Investment Rating - The report indicates a stable but cautious outlook for Kampala's property market entering 2026, with long-term fundamentals remaining supportive, particularly for industrial, suburban office, and convenience-led retail assets [9]. Core Insights - Kampala's real estate market showed resilience in H2 2025, driven by macroeconomic stability, contained inflation, and sustained infrastructure investment, with economic growth strengthening to 6.3% in FY 2024/25 [4][12]. - The residential sector experienced modest softening, particularly in prime expatriate neighborhoods, due to increased apartment supply and shifting tenant demographics [5][54]. - The office sector transitioned into a tenant-favorable cycle, with rising vacancy levels in older buildings and stable rental rates for Grade A+ offices [6][78]. - The retail sector remained resilient, supported by strong footfall growth, although average spending per visit declined [7][100]. - The industrial sector outperformed all asset classes, with occupancy levels consistently above 80% and firm rental rates driven by record coffee exports and preparations for oil production [8][9]. Economic Overview - Economic growth rate for FY 2024/25 was recorded at 6.3%, with inflation remaining below the Bank of Uganda's target of 5% [10][15]. - Uganda achieved a Balance of Payments surplus of US$2.37 billion for the year ending October 2025, the highest in over 15 years [11][14]. Residential Sector Summary - The prime residential market saw a decline in rental rates for two-bedroom and three-bedroom units by approximately 10% and 9% respectively, with occupancy levels stable at around 83% [55][60]. - Increased supply of one-bedroom units has intensified competition, leading to downward pressure on rental levels for larger units [56][67]. - The short-let market continued to grow, particularly in secondary neighborhoods, supported by lower entry costs and improved building quality [54][69]. Office Sector Summary - The office market faced rising vacancy levels, particularly in lower-grade buildings, with Grade A+ rents remaining stable at approximately US$18 per square meter [79][80]. - Demand for smaller office spaces remained strong, driven by startups and SMEs adapting to hybrid working models [88][92]. - The supply pipeline includes over 200,000 sqm of office space expected to be delivered over the next two years, despite a slowdown in new developments due to political uncertainty [91][94]. Retail Sector Summary - Retail footfall increased by 15% year-on-year, although average spending per visit declined by 1% [105][111]. - The transition from informal trading to formal retail developments is evident, with suburban retail markets gaining traction [102][100]. - International brands outperformed smaller retailers, benefiting from stronger brand recognition and structured promotional strategies [113][112].

Investment Rating - The report indicates a favorable outlook for the Melbourne CBD office market, with expectations of future rental growth supported by a contraction in development [1]. Core Insights - Melbourne recorded its highest annual net absorption since 2018, with a total of +29,475 sqm in 2025, marking the first positive annual result since 2020 [3][25]. - The vacancy rate in Melbourne's CBD rose to 19.0%, primarily due to the completion of several largely vacant refurbished assets [6][36]. - Prime net face rents increased by 5.2% in 2025, the highest growth in three years, with significant increases in the Eastern Core [11][48]. Demand - Tenant demand accelerated in 2025, with net absorption reaching +29,475 sqm, driven by a flight-to-quality trend where prime net absorption totaled +40,070 sqm [25][28]. - The Professional Services sector was the most active in leasing, accounting for 31% of total deal volume [28]. - Robust lease requirement volumes were noted, with 210 CBD lease briefs released, totaling over 300,000 sqm of active requirements [27]. Supply - The CBD vacancy rate increased due to the reintroduction of major refurbished assets, with the Eastern Core experiencing a rise in vacancy to 18.0% [36]. - Development is expected to slow markedly in 2027, with only two major developments forecasted beyond 2026, leading to a projected fall in supply and upward pressure on vacancy [38]. Rental Growth - Prime net face rents in Melbourne's CBD rose by 5.2% in 2025, with the Eastern Core seeing a 10.4% increase [11][48]. - Despite growth in other precincts, a significant pricing gap remains between the Eastern Core and the broader market, with rents averaging $1,010/sqm in the East compared to $503–$747/sqm in other areas [48]. Investment Market - Investment volumes increased by 33% in 2025, supported by major CBD transactions, with prime yields averaging 6.8% [56]. - The report highlights that as yields stabilize, transaction volumes are expected to continue to rise [56]. Southbank Update - Prime net face rents in Southbank averaged $692/sqm, remaining flat quarter-on-quarter but increasing 2.5% year-on-year [64]. - Southbank recorded a total vacancy rate of 15.0%, outperforming most Melbourne CBD precincts [65].

