Lagos Market Update H2 2025 Lagos Market Update provides half year update on the real estate market knightfrank.com/research performance of the commercial nerve centre and economic hub of Nigeria. This also include an update on the real estate markets in Abuja and Port Harcourt. Image culled from levithegrapher LAGOS MARKET UPDATE | 2ND HALF 2025 Lagos Market Update H2 2025 Economic Update H2 2025 marked a period where Nigeria's economy attempted to convert reform momentum into durability. The numbers sugge ...

Howard Hughes (NYSE:HHH) Q4 2025 Earnings call February 20, 2026 10:00 AM ET Speaker7Good day, and thank you for standing by. Welcome to the Howard Hughes Holdings fourth quarter 2025 earnings call. At this time, all participants are in listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your qu ...

Financial Data and Key Metrics Changes - Core FFO per diluted share for Q4 2025 was $0.35, down from $0.37 in Q4 2024, attributed to the sale of two projects and higher net interest expense [26] - AFFO generated in Q4 2025 was approximately $18.7 million [26] - The company completed refinancing activities, issuing $400 million in new bonds and repurchasing $245 million of higher coupon bonds, resulting in annual savings of approximately $0.04 per share [27][28] Business Line Data and Key Metrics Changes - Total leasing volume for 2025 reached 2.5 million sq ft, representing about 16% of the portfolio, the highest in over a decade [8] - In Q4 2025, approximately 679,000 sq ft of leasing was completed, with 70% related to new tenants, leading to a year-end lease percentage of 89.6%, an increase of 120 basis points over 2025 [10] - Rental rates for leases executed in Q4 increased by approximately 12% on a cash basis and 21% on an accrual basis [11] Market Data and Key Metrics Changes - The number of Fortune 100 companies requiring a five-day workweek in the office rose to about 55%, compared to 5% two years ago [6] - Positive absorption was reported in 50 markets in 2025, up from 33 in 2024, marking the highest number since 2019 [6] - Sublet availability has declined, with only 4 million sq ft of new office space delivered in Q4 2025, the lowest since 2012 [7] Company Strategy and Development Direction - The company aims to leverage its portfolio of recently renovated, well-located properties to drive sustainable earnings growth in 2026 and beyond [9] - The focus is on maintaining high occupancy rates and increasing rental rates, with asking rents still significantly below new construction costs [9] - The company plans to stabilize its out-of-service portfolio by the end of 2026, contributing to future FFO growth [12] Management's Comments on Operating Environment and Future Outlook - Management believes the occupancy trough occurred in Q4 2025, with expectations for mid-single-digit organic FFO growth in 2026 and 2027 [12] - The company is optimistic about the demand environment, driven by large users returning to the market and a focus on upgrading office experiences [50] - Management highlighted the unique positioning of their portfolio, which is not heavily reliant on the tech sector, allowing for continued demand from various industries [51] Other Important Information - The company has two land parcels under contract, expected to generate over $30 million in gross proceeds upon closing [24] - The 2026 annual Core FFO guidance is projected to be in the range of $1.47-$1.53 per diluted share, reflecting an increase from 2025 [28] Q&A Session Summary Question: What is the breakdown of renewal versus new leasing in the 1.7 million-2 million sq ft target? - Management indicated it is roughly 50/50 between new activity and renewal activity [34] Question: What is the potential cap on lease percentage given structural vacancies in some markets? - Management believes they can push lease percentages upwards of 91%-92% across the portfolio, despite some challenges in specific markets [40] Question: What type of product is the company targeting for disposition in 2026? - Management noted they are looking to monetize non-core assets, particularly in Houston, and are considering dispositions related to the New York City lease [44] Question: What is driving the robust demand environment across the portfolio? - Management highlighted the trend of users upgrading their office experiences and the strong demand from various industries, not just tech [50]

