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Globe and Mail
07-08-2025
- Business
- Globe and Mail
Ready Capital Corporation Reports Second Quarter 2025 Results
- GAAP LOSS PER COMMON SHARE FROM CONTINUING OPERATIONS OF $(0.31) - - DISTRIBUTABLE LOSS PER COMMON SHARE OF $(0.14) - - DISTRIBUTABLE LOSS PER COMMON SHARE BEFORE REALIZED LOSSES OF $(0.10) - NEW YORK, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Ready Capital Corporation ('Ready Capital' or the 'Company') (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market ('LMM') investor and owner-occupied commercial real estate loans, today reported financial results for the quarter ended June 30, 2025. 'As we begin to emerge from this CRE cycle, several items were completed since the first quarter which we believe will restore us to profitability', said Thomas Capasse, Ready Capital's Chairman and Chief Executive Officer. 'Our continued, targeted and decisive liquidation strategy on underperforming assets is designed to provide liquidity to support future reinvestment in our Core multi-family bridge portfolio.' Second Quarter Highlights LMM commercial real estate originations of $173 million Small Business Lending ('SBL') loan originations of $359 million, including $216 million of Small Business Administration 7(a) loans and $96 million of USDA loans Completed the sale of the Residential Mortgage Banking segment Book value of $10.44 per share of common stock as of June 30, 2025 Acquired approximately 8.5 million shares of the Company's common stock at an average price of $4.41 per share as part of stock repurchase program Issued an additional $50 million in aggregate principal amount of its 9.375% Senior Secured Notes due 2028 Subsequent Events On July 21, 2025, the Company secured ownership of the Portland OR, mixed-use asset via a consensual deed-in-lieu arrangement in which the Company assumed control. All components of the property will continue to operate business as usual. On August 6, 2025, the Company completed the sale of 21 loans with a carrying value of $494 million for net proceeds of $85 million. Use of Non-GAAP Financial Information In addition to the results presented in accordance with U.S. GAAP, this press release includes distributable earnings, formerly referred to as core earnings, which is a non-U.S. GAAP financial measure. The Company defines distributable earnings as net income adjusted for unrealized gains and losses related to certain mortgage backed securities ('MBS') not retained by us as part of our loan origination business, realized gains and losses on sales of certain MBS, unrealized gains and losses related to residential mortgage servicing rights ('MSR') from discontinued operations, unrealized changes in our current expected credit loss reserve, unrealized gains or losses on de-designated cash flow hedges, unrealized gains or losses on foreign exchange hedges, unrealized gains or losses on certain unconsolidated joint ventures, non-cash compensation expense related to our stock-based incentive plan, and one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses. The Company believes that this non-U.S. GAAP financial information, in addition to the related U.S. GAAP measures, provides investors greater transparency into the information used by management in its financial and operational decision-making, including the determination of dividends. However, because distributable earnings is an incomplete measure of the Company's financial performance and involves differences from net income computed in accordance with U.S. GAAP, it should be considered along with, but not as an alternative to, the Company's net income computed in accordance with U.S. GAAP as a measure of the Company's financial performance. In addition, because not all companies use identical calculations, the Company's presentation of distributable earnings may not be comparable to other similarly-titled measures of other companies. In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains and losses on MBS acquired by the Company in the secondary market but is not adjusted to exclude unrealized gains and losses on MBS retained by Ready Capital as part of its loan origination businesses, where the Company transfers originated loans into an MBS securitization and the Company retains an interest in the securitization. In calculating distributable earnings, the Company does not adjust Net Income (in accordance with U.S. GAAP) to take into account unrealized gains and losses on MBS retained by us as part of the loan origination businesses because the unrealized gains and losses that are generated in the loan origination and securitization process are considered to be a fundamental part of this business and an indicator of the ongoing performance and credit quality of the Company's historical loan originations. In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude realized gains and losses on certain MBS securities considered to be non-distributable. Certain MBS positions are considered to be non-distributable due to a variety of reasons which may include collateral type, duration, and size. In addition, in calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains or losses on residential MSRs, held at fair value from discontinued operations. Servicing rights relating to the Company's small business commercial business are accounted for under ASC 860, Transfer and Servicing. In calculating distributable earnings, the Company does not exclude realized gains or losses on commercial MSRs, as servicing income is a fundamental part of Ready Capital's business and is an indicator of the ongoing performance. To qualify as a REIT, the Company must distribute to its stockholders each calendar year at least 90% of its REIT taxable income (including certain items of non-cash income), determined without regard to the deduction for