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Financial Data and Key Metrics Changes - Comparable FFO for 2025 was $2.32 per share, slightly higher than 2024 and better than anticipated [28] - Fourth quarter comparable FFO was $0.55 per share, down from $0.61 per share in Q4 2024, primarily due to higher net interest expense [28] - Overall same-store GAAP NOI increased by 5% for the quarter, while same-store cash NOI decreased by 8.3% [29] Business Line Data and Key Metrics Changes - In 2025, the company leased 4.6 million sq ft of office space, with 3.7 million sq ft in Manhattan, marking the highest Manhattan leasing volume in over a decade [8] - Average starting rents in Manhattan were $98 per sq ft, with mark-to-markets of +10.4% GAAP and +7.8% cash [9] - Office occupancy rose from 88.8% to 91.2% [13] Market Data and Key Metrics Changes - The New York office market is experiencing a significant recovery, with demand from finance, tech, and other industries robust [5] - The financing markets for Class A assets are strong, with CMBS spreads at their tightest since 2021 [31] - The company has a liquidity of $2.39 billion, including cash balances of $978 million and undrawn credit lines of $1.41 billion [24] Company Strategy and Development Direction - The company is focused on the Manhattan office market, believing it to be the best in the country, and anticipates a tightening landlord's market [5] - Development projects include 350 Park Avenue and 623 Fifth Avenue, with construction expected to commence soon [16][18] - The company is also considering several options for a new development site at 3 East 54th Street [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery of the New York office market and expects significant earnings growth in 2027 [30] - The company plans to maintain a highly liquid balance sheet while exploring stock buybacks due to perceived undervaluation [26][27] - Management noted that the difference between leased occupancy and GAAP occupancy represents a significant revenue opportunity, expected to materialize over the next few years [14][54] Other Important Information - The company has extended maturities on nearly $3.5 billion of debt through 2031 [25] - S&P has changed the company's credit outlook from negative to stable, affirming its credit rating [34] - The company is actively engaged in stock buybacks, having repurchased 2.35 million shares for $80 million recently [26] Q&A Session Summary Question: Changes in the structure of 350 Park Avenue - Management confirmed that there were amendments to the agreement, allowing for flexibility in equity percentage, but no significant changes in economics [36] Question: Yield expectations for 350 Park Avenue - Management indicated that Citadel's rent will be based on a formula related to financing costs, with an appetite for more space than initially planned [38][39] Question: Overall leasing pipeline and tenant conversations - The leasing pipeline remains strong, with significant activity from new tenants and expansions, particularly in financial services and tech [42] Question: Cash vs. GAAP same-store NOI - Management expects to see cash NOI turn positive in the second half of 2026 as free rent periods expire [48] Question: Retail market conditions on Upper Fifth Avenue - The retail market is improving but still struggling to reach peak rents from previous years [51] Question: Difference between GAAP and leased occupancy - The $200 million difference is not annualized and will be recognized as tenants build out their spaces [54] Question: Dividend restoration timeline - Management indicated that a return to a normal dividend is not expected this year but will be pursued as income stabilizes [82] Question: Sources and uses of funds for upcoming projects - Management outlined a capital plan that includes financing, asset sales, and careful management of buybacks [89]

Financial Data and Key Metrics Changes - Comparable FFO for 2025 was $2.32 per share, slightly higher than 2024 and better than anticipated [26] - Fourth quarter comparable FFO was $0.55 per share, down from $0.61 per share in Q4 2024, primarily due to higher net interest expense [26] - Same-store GAAP NOI increased by 5% for the quarter, while same-store cash NOI decreased by 8.3% [27] Business Line Data and Key Metrics Changes - In 2025, the company leased 4.6 million sq ft of office space, with 3.7 million sq ft in Manhattan, marking the highest leasing volume in over a decade [6] - Average starting rents in Manhattan were $98 per sq ft, with mark-to-markets of +10.4% GAAP and +7.8% cash [7] - Office occupancy rose from 88.8% to 91.2% in 2025, driven by significant leasing activity [12][28] Market Data and Key Metrics Changes - The New York office market is experiencing a tightening landlord's market, with robust tenant demand from finance and tech sectors [4] - The financing markets for Class A assets are strong, with CMBS spreads at their tightest since 2021 [29] - The company has a liquidity of $2.39 billion, including cash balances of $978 million and undrawn credit lines of $1.41 billion [22] Company Strategy and Development Direction - The company is focused on its Manhattan-centric office strategy, with significant developments planned, including 350 Park Avenue and 623 Fifth Avenue [5][15] - The company