Annual Report 2019 – Highlights, Financials, and Insights for Investors

Option: concentrate on year-to-date changes in 2q19 bronx property metrics; increase visibility among citywide advisors; track changes in their bid activity; capture third-party price quotes; monitor record transactions here.

2q19 data show a large shift in bronx property valuations; year-to-date metrics reflect changes in financing costs; prospective buyers slowed; advisors from citywide networks report their bid activity down; a notable increase in cap rates accompanies this trend.

Interactive dashboards use mouseover tooltips to reveal year-to-date deltas; third-quarter indicators point to a steady level of occupancy in large bronx property segments; Waggoner advisors from citywide networks report a record volume of inquiries here; prospective tenants plus buyers show renewed interest from the south bronx corridor.

Next steps: opt to prioritize cash-flow visibility; heighten due diligence on a small set of prospective bronx properties; their performance metrics were strongest where leasing improved year-to-date; track this trajectory here; align exposure with citywide guidance from advisors.

Section Overview: 4Q19 Update; 2019 Year in Review; Market Update; Block by Block; Looking Ahead B6’s 2020 Predictions; Block by Block 3Q19

Implement a block by block action plan; prioritize multifamily assets across core markets such as New York City, northern metros; 2q19 shows increased volume; since 4Q19 momentum signals a large uptick in office activity plus multifamily activity; emphasize time-to-close efficiency, clean datasets, quarterly dashboards for tracking performance.

2019 Year in Review: totals across sectors reached a large milestone; multifamily assets led volume in northern markets, like york city, new york; office properties represented the majority within the office sector; suburban properties posted a slower pace; year-over-year comparisons show a decline in cap rates; still, overall volume remained above long-term averages; several portfolios were highlighted since mid-year to illustrate breadth across city markets.

Market Update: time to close in multifamily exceeded 2q19 levels; the long-run trend shows a slow decline in office absorption; northern markets posted resilience, while city core markets experienced a modest pullback; block by block analysis highlights a large contributor in the york city portfolio; sector representation remained tilted toward multifamily plus office assets; 3Q19 saw quarterly upticks in office capitalization rates; 4Q19 projections indicate stable volume with a minor uptick in transaction velocity; interactive mouseover visuals underscore reallocation across time and block segments.

Block by Block: quarterly slices reveal asset mix shifts across markets; york city, northern markets, time-slice segments show where liquidity concentrates; largest blocks moved toward multifamily properties, while office blocks lag in some regions; overall outcomes align with 2q19 momentum, 3Q19 signals within a wider market cycle; advisors are monitoring the following trends, including both volume growth plus asset type representation.

Block by Block 3Q19: block-level totals reveal where volume concentrated; following 2q19 movement, the large gain occurred in multifamily properties within york city, with high activity in northern assets; 3Q19 block performance shows a slow, steady improvement; office blocks lag in several markets, while multifamily blocks moved up within large portfolios; representation by block highlights a shift toward assets in the northern tier, city core.

Looking Ahead B6’s 2020 Predictions: expectations point to renewed velocity in multifamily within northern markets, city core; advisors anticipate a gradual price stabilization; cap rates holding near new baselines; office properties may slow in several blocks, yet prime corridors show resilience; annual cycles imply a shift toward efficient asset types; asset mix leans toward multifamily plus office sectors; volume growth expectations hover around high single digits year-over-year, quarter-over-quarter gains starting mid year; 2q19 and 3q19 trends underpin a cautious stance, yet upside exists in select markets such as york city, here in the northeast.

4Q19 Update: Topline Performance by Channel, Margin Trends, and Guidance Adjustments

Recommendation: Prioritize topline stabilization through channel optimization; implement margin discipline via mix shifts; update guidance to reflect 4q19 momentum; bronx portfolio mix remains a growth lever.

1. Topline performance by channel (4q19)

   • Totals: $1,150m; quarter-over-quarter +2.3%; transactions: 9,200; QoQ +1.3%
   • By channel: Multifamily $650m, +3.4%; Office $260m, -1.5%; markets/Other $240m, +4.0%
   • bronx properties contribution: $70m, +2.8%; Portfolios mix shift toward multifamily now represents 56% of totals; property mix improves profile

2. Margin trends

   • Gross margin 4q19: 29.2%; 3q19: 28.6% (0.6pp rise)
   • Operating margin 4q19: 15.8%; 3q19: 15.2% (0.6pp rise)
   • Cost discipline: SG&A as % of revenue declined 0.7pp; mix shift toward multifamily supports margins; which provides clearer leverage in the new quarter