dividends paid and excluding net capital gain. There are certain items, including net income generated from the creation of MSRs, that are included in distributable earnings but are not included in the calculation of the current year's taxable income. These differences may result in certain items that are recognized in the current period's calculation of distributable earnings not being included in taxable income, and thus not subject to the REIT dividend distribution requirement until future years. The table below reconciles Net Income computed in accordance with U.S. GAAP to Distributable Earnings. U.S. GAAP return on equity is based on U.S. GAAP net income, while distributable return on equity is based on distributable earnings, which adjusts U.S. GAAP net income for the items Din the distributable earnings reconciliation above. Webcast and Earnings Conference Call Management will host a webcast and conference call on Friday, August 8, 2025 at 8:30am ET to provide a general business update and discuss the financial results for the quarter ended June 30, 2025. During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company's responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously. The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in. The webcast of the conference call will be available in the Investor Relations section of the Company's website at To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. To Participate in the Telephone Conference Call: Dial in at least five minutes prior to start time. Domestic: 1-877-407-0792 International: 1-201-689-8263 Conference Call Playback: Domestic: 1-844-512-2921 International: 1-412-317-6671 Replay Pin #: 13753253 The playback can be accessed through August 22, 2025. Safe Harbor Statement This press release contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, applicable regulatory changes; general volatility of the capital markets; changes in the Company's investment objectives and business strategy; the availability of financing on acceptable terms or at all; the availability, terms and deployment of capital; the availability of suitable investment opportunities; changes in the interest rates or the general economy; increased rates of default and/or decreased recovery rates on investments; changes in interest rates, interest rate spreads, the yield curve or prepayment rates; changes in prepayments of Company's assets; the degree and nature of competition, including competition for the Company's target assets; and other factors, including those set forth in the Risk Factors section of the Company's most recent Annual Report on Form 10-K filed with the SEC, and other reports filed by the Company with the SEC, copies of which are available on the SEC's website, The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. About Ready Capital Corporation Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services lower-to-middle-market investor and owner occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program and government guaranteed loans focused on the United States Department of Agriculture. Headquartered in New York, New York, the Company employs approximately 500 professionals nationwide. Additional information can be found on the Company's website at READY CAPITAL CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share data) 2025 2024 2025 2024 Interest income $ 152,735 $ 234,119 $ 307,702 $ 466,473 Interest expense (135,837) (183,167) (276,303) (366,972) Net interest income before (provision for) recovery of loan losses $ 16,898 $ 50,952 $ 31,399 $ 99,501 (Provision for) recovery of loan losses (8,640) 18,871 100,928 45,415 Net interest income after (provision for) recovery of loan losses $ 8,258 $ 69,823 $ 132,327 $ 144,916 Non-interest income Net realized gain (loss) on financial instruments and real estate owned 18,214 7,250 28,883 26,118 Net unrealized gain (loss) on financial instruments (1,614) (1,357) (3,364) 3,275 Valuation allowance, loans held for sale (39,746) (80,987) (139,464) (227,167) Servicing income, net of amortization and impairment of $12,874 and $18,168 for the three and six months ended June 30, 2025, and $4,678 and $8,375 for the three and six months ended June 30, 2024, respectively (304) 3,271 6,152 7,029 Gain (loss) on bargain purchase (14,381) (18,306) 88,090 (18,306) Income (loss) on unconsolidated joint ventures (144) 1,139 (4,126) 1,607 Other income 11,304 6,597 22,894 22,423 Total non-interest income (expense) $ (26,671) $ (82,393) $ (935) $ (185,021) Non-interest expense Employee compensation and benefits (23,159) (17,799) (44,413) (36,213) Allocated employee compensation and benefits from related party (3,600) (3,000) (6,876) (5,500) Professional fees (6,368) (6,033) (11,856) (13,098) Management fees – related party (5,072) (6,198) (10,649) (12,846) Loan servicing expense (11,038) (11,012) (26,882) (23,806) Transaction related expenses (639) (1,592) (3,333) (2,242) Impairment on real estate (4,268) (9,130) (6,614) (26,102) Other operating expenses (16,133) (12,672) (32,256) (25,887) Total non-interest expense $ (70,277) $ (67,436) $ (142,879) $ (145,694) Loss from continuing operations before benefit for income taxes (88,690) (80,006) (11,487) (185,799) Income tax benefit 39,939 48,579 45,146 78,790 Net income (loss) from continuing operations $ (48,751) $ (31,427) $ 33,659 $ (107,009) Discontinued operations Income (loss) from discontinued operations before benefit for income taxes (6,567) (3,699) (7,161) (1,812) Income tax benefit (provision) 1,641 925 1,790 453 Net income (loss) from discontinued operations $ (4,926) $ (2,774) $ (5,371) $ (1,359) Net income (loss) $ (53,677) $ (34,201) $ 28,288 $ (108,368) Less: Dividends on preferred stock 1,999 1,999 3,998 3,998 Less: Net income attributable to non-controlling interest 1,814 1,820 4,274 1,937 Net income (loss) attributable to Ready