aims to capitalize on the shortage of large blocks in better buildings by bringing prime space to market [14] - The management team is committed to maintaining a highly liquid, cash-heavy balance sheet while exploring stock buybacks [22][24] Management's Comments on Operating Environment and Future Outlook - Management believes the current fundamentals in Manhattan are the best in 20 years, with expectations for continued tightening in the landlord's market [4] - The company anticipates significant earnings growth in 2027 as the positive impact from PENN 1 and PENN 2 lease-up takes effect [28] - Management acknowledges the disconnect between stock price and asset value, viewing current stock buybacks as an attractive investment opportunity [24][25] Other Important Information - The company has extended maturities on nearly $3.5 billion of debt through 2031 and has been active in refinancing to bolster liquidity [23][30] - The acquisition of 623 Fifth Avenue is viewed as a strategic move, with plans to create a high-quality boutique office space [15][16] - The company is also developing a 475-unit rental residential building on 34th Street, expected to break ground in the fall [19] Q&A Session Summary Question: Changes in the structure of 350 Park Avenue - Management confirmed that there were amendments related to the overall deal, providing flexibility in equity percentage [35] Question: Overall leasing pipeline and tenant conversations - The leasing pipeline remains strong, with over half of the activity from new tenants and significant expansion from financial services and law firms [40] Question: Cash and GAAP same-store NOI difference - Management expects to see cash NOI turn positive in the second half of 2026 as free rent periods end [45] Question: Retail market conditions on Upper Fifth Avenue - The retail market is improving but still struggling to meet top-tick rents from four or five years ago [48] Question: Difference between GAAP occupancy and leased occupancy - The $200 million difference is not annualized and will be recognized as tenants build out their spaces [51]

Investment Rating - The report does not explicitly state an investment rating for the China property sector, but it emphasizes the need for a shift in strategy and a focus on quality and efficiency over scale, indicating a cautious outlook for the near term while recognizing long-term opportunities [3][5][12]. Core Insights - China's real estate market is undergoing a significant structural shift, moving away from reliance on scale and rising prices to a focus on fundamental value and purpose [3][4]. - The report highlights the importance of adapting to a new economic landscape characterized by resilience and productivity, with a call for each asset class to redefine its role [12][13]. - Despite current challenges, the long-term fundamentals of the Chinese economy, including industrial upgrading and domestic consumption potential, remain strong [5][6]. Summary by Sections Economic Outlook - China's GDP is projected to grow at a slower pace, with forecasts indicating a growth rate of 4.4% in 2026 and 4.3% in 2027 [11]. - Private consumption is expected to outpace overall GDP growth, reflecting a shift towards domestic demand [7]. - Policy settings are supportive, with low loan prime rates and bond yields anticipated to continue [8]. Office Sector - The office market is experiencing falling rents and high vacancy rates, necessitating a focus on quality and tenant experience [18][27]. - Landlords are encouraged to prioritize integrated layouts and operational efficiency to attract tenants [19][21]. - The future of the office market will depend on adaptability and the ability to provide value beyond mere space [26][30]. Retail Sector - Retail indicators show a divergence in performance, with prime districts needing to offer more than just location to attract consumers [33][39]. - The focus is shifting towards creating community-oriented spaces that enhance consumer experience rather than just transactional environments [41][43]. - New retail openings are expected to rise significantly in 2026, indicating a potential recovery phase [42]. Logistics Sector - The logistics and warehousing sector is closely tied to consumer spending and industrial upgrading, with a focus on tenant retention and operational efficiency [47][50]. - The market is rewarding facilities that enable automation and efficiency, reflecting a shift in tenant expectations [54][58]. - Owners are encouraged to modernize portfolios to meet evolving demands from occupiers [56]. Residential Sector - The residential market is stabilizing, with sales volumes remaining weak but not collapsing, as buyers become more selective [70][72]. - Developers are focusing on quality and trust-building to navigate current market conditions [71][73]. - Leasing conditions are improving, with a shift towards more professional management and differentiated product offerings [64][72]. Investment Market - Investment volumes are at decade-low levels, with expectations for subdued activity in 2026 [76][78]. - The market is beginning to recognize asset values more clearly, with a shift towards equity-driven models and REITs gaining prominence [88][90]. - Investors are advised to focus on high-quality core assets that generate stable cash flow [86][100].

