25 February 2026 | 7:02AM CST Equity Research CHINA PROPERTY WEEKLY WRAP Week 7 & 8 Wrap - Positive CNY sales performance against undemanding 2025 base Goldman Sachs 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. For Reg AC certification and other ...

2025年底那份百城库存报告出来后，不少人心里直打鼓。全国新建商品住宅去化周期拉到27.4个月，比 合理区间多出一倍。三四线城市尤其明显，挂在那里40多个月都动不了。过去那种半年清盘的日子没 了，现在供应明显过剩，市场开始把多余的房子往外挤。 限价那几年赶工期的房子，2025年底集中交付。墙体不平，排水不畅，车位不够，这些毛病一暴露，二 手市场挂牌量就爆了。政策现在推"好房子"标准，这些粗糙的直接被比下去，挂着价却没人动。 买房的人现在眼睛亮了。以前闭眼买，现在先看城市人口流向，再看小区物业和户型。位置偏、品质一 般的房子，挂牌价往下调也难成交。资金卡在那里，变现能力一天比一天弱。 地方开始行动，把部分库存房收储做保障房。有的转公租，有的搞人才公寓。这样既消化了存量，又给 新市民提供了住处。避免房子空着烂掉，也让市场喘口气。 核心城市核心地段的房子，日子好过些。配套齐全，人口还在进，改善需求撑着去化。上海深圳一些优 质项目，价格小幅稳住，甚至有点回暖迹象。分化已经摆在眼前。 房地产从过去那种全民炒的金融游戏，慢慢回到住的本质。国家通过这些政策，把泡沫挤得差不多，留 下真正匹配需求的。普通家庭选房时，得算清楚接 ...

Core Insights - Federal Realty Investment Trust (FRT) reported a fourth-quarter 2025 core funds from operations (FFO) per share of $1.84, slightly missing the Zacks Consensus Estimate of $1.86, but showing an increase from $1.76 in the prior-year quarter [1][9] - Quarterly revenues reached $336.1 million, exceeding the consensus mark of $329.0 million and reflecting a year-over-year improvement of 1.9% [1] Leasing Activity - In 2025, FRT achieved a historic high in total leasing activity, executing 2.5 million square feet of retail leases, with comparable rent spreads increasing by 15% on a cash basis and 27% on a straight-line basis [2][9] - During Q4, FRT signed 109 leases for 612,978 square feet of retail space, with an average rent of $39.09 per square foot, representing a 12% increase on a cash basis and a 24% increase on a straight-line basis [3] Operational Performance - Comparable property operating income (POI) grew by 3.1% in Q4, excluding lease termination fees and prior-period rents collected [3] - The comparable portfolio occupancy rate increased by 50 basis points year over year to 94.5% as of December 31, 2025, with a leasing rate of 96.6% [4] Financial Position - FRT ended the quarter with approximately $1.3 billion in total liquidity, which includes cash and availability under its revolving credit facility, supporting its development and acquisition pipeline [6] - The company completed the acquisition of two properties for a total of $340 million during Q4, expanding into new markets and strengthening its existing presence [7] Dividend and Guidance - FRT maintained its regular quarterly cash dividend of $1.13 per share, indicating an annualized rate of $4.52 per share, reinforcing its position as a consistent dividend grower [11] - For full-year 2026, FRT expects core FFO per share in the range of $7.42-$7.52, implying growth of 5.1-6.5% from 2025 levels [12]