Capital Corporation $ (57,490) $ (38,020) $ 20,016 $ (114,303) Earnings per common share from continuing operations - basic $ (0.31) $ (0.21) $ 0.15 $ (0.67) Earnings per common share from discontinued operations - basic $ (0.03) $ (0.02) $ (0.03) $ (0.01) Total earnings per common share - basic $ (0.34) $ (0.23) $ 0.12 $ (0.68) Earnings per common share from continuing operations - diluted $ (0.31) $ (0.21) $ 0.15 $ (0.67) Earnings per common share from discontinued operations - diluted $ (0.03) $ (0.02) $ (0.03) $ (0.01) Total earnings per common share - diluted $ (0.34) $ (0.23) $ 0.12 $ (0.68) Weighted-average shares outstanding Basic 167,749,917 168,653,741 166,465,234 170,343,303 Diluted 170,673,088 169,863,975 169,320,001 171,513,556 Dividends declared per share of common stock $ 0.125 $ 0.30 $ 0.25 $ 0.60 READY CAPITAL CORPORATION UNAUDITED SEGMENT REPORTING Three Months Ended June 30, 2025 (in thousands) LMM Commercial Real Estate Small Business Lending Corporate-Other Consolidated Interest income $ 122,268 $ 30,467 $ — $ 152,735 Interest expense (116,088) (19,749) — (135,837) Net interest income before provision for loan losses $ 6,180 $ 10,718 $ — $ 16,898 Provision for loan losses (5,146) (3,494) — (8,640) Net interest income after provision for loan losses $ 1,034 $ 7,224 $ — $ 8,258 Non-interest income Net realized gain (loss) on financial instruments and real estate owned 2,766 15,448 — 18,214 Net unrealized gain (loss) on financial instruments (4,128) 3,380 (866) (1,614) Valuation allowance, loans held for sale (39,746) — — (39,746) Servicing income, net 1,931 (2,235) — (304) Loss on bargain purchase — — (14,381) (14,381) Income on unconsolidated joint ventures (155) 11 — (144) Other income 2,775 7,522 1,007 11,304 Total non-interest income (loss) $ (36,557) $ 24,126 $ (14,240) $ (26,671) Non-interest expense Employee compensation and benefits (6,479) (14,435) (2,245) (23,159) Allocated employee compensation and benefits from related party (360) — (3,240) (3,600) Professional fees (929) (3,291) (2,148) (6,368) Management fees – related party — — (5,072) (5,072) Loan servicing expense (11,013) (25) — (11,038) Transaction related expenses — — (639) (639) Impairment on real estate (4,268) — — (4,268) Other operating expenses (4,472) (9,972) (1,689) (16,133) Total non-interest expense $ (27,521) $ (27,723) $ (15,033) $ (70,277) Income (loss) before provision for income taxes $ (63,044) $ 3,627 $ (29,273) $ (88,690) Total assets $ 7,377,104 $ 1,530,810 $ 400,883 $ 9,308,797 READY CAPITAL CORPORATION UNAUDITED SEGMENT REPORTING Six Months Ended June 30, 2025 (in thousands) LMM Commercial Real Estate Small Business Lending Corporate-Other Consolidated Interest income $ 247,241 $ 60,461 $ — $ 307,702 Interest expense (236,442) (39,861) — (276,303) Net interest income before recovery of (provision for) loan losses $ 10,799 $ 20,600 $ — $ 31,399 Recovery of (provision for) loan losses 112,795 (11,867) — 100,928 Net interest income after recovery of (provision for) loan losses $ 123,594 $ 8,733 $ — $ 132,327 Non-interest income Net realized gain (loss) on financial instruments and real estate owned (11,834) 40,717 — 28,883 Net unrealized gain (loss) on financial instruments (4,732) 2,234 (866) (3,364) Valuation allowance, loans held for sale (139,464) — — (139,464) Servicing income, net 3,346 2,806 — 6,152 Gain on bargain purchase — — 88,090 88,090 Income (loss) on unconsolidated joint ventures (4,160) 34 — (4,126) Other income 5,812 14,784 2,298 22,894 Total non-interest income (loss) $ (151,032) $ 60,575 $ 89,522 $ (935) Non-interest expense Employee compensation and benefits (12,350) (29,739) (2,324) (44,413) Allocated employee compensation and benefits from related party (688) — (6,188) (6,876) Professional fees (1,747) (6,196) (3,913) (11,856) Management fees – related party — — (10,649) (10,649) Loan servicing expense (26,077) (805) — (26,882) Transaction related expenses — — (3,333) (3,333) Impairment on real estate (6,614) — — (6,614) Other operating expenses (7,808) (21,043) (3,405) (32,256) Total non-interest expense $ (55,284) $ (57,783) $ (29,812) $ (142,879) Income (loss) before provision for income taxes $ (82,722) $ 11,525 $ 59,710 $ (11,487)
Zawya
05-08-2025
- Business
- Zawya
Eaton Square: Ellington's first a-grade office building and MBR City's newest business landmark
Foreign direct investment is fuelling demand for high-quality, future-ready workspaces 70,500 new companies joined the Dubai Chamber in 2024, reflecting rising demand for premium office spaces like Eaton Square. The development introduces a next-generation office concept that integrates wellness, architecture, and smart technology, anchored by seven core wellness principles. Dubai, UAE – Ellington Properties, Dubai's leading design-led real estate developer, proudly announces the launch of Eaton Square, its first-ever commercial development. Located in Mohammed Bin Rashid City (MBR City), this project marks a bold new chapter for the developer, extending its signature commitment to thoughtful design and human-centric living into the commercial real estate sector. As Dubai strengthens its role as a global business hub through progressive national initiatives like the Dubai Economic Agenda D33, rising foreign direct investments are driving demand for high-quality, future-ready workspaces. In 2024, the Dubai Chamber of Commerce recorded its highest-ever annual increase in memberships, with 70,500 new companies – a 4.6% year-on-year rise. Growth sectors include construction (33%), real estate and business services (8.4%), transportation and communications (8.3%), and financial services (8.3%). Eaton Square is designed to meet this demand for modern workplaces that prioritise wellbeing, flexibility, and innovation. Scheduled for completion in Q2 2028, the project will rise as a contemporary commercial tower featuring 