Investment Rating - The report indicates a positive outlook for the South East office market, with a focus on high-quality, amenity-rich assets, suggesting a favorable investment environment for the coming years [5][15]. Core Insights - 2025 is projected to achieve the highest annual take-up figures since 2019, with a total of 3.4 million sq ft leased, reflecting an 8% increase compared to 2024 [7]. - The demand is primarily driven by the Financial and Business Services sector, accounting for 26% of total take-up, followed closely by the TMT sector at 23% [7]. - Grade A accommodation represented 79% of all take-up in 2025, highlighting a continued flight to quality among occupiers [7]. - Availability in the market decreased to 16.2 million sq ft, with a notable contraction in prime segments [7]. - The development pipeline remains limited, with 1.8 million sq ft under construction, primarily concentrated in Cambridge and West London [7][15]. Summary by Sections Leasing Overview - Total take-up for 2025 reached 3,374,313 sq ft, which is 8% higher than the five-year average [4]. - Active demand at year-end totaled 3.95 million sq ft, with Financial and Business Services again representing 26% of this demand [7]. - Availability decreased to 16,181,056 sq ft, a 12.3% reduction compared to the five-year average [4]. Investment Overview - Investment volumes for 2025 were £1.3 billion, which is 43% lower than the ten-year average [9]. - The market saw 112 deals completed in 2025, which is 15% higher than the ten-year average [15]. - Prime office yields in the South East remained at 7.00%, indicating attractive opportunities for investors [15]. Market Dynamics - The report notes a significant increase in rental prices, with 40% of markets in the South East registering an uplift, particularly in Cambridge and Oxford, which saw rental growth of 27% and 16% respectively [7]. - The overall vacancy rate improved to 10.2% in Q4 2025, down from 10.5% in Q4 2024, with Grade A vacancy decreasing to 6.6% [7]. - The report emphasizes the importance of high-quality space, as evidenced by the strong demand for Grade A accommodation [7][15].

Investment Rating - The report does not explicitly state an investment rating for the industry or city Core Insights - The Warsaw office market ended 2025 in strong shape, with total take-up exceeding 794,000 sq m, marking a 7% increase compared to the previous year [14] - The vacancy rate fell to 9.1%, its lowest level in over five years, driven by robust demand growth and limited new supply [20][21] - The market is becoming increasingly environmentally sustainable, with 67% of total stock holding green building certifications [18] City Attractiveness - Warsaw has a population of 1,862,402 as of June 2024, with a forecasted population of 2,132,000 by 2030 [5] - The city has a GDP growth of 14.9% in 2023 and an average salary in the business sector of PLN 10,791.55 as of November 2025 [5] - Warsaw ranks highly in various categories, including being the 2nd in the European Innovation Capital competition [7] Investment Incentives - The city offers an individual approach to investors, assistance at every stage of investment, and support in obtaining necessary information on public aid [8][48] - Key areas of support include recruitment activities, post-investment support, and cooperation with academic centers and HR agencies [10][11] Office Market Overview - As of the end of 2025, total office stock in Warsaw reached 6.23 million sq m, with a significant portion located in central zones [15] - New supply in 2025 was limited, with only 89,000 sq m delivered, marking the lowest annual volume in over two decades [16] - The final quarter of 2025 saw leasing activity total nearly 310,000 sq m, the highest quarterly result ever recorded in Warsaw [17] Vacancy and Rent Trends - The vacancy rate in central zones was 6.1%, while non-central locations recorded a rate of 11.6% [21] - In Q4 2025, headline asking rents remained stable, with central locations ranging between EUR 18.00 and 32.00/sq m/month [22] Quality of Life - Warsaw boasts over 850 km of bike paths and 47% green areas, contributing to its attractiveness as a city [13] - The city has a robust cultural scene with numerous museums, theatres, and recreational facilities [13]