Financial Data and Key Metrics Changes - The company reported a 6.4% growth in FFO for Q4 and a 4.3% growth for the year, with guidance for 2026 close to 6% at the midpoint [6][18] - The overall portfolio was 96.1% leased and 94.1% occupied, with a 50 basis points increase when excluding newly acquired centers [6][12] - FFO per share for Q4 was $1.84, reflecting a 6.4% growth year-over-year [18] Business Line Data and Key Metrics Changes - In Q4, 601,000 sq ft of comparable deals were completed at a 12% rollover, with 2.3 million sq ft for the year at a 15% rollover, resulting in an incremental $11 million of new rent under contract [7][14] - The company signed 105 comparable deals in Q4, achieving a 12% rollover, with a weighted average contractual rent bump of 2.6% [14][15] Market Data and Key Metrics Changes - The company noted strong demand in California, which is expected to be a significant source of growth in the coming years [69] - Foot traffic in the greater Washington, D.C. area increased by 3% in Q4, with annual sales moving higher year-over-year [15][17] Company Strategy and Development Direction - The company is focused on driving rent growth, disciplined expense management, and capitalizing on quality real estate for multi-year growth opportunities [14] - The redevelopment pipeline includes $500 million in projects, with 780 residential units planned at existing retail properties [20][22] - The company plans to maintain a strong leverage metric, with annualized adjusted net debt to EBITDA expected to trend further to the low- to mid-5 times range [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for assets and the ability to achieve near 6% growth in 2026 [6][12] - The company anticipates a temporary drag on comparable POI growth due to turnover in anchor space, but expects occupancy levels to improve by year-end 2026 [24][57] Other Important Information - The company will report both NAREIT FFO and core FFO going forward to enhance comparability across periods [22] - Guidance for 2026 includes a forecast for comparable POI growth of 3%-3.5% and assumes a full year's contribution from $750 million of high-quality assets acquired in 2025 [23][25] Q&A Session Summary Question: Can you provide insight into the investment pipeline? - The company is targeting large, dominant shopping centers and expects more opportunities in the second half of the year [30][31] Question: How much more peripheral multifamily could be marketed for sale this year? - There are opportunities to monetize residential products, with an estimated $400 million-$500 million available for sale [34][35] Question: Is the pricing power driving rent spreads broad-based? - Management indicated that the pricing power is broad-based, driven by high demand and limited supply across various property types [41][42] Question: Can you break down the same-store NOI growth? - The company expects about 3%-3.5% growth, with a significant portion coming from rent bumps and rollover [46] Question: What is the status of tenant credit and any watch list items? - The company has limited exposure to tenant credit issues, with Saks and Container Store being monitored [62][64] Question: What is driving the robust performance in California? - California is expected to be a major growth contributor due to leasing and development activity [69] Question: What is the timing for the development expansion pipeline? - The increase in the development pipeline is expected to be pro rata throughout the year [71] Question: What percentage of NOI is captured in the comp pool today? - Approximately 85%-90% of NOI is captured in the comparable pool [75]

Financial Data and Key Metrics Changes - The company reported a 6.4% growth in FFO for Q4 2025 and a 4.3% growth for the full year, with guidance for 2026 indicating close to 6% growth at the midpoint [6][18] - FFO per share for Q4 was $1.84, reflecting a strong operational quarter, slightly below the midpoint of guidance due to a non-cash charge related to Saks' bankruptcy [18][80] - Liquidity at year-end stood at $1.3 billion, with a new $250 million delayed draw term loan enhancing financial flexibility [19] Business Line Data and Key Metrics Changes - The overall portfolio was 96.1% leased and 94.1% occupied, with leasing driving future results [6][14] - The company signed 105 comparable deals in Q4, achieving a 12% rollover, and 20 non-comparable deals at an average rate of $48.18 [7][14] - The leasing platform achieved record-breaking volumes in 2025, with the highest annual square footage leased in company history [14] Market Data and Key Metrics Changes - Strong demand for assets was noted in both historical locations and newer markets, particularly in California, which is expected to be a major growth source [6][70] - Foot traffic in the greater Washington, D.C. area increased by 3% quarterly, with annual sales moving higher year-over-year [15][17] Company Strategy and Development Direction - The company is focused on driving rent growth, disciplined expense management, and capitalizing on quality real estate for multi-year growth opportunities [14] - A total of $280 million has been allocated for new residential development, with projects expected to add over 500 units to the portfolio [10][11] - The company plans to continue its asset recycling program, targeting both residential and retail assets for sale to fund acquisitions [35][86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across all categories and the ability to drive rents higher, with expectations for improved occupancy levels by the end of 2026 [15][42] - The company anticipates a temporary drag on comparable POI growth due to turnover in anchor spaces, but expects to recover and achieve growth in the mid-3% range historically [59] - The refinancing of bonds is expected to be managed efficiently, with no special dividends anticipated [49][80] Other Important Information - The company will report both NAREIT FFO and core FFO going forward to enhance comparability across periods [22] - Guidance for 2026 indicates core FFO of $7.42-$7.52 per share, representing about 5.8% growth compared to 2025 [23][25] Q&A Session Summary Question: Can you provide insight into the investment pipeline? - The company is targeting large, dominant shopping centers and expects more opportunities in the second half of the year [31] Question: How much more peripheral multifamily could be marketed for sale this year? - There are opportunities to monetize residential products, with an estimated $400 million-$500 million available for sale [35] Question: Is the pricing power driving rent increases broad-based? - Management indicated that the pricing power is broad-based, driven by high demand and limited supply across the portfolio [41] Question: Can you break down the same-store NOI growth? - The growth is driven by comparable POI growth, acquisitions, and redevelopment, with term fees expected to be slightly higher than last year [46] Question: What is the status of tenant credit and any watch list items? - The company has limited exposure to tenant credit issues, with Saks and Container Store being monitored closely [62][64] Question: What is driving the robust performance in California? - California is expected to be a major growth source due to leasing and development activity [70]

