Nam Tai Property Inc. (OTC Expert Market: NTPIF) (the “Company”) is pleased to announce a significant milestone in its Technology Center project. The Company’s subsidiary, Nam Tai Investment, has successfully entered into a six-year master lease agreement with a high-profile state-owned partner, Shenzhen Anju Leyu Development & Construction Co. Ltd. ("Shenzhen Anju").

This strategic partnership serves to significantly de-risk the project by locking in a government-backed counterparty with a strong credit profile, while reducing the lease-up time and cost. Shenzhen Anju manages the rental housing program for the Futian District Government, which oversees Shenzhen's core administrative and commercial zone.

The agreement covers the dormitory facilities of the Company's Technology Center project in Bao’an District, comprising approximately 456 units across 24,000 square meters. The project is currently under construction and expected to be delivered in 2026.

• Substantial Revenue: Upon full occupancy, this agreement is projected to generate approximately RMB 18 million in stable annual rental income for the Company.
• Immediate Lease-Up: Due to exceptional demand for subsidized housing, as demonstrated by a waiting list of over 80,000 applicants, the Company projects the units will reach full occupancy shortly after delivery with limited costs. The rental housing programs in Shenzhen benefit from 70% of rental costs subsidized by the local government. This strong government support further enhances the robustness of the agreement and ensures the long-term viability of the tenancy.
• Competitive Yields: While the agreement includes strategic pricing, the projected revenue yield is on par with market-rate leasing approaches due to the superior occupancy stability provided by this partnership and lower lease-up costs.

Strategic Executive Commentary

Bo Hu, Chief Executive Officer of Nam Tai Property Inc., highlighted the value creation for shareholders:

“This master lease arrangement effectively de-risks the transaction by partnering with a government-backed counterparty, ensuring high payment security and reliability. This partnership is expected to yield higher-than-market occupancy rates and a significantly shortened lease-up timeline. This agreement is anticipated to enhance the Company's revenue stability, reduce operational risks, and support long-term value creation for shareholders.”

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