Financial Data and Key Metrics Changes - Core FFO per diluted share for Q4 2025 was $0.35, down from $0.37 in Q4 2024, attributed to the sale of two projects and higher net interest expenses [26][27] - AFFO generated in Q4 2025 was approximately $18.7 million [26] - The company expects 2026 annual Core FFO guidance in the range of $1.47-$1.53 per diluted share, an increase of $0.08 at the midpoint over 2025 results [28][30] Business Line Data and Key Metrics Changes - Piedmont leased 2.5 million sq ft in 2025, approximately 16% of the portfolio, the highest leasing volume in over a decade [8] - In Q4 2025, approximately 679,000 sq ft of leasing was completed, with 70% related to new tenants, resulting in a year-end lease percentage of 89.6%, an increase of 120 basis points over 2025 [10][11] - Rental rates for leases executed in Q4 increased approximately 12% on a cash basis and 21% on an accrual basis [11][17] Market Data and Key Metrics Changes - The number of Fortune 100 companies requiring a five-day workweek in the office rose to about 55%, compared to 5% two years ago [5] - Positive absorption was reported in 50 markets in 2025, up from 33 in 2024, marking the highest number since 2019 [5] - Sublet availability has declined, with only 4 million sq ft of new office space delivered in Q4 2025, the lowest since 2012 [6] Company Strategy and Development Direction - The company is focused on leveraging its portfolio of recently renovated, well-located, and amenity-rich properties to drive sustainable earnings growth [9][32] - The strategy includes a hospitality-infused service model and a focus on best-in-class assets to attract large space consumers [5][9] - The company aims to achieve mid-single-digit organic FFO growth in 2026 and 2027, supported by increased occupancy and rental rates [12][30] Management's Comments on Operating Environment and Future Outlook - Management noted that the occupancy trough occurred in Q4 2025, with expectations for significant same-store NOI growth in 2026 due to historic leasing success [12] - The company anticipates a robust leasing environment driven by strong demand and limited new supply, with expectations for continued rental rate increases [9][51] - Management expressed confidence in the ability to achieve a lease percentage upwards of 91%-92% in the future, driven by unique product offerings and market positioning [41] Other Important Information - The company completed refinancing activities in Q4, issuing $400 million in new bonds and repurchasing $245 million of higher coupon bonds, resulting in annual savings of approximately $0.04 per share [27] - The out-of-service portfolio was 62% leased at year-end 2025, with expectations for stabilization by the end of 2026 [10][20] Q&A Session Summary Question: What is the breakdown of renewal versus new leasing in the 1.7-2 million sq ft guidance? - Management indicated it is roughly 50/50 between new activity and renewal activity [35] Question: What is the potential cap on lease percentage given structural vacancies in some markets? - Management believes they can lease up challenging spaces beyond 95% in unique environments, but acknowledged some challenges in specific markets like D.C. [38][40] Question: What types of products are targeted for disposition in 2026? - Management noted they are looking to monetize non-core assets, particularly in Houston, and are considering dispositions related to the New York City lease [44][45] Question: What is driving the robust demand environment across the portfolio? - Management highlighted the trend of users upgrading their office experiences and the strong conviction around workplace strategies as key drivers of demand [50][51]

Financial Data and Key Metrics Changes - Revenue increased by 1.8% to $249 million compared to Q4 2024, driven by both office and multifamily revenues [13] - Funds from Operations (FFO) decreased to $0.35 per share, and Adjusted Funds from Operations (AFFO) decreased to $53 million due to increased interest expenses and lower interest income [13] - Same-property cash Net Operating Income (NOI) decreased by 1.4% for the quarter, primarily due to higher office operating expenses, although multifamily NOI growth partially offset this [13] Business Line Data and Key Metrics Changes - The company achieved 100,000 sq ft of net positive office absorption in Q4, with strong demand and high retention rates [4] - Multifamily segment reported full occupancy and a nearly 5% increase in same-property cash NOI compared to the prior year [4] - The company signed 896 office leases totaling 3.4 million sq ft for the full year of 2025, with 224 office leases covering 906,000 sq ft signed in Q4 [11] Market Data and Key Metrics Changes - Office tenant demand was diversified across various industries, with no single segment exceeding 20% of tenant demand in Q4 [11] - The company noted that financial services, legal, health services, education, and real estate led the demand [11] - The only market that experienced a dip in Q4 was