Core Viewpoint - Chongqing has introduced 22 new policies to stabilize the real estate market, focusing on optimizing housing supply, reducing purchasing costs, encouraging "selling old to buy new," and revitalizing existing stock [1][3]. Group 1: Demand-Side Measures - The new policies aim to lower the costs of purchasing and exchanging homes through subsidies, increased support for public and commercial loans, and tax incentives to promote housing consumption and support both rigid and improved housing demand [2][3]. - Subsidies include a 20,000 yuan incentive for families with two children and a 30,000 yuan incentive for families with three children who purchase new homes in the central urban area [3]. - First-time homebuyers in the central urban area without previous purchase records will receive a subsidy of 0.5% of the total transaction amount of the new home [3][4]. Group 2: Loan and Tax Policies - The new policies optimize housing provident fund loan policies, allowing families with existing housing in the district to reduce the recognized number of homes by one when applying for loans [4]. - Increased credit support for housing loans will be provided, ensuring that families without any complete homes in the local area can apply for loans under the first-home policy, regardless of previous loan usage [4][5]. - A personal income tax refund policy will be implemented for those selling their homes and purchasing new ones within one year, with full refunds for taxes paid if the new home price is equal to or greater than the selling price of the old home [5]. Group 3: Jiangsu Province Initiatives - Jiangsu Province is also working on dynamic improvements to real estate support policies, focusing on stabilizing market confidence and expectations through tailored strategies for different regions and demographics [6]. - The provincial government emphasizes the importance of revitalizing existing land use and promoting housing quality improvement initiatives [6].

Core Insights - The Italian real estate market is expected to remain vibrant through 2026, with prices continuing to rise, particularly in metropolitan areas, where rental market growth will outpace sales market growth [1][10]. Rental Market - Rental prices are projected to increase by 8.1% nationally, while home purchase prices will rise by 3.1% [3]. - The average rental price is €15.8 per square meter, while the average purchase price is €2,162 per square meter [4]. - Bari will see the highest rental price increase of 9.3%, from €13 to €14.2 per square meter [5]. City-Specific Trends - Milan will maintain its status as the most expensive city, with a price increase of 5%, reaching €23.7 per square meter [6]. - Florence follows closely, with prices at €22.9 per square meter and a growth rate of 5.7% [5][6]. - Rome's average price exceeds €19 per square meter, with significant regional variations [6]. Purchase Market - In Florence, the cost of purchasing a home is expected to grow by 6.8%, surpassing €5,000 per square meter, while Milan's growth is projected at only 2%, reaching €5,700 per square meter [7]. - The price disparity in Milan is notable, with central areas exceeding €11,000 per square meter, while some districts remain below €3,900 [8]. Market Activity - Despite rising prices, the number of real estate transactions is expected to increase, with estimates of 780,000 to 790,000 transactions in 2026, surpassing 2025 figures [9]. - The interest in residential properties remains strong, driven by favorable credit conditions and investor interest in rental properties, particularly in tourist-heavy cities [10][13].

Summary of Conference Call on China Property Market Industry Overview - The conference call focused on the **China Property** market, specifically discussing trends in home prices and market dynamics in January 2026 [1][8]. Key Points Home Price Trends - Secondary home prices in major cities fell by **0.7% month-on-month (m-m)** and **14.1% year-on-year (y-y)** in January 2026, showing a softer decline compared to previous months [2][14]. - **98%** of the sample cities experienced m-m decreases, but only **9%** saw faster declines, indicating a slight improvement in market conditions [2][16]. - Tier 1 cities reported a milder drop of **-0.3% m-m** compared to **-1.3% in December**, attributed to a pickup in secondary home sales due to mild policy easing [2][5]. Listings and Market Activity - Total listings remained stable, with an average decrease of **0.2% m-m** across approximately **50 sample cities** [3]. - New secondary listings decreased by **10% m-m** but increased by **40% y-y** due to the Chinese New Year (CNY) calendar effect, marking the tenth consecutive month of decline [3]. - Visits to agent shops decreased by **1% m-m** but rose **80% y-y** on average in January, suggesting a seasonal effect [4][11]. Future Expectations - The company expects further home price declines, projecting **8%** and **6% y-y** declines in secondary home prices for 2026 and 2027, respectively [5]. - The sentiment-driven outperformance in the industry is viewed as unsustainable, with expectations of near-term headwinds affecting companies like Greentown, Jinmao, Longfor, and Vanke [6]. Investment Recommendations - The report favors quality companies with credible self-help stories for 2026, such as **CR Land** and **Seazen**, which are expected to benefit from the focus on consumption and supportive policies for Real Estate Investment Trusts (REITs) [6]. - **C&D International** is highlighted as a consolidator in the residential market with an optimized land bank supporting margins and positive earnings growth [6]. Additional Insights - The analysis indicates that **67%** of the sample cities had higher total listings compared to pre-easing levels in September 2024, with about **30%** reaching record-high levels [3]. - The physical market downtrend is expected to continue but at a softer pace, with potential stabilization in tier 1 and select tier 2 cities by the second half of 2027 if the macro environment remains resilient [5]. Conclusion - The China Property market is experiencing a challenging environment with declining home prices and high secondary listings impacting buyer sentiment. The outlook remains cautious, with expectations of continued price declines and a focus on quality companies for investment opportunities.

