Financial Data and Key Metrics Changes - For Q4 2025, normalized FFO attributable to common shareholders was $29.5 million or $0.29 per diluted share, exceeding expectations [25] - FFO attributable to common shareholders was $23.1 million or $0.23 per diluted share, while AFFO was $17.8 million or $0.17 per diluted share [26] - Same-store NOI for the portfolio increased 6.3% on a GAAP basis and 7.1% on a cash basis [26] - For the full year 2025, normalized FFO attributable to common shareholders was $110.1 million or $1.08 per diluted share, above guidance [26] - Same-store NOI for the full year increased 2.8% on a GAAP basis and 2% on a cash basis [27] Business Line Data and Key Metrics Changes - Retail same-store NOI for Q4 was up 5.6% on a GAAP basis and 3.4% on a cash basis, driven by new leasing and positive renewal spreads [15] - Office same-store NOI for Q4 was up over 10% GAAP and nearly 17% cash, supported by leasing gains [20] - Year-over-year, office same-store NOI increased 6% GAAP and 7% cash [20] Market Data and Key Metrics Changes - Retail same-store results year-over-year were up 1% GAAP and down 1% cash, impacted by anchor space vacancies due to bankruptcies [16] - Occupancy at The Interlock increased nearly 600 basis points in 2025, ending the year at over 94% leased [20] Company Strategy and Development Direction - The company announced a rebranding to AH Realty Trust, effective March 2, marking a strategic transformation [5] - Plans include exiting the multifamily portfolio and fee income businesses to simplify operations and improve income predictability [6][9] - The focus will be on retail and office assets in growing markets, with a goal to maximize shareholder value [6][9] - The company aims to reduce leverage by approximately two full turns post-transformation [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining full dividend coverage from cash flows generated by operating properties while reducing debt [11] - The company anticipates 2026 to be a transition year, with guidance reflecting discontinued operations [10] - Management emphasized a disciplined approach to capital allocation and a focus on sustainable cash flow growth [12] Other Important Information - The company is under an LOI for 11 of its 14 multifamily assets, indicating strong interest from credible parties [7] - The exit of the construction business is nearly complete, and discussions are ongoing for the real estate financing investments [8] Q&A Session Summary Question: Long-term growth trajectory and financing plans - Management indicated a balanced approach to leverage and capital allocation, with a focus on maintaining appropriate leverage while considering equity and debt options for future acquisitions [38][39] Question: Retail to office NOI split in five years - The company plans to operate where it can add the most value, focusing on both retail and office, with a disciplined approach to acquisitions [42][43] Question: Mixed-use communities and office investments - Management confirmed a capability in mixed-use investments but emphasized a current focus on retail, with potential for office asset sales if pricing is favorable [48][51] Question: Multifamily dispositions and pricing - The company is under LOI for 11 assets, targeting mid-5 cap range pricing, and is making significant progress in the sales process [52] Question: Dividend payout ratio trends - Management aims to maintain a conservative approach to dividends, focusing on cash flow positivity and simplification of the company before considering dividend increases [54][56] Question: Development as part of long-term strategy - While open to development opportunities, the current focus is on acquisitions due to higher capital costs, with a willingness to engage in surgical development when appropriate [60]

Market Overview - 2025 was characterized by high borrowing costs leading to flat REIT valuations and chilled investor sentiment, but signs of recovery emerged towards the end of the year with rate cuts and softened inflation [1][19] - The recovery in 2026 is expected to be steadier and built on real operating improvements rather than a rapid rebound [2] Ascendas REIT - Ascendas REIT reported a portfolio occupancy of 91.3% by September 2025, with a stable Weighted Average Lease Expiry (WALE) of 3.6 years and rental reversions increasing by 7.6% [3] - As of December 1, 2025, Ascendas REIT had a market cap of approximately S$12.95 billion, with an annualized yield of about 5.1% and an aggregate leverage of 39.8% [4] - The REIT's financial strength is highlighted by an interest coverage ratio of 3.6 times, and it is well-positioned for new acquisitions if financing costs decrease [5] CapitaLand Integrated Commercial Trust (CICT) - CICT led the retail and office REITs in Singapore, reporting S$403.9 million in gross revenue for 3Q2025, a 1.5% increase year-over-year, and a net property income (NPI) of S$294.4 million, up 1.6% [6] - The trust had a market cap of about S$17.559 billion as of December 1, 2025, with an overall occupancy rate of 97.2% [8] - CICT's distributable income increased by 12.4% to S$411.9 million in 1H2025, with a DPU of S$0.0562, reflecting positive rental reversions in both retail and office sectors [9][10] AIMS APAC REIT - AIMS APAC REIT reported a slight increase in gross revenue of 0.2% year-over-year to S$93.7 million, with a net property income of S$68.4 million, up 1.1% [11] - The REIT's DPU increased by 1.1% to S$0.04720, with a market cap of approximately S$1.177 billion as of December 1, 2025 [12] - The portfolio's occupancy was 93.3%, with a WALE of 4.2 years, supported by a diverse tenant base [12][13] Frasers Centrepoint Trust (FCT) - FCT achieved a gross revenue increase of 10.8% to S$389.6 million in FY2025, with an NPI rise of 9.7% to S$278.0 million [16] - The trust's DPU increased by 0.6% to S$0.12113, and its market cap was about S$4.64 billion as of December 1, 2025 [16] - FCT maintained a strong retail committed occupancy of 98.1% and reported a rental reversion increase of 7.8% [17][18] Investment Outlook - The expected decline in interest rates and stabilizing capitalization rates may ease valuation pressures, encouraging investors to return to income-producing assets [19][21] - The REITs identified for potential growth in the upcoming cycle share characteristics such as strong balance sheets and reliable tenants, positioning them well for recovery [21][22]