11 bespoke office floors and premium retail spaces. Each floor has been meticulously designed for single-tenant occupancy, ensuring exclusivity and privacy for businesses, offering panoramic views of Dubai's skyline and the surrounding central lagoon, and creating a truly elevated working environment. Joseph Thomas, Co-Founder of Ellington Properties, said, 'With Eaton Square, we are expanding the boundaries of what commercial real estate can offer in Dubai. This launch reflects our continued commitment to design excellence, now reimagined for the workplace. As the city evolves into a global hub for businesses, there is a clear need for workspaces that foster wellbeing, creativity, and connection. Eaton Square delivers on that promise, offering an environment that inspires performance and cultivates balance.' In line with Ellington's human-centric approach, Eaton Square offers an extensive range of indoor and outdoor amenities designed to support a modern work-life experience- from a state-of-the-art fitness centre, yoga studio, sauna, and changing rooms to an executive lounge and co-working lounge equipped with presentation technology. An on-site daycare centre supports working parents, while designated phone booths and quiet zones promote focus and privacy. Lifestyle elements include a promenade offering dining and leisure retail experiences, a kids' play area, and outdoor games such as table tennis and chess. The development also emphasises accessibility and sustainable mobility, featuring parking bays, EV charging stations, and bicycle storage, and integrates advanced smart building technology, including destination control lifts, facial recognition (FR), Near Field Communication (NFC), QR code readers across front-of-house (FOH) areas, and video analytics with people counting, behavioural analysis, and object tracking. Strategically located in MBR City, Eaton Square offers more than a progressive commercial address; it delivers a forward-thinking environment that blends architectural distinction with wellness, functionality, and smart innovation to elevate the way people work and live. About Ellington Properties: Ellington Properties is Dubai's leading design-led real estate developer, dedicated to crafting beautiful properties and communities for high-quality lifestyles. Renowned for its customer-centric approach, Ellington Properties develops residences characterized by incredible artistry and impeccable architecture. The company's diverse portfolio includes communities across Dubai, such as Downtown Dubai, Business Bay, Dubai Hills, Palm Jumeirah, Mohammed Bin Rashid City (MBR City), and Dubai Islands, among others, as well as in Ras Al Khaimah, including Al Marjan Islands and Hayat Island. Ellington Properties combines thoughtful design, art, and lifestyle curation to create sanctuaries of personalized living experiences.
Yahoo
31-07-2025
- Business
- Yahoo
Apollo Commercial Real Estate Finance Inc (ARI) Q2 2025 Earnings Call Highlights: Strong Loan ...
Distributable Earnings: $36 million or $0.26 per share for the second quarter. GAAP Net Income: $18 million or $0.12 per diluted share. Loan Portfolio Carrying Value: $8.6 billion, up from $7.7 billion in Q1. Weighted Average Unlevered Yield: 7.8%. New Loan Originations: $1.4 billion in commitments for the quarter. Add-on Fundings: $394 million for previously closed loans. Repayments and Sales: $631 million during the quarter. General CECL Allowance Increase: $3.1 million. Total Liquidity: $208 million at quarter end. Book Value Per Share: $12.59, excluding general CECL allowance and depreciation. Warning! GuruFocus has detected 9 Warning Signs with ARI. Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Apollo Commercial Real Estate Finance Inc (NYSE:ARI) delivered strong performance in Q2 2025, with significant progress in loan originations, portfolio management, and balance sheet optimization. ARI committed to $1.4 billion in new loans during the quarter, with year-to-date commitments reaching $2 billion, showcasing robust capital redeployment. The company benefits from Apollo's real estate credit platform, allowing access to a diverse transaction flow and eliminating cash drag. Approximately 2/3 of residential loans in ARI's portfolio have been originated in the past 24 months, benefiting from a valuation reset and enhanced credit quality. ARI successfully refinanced its Term Loan B facilities, extending corporate debt maturity to June 2029, highlighting market confidence in the company. Negative Points The carrying value of ARI's portfolio increased by 12% from the prior quarter, but the book value per share decreased slightly to $12.59. Despite progress, some assets like the Brook are still non-earning, with plans to monetize them not expected until early next year. The general CECL allowance increased by $3.1 million due to portfolio growth, indicating potential risk exposure. Leverage remains around 4 times, with significant non-earning assets, raising concerns about future leverage management. The office sector remains challenging, with ARI avoiding new office deals due to market conditions and portfolio concentration concerns. Q & A Highlights Q: How is the progress at the Brook, and what is the timeline for generating cash flow and potentially moving on from the asset? A: The Brook is a 500-plus unit development, with 70% market rate and 30% affordable units. Leasing has started on the market rate side, and the asset is expected to become cash flow positive early next year. A decision on whether to sell outright or bring in a partner is anticipated between the first and second quarter of next year. The ultimate plan is to monetize and move on. - Stuart Rothstein, CEO Q: Can you provide more details on the potential upside from the land parcels associated with the Brook? A: There is a small parcel referred to as the Western