Swire Properties (1972) investor relations material

Executive summary

• Revenue rose 20% year-over-year to HK$8,723 million for 1H 2025, driven by property investment, trading, and Miami asset disposals.

• Underlying profit attributable to shareholders increased 15% to HK$4,420 million, mainly from Miami disposals.

• Recurring underlying profit declined 4% to HK$3,420 million due to lower Hong Kong office rental income and higher sales/marketing expenses.

• Reported loss attributable to shareholders was HK$1,202 million, due to a HK$4,680 million fair value loss on investment properties.

• The balance sheet remains strong, with total equity at HK$272,547 million, net debt at HK$42,853 million, and gearing ratio stable at 15.7%.

Financial highlights

• Revenue increased 20% to HK$8,723 million; underlying profit up 15% to HK$4,420 million; recurring underlying profit down 4% to HK$3,420 million.

• Reported loss of HK$1,202 million due to valuation losses; underlying EPS up 15% to HK$0.76; dividend per share up 3% to HK$0.35.

• Net cash inflow before financing surged 420% to HK$6,683 million; cash generated from operations up 65% to HK$6,103 million.

• NAV per share decreased 1% to HK$47.01; total equity at HK$272,547 million.

• Share buy-back of 44.7 million shares for HK$707 million completed in 1H 2025.

Outlook and guidance

• The HK$100 billion investment plan is 67% committed, focusing on Hong Kong, Chinese Mainland, Southeast Asia, and Miami.

• Office demand in Hong Kong and Chinese Mainland expected to remain subdued, but premium assets benefit from 'flight-to-quality.'

• Retail sentiment in Hong Kong is cautious; Chinese Mainland retail market to improve with government stimulus and luxury demand.

• Residential sales in Hong Kong, Tier-1 Chinese Mainland cities, and Southeast Asia anticipated to strengthen; Miami luxury market robust.

• Progressive, mid-single digit annual dividend growth and global sustainability leadership remain priorities.