Swire Properties Limited · HKEX:1972
Swire Properties — H1 2025 Earnings Presentation
56 slides from Swire Properties's earnings presentation, Aug 7, 2025
Slide 1: 2025 Interim Results | Analysts Briefing
2025 INTERIM RESULTS | ANALYSTS BRIEFING 7TH AUGUST 2025
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Swire Properties Limited (the “Company”, together with its subsidiaries, the “Group”) solely for information purposes and the information contained herein has not been independently verified. No representation or warranty, express or implied, is made
Slide 3: Agenda
AGENDA 1. Results Highlights and Strategy 2. Investment Portfolio Tim Blackburn 3. Residential Trading Portfolio Chief Executive 4. Hotel Portfolio 5. Financial Highlights Fanny Lung 6. Sustainability Highlights Chief Financial Officer 7. Outlook 8. Q&A 3
Slide 4: 2025 Interim Results Highlights
2025 INTERIM RESULTS HIGHLIGHTS STRONG PERFORMANCE DESPITE MARKET HEADWINDS ▪ Capital recycling successfully drove double-digit Dividend per Share Underlying Profit Sustainable growth for growth in underlying profit and reinforced financial position. 9 consecutive years +15% ▪ Resilient rental incom
Slide 5: Key Developments
KEY DEVELOPMENTS SIGNIFICANT PROGRESS IN CAPITAL RECYCLING AND PORTFOLIO UPGRADES May Lujiazui Taikoo Yuan Residences, Shanghai 2025 ▪ Second batch launched with 55 out of 57 units pre-sold. (1) ▪ Total sale proceeds of RMB5.93Bn from both batches. Brickell City Centre land, Miami ▪ Sale for US$211.
Slide 6: Capital Recycling
CAPITAL RECYCLING Cumulative Disposal PROVEN TRACK RECORD IN ANNUAL ASSET DISPOSAL Proceeds HK$Bn - Taikoo Shing Car - Cityplaza One (1) - Two and Three - Fort Lauderdale, - One Island East Florida (42/F - 54/F) (1) (3) Parking Spaces HK$ 57.7 Bn (4) Brickell City - 8-12 Tsing Tim - Taikoo Shing Car
Slide 7: HK$100 Billion Investment Plan
HK$100 BILLION INVESTMENT PLAN ADVANCED PROGRESS ACHIEVED; PRIORITISING EXECUTION Investing in Long-term Growth Chinese Mainland - Retail-led mixed-use projects in Tier-1 / emerging Tier-1 cities; doubling of GFA by 2032 ▪ Taikoo Li Xi’an ▪ Taikoo Li Sanya (2) ▪ Increased stake at Taikoo Li Chengdu
Slide 8: Upcoming Projects
UPCOMING PROJECTS (1) A STRONG PIPELINE OF DEVELOPMENTS ACROSS MARKETS Expected Attributable Expected Completion Year GFA to be Completed 2025 2026 2027 2028 onwards Brand Space Artist Impression Artist Impression +13.3 M THE HEADLAND RESIDENCES Taikoo Place Beijing Taikoo Li Xi’an Wireless Road Pro
Slide 9: Investment Portfolio
INVESTMENT PORTFOLIO Taikoo Li Sanlitun, Beijing
Slide 10: Hong Kong Office
HONG KONG OFFICE WELL-POSITIONED TO BENEFIT FROM A RECOVERY IN DEMAND AND FLIGHT-TO-QUALITY One Island East & Other Taikoo Place Pacific Place (4) Two Taikoo Place One Taikoo Place Office Towers (5) GFA (M sq ft) 2.2 2.3 1.0 3.1 Occupancy 94% 91% 68% 89% Rental Reversion -14% -14% n.a. -16% Latest R
Slide 11: Hong Kong Retail
HONG KONG RETAIL 100% OCCUPANCY MAINTAINED The Mall, Pacific Place Cityplaza Citygate Outlets GFA (M sq ft) 0.7 1.1 0.8 Occupancy 100% 100% 100% Retail Sales +1.4% +2.0% -3.3% -1% (vs Dec 2024) 100% -2% (vs 1H 2024) HK$ 43.3 Bn Attributable Gross Overall Occupancy Attributable Valuation Rental Incom