parcel, and discussions are ongoing about acquiring air rights or the assets outright to increase density. If successful, this could provide upside for ARI shareholders, but it is too early to predict the outcome. - Stuart Rothstein, CEO Q: What are your expectations for the commercial real estate transaction market through the end of the year, and how does it affect ARI's plans? A: Activity has picked up, and there is more capital and deal flow. We are confident in finding opportunities that fit ARI's goals. The market is expected to remain robust, providing enough opportunities for ARI to achieve its objectives. - Stuart Rothstein, CEO Q: How are you approaching the current cross currents in the commercial real estate market, and where do you see the best opportunities? A: We remain constructive on all forms of housing, including senior housing and student housing. We are cautious with office deals and focus on opportunities in the UK, Europe, and the US. We avoid ground-up development except for long-term lease data centers. - Scott Weiner, CIO Q: Is there any expectation for changes in the dividend policy, and what factors could prevent a dividend increase? A: There are no material tax protections against rising earnings, and the goal is to distribute as much of the earnings as possible as dividends. The policy is reviewed quarterly, and the aim is to maintain stability without frequent special dividends. - Stuart Rothstein, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
29-07-2025
- Business
- Zawya
Greater Bay Area Residential Market Largely Stabilized, Although Sentiment in Q2 2025 Marred by Geopolitical Risks
Logistics Portfolio Investment Transactions Gain Attention, Neighborhood Retail Assets Becoming Sought After Greater Bay Area (GBA) cities continued to extend property-related easing policies from last year through the 1H 2025 period, with a focus on alleviating financial pressure on the supply side and supporting overall residential market sentiment However, transaction activity slowed from April 2025, impacted by uncertainties from the trade tariff war, with 1H 2025 GBA primary residential sales numbers growing slightly at 3% y-o-y Total investment volume in the GBA commercial real estate (CRE) market reached RMB24.7 billion in 1H 2025, accounting for more than 31% of the overall Chinese mainland investment market The industrial/logistics sector's share of total GBA CRE investment expanded notably with several large-sized logistics portfolio deals recorded, while neighbourhood retail malls also captured interest HONG KONG SAR - Media OutReach Newswire – 29 July 2025 – Global real estate services firm Cushman & Wakefield today published its Greater Bay Area Residential and Commercial Real Estate Investment Market 1H 202 5 Review and 2H Outlook. Local governments across GBA cities continued the real estate policies introduced last year through the 1H 2025 period to continue to support a stable market recovery, including easing restrictions on the demand side and alleviating financial pressures on the supply side. From January to March, primary residential market transaction numbers and prices demonstrated growth. Regardless, market sentiment has been weakened since April by uncertainties surrounding the trade tariff war, again prompting potential home buyers to adopt a wait-and-see approach, and resulting in a pause in the upward momentum in home prices. GBA primary residential sales numbers through 1H 2025 recorded mild y-o-y growth of 3%. As for the CRE investment market (large-sized deals at >RMB100 million), property owners have adjusted their expectations. The industrial/ logistics sector accounted for more than 50% of the total GBA investment consideration in 1H 2025, with several large-sized logistics portfolio deals recorded. At the same time, the market has seen increasing interest in the neighborhood retail sector, where assets with stable rental yields are gaining investors' attention. We expect to see more high-quality retail assets transacted in the second half of the year. GBA Residential Market Following the Central Government's reiteration of the need to halt the real estate market decline and spur a stable recovery in its 2025 work report, both the Central Government and GBA local governments continued to extend market-easing real estate policies from last year through the 1H 2025 period. Measures on the demand side, such as "four cancellations" and "four reductions" were extended. Authorities also focused on alleviating financial pressures on the supply side, aiming to strengthen overall market sentiment and boost buyer confidence. Key initiatives included promoting the launch of special-purpose bonds to reclaim and acquire idle land and unsold residential units. Notably, Guangzhou became the first Tier-1 city in the country to fully abolish the "three restrictions" in housing policy. The GBA primary residential market showed resilience in the Q1 period despite being the traditional off-season. Monthly transaction numbers from January to March expanded on the same period last year. However, starting from April, greater uncertainties surrounding the trade tariff war weighed on overall economic performance and dampened residential market sentiment. In turn, more potential home buyers adopted a wait-and-see approach. New home sales in April fell by 16% from March, while May and June remained largely stable. The GBA primary residential market recorded approximately 137,000 transactions in the 1H 2025 period, up slightly at 3% y-o-y, with Tier-1 cities such as Guangzhou and Shenzhen showing significant growth. However, comparing with the significant recovery following last year's introduction of aggressive easing policies, the 1H 2025 total transaction number was down 26% from the 2H 2024 level (Chart 1). Chart 1: GBA First-Hand Residential Sales Source: CREIS, Cushman & Wakefield In terms of home prices, primary market prices are more swayed by the quality level of newly launched projects. First-hand residential prices in the nine GBA mainland cities showed mixed performances in 1H 2025. Developers generally adopted more realistic pricing strategies to attract buyers, actively offloading inventory to improve cash flow. For secondary home prices, which better reflect current underlying trends, and using Shenzhen as an example, the Cushman & Wakefield Shenzhen mid-to-high-end secondary home price index strengthened by 4.0% from the Q4 2024 level. However, as market sentiment turned more cautious from April, overall prices experienced downward pressure and recorded a q-o-q decline of 4.4% in Q2, bringing the year-to-date adjustment to a modest -0.5% (Chart 2). Chart 2: Shenzhen Mid-to-High-End Secondary Home Price Index Source: Cushman & Wakefield Alva To, Cushman & Wakefield's Vice President, Greater China & Head of Consulting, Greater China said, "With central and local governments continuing to relax demand-side policies, and with the central government actively promoting the development of "Good Housing," we expect pent-up demand from both first-home buyers and upgraders to be further released. Through the past six months, local governments have accelerated the implementation of special-purpose bonds to reclaim and acquire idle land and unsold units, helping to alleviate developers' financial pressures and promote supply-demand balance in the housing market. These efforts should also support potential homebuyers' confidence and, in turn, a stable recovery in the GBA residential market. In the 1H 2025 period, new home sales numbers stood out in Guangzhou and Shenzhen, indicating that high-quality residential units, in prime locations in first-tier cities, at reasonable prices continue to be sought after despite market volatility. "However, uncertainties surrounding trade tariff policies contributed to weaker sentiment in the GBA residential market in Q2, and the restoration of market confidence is expected to take time. We believe that, even if China-U.S. trade tensions show sign of easing in 2H 2025, lingering uncertainty may keep buyers cautious through the Q3 period, and residential transaction numbers are not likely to strengthen significantly. Nonetheless, fundamental housing demand from first-time homebuyers and upgraders is likely to provide continuous support to the GBA residential market. We forecast average monthly new home sales to record around 27,000 to 28,000 units in 2H 2025, bringing the full-year 2025 transaction number to approximately 300,000 units. Meanwhile, home prices are still facing downwards pressure, with a full-year price correction estimated in the range of a 0%–5% decline." GBA CRE Investment Market The GBA CRE property investment market remained resilient in the 1H 2025 period, with total investment volume reaching RMB24.7 billion, marking a 108% increase compared to the same period last year, and accounting for around 31% of total investment volume in the Chinese mainland (see Chart 3). Among the 35 transactions, 31 were at less than RMB1 billion, reflecting that investors remain cautious on big-ticket transactions. Chart 3: CRE Investment Transactions in the GBA (2020 - 1H 2025) Source: Cushman & Wakefield By property type, industrial and logistics assets accounted for the largest share of total CRE property investment in the GBA by transaction value in 1H 2025, with 14 related deals making up more than half of the total investment volume (see Chart 4). Within the industrial and logistics transactions, Tier-2 cities including Zhuhai, Foshan, Dongguan, Zhongshan, Jiangmen, Zhaoqing, and Huizhou, recorded a combined transaction volume of RMB9.6 billion, comprising both logistics portfolios and individual warehouse deals. Dongguan, classified as a Tier-2 city, stands out as a top choice for logistics investment due to its strategic location, making it the most desirable logistics hub within the GBA and a key focus for investors. Investment interest in the neighborhood retail sector also continued to heat up in the 1H period. Assets with stable rental yields and mature operations are favored by the market, attracting a diverse range of buyers. A total of nine retail sector transactions were recorded in the GBA in 1H 2025. Chart 4: Share of Asset Type in the GBA CRE Investment Market (by Transaction Volume) Source: Cushman & Wakefield Charli Chan, Cushman & Wakefield's Deputy Managing Director, Capital Markets, China commented, "Looking ahead to 2H 2025, among the various types of investment properties, we believe the logistics and commercial sectors will continue to outperform. With the ongoing expansion of cross-border e-commerce, demand for logistics assets has remained strong and continues to attract investor attention. However, the GBA's warehouse market is expected to see a heavy new supply pipeline over the next two to three years, which will likely lead to a rise in vacancy rates and exert downward pressure on rents. Moreover, since the onset of the China–U.S. trade tensions, market sentiment has become more volatile. Logistics asset owners have become more pragmatic, allowing for greater room in price negotiations. This has helped narrow the expectation gap between buyers and sellers, potentially facilitating more transactions in logistics and warehouse facilities. We believe institutional and long-term investors will seize this opportunity to hunt for value. On the other hand, we expect to see more transactions involving high-quality commercial assets in the 2H 2025 period. Benefiting from the spillover of Hong Kong residents' spending power and a shift toward mid- to lower-end consumption, well-performing shopping centers and community retail malls are gaining market traction and interest from potential investors. However, mall owners in Tier-1 cities tend to be more reluctant to sell, whereas owners in Tier-2 cities are more pragmatic, making retail projects in mature communities the preferred investment sectors for insurance companies and real estate funds." Please click here to download photos. Photo 1: Alva To, Cushman & Wakefield's Vice President, Greater China & Head of Consulting, Greater China (Left), and Charli Chan, Cushman & Wakefield's Deputy Managing Director of Capital Markets, China (Right) Hashtag: #Cushman&Wakefield The issuer is solely responsible for the content of this announcement. About Cushman & Wakefield Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2023, the firm reported revenue of $9.5 billion across its core services of valuation, consulting, project & development services, capital markets, project & occupier services, industrial & logistics, retail and others. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit or follow us on LinkedIn ( Cushman & Wakefield
Malay Mail
29-07-2025
- Business
- Malay Mail
Greater Bay Area Residential Market Largely Stabilized, Although Sentiment in Q2 2025 Marred by Geopolitical Risks
Logistics Portfolio Investment Transactions Gain Attention, Neighborhood Retail Assets Becoming Sought After Greater Bay Area (GBA) cities continued to extend property-related easing policies from last year through the 1H 2025 period, with a focus on alleviating financial pressure on the supply side and supporting overall residential market sentiment However, transaction activity slowed from April 2025, impacted by uncertainties from the trade tariff war, with 1H 2025 GBA primary residential sales numbers growing slightly at 3% y-o-y Total investment volume in the GBA commercial real estate (CRE) market reached RMB24.7 billion in 1H 2025, accounting for more than 31% of the overall Chinese mainland investment market The industrial/logistics sector's share of total GBA CRE investment expanded notably with several large-sized logistics portfolio deals recorded, while neighbourhood retail malls also captured interest GBA Residential Market Chart 1: GBA First-Hand Residential Sales Chart 2: Shenzhen Mid-to-High-End Secondary Home Price Index GBA CRE Investment Market Chart 3: CRE Investment Transactions in the GBA (2020 - 1H 2025) Chart 4: Share of Asset Type in the GBA CRE Investment Market ( by Transaction Volume ) HONG KONG SAR - Media OutReach Newswire – 29 July 2025 –today published itsLocal governments across GBA cities continued the real estate policies introduced last year through the 1H 2025 period to continue to support a stable market recovery, including easing restrictions on the demand side and alleviating financial pressures on the supply side. From January to March, primary residential market transaction numbers and prices demonstrated growth. Regardless, market sentiment has been weakened since April by uncertainties surrounding the trade tariff war, again prompting potential home buyers to adopt a wait-and-see approach, and resulting in a pause in the upward momentum in home prices. GBA primary residential sales numbers through 1H 2025 recorded mild y-o-y growth of 3%. As for the CRE investment market (large-sized deals at >RMB100 million), property owners have adjusted their expectations. The industrial/ logistics sector accounted for more than 50% of the total GBA investment consideration in 1H 2025, with several large-sized logistics portfolio deals recorded. At the same time, the market has seen increasing interest in the neighborhood retail sector, where assets with stable rental yields are gaining investors' attention. We expect to see more high-quality retail assets transacted in the second half of the the Central Government's reiteration of the need to halt the real estate market decline and spur a stable recovery in its 2025 work report, both the Central Government and GBA local governments continued to extend market-easing real estate policies from last year through the 1H 2025 period. Measures on the demand side, such as "four cancellations" and "four reductions" were extended. Authorities also focused on alleviating financial pressures on the supply side, aiming to strengthen overall market sentiment and boost buyer confidence. Key initiatives included promoting the launch of special-purpose bonds to reclaim and acquire idle land and unsold residential units. Notably, Guangzhou became the first Tier-1 city in the country to fully abolish the "three restrictions" in housing GBA primary residential market showed resilience in the Q1 period despite being the traditional off-season. Monthly transaction numbers from January to March expanded on the same period last year. However, starting from April, greater uncertainties surrounding the trade tariff war weighed on overall economic performance and dampened residential market sentiment. In turn, more potential home buyers adopted a wait-and-see approach. New home sales in April fell by 16% from March, while May and June remained largely stable. The GBA primary residential market recorded approximately 137,000 transactions in the 1H 2025 period, up slightly at 3% y-o-y, with Tier-1 cities such as Guangzhou and Shenzhen showing significant growth. However, comparing with the significant recovery following last year's introduction of aggressive easing policies, the 1H 2025 total transaction number was down 26% from the 2H 2024 level (Chart 1).Source: CREIS, Cushman & WakefieldIn terms of home prices, primary market prices are more swayed by the quality level of newly launched projects. First-hand residential prices in the nine GBA mainland cities showed mixed performances in 1H 2025. Developers generally adopted more realistic pricing strategies to attract buyers, actively offloading inventory to improve cash flow. For secondary home prices, which better reflect current underlying trends, and using Shenzhen