Hawaii, while all other markets in L.A. showed positive movement [102] Company Strategy and Development Direction - The company plans to focus on office leasing and re-tenanting Studio Plaza, with a straightforward strategic plan for 2026 [6] - Construction is set to begin on 10900 Wilshire, converting an existing office tower into residential units, and the Landmark Residences redevelopment is also underway [5][8] - The company aims to capitalize on attractive acquisitions in the current market cycle, believing that current valuations offer significant discounts to long-term values [6][88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of their markets and the quality of their portfolio, despite acknowledging potential challenges in 2026 [6] - The company remains cautious about occupancy growth, with guidance reflecting increased interest expenses and no assumptions of occupancy growth despite positive Q4 results [13][14] - Management noted that political initiatives and regulations could impact operations and G&A costs in 2026 [51][53] Other Important Information - The company executed nearly $2 billion in debt transactions at competitive rates, extending its maturity profile and strengthening its balance sheet [5] - Management indicated that the anti-rent gouging ordinance has not materially impacted their operations or rent growth [91][94] - The company has significant development sites in Honolulu, with plans to build additional residential units as market conditions align [75] Q&A Session Summary Question: Stock performance and acquisition strategy - Management indicated a preference for acquisitions over stock buybacks, citing concerns about increasing leverage through buybacks [19][21] Question: Market demand and absorption trends - Management expressed hope that positive absorption trends indicate a fundamental shift in market demand, although caution remains for the upcoming year [22][23] Question: Industry consolidation impact - Management does not foresee significant negative impacts from media industry consolidation, believing it may rejuvenate demand for their tenants [29] Question: Development pipeline and yields - Management confirmed that they are actively planning additional residential projects, with expected yields above 8% [34][58] Question: Guidance on straight-line rent and NOI - Management explained that higher straight-line rent guidance reflects existing leases and new leasing activity, but they are not ready to provide specific NOI breakdowns for Studio Plaza [39] Question: UCLA lease expirations and political initiatives - Management clarified that UCLA operates independently across departments, and political initiatives have led to increased G&A costs but have not materially impacted operations [46][51]

Douglas Emmett (DEI) Overview Fully-Integrated Operating Platform ✓ Includes in-house leasing, space planning, legal, construction and design ✓ Major competitive advantage with our small affluent tenants ✓ Lowers operating, G&A, leasing and tenant improvement costs Strong Internal and External Growth ✓ Better long-term rent growth and less volatility than other gateway markets ✓ Our leases benefit from strong 3% to 5% annual rent increases ✓ Strong portfolio growth since IPO: office up 56% and multifamily u ...

Financial Data and Key Metrics Changes - For the full year 2025, the company reported FFO per share of $2.00, which is about 3% above initial expectations [3] - Same-store cash NOI increased by 0.5% compared to 2024 [18] - Fourth quarter FFO per share was $0.47, a decrease of approximately $0.02 compared to Q3 2025 [18] Business Line Data and Key Metrics Changes - Office segment same-store NOI increased by 2.3% for the year, driven by higher base rent and improved expense recoveries [19] - Retail segment same-store NOI increased by 1.2% for the year, reflecting strong growth in the first half of 2025 [19] - Multifamily segment declined by 3.2% for the year due to flat to modestly lower rents and elevated concessions [20] - Mixed-use segment declined by 6.7% in 2025, impacted by softer hotel demand in Waikiki [20] Market Data and Key Metrics Changes - The office portfolio ended the quarter 83% leased, with same-store office portfolio at 86% leased, up about 150 basis points from Q3 [6] - Retail segment ended the year at 98% leased, with positive cash and GAAP leasing spreads [10] - Multifamily ended the year 95.5% leased, with approximately 1% net effective rent growth year over year [11] Company Strategy and Development Direction - The company aims to drive office leasing by converting prospect activity into signed leases and commenced revenue [16] - Retail momentum will be maintained by keeping centers full and