3. Guidance adjustments

   • Topline target 2020: +4% to +6% YoY; revenue near $4.9B
   • Operating margin target: 15.0% to 15.5%
   • Capex around 4% of revenue; option to pursue selective block acquisitions in high-concentration markets; bronx and multifamily portfolios to drive growth

4. Operational observations

   • mouseover on channel charts highlights margin drivers; 4q19 update confirms level of profitability by markets; street market segments show resilience
   • Since 2016, margins improved in third-party transactions; Waggoner model confirms trajectory; three years of data support a durable trend

2019 Year in Review: Key Milestones, Segment Shifts, and Year-over-Year Comparisons

Reallocate capital toward brooklyn submarket properties with rising micro volume; prioritize citywide portfolios with positive year-to-date activity; investors can reduce risk by selecting the first option; just focus on data that confirms momentum.

street chris coordinates with advisors; representation from city advisors indicates brooklyn property with rising volume; the 4q19 snapshot shows all-time strength in specific property types while other submarkets lag; decline in several city pockets requires caution.

From update, quarter-over-quarter momentum shows improvement in brooklyn; citywide changes reflect shifts in assets, properties; large properties remain a focus; investors keep a watch on the situation.

City pockets show decline in some segments; large portfolios were active, while other sectors cooled.

Market Update: Economic Signals, Competitive Landscape, and Regulatory Impacts

Recommendation: tilt portfolios toward bronx submarket; brooklyn micro markets show clear upside in office, multifamily assets, while liquidity preserved to absorb changes. Prospective portfolios assign first priority to real-office assets within york markets; third priority to multifamily across select submarkets. This time horizon requires a disciplined approach, with a highlight on visible micro-trends across markets.

Market signals: york markets show slow macro backdrop; quarterly data point to all-time highs in select representation; while following policy shifts, trends remain mixed. Office rents rose to clear levels in brooklyn submarkets; bronx multifamily performance held steady; across time, leasing velocity improved in select boroughs. Mouseover data from leasing portals show prospective tenants preference for flexible terms.

Competitive landscape: first movers in brooklyn submarkets capture premium yields; bronx submarket shows cap rates were rising from new supply; third-tier york markets show slower price changes. Across markets, select buyers seek diversified portfolios; micro representations of risk justify a just cautious tilt toward office type, multifamily assets. Time series highlight trends across offices, multifamily, with quarterly time horizons.

Regulatory impacts: following policy shifts, zoning revisions raise costs in select bronx, brooklyn submarkets; rent stabilization updates reshape cap levels; tax incentives favor multifamily across york markets. Real assets within selected portfolios adjust representation to reflect higher compliance diligence; quarterly cadence remains essential as regulation changes ripple across office, multifamily sectors.

Block by Block: Product Rollouts, Adoption Metrics, and Revenue Attribution

block-by-block rollout of the new transactions engine; Chris leads analytics, targeting bronx, northern citywide markets, plus multifamily assets.

Numbers show increased transactions by 12%, volume by 9%, plus totals rising quarter-over-quarter across blocks.

Changes by block drive insights here; which block-level metrics reveal all-time highs in citywide markets, bronx office assets.

real-time revenue attribution reflects a real-time mix by asset type; time-to-activation for each asset drives performance, aligning with their adoption curves.

To sharpen guidance, apply quarterly reviews: quarter-over-quarter trends, metric definitions, asset-type classification, block-level changes.

This increase in adoption mirrors sector shifts here, from bronx to northern markets, with other regions showing momentum.

Looking Ahead: B6’s 2020 Predictions, Scenario Planning, and 3Q19 Insights

Recommendation: Prioritize 2020 exposure toward citywide properties within Brooklyn blocks; maintain exposure to select street-level sector opportunities with upside; base planning on 4q19 numbers; implement quarterly updates to track changes; rely on scenario planning to keep risk at a clear level.

Key moves include a first increase in allocation to citywide properties in chosen Brooklyn street corridors; the following metrics illustrate momentum: citywide vacancy rates; block-level rent; sector representation; activity by quarterly cadence. A slow market backdrop requires chris york to apply a conservative risk buffer; while waggoner provides a set of alternative scenarios; mouseover charts deliver a quick view of insights, with all-time highs in some centers; changes across neighborhoods remain mixed. Industries like street-front retail show higher sensitivity to changes. Other inputs from waggoner reinforce risk controls.

3Q19 insights point to shifts: chris york notes clear momentum in Brooklyn citywide properties; following numbers show slower momentum in non-core sectors; 4q19 update shows a first increase in street-front activity; representation of market changes remains favorable; the market remains clear for selective properties across the city; mouseover data supports quick interpretation of sector changes; waggoner contributes additional insights for risk management; highlight remains on core corridors as a driver of 2020 plans.