6 January 2026 | 7:12AM CST Equity Research CHINA PROPERTY WEEKLY WRAP Week 1 Wrap - Transactions c.30% below prior year level; Supportive notions and tax cuts to kick off new year Key highlights for the week: Central level policies: Recent article from senior policymaker via Qiushi magazine highlighted focus on stabilizing market expectations within the property sector, emphasizing 1) given the significant financial asset nature of housing, effectively managing market expectations is crucial for overall st ...

Group 1 - Maui Land & Pineapple Company, Inc. (MLP) is showing improvement in commercial occupancy and continues to deliver residential homes [2] - The Valkyrie Trading Society is a team of analysts focused on high conviction and obscure developed market ideas, aiming for non-correlated and outsized returns in the current economic environment [2] - The Value Lab offers a portfolio with real-time updates, 24/7 chat support, regular global market news reports, and feedback on member stock ideas [2]

Summary of the Conference Call on China Property Sector Industry Overview - **Industry**: China Property Sector - **Event**: Central Economic Work Conference (CEWC) held on December 10-11, 2025 Key Points and Arguments 1. **Risk Management and Market Stabilization**: - The conference emphasized the need to take proactive steps to defuse risks in key areas and stabilize the property market through city-specific policies aimed at controlling new supply, reducing inventory, and optimizing existing supply [1][2][7] - The focus is on encouraging inventory purchases for social housing and deepening the reform of the housing provident fund [1][7] 2. **Policy Tone and Intentions**: - Compared to previous meetings, the tone in December 2025 is seen as more proactive than in April and July 2025, but less decisive than in December 2024 [2] - The language used indicates a shift from a strong push for stabilization to a more moderate approach, recognizing the imbalance of weak domestic demand against strong supply [2] 3. **Local Stimulus and Monetary Policy**: - A new round of local demand-side stimulus is anticipated, including home purchase and mortgage interest subsidies, although these are not expected to significantly alter home price expectations due to abundant supply [3] - There is a low likelihood of targeted monetary easing or pro-leverage initiatives in the near term, but urban renewals and REIT approvals are expected to accelerate [3] 4. **Market Reactions and Sales Outlook**: - The property sector experienced a share price correction in early December due to weak sales and price declines, particularly in Tier 1 cities, alongside expectations of policy easing following Vanke's debt extension [4] - A short-lived policy-driven rebound in share prices is expected, with continued soft sales projected for Q4 2025 and limited improvement in household confidence [4] 5. **Investment Recommendations**: - Analysts suggest late December as a better entry point for reviewing the sector after the recent price corrections, with top picks including Jinmao, C&D, and CRL [4] Other Important Insights - The conference highlighted the importance of stabilizing investment and resolving local government debt risks while maintaining a necessary fiscal deficit and ensuring stable economic growth [1][7] - The need for a moderate recovery in price levels and stabilization of investment from further decline was acknowledged, indicating a cautious approach to future developments in the property market [2][3] This summary encapsulates the critical discussions and insights from the conference call regarding the current state and future outlook of the China property sector, emphasizing risk management, policy intentions, and market dynamics.

Core Insights - Halmont Properties Corporation reported a net income of $12.25 million for the nine months ended September 30, 2025, an increase from $10.35 million in the same period of 2024 [1][2] - Revenue for the same period rose to $24.90 million from $20.96 million year-over-year [2] - Comprehensive income for common shareholders increased to $12.45 million from $11.43 million [2] - The diluted net income per common share decreased slightly to 4.85 cents from 5.07 cents [2] Financial Performance - Revenue: $24.90 million for the nine months ended September 30, 2025, compared to $20.96 million for the same period in 2024 [2] - Net Income: Increased to $12.25 million from $10.35 million year-over-year [2] - Comprehensive Income: Rose to $12.45 million from $11.43 million [2] - Diluted Net Income per Share: Decreased to 4.85 cents from 5.07 cents [2] Asset Performance - The commercial properties at 25 Dockside Drive and 2 Queen Street East, acquired in 2024, are performing well and providing stable cash flows [2] - The company maintains a strong balance sheet, with a fully diluted book value per common share of 95 cents, up approximately 11.76% from 85 cents one year earlier [3] Investment Strategy - Halmont invests directly in real assets, including commercial, forest, and residential properties [4] - Forestry investments, including a 59% effective interest in Haliburton Forest and a 7% equity stake in Acadian Timber Corp., continue to generate attractive returns and long-term growth potential [3]