Slide 12: Chinese Mainland Portfolio
CHINESE MAINLAND PORTFOLIO A KEY CONTRIBUTOR TO GROWTH ▪ Attributable rental contributions from Chinese Mainland retail portfolio exceeded those from Hong Kong office portfolio. ▪ Chinese Mainland portfolio contributed 42% attributable gross rental income in 1H 2025. Attributable Gross Rental Income
Slide 13: Chinese Mainland Portfolio
CHINESE MAINLAND PORTFOLIO GROWTH SUPPORTED BY TENANT MIX UPGRADES AND ASSET REINFORCEMENT Significant Upgrades In progress / HKRI Taikoo Hui, Shanghai Taikoo Li Sanlitun, Beijing Taikoo Li Chengdu recently completed ▪ “The Louis” by Louis Vuitton opened. ▪ Tenant mix enhancement and fit ▪ Second-wa
Slide 14: Chinese Mainland Retail
CHINESE MAINLAND RETAIL STRATEGIC UPGRADES TO TENANT MIX WITH MORE LUXURY RETAILERS HKRI Taikoo Hui Taikoo Li Sanlitun ▪ Over 26 new stores opened including Asian flagships and new ▪ Continuous successful upgrade of brand positioning. image concepts. ▪ Upcoming completion of luxury flagship stores –
Slide 15: Chinese Mainland Retail
CHINESE MAINLAND RETAIL ENCOURAGING SIGNS OF RETAIL SALES STABILISATION ❖ Significant +1% (vs 1H 2024) upgrades at existing projects +70% (vs 1H 2019) (4) for tenant mix enhancements Overall Attributable ❖HKRI Taikoo Hui, Shanghai ❖Taikoo Li Sanlitun, Beijing Taikoo Li Chengdu Retail Sales in 1H 202
Slide 16: Chinese Mainland Office
CHINESE MAINLAND OFFICE RESILIENT OCCUPANCY Taikoo Hui, Guangzhou INDIGO, Beijing (3) HKRI Taikoo Hui, Shanghai GFA (M sq ft) 1.7 0.6 1.9 Occupancy 91% 86% 95% Latest Rentals (RMB psm) Mid 100s – low 200s High 100s – low 200s Low 300s – low 400s -3% (HKD/RMB) -1% (vs Dec 2024) (vs 1H 2024) HK$ 11.9
Slide 17: Chinese Mainland Pipeline
CHINESE MAINLAND PIPELINE GROSS FLOOR AREA TO DOUBLE UPON PROJECT COMPLETIONS Investment Properties Expected Completion From 2026 (by phases) From 2027 (by phases) Taikoo Place Beijing (2) Shanghai New Bund Mixed- Taikoo Li Sanya (2) (3) Taikoo Li Xi’an (2) ▪ 49.895% interest use Project ▪ 50% inter
Slide 18: Residential Trading Portfolio
RESIDENTIAL TRADING PORTFOLIO Lujiazui Taikoo Yuan Residences, Shanghai Artist Impression
Slide 19: Residential Trading Portfolio
RESIDENTIAL TRADING PORTFOLIO MORE PROJECT LAUNCHES IN 2H Completed / Expected Residential GFA Completions (1) (Attributable basis) 1,714 GFA (‘000 sq ft) 1,115 1,056 115 LA MONTAGNE THE HEADLAND RESIDENCES Brand Space, Hong Kong Artist Impression 30th Jun 2025 2025F 2026F Beyond 2028F Hong Chinese
Slide 20: Residential Trading Portfolio – Projects in Focus
RESIDENTIAL TRADING PORTFOLIO – PROJECTS IN FOCUS STRONG SALES ACHIEVED IN SHANGHAI; HONG KONG IMPROVING SENTIMENT THE HEADLAND RESIDENCES, Lujiazui Taikoo Yuan Residences, Hong Kong (80% Interest) Shanghai (40% Interest) ▪ 692k sq ft GFA (2) ▪ 1.2M sq ft GFA (3) (4) ▪ Exp. completion from 2025 ▪ 10
Slide 21: Residential Trading Portfolio
RESIDENTIAL TRADING PORTFOLIO A DIVERSE PIPELINE ACROSS REGIONS EIGHT STAR STREET, Wan Chai (100% Interest) Empire City, Ho Chi Minh City, Vietnam (15.73% Interest) ▪ 2,178 sq ft (2) ▪ Completed in 2022, ~ 95% sold (3) ▪ 5.4M sq ft GFA ▪ Average sale price (4): HK$ 39,826 psf ▪ Mixed-use (Residentia
