...

Core Insights - Hypercharge Networks Corp. will supply 49 Level 2 EV charging stations to hue by Marcon in Port Moody, BC, with 9 stations delivered in July 2025 and 40 stations scheduled for Q4 2025 [1][4] - The partnership emphasizes sustainability and long-term value in community development, aligning with the growing demand for EV infrastructure [4][3] Company Developments - Changes to the Board of Directors include the appointment of Mr. Malcolm Davidson, CPA, CA, effective August 15, 2025, replacing Mr. Trent Kitsch [4][5] - Mr. Davidson brings over 20 years of experience in financial reporting and corporate finance, having served as CFO for various public and private companies [5][6] - The company expresses gratitude to Mr. Kitsch for his contributions since December 2022, highlighting his role in brand building and governance [7][8]

Group 1 - Several Hong Kong real estate stocks showed significant movements, with Country Garden rising over 3%, Sunac China increasing by more than 4% at one point, and Longfor Group rebounding over 10% since August 4 [1] - In major cities like Wuhan, Hefei, Nanjing, and Beijing, the practice of hiding historical transaction prices for second-hand homes has been adopted, which is seen as having both advantages and disadvantages for market dynamics [1] Group 2 - Beijing's new real estate policy includes relaxing purchase restrictions outside the Fifth Ring Road and increasing support for public housing funds, which is viewed positively by analysts [2] - Analysts from Dongfang Securities believe that the relaxation of restrictions in Beijing is a positive signal, indicating a new bottoming phase for the real estate sector, with expectations for stock price recovery [2] - Guoxin Securities noted that while the industry is currently in a bottoming phase, the competitive landscape has stabilized, with four major state-owned enterprises dominating the top tier [2] Group 3 - Huatai Securities identified quality A-share real estate developers, including Chengdu Investment Holdings, Chengjian Development, and China Merchants Shekou [3]

Core Insights - Melcor Developments Ltd. reported a consolidated revenue of $150.88 million for the year-to-date, marking a 26.3% increase compared to 2024 [2][14] - The company experienced a gross margin improvement to 54.6% year-to-date, up from 49.1% in the previous year [2][14] - Funds from operations (FFO) increased by 36.7% to $85.96 million year-to-date, driven by strong performance across operating divisions [2][22] Financial Performance - Consolidated revenue for Q2 2025 was $100.14 million, a 43.7% increase from $69.71 million in Q2 2024 [14][31] - Gross profit for Q2 2025 rose to $55.04 million, up 56.8% from $35.09 million in Q2 2024 [14][31] - Net income for Q2 2025 decreased by 68.9% to $7.26 million, primarily due to an additional $22.20 million in deferred income taxes related to the acquisition of Melcor REIT [19][31] Divisional Highlights - The Land division's revenue increased by 83.0% to $68.15 million in Q2 2025, attributed to strong sales in the US region [23][24] - The Properties division accounted for 35.5% of total revenue, with occupancy rates decreasing to 81.6% from 86.1% at year-end 2024 [24][16] - The US market contributed 52.6% of total revenue in Q2 2025, highlighting the importance of this region for Melcor's growth [17][23] Strategic Transactions - On April 23, 2025, Melcor completed the acquisition of all outstanding public trust units in Melcor REIT for $5.50 per unit, consolidating its income-producing properties [5][8] - The transaction resulted in a $22.20 million increase in deferred tax liabilities and $7.08 million in transaction costs [19][20] - The company is evaluating strategic asset sales to strengthen its balance sheet and reduce bank operating lines [6][29] Shareholder Returns - The Board declared a quarterly dividend of $0.13 per share, up from $0.11 per share, reflecting a commitment to returning value to shareholders [7][34] - The company repurchased 174,276 shares for cancellation at a cost of $2.24 million in 2025 [34]