Financial Data and Key Metrics Changes - Revenue from leasing decreased by 1% year-on-year, primarily due to the depreciation of the renminbi, while operating profit increased by 1% and underlying profit improved by 3% [9][10] - The net gearing ratio decreased to 32.7%, lower than the previous year, aided by a scrip dividend arrangement and reduced capital expenditures [30][66] Business Line Data and Key Metrics Changes - Mainland rental revenue remained flat year-on-year, with retail revenue up by 1% while office revenue faced headwinds, down by 8% overall [11][20] - In Hong Kong, rental revenue decreased by 2%, an improvement from a 4% decline in the first half of the year [10][24] - New letting increased by 15% and renewals by 5%, indicating effective tenant management [17] Market Data and Key Metrics Changes - The retail sector in Mainland China showed resilience, with a 3% increase in the second half of the year, while the office market continues to face challenges due to oversupply [11][20] - Hong Kong's retail market is stabilizing, with a notable improvement from a -9% to -2% decline in 2025 [23][24] Company Strategy and Development Direction - The company is focusing on its V3 strategy, which aims to expand with minimal capital expenditure and faster project execution, leveraging existing resources and relationships [4][7][36] - The company plans to enhance its presence in key cities like Shanghai, Hangzhou, Wuxi, and Kunming, aiming for increased market share and community engagement [5][36] Management's Comments on Operating Environment and Future Outlook - Management noted a mix of structural and cyclical corrections in the Hong Kong and Mainland markets, with cautious optimism for recovery in retail sales, particularly in non-luxury segments [8][56] - The company anticipates continued challenges in the office market for the next 18-24 months due to high supply levels [21][22] Other Important Information - The company achieved record-high footfall and sales in Q4, driven by effective tenant management and promotional events [18][19] - The company is preparing for its 66th anniversary with a focus on consumer engagement and experiential marketing [55] Q&A Session Summary Question: CEO's succession and qualities sought in a new CEO - The current CEO expressed a personal goal to retire at 55, emphasizing the importance of family time and confirming that the board has been informed well in advance [45][47] - The company is actively searching for a successor, with no specific timeline announced yet [46][52] Question: Outlook for Mainland China retail and tenant sales - Management remains cautiously optimistic about tenant sales growth, noting strong performance in non-luxury segments and a record-breaking Q4 [53][56] - January sales figures are expected to be comparable to last year, with the Chinese New Year falling later this year, which may positively impact sales [59]

Group 1 - In 2025, Shenyang implemented precise policies to better meet residents' rigid and improved housing demands, effectively boosting buyer confidence and promoting property transactions [1] - The land market in Shenyang saw a resurgence of premium land grabbing, with many high-quality projects entering the market, making successful "first openings" a norm [1] - The top three real estate companies in Shenyang by sales volume in 2025 were Aoyuan, Yirun, and Daobuduan, with sales figures of 2,490 million m², 1,351 million m², and 1,300 million m² respectively [2] Group 2 - The top three companies in terms of registered residential area in Shenyang were China Overseas, China Resources Land, and Longfor, with China Overseas holding the title of "triple crown" in area, amount, and number of units [4] - The leading residential projects by registered area included China Resources Land's Zhonghuanyuefu, China Overseas's Tianduan, and Songming Xinghewan, indicating a shift from demand for basic housing to improved housing products [7] - In the Heping District, the top three projects by registered area were China Overseas's Lingguan No. 1, Yujing New World, and Runqi Hepingli, showcasing strong performance in the area [13] Group 3 - In the Hunnan District, the top three projects by registered area were China Overseas's Tianduan, Shenyang Xinghewan, and China Overseas's Shengjing Juzhang, with multiple new projects entering the market [19] - The top three projects in the Tiexi District were Runxi Fu, Runyue Bay, and Tianyi Jingcheng's Milan Phase II, indicating a vibrant market with new projects on the horizon [29] - The top three projects in the Yuhong District were Hongfa Huanhua Creek, Xuefu Meidi City, and Poly Heguang Yuhai, with several new projects expected to enter the market soon [32]