Slide 22: Hotel Portfolio
HOTEL PORTFOLIO The Middle House, Shanghai
Slide 23: Hotel Portfolio
HOTEL PORTFOLIO STEADY PERFORMANCE OVERALL ▪ Recorded EBITDA profit (1) of HK$25M at managed hotels in 1H 2025 (in line with 1H 2024). ▪ Recovery for our hotel business in Hong Kong has been slower than expected, while performance was mixed in the Chinese Mainland. ▪ Expanding hotel portfolio throug
Slide 24: Financial Highlights
FINANCIAL HIGHLIGHTS Pacific Place, Hong Kong
Slide 25: Underlying Profit
UNDERLYING PROFIT STRONG UNDERLYING PROFIT GROWTH DRIVEN BY DISPOSAL GAINS Non-recurring ▪ Underlying profit increased by 15% primarily due to the profit arising from the Underlying Profit HK$M Recurring disposals of our investments in Miami. 11,570 ▪ Recurring underlying profit decreased by 4% main
Slide 26: Rental Income
RENTAL INCOME LARGELY STABLE RETAIL RENTAL INCOME OFFSETTING LOWER OFFICE RENTAL INCOME Attributable Gross Rental Income (1) HK$M ▪ Largely steady occupancy despite market headwinds. HK Office ▪ Increased leasing enquiries due to a more active IPO market. 15,205 14,909 -5% ▪ High vacancy rates and n
Slide 27: Focus on Long-Term Shareholder Value
FOCUS ON LONG-TERM SHAREHOLDER VALUE STRONG TRACK RECORD OF DELIVERING TARGET DIVIDEND GROWTH Dividends Dividend Per Share HK$ / Share ▪ Aiming to deliver mid-single digit annual growth in dividends and to pay out CAGR (2016-2024): +5.6% approximately half of underlying profit in 2024 vs 2016: +55%
Slide 28: Investment Properties Valuation
INVESTMENT PROPERTIES VALUATION Movement in Investment Properties Valuation (1) ▪ The slight decrease in the valuation of the (excl. hotels and investment properties held under JVCs) investment property portfolio mainly reflected a HK$M decrease in the fair value of Hong Kong office, 280,000 disposa
Slide 29: Net Debt and Gearing
NET DEBT AND GEARING CAPITAL RECYCLING REINFORCED FINANCIAL STRENGTH Net Debt Reconciliation (HK$M) Financial Ratios (1) 2021 (2) 2022 2023 2024 Jun 2025 Net debt at 31st December 2024 (43,746) Total equity (HK$M) 293,610 292,258 288,149 278,427 272,547 Net rental, fee receipts and proceeds from 7,0
Slide 30: Maturity Profile and Liquidity
MATURITY PROFILE AND LIQUIDITY DIVERSIFIED FUNDING SOURCES WITH MORE RENMINBI ISSUANCE Maturity Profile of Available Committed Facilities (at 30th Jun 2025) HK$M Dec 2024 Jun 2025 HK$M 18,000 Available committed facilities 56,643 66,807 16,000 Drawn - committed (48,487) (55,782) 14,000 6,349 Undrawn
Slide 31: Capital Commitments
CAPITAL COMMITMENTS Profile of Capital Commitments for Investment Properties and Hotels – at 30th Jun 2025 HK$M Expenditure Forecast Expenditure Total Commitments Commitments (1) relating to JVCs (2) Six months Six months 2026 2027 2028 & At 30th Jun 2025 At 30th Jun 2025 ended 30th ending 31st late
Slide 32: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS Sustainability Report 2024
Slide 33: Global and Local Leadership in Sustainability
GLOBAL AND LOCAL LEADERSHIP IN SUSTAINABILITY REALISING OUR STRATEGY THROUGH INNOVATION AND BEST PRACTICE S&P Global S&P Sustainability Yearbook 2025 Climate Transition Assessment The ONLY company to reach the Top 1% S&P CSA Score in the Real ▪ 1st APAC real estate developer to publish an S&P Global