Summary of Skanska's Capital Markets Day 2025 Company Overview - **Company**: Skanska (OTCPK:SKBS.Y) - **Event**: Capital Markets Day 2025 - **Date**: November 18, 2025 - **Location**: Seattle, The Eighth office tower - **Significance**: The U.S. market represents a significant growth area for Skanska, with a construction order backlog exceeding SEK 150 billion and SEK 20 billion in property investments [1][2] Key Points and Arguments U.S. Operations - **Historical Presence**: Skanska's U.S. operations began in 1971, with 17 acquisitions from 1971 to 2004 establishing a national presence [4][5] - **Market Footprint**: Skanska operates 25 offices across the U.S., with significant projects in New York, Boston, Washington D.C., North Carolina, Georgia, Florida, Texas, Arizona, and Southern California [5][6][10][11][12][13] - **Project Highlights**: Notable projects include the World Trade Center Transportation Hub, Moynihan Train Hall, and various healthcare facilities [6][10][11] Financial Performance - **Revenue**: Skanska reported approximately SEK 180 billion in revenue, with a workforce of over 26,000 employees [20][21] - **Growth**: The construction stream has seen close to 20% revenue growth in the U.S. over the last two years, with strong performance in residential development in Central Europe [24][25] - **Profitability Targets**: The company aims for a construction margin of 4% or greater, with a current rolling 12-month margin of 3.9% [31][54] Strategic Priorities - **Diversification**: Skanska emphasizes a diversified portfolio across geographies and sectors to mitigate risks associated with market cycles [50] - **Sustainability Goals**: The company targets a 70% reduction in carbon emissions by 2030 and aims for net-zero emissions by 2045 [33][34] - **Digital Transformation**: Skanska is focusing on leveraging digital tools and technologies to enhance productivity and efficiency in construction operations [60][61] Market Outlook - **U.S. Market**: The U.S. civil market is expected to remain strong, with a focus on infrastructure projects, particularly in Florida and the Northeast [40][44] - **Central Europe**: Increased investments in infrastructure and energy due to geopolitical factors, such as the war in Ukraine, are anticipated to drive demand [47][49] Customer Relationships - **Client Base**: Skanska maintains a balanced client portfolio, with approximately 50% public and 50% private clients, enhancing its ability to manage risks [51] - **Long-term Partnerships**: The company has established strong relationships with key clients, which is crucial for securing future projects [44][45] Additional Important Content - **Cultural Values**: Skanska emphasizes a strong corporate culture and values that drive performance and customer focus [15][23] - **Investment Properties**: The company has been building its investment property portfolio, which is expected to contribute positively to cash flow and profitability [30][32] - **Future Growth**: Skanska is optimistic about growth opportunities in both the U.S. and Central Europe, driven by demographic trends and infrastructure needs [41][46] This summary encapsulates the key insights and strategic directions discussed during Skanska's Capital Markets Day 2025, highlighting the company's robust growth trajectory, commitment to sustainability, and focus on leveraging technology for future success.

Vi e w p o i n t | 14 Nov 2025 02:31:20 ET │ 15 pages China Property Citi Research is a division of Citigroup Global Markets Inc. (the "Firm"), which does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Certain products (not inconsistent with the author ...

Core Viewpoint - Transcontinental Realty Investors, Inc. reported a decrease in net income for the quarter ended September 30, 2025, despite an increase in revenues, primarily due to higher operating expenses and a decrease in interest income [1][5]. Financial Highlights - Revenues increased by $1.2 million from $11.6 million in Q3 2024 to $12.8 million in Q3 2025, driven by a $0.3 million increase from multifamily properties and a $1.0 million increase from commercial properties [3]. - Total occupancy was reported at 82% as of September 30, 2025, with multifamily properties at 94% and commercial properties at 58% [7]. Operating Results - Net operating loss decreased by $0.3 million from $1.7 million in Q3 2024 to $1.4 million in Q3 2025, attributed to increased revenue offset by a $1.0 million rise in operating expenses [4]. - Operating expenses rose primarily due to increased costs associated with lease-up properties and general administrative expenses [4]. Income Analysis - Net income attributable to the Company decreased by $1.0 million from $1.7 million in Q3 2024 to $0.7 million in Q3 2025, mainly due to a decrease in interest income and an increase in tax provision [5]. - Interest income fell from $5.9 million in Q3 2024 to $4.7 million in Q3 2025, while interest expense decreased from $2.1 million to $1.7 million during the same period [8]. Transaction Activity - The Company sold Villas at Bon Secour, a 200-unit multifamily property in Gulf Shores, Alabama, for $28 million, using the proceeds to pay off an $18.767 million loan and for general corporate purposes [7].