Core Insights - Vornado Realty Trust (VNO) is expected to report a year-over-year decline in revenues and funds from operations (FFO) per share for Q4 2025 on February 9 [1][10]. Company Performance - In the last reported quarter, Vornado's FFO per share was 57 cents, exceeding the Zacks Consensus Estimate of 55 cents, with year-over-year growth in same-store net operating income (NOI) and occupancy [2]. - Over the past four quarters, Vornado's FFO per share has consistently surpassed the Zacks Consensus Estimate, with an average surprise of 12.5% [3]. Industry Trends - The U.S. office market saw a positive demand shift in the second half of 2025, with leasing activity strengthening and vacancy rates expected to peak later this year [3]. - Net absorption for the U.S. office market turned positive in Q4 2025, ending a 12-quarter decline, although full-year absorption remained negative at 6.7 million square feet [4]. - Class A office assets are in high demand, with absorption totaling 3.5 million square feet in Q4 2025 and 9.2 million square feet for the full year [5]. Supply Dynamics - Elevated construction costs and policy uncertainty have limited new developments, with the national vacancy rate at 20.5% in Q4, a slight increase of 30 basis points year-over-year [6]. - Sublease availability has decreased in about 60% of markets, while office conversions are tightening supply [6]. Competitive Landscape - High demand for quality offices has positively impacted Vornado's leasing activity, but competition from other developers and operators has pressured the company's ability to attract tenants at higher rents [8]. - To remain competitive, Vornado is offering rent concessions, which has negatively affected its revenue growth [8]. Financial Projections - Vornado's New York revenues are projected to decline by 9.2% to $348.5 million, while total quarterly revenues are expected to be $434.8 million, reflecting a 5% year-over-year decline [11]. - The consensus estimate for occupancy in Vornado's New York office portfolio is 89.8%, up from 88.8% a year ago [12]. - The Zacks Consensus Estimate for quarterly FFO per share remains at 57 cents, indicating a 6.6% increase from the previous year [12].

Market Recovery - Hong Kong's housing market is showing signs of recovery, with home prices rising 3.25% in 2025, marking the first annual increase in four years [15] - The revival is supported by expectations for a strong fundraising year in the stock market, with international firms planning to open new branches in the city [15][1] - Mainland Chinese homebuyers have significantly contributed to clearing housing inventory, spending a record HK$138 billion in 2025, particularly in the luxury market [7][15] Residential Market Dynamics - Interest rate cuts have boosted mortgage demand and rising rents are encouraging residents to purchase homes [2][15] - Developers are regaining pricing power due to improved supply and demand dynamics, with some builders already planning to increase prices for existing projects [4][5] - Banks and property services firms anticipate residential price growth this year, with projections ranging from a 5% to a 10% increase [6][15] Commercial Real Estate Challenges - The commercial real estate market remains weak, with a vacancy rate for Grade A offices rising to 17.5% and rents falling by about 5.8% [9][15] - Investors are primarily focused on trophy assets in key business districts, while other areas struggle to attract tenants [9][10] - Commercial real estate transactions above HK$100 million increased by over 12% in 2025, the first rise since 2021, but international funds are largely absent from the market [11][12] Economic Influences - The Hong Kong Monetary Authority's interest rate cuts have alleviated loan payment pressures for builders and homebuyers, stabilizing overall asset prices [6][15] - The influx of over 230,000 new arrivals due to the government's talent program has driven residential rents to record highs, making home ownership more attractive [14][16] - The ongoing geopolitical tensions between China and the US may pose risks to the recovery, with limited catalysts for a major rebound in the property market without improvements in economic relations [8][15]