Ke Holdings Inc

KE Holdings reported a 74.9% jump in non-GAAP net income to RMB3.185 billion for the second quarter, even as revenue fell 5.7% year over year. Gross margin expanded 6.7 percentage points to 28.6%, while GAAP operating expenses declined 14.1% to RMB3.989 billion. Existing-home GTV rose 8% and new-home GTV increased 1.2%, but renovation and rental revenue dropped as the company exited inefficient operations and shifted rentals toward lower-risk net-revenue products. Management said the broad-based renovation adjustments are largely complete and highlighted AI-led, consumer-focused operational changes.

Real estate stocks advanced this week even as Wall Street's major averages declined amid a semiconductor sell-off and Middle East tensions. The S&P 500 Real Estate Index Sector rose 2.26% to 289.21 points, while the State Street Real Estate Select Sector SPDR ETF added 2.18% to $45.42. All real estate subsectors gained except data center REITs, which were pressured by New York becoming the first U.S. state to impose a one-year moratorium on large new data center construction and Jersey City banning data centers as the primary use of industrial property. KE Holdings led large-cap gainers with an 11.75% weekly increase to $17.40, while Digital Realty Trust and Equinix topped the losers, falling 3.62% and 2.97% respectively. Among midcaps, Rexford Industrial Realty rose 9.79% and Fermi dropped 8.19%.