Core Viewpoint - Realty Income Corporation has experienced underperformance compared to the broader market and its sector, despite a slight increase in share price following mixed Q2 results Company Overview - Realty Income Corporation, based in San Diego, California, has a market capitalization of $52.9 billion and focuses on acquiring single-tenant retail locations leased to regional and national chains under long-term net lease agreements [1] Stock Performance - Over the past year, Realty Income's shares have declined by 4.3%, while the S&P 500 Index has increased by 17.4% [2] - Year-to-date in 2025, Realty Income's stock is up 8.4%, compared to the S&P 500's 16% gains [2] - Compared to the Real Estate Select Sector SPDR Fund (XLRE), which has declined about 7% over the past year, Realty Income's performance has been relatively better [3] Financial Results - In Q2, Realty Income reported an AFFO per share of $1.05, which was a slight decrease from the previous year and missed estimates [4] - Revenue for the same quarter rose by 5.3% year-over-year to $1.4 billion, exceeding analyst expectations [4] Future Expectations - Analysts project that Realty Income's FFO per share will grow by 1.9% to $4.27 for the current fiscal year ending in December [5] - The consensus among 25 analysts covering Realty Income stock is a "Hold," with ratings including four "Strong Buy," one "Moderate Buy," and 20 "Holds" [5] Analyst Ratings - On October 28, Ronald Kamdem from Morgan Stanley maintained a "Hold" rating on Realty Income with a price target of $62, indicating a potential upside of 7.1% from current levels [6]

Group 1 - DEMIRE Deutsche Mittelstand Real Estate AG has decided not to make an early partial repayment of EUR 50 million on its corporate bond, resulting in an additional bullet payment of 3% on the outstanding nominal amount of EUR 247.1 million, with the bond maturing at the end of 2027 [1][5] - The company has adopted a cautious sales strategy in light of the challenging market environment for commercial real estate, particularly in secondary markets, and plans to wait for market recovery before making further disposals [2][5] - DEMIRE has achieved sales proceeds of approximately EUR 43 million in the current year and has received additional purchase offers, but has chosen not to proceed with further transactions due to current price levels [2][4] Group 2 - As of June 30, 2025, DEMIRE's real estate portfolio consists of 48 properties with a lettable area of around 582,000 square meters, and the market value of the portfolio is approximately EUR 0.9 billion [3][4] - The company's portfolio focuses on office properties, supplemented by retail and hotel properties, aiming for stable rental income and solid value growth through long-term contracts with solvent tenants [4] - DEMIRE plans to significantly expand its portfolio in the medium term, focusing on assets with strong funds from operations (FFO) potential while strategically selling properties that do not align with its strategy [4]

Summary of Conference Call on China Property Sector Industry Overview - The conference call focuses on the **China Property Sector**, highlighting the current market conditions and future expectations for developers and policies affecting the industry. Key Points and Arguments Market Conditions - The sector is expected to trade within a range due to sluggish fundamentals and potential policy support, with a current P/E ratio of **8.5x FY27E**, aligning with historical averages [1][2] - National inventory is projected to remain high at **24 months** through **2027**, but Tier 1 and top 15 cities may see inventory decrease to **15 months** by **2026/27** [3][4] - New home sales volume/value is forecasted to decline by **5%-7%** and **8%-10%** in **2025**, with further mid-single-digit declines in **2026** [3][4] Developer Performance - Top developers are focusing on major cities, acquiring land only in the **10-20 largest cities** since **2024**, despite generating sales from **60 cities** [4][5] - Developers with younger land banks (acquired after **2022**) tend to have higher returns on invested capital (ROIC), with **Binjiang, C&D, and COLI** having the youngest land banks [5][6] - The earnings estimates for the sector have been trimmed by single-digit percentages, reflecting minor changes in contracted sales forecasts [5][6] Policy Outlook - Policymakers are expected to emphasize quality housing in the upcoming **15th Five-Year Plan**, with no major new policy support anticipated until **March 2026** [2][24] - Potential policy tools include tax deductibility for mortgage interest, lower transaction taxes, direct subsidies to home buyers, and relaxation of urban redevelopment restrictions [2][29] - The **Fourth Plenary Session** is expected to provide preliminary guidelines for property policy over the next five years, focusing on balancing growth and risk control [24][27] Risks and Challenges - Secondary home prices have declined by **1.6% MoM** in September, nearing the steepest decline observed in the second half of **2023** [21][22] - Real estate investment fell by **20% YoY** in September, worsening from a **10%** decline in the first half of **2025** [22][23] - Home prices are expected to face significant downside risks, with estimates suggesting a potential **20%** correction for entry-level buyers in Tier 1 cities [56][58] Developer Ratings and Forecasts - Price objectives for several developers have been revised, with **Binjiang** seeing an increase from **12.8 billion** to **13.5 billion**, while **Poly** was cut from **8.0 billion** to **7.5 billion** [8][9] - The contracted sales forecast for key developers has been adjusted, with **CMSK** seeing an increase due to better-than-expected performance, while **COLI** and **Poly** have been trimmed due to deteriorating market conditions [76][79] Conclusion - The China Property Sector is currently facing a challenging environment with sluggish sales, high inventory levels, and declining prices. However, top developers are strategically focusing on major cities and improving their land bank quality, which may position them better for future recovery as policy support is anticipated in the coming years.