managing expirations [16] - The company plans to manage through the multifamily supply cycle with disciplined revenue management and cost control [16] - The focus will be on prudent hotel operations while responding to market demand [16] Management's Comments on Operating Environment and Future Outlook - Management believes that coastal infill locations and high-quality real estate position the company to capture demand as it materializes [5] - The company views 2026 as an opportunity to build upon the progress made in 2025, with a focus on operational execution and long-term value creation [15][16] - Management expressed frustration with the current share price, indicating that it does not reflect the intrinsic value of the company's assets [14] Other Important Information - The company declared a quarterly dividend of $0.34 per share for the first quarter, with expectations to maintain the dividend at current levels [15] - Liquidity at the end of the fourth quarter was approximately $529 million, with a leverage ratio of 6.9x on a trailing twelve-month basis [22][23] Q&A Session Summary Question: Regarding elevated TIs for office renewals - Management acknowledged that higher capital burdens for office leasing are expected to moderate over time as occupancy improves [35][36] Question: Timeline to achieve target leverage of 5.5x - Management indicated that leasing up La Jolla Commons 3 and One Beach will help achieve the target leverage [40] Question: Steps to reinvigorate stock price - Management is open to strategic asset sales if they reflect long-term value but will not sell at a discount [42][43] Question: Guidance assumptions for office segment lease rates - Management reported that 68,000 sq ft has been signed year-to-date, with a significant pipeline of leasing activity [49] Question: Credit reserves in guidance - Management clarified that credit reserves are a conservative measure and not indicative of specific tenant concerns [84]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported total consolidated revenues of $3.5 billion and full year FFO of $1.2 billion, or $6.85 per share. The fourth quarter FFO was $1.76 per share, which was $0.05 per share short of the midpoint of guidance due to higher G&A expenses and non-cash reserves for accrued rental income [41][42][43] - The company ended 2025 with an in-service occupancy of 86.7% and expects to increase occupancy to approximately 89% by the end of 2026 [45][56] Business Line Data and Key Metrics Changes - The company completed over 1.8 million sq ft of leasing in Q4 and over 5.5 million sq ft for the full year 2025, exceeding annual goals [7] - The leasing activity is expected to continue into 2026, with a forecast of 4 million sq ft of leasing for the year [25] - The company has seen a significant increase in demand for premier workplaces, with direct vacancy for these spaces at 11.6%, significantly lower than the broader market [9][10] Market Data and Key Metrics Changes - Office utilization data indicated a 10% increase in office visits nationwide from December 2024 to December 2025, marking the busiest in-office December since the pandemic [8] - The company is experiencing accelerating demand from AI companies, particularly in major markets like the Bay Area and New York City [8][9] Company Strategy and Development Direction - The company aims to optimize its portfolio through asset sales, targeting $1.9 billion in net proceeds by 2028, with $1 billion already achieved through the sale of 12 assets [10][11] - The company is focusing on urban premier workplace concentration and has launched new developments in key markets [21] - The strategy includes reallocating capital to premier workplace assets and CBD locations while exploring additional development and acquisition opportunities [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive leasing environment, supported by expected double-digit earnings growth for companies in the S&P 500 and Russell 2000 indices [7] - The company anticipates that the current macroeconomic conditions will lead to higher occupancy and rent growth in many submarkets [21] - Management noted that while there are concerns about AI's impact on jobs, many clients are expanding their footprints and upgrading their spaces [8] Other Important Information - The company has a development pipeline of 3.5 million sq ft and $3.7 billion of investment across various projects [18] - The company expects to deliver significant new developments, including a 573,000 sq ft life science project in Cambridge, which is 100% leased to AstraZeneca [49] Q&A Session Summary Question: Inquiry about potential additional asset dispositions - Management confirmed that they are sticking to the original goal of $1.9 billion in sales and are open to selling more assets if attractive prices are offered, while being mindful of the dilutive impacts on earnings [60][61][62] Question: Conversion rates for leasing negotiations - Management indicated a high conversion rate of approximately 95% for deals in negotiation and expects to lease 4 million sq ft of space in 2026 [70][71]