Slide 34: Accelerating Actions to Advance to Net Zero
ACCELERATING ACTIONS TO ADVANCE TO NET ZERO MAKING STEADY PROGRESS TOWARDS 1.5°C-ALIGNED SBT Progress against SBT – Scope 1 and Scope 2 Driving Energy Efficiency Improvement CIBSE Building Performance Awards 2025 – Leadership (Scope 1 and 2) against 2019 baseline year 0% % Reduction of Absolute GHG
Slide 35: Bespoke Tenant Engagement Programmes
BESPOKE TENANT ENGAGEMENT PROGRAMMES ADVANCING ENVIRONMENTAL PERFORMANCE THROUGH COLLECTIVE EFFORTS Green Performance Pledge (GPP) Green Kitchen Initiative Latest Progress (1) 150+ >5M sq ft / 60% 130+ F&Bs in HK & Chinese Mainland received Green Kitchen Awards (June 2025) Green Kitchen Fit-out Reco
Slide 36: Make Way for Nature
MAKE WAY FOR NATURE INTEGRATING NATURE AND BIODIVERSITY CONSIDERATIONS INTO OUR BUSINESS ESG UPDATES Sustainability Report 2024 36
Slide 37: Outlook
OUTLOOK Taikoo Li Julong Wan Guangzhou Artist Impression
Slide 38: Outlook
OUTLOOK RESILIENT PERFORMANCE UNDERPINNED BY CONSISTENT EXECUTION Markets OUTLOOK Hong Kong Chinese Mainland South East Asia Retail Resilient Improving n.a. Increased enquiries, Oversupply, Office n.a. ‘flight-to-quality’ ‘flight-to-quality’ Residential Improving Strong in prime locations Improving
Slide 39: End of Presentation
END OF PRESENTATION Taikoo Li Chengdu
Slide 40: Q&A Appendix
Q&A APPENDIX Taikoo Place Beijing Artist Impression
Slide 41: 2025 Interim Results Summary
2025 INTERIM RESULTS SUMMARY STRONG FINANCIAL RESULTS HK$M 1H 2024 1H 2025 Change Revenue 7,279 8,723 +20% Valuation losses on investment properties (842) (3,900) n.a. Operating profit 3,217 355 -89% Underlying profit 3,857 4,420 +15% Recurring underlying profit 3,570 3,420 -4% Reported profit/(loss
Slide 42: Property Portfolio at a Glance
PROPERTY PORTFOLIO AT A GLANCE A LEADING PROPERTY DEVELOPER, OWNER AND OPERATOR Investment Props / Hotels Office Retail Hotels (1) Residential / Under Total Attributable Investment Props / Attributable GFA (M sq ft) Serv. Apts Planning Hotels by Region (GFA M sq ft) Completed Hong Kong 9.4 2.6 0.8 0
Slide 43: Hong Kong Portfolio
HONG KONG PORTFOLIO EXPANSION TO REINFORCE OUR OFFICE PORTFOLIO Expected Attributable GFA of Completed Commercial Property Portfolio (incl. Hotels) (‘000 sq ft) 16,000 14,219 14,000 13,440 13,440 779 12,000 10,000 8,000 13,440 13,440 13,440 6,000 4,000 2,000 - 2025F 2026F 2027F onwards Existing Port
Slide 44: Milestone: Completion of Taikoo Place Redevelopment
MILESTONE: COMPLETION OF TAIKOO PLACE REDEVELOPMENT TRANSFORMATION INTO GLOBAL BUSINESS DISTRICT ▪ Pacing development of Taikoo Place Redevelopment new stock to reflect market conditions. ▪ Providing more open space and landscaped areas, including Taikoo Square, Taikoo Garden, and Taikoo 9-43 Hoi Wa
Slide 45: The Residences at Mandarin Oriental, Miami
THE RESIDENCES AT MANDARIN ORIENTAL, MIAMI LUXURY RESIDENTIAL AND HOSPITALITY PROJECT UNDER PLANNING ▪ Pre-sales launched in 2024 and have exceeded expectations. ▪ Two towers on Brickell Key: ▪ First tower will comprise luxury private residences. ▪ Second tower will comprise a new Mandarin Oriental