as an example, the Cushman & Wakefield Shenzhen mid-to-high-end secondary home price index strengthened by 4.0% from the Q4 2024 level. However, as market sentiment turned more cautious from April, overall prices experienced downward pressure and recorded a q-o-q decline of 4.4% in Q2, bringing the year-to-date adjustment to a modest -0.5% (Chart 2).Source: Cushman & Wakefieldsaid, "With central and local governments continuing to relax demand-side policies, and with the central government actively promoting the development of "Good Housing," we expect pent-up demand from both first-home buyers and upgraders to be further released. Through the past six months, local governments have accelerated the implementation of special-purpose bonds to reclaim and acquire idle land and unsold units, helping to alleviate developers' financial pressures and promote supply-demand balance in the housing market. These efforts should also support potential homebuyers' confidence and, in turn, a stable recovery in the GBA residential market. In the 1H 2025 period, new home sales numbers stood out in Guangzhou and Shenzhen, indicating that high-quality residential units, in prime locations in first-tier cities, at reasonable prices continue to be sought after despite market volatility."However, uncertainties surrounding trade tariff policies contributed to weaker sentiment in the GBA residential market in Q2, and the restoration of market confidence is expected to take time. We believe that, even if China-U.S. trade tensions show sign of easing in 2H 2025, lingering uncertainty may keep buyers cautious through the Q3 period, and residential transaction numbers are not likely to strengthen significantly. Nonetheless, fundamental housing demand from first-time homebuyers and upgraders is likely to provide continuous support to the GBA residential market. We forecast average monthly new home sales to record around 27,000 to 28,000 units in 2H 2025, bringing the full-year 2025 transaction number to approximately 300,000 units. Meanwhile, home prices are still facing downwards pressure, with a full-year price correction estimated in the range of a 0%–5% decline."The GBA CRE property investment market remained resilient in the 1H 2025 period, with total investment volume reaching RMB24.7 billion, marking a 108% increase compared to the same period last year, and accounting for around 31% of total investment volume in the Chinese mainland (see Chart 3). Among the 35 transactions, 31 were at less than RMB1 billion, reflecting that investors remain cautious on big-ticket Cushman & WakefieldBy property type, industrial and logistics assets accounted for the largest share of total CRE property investment in the GBA by transaction value in 1H 2025, with 14 related deals making up more than half of the total investment volume (see Chart 4). Within the industrial and logistics transactions, Tier-2 cities including Zhuhai, Foshan, Dongguan, Zhongshan, Jiangmen, Zhaoqing, and Huizhou, recorded a combined transaction volume of RMB9.6 billion, comprising both logistics portfolios and individual warehouse deals. Dongguan, classified as a Tier-2 city, stands out as a top choice for logistics investment due to its strategic location, making it the most desirable logistics hub within the GBA and a key focus for interest in the neighborhood retail sector also continued to heat up in the 1H period. Assets with stable rental yields and mature operations are favored by the market, attracting a diverse range of buyers. A total of nine retail sector transactions were recorded in the GBA in 1H Cushman & Wakefieldcommented,"Looking ahead to 2H 2025, among the various types of investment properties, we believe the logistics and commercial sectors will continue to outperform. With the ongoing expansion of cross-border e-commerce, demand for logistics assets has remained strong and continues to attract investor attention. However, the GBA's warehouse market is expected to see a heavy new supply pipeline over the next two to three years, which will likely lead to a rise in vacancy rates and exert downward pressure on rents. Moreover, since the onset of the China–U.S. trade tensions, market sentiment has become more volatile. Logistics asset owners have become more pragmatic, allowing for greater room in price negotiations. This has helped narrow the expectation gap between buyers and sellers, potentially facilitating more transactions in logistics and warehouse facilities. We believe institutional and long-term investors will seize this opportunity to hunt for value. On the other hand, we expect to see more transactions involving high-quality commercial assets in the 2H 2025 period. Benefiting from the spillover of Hong Kong residents' spending power and a shift toward mid- to lower-end consumption, well-performing shopping centers and community retail malls are gaining market traction and interest from potential investors. However, mall owners in Tier-1 cities tend to be more reluctant to sell, whereas owners in Tier-2 cities are more pragmatic, making retail projects in mature communities the preferred investment sectors for insurance companies and real estate funds."Please click here to download 1:, Cushman & Wakefield's Vice President, Greater China & Head of Consulting, Greater China (Left), and, Cushman & Wakefield's Deputy Managing Director of Capital Markets, China (Right)Hashtag: #Cushman&Wakefield The issuer is solely responsible for the content of this announcement. About Cushman & Wakefield Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2023, the firm reported revenue of $9.5 billion across its core services of valuation, consulting, project & development services, capital markets, project & occupier services, industrial & logistics, retail and others. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit or follow us on LinkedIn (