Core Viewpoint - Singapore REITs are favored by local investors for their low cost and reliable income, with expectations of benefiting from easing interest rates leading to lower financing costs and increased property valuations, potentially resulting in higher distributions [1] Business Model and Portfolio Focus - CICT has a diversified portfolio comprising 40% offices, 25% integrated developments, and 35% retail malls, with a total portfolio value of S$27 billion as of December 31, 2025 [2] - FCT focuses primarily on suburban retail malls, with 97.3% of its portfolio valuation in retail, and has a total property value of approximately S$6.4 billion as of September 30, 2025 [3][4] Income Stability and Distribution Track Record - CICT benefits from diversified income streams, while FCT's suburban malls provide steady cash flows due to essential services, with 54% of tenants classified as essential as of September 30, 2025 [5] - CICT has paid an annual distribution since 2002, with a DPU of S$0.1088 for the full year 2024, while FCT has maintained a constant annual distribution since 2006, with a DPU of S$0.1211 for FY2025 [6] Growth Drivers and Rental Upside - CICT is focused on asset enhancement, redevelopment, and organic portfolio management, achieving strong rental reversions for 2025 [9] - FCT is leveraging steady rental reversions and potential acquisitions, reporting a rental reversion of +7.8% for FY2025 [10] Balance Sheet Strength and Interest Rate Sensitivity - Both REITs have similar gearing ratios, with CICT at 39.2% and FCT at 39.6%, and comparable interest coverage ratios of 3.5 times for CICT and 3.46 times for FCT [11] - FCT has an average debt maturity of 3.16 years and an average cost of borrowing of 3.5%, while CICT has a slightly longer debt maturity of 3.9 years and an average cost of debt of 3.3% [12] Yield Versus Quality Trade-Off - FCT offers a trailing distribution yield of 5.3%, making it a more defensive income play, while CICT has a lower yield of 4.6% due to its diversified portfolio and larger scale [13] Investment Suitability - CICT is suitable for investors seeking scale and diversified exposure, while FCT is appropriate for those looking for defensive and predictable income from essential services [14][15]

Core Insights - BXP, Inc. is expected to report third-quarter 2025 results on October 28, with anticipated year-over-year revenue growth but a decline in funds from operations (FFO) per share [1][10] Company Performance - In the last reported quarter, BXP's FFO per share was $1.71, exceeding the Zacks Consensus Estimate of $1.67, driven by strong leasing activity despite higher interest expenses impacting year-over-year growth [2][11] - Over the past four quarters, BXP's FFO per share has surpassed estimates once, missed once, and met expectations in the remaining periods, with an average beat of 0.45% [3] Industry Context - The U.S. office market is experiencing solid demand for high-quality spaces, with companies expanding their footprints after previous cutbacks, although net absorption for the broader market was negative in the third quarter [3][4] - Demand for Class A assets remains high, with 14 markets showing positive absorption despite overall negative trends [4] - Vacancy rates for sublease spaces have decreased by 14.5% from the first quarter of 2024, indicating a tightening market [5] Supply Dynamics - Supply pressures are easing due to reduced new construction activity, with the under-construction pipeline at 22.5 million square feet, the lowest in the 21st century, and new deliveries down 30% from the average since 2020 [6] BXP's Strategic Position - BXP is well-positioned to benefit from the increasing demand for quality office spaces, particularly as it converts office buildings to laboratory/life science spaces, which is expected to enhance leasing activity [7][8] - The Zacks Consensus Estimate for BXP's third-quarter revenues is $806.6 million, reflecting a slight increase from the previous year [9] Financial Outlook - High debt levels and rising interest expenses are anticipated to pressure BXP's quarterly FFO, with a projected 1.3% year-over-year increase in interest expenses [10][11] - The Zacks Consensus Estimate for third-quarter FFO per share is $1.72, indicating a 5% decrease from the previous year [11][12]