Slide 46: Key Business Strategies
KEY BUSINESS STRATEGIES SUSTAINABLE GROWTH IN SHAREHOLDER VALUE IN THE LONG-TERM ▪ Continue to create long-term value by conceiving, designing, developing, owning and managing transformational mixed-use and other projects in urban areas. ▪ Maximise the earnings and value of our completed properties
Slide 47: Geographical Analysis
GEOGRAPHICAL ANALYSIS TOWARDS A MORE BALANCED PORTFOLIO Attributable Gross Rental Income by Region (1) Net Assets Employed Hong Kong Chinese Mainland U.S.A. and elsewhere Hong Kong Chinese Mainland U.S.A. and elsewhere 1H 2025 55% 42% 3% 30th Jun 2025 73% 26% 1% FY 2024 56% 41% 3% 31st Dec 2024 73%
Slide 48: Tenant Mix
TENANT MIX A BALANCED TENANT PROFILE Others Fashion and Others 17.3% Fashion & 23.9% Accessories Accessories 27.7% 45.4% Jewellery & Ice Rink 0.9% Hong Watches 3.8% Chinese Jewellery & Watches Kong Cinemas 5.3% Mainland 1.8% Cinemas Retail Supermarkets Retail 4.2% 6.8% Supermarkets Food & 6.2% Bever
Slide 49: Lease Expiry Profile
LEASE EXPIRY PROFILE WELL-SPREAD EXPIRY ▪ Hong Kong Office ▪ Hong Kong Retail ▪ Chinese Mainland Retail ▪ Chinese Mainland Office ▪ Top ten office tenants occupied ▪ Top ten retail tenants occupied ▪ Top ten retail tenants occupied ▪ Top ten office tenants occupied approx.25% office area in approx.
Slide 50: Hong Kong Portfolio Map
HONG KONG PORTFOLIO MAP Completed Investment Props (incl. Hotels) (100% basis) 5.69 M sq ft GFA Pacific Place 4.3 M (Attri. basis) Completed Investment Props (incl. Hotels) (100% basis) * 8.43 M sq ft GFA Taikoo Place & Cityplaza 7.9 M (Attri. basis) 50
Slide 51: Hong Kong Portfolio Map
HONG KONG PORTFOLIO MAP Completed Investment Props (incl. Hotels) (100% basis) 1.33 M sq ft GFA Citygate 0.36 M (Attri. basis) 51
Slide 52: Chinese Mainland Portfolio
CHINESE MAINLAND PORTFOLIO Portfolios Assets Investment Properties GFA Occupancy (sq ft) Taikoo Hui, Guangzhou Taikoo Hui Completed Retail: 100% Taikoo Hui Towers 1&2 3.78 M (100% basis) Office: 91% Mandarin Oriental Guangzhou 3.67 M (97% basis) Taikoo Hui, Guangzhou No. 387 Tianhe Road Under Renova
Slide 53: Chinese Mainland Portfolio
CHINESE MAINLAND PORTFOLIO Portfolios Assets Investment Properties GFA Occupancy (sq ft) HKRI Taikoo Hui, Shanghai HKRI Taikoo Hui Mall Completed Retail: 94% (1) HKRI Centre 1&2 3.73 M (100% basis) Office: 95% The Middle House 1.87 M (50% basis) The Sukhothai Shanghai HKRI Taikoo Hui, Shanghai The M
Slide 54: Hotel Portfolio
HOTEL PORTFOLIO Managed Hotels No. of Rooms Interest Owned but Non-managed Hotels No. of Rooms Interest (100% basis) (100% basis) Hong Kong The Upper House 117 100% Hong Kong Island Shangri-La Hong Kong 544 20% EAST Hong Kong 331 100% JW Marriott Hotel Hong Kong 608 20% Headland Hotel (1) 501 0% Con
Slide 55: Business Outlook
BUSINESS OUTLOOK HK ▪ Expected to remain relatively subdued amid ongoing CM ▪ Retail market is expected to gradually gain pace, supported by Office macroeconomic uncertainties but have seen an increase in Retail expanded government stimulus measures and improving consumer enquiries from prospective
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