Group 1 - UBS reports improvement in net absorption of office space in Hong Kong due to better hiring conditions in the financial sector [1] - The number of licenses is expected to increase by approximately 1,300 by June 2025, attributed to strong stock market performance this year [1] - Financial sector tenants account for 57% of office space users, indicating a potential stabilization in the commercial property market [1] Group 2 - UBS predicts that the rental decline for Grade A office space in Central will narrow to 5% this year, compared to a 12% decline last year [1] - For the next two years, Grade A office rents across Hong Kong are expected to decrease by 3% to 5%, an improvement from last year's 9% decline [1] - UBS assigns a "Buy" rating to Swire Properties, while giving a "Neutral" rating to Swire Pacific and Hongkong Land [1]

Group 1 - The recent government policy report did not introduce significant surprises for the real estate market, as measures like stamp duty exemptions and the "Home Purchase Scheme" were not implemented, which is not expected to cause downward pressure [1] - The only slightly positive easing measure is the relaxation of the new "Capital Investor Scheme," allowing residential units valued over HKD 30 million to qualify, which aligns with expectations [1] - Following the policy report, Hong Kong real estate stocks reacted mildly, with the sector underperforming the Hang Seng Index by 2% on September 17 [1] Group 2 - Despite the lack of strong easing policies in the report, the company believes the real estate market may stabilize in the second half of 2025, with property prices expected to rise by 3-5% in 2026 [1] - Preferred developers include Henderson Land Development (00012) and Sino Land Company (00083) [1] - Among property owners, the most favored are Swire Properties (01972) and Hang Lung Properties (00101), followed by Wharf Real Estate Investment Company (01997) and Link REIT (00823) [1]

Group 1 - The recent policy report from the government does not present significant surprises for the real estate market, as measures like stamp duty exemptions and the "Home Purchase Scheme" have not been implemented, which is not expected to cause downward pressure [1] - The only slightly positive easing measure is the relaxation of the new "Capital Investor Scheme," allowing residential units valued over HKD 30 million to qualify, which aligns with expectations [1] - Following the policy report, Hong Kong real estate stocks reacted mildly, with the sector underperforming the Hang Seng Index by 2% on September 17 [1] Group 2 - Despite the lack of strong easing policies in the report, the company believes the real estate market may stabilize in the second half of 2025, with property prices expected to rise by 3-5% in 2026 [1] - Preferred developers include Henderson Land Development (00012) and Sino Land Company (00083), while the most favored landlords are Swire Properties (01972) and Hang Lung Properties (00101), followed by Wharf Real Estate Investment Company (01997) and Link REIT (00823) [1]

Core Viewpoint - Citigroup's research report indicates that the Hong Kong government's Chief Executive, John Lee, has presented his fourth Policy Address, highlighting the optimization of capital investment plans and predicting that the super luxury property market will continue to outperform [1] Group 1: Market Performance - The report states that transactions for properties priced between HKD 30 million and HKD 50 million accounted for approximately 1.2% of total transactions in the first half of the year, with a transaction value of around HKD 14 billion [1] - Hong Kong real estate stocks have risen approximately 25% year-to-date, and the fourth quarter performance is expected to be driven by several factors [1] Group 2: Influencing Factors - The CCL leading index for second-hand property prices increased by 1.2% week-on-week, with a cumulative increase of 0.8% for the year; if this trend continues, it may narrow the net asset value (NAV) discount for real estate stocks [1] - Following a 25 basis point rate cut by the Federal Reserve, it is estimated that Hong Kong's best lending rate will decrease by 12.5 basis points [1] - Strong retail performance is anticipated during the Golden Week in Hong Kong and mainland China [1] Group 3: Preferred Stocks - Citigroup's preferred stocks include Link REIT, Swire Properties, and New World Development, with a positive outlook on Hang Lung Properties as well [1] - The company expects an increase in pricing power for new developments, combined with potential interest rate cuts, leading to significant residential property prices and transaction volumes by the end of the year [1]

Group 1 - The core driving factors of the Hong Kong real estate market are interest rate fluctuations, with a downward trend in the US benchmark interest rate expected to be a certainty in the near term [1][2] - The Hong Kong real estate market has entered a new cycle driven by policy changes and structural differentiation, with a significant rebound expected following the "withdrawal of tightening" policy in February 2024 [1][2] - The total transaction volume of new and second-hand residential properties in Hong Kong is projected to reach 53,099 transactions in 2024, representing a year-on-year increase of 23.5% compared to 2023 [1] Group 2 - The recovery of the Hong Kong market is attributed to the resonance of three main factors: policy, interest rates, and demand, with a shift from suppression to full stimulation in the policy environment after February 2024 [2] - The Hong Kong Monetary Authority injected a total of HKD 129 billion into the market due to a strong Hong Kong dollar, leading to a significant drop in the 1-month HIBOR from 3.98% to 0.57% [2] - The introduction of talent recruitment plans has contributed to a year-on-year population growth in Hong Kong by June 2025, enhancing purchasing power and stabilizing the market [2] Group 3 - The current phase of the Hong Kong real estate market is characterized as an initial recovery stage, marked by a halt in price declines, a narrowing of price drops, and structural stabilization [3] - Transaction volumes have rebounded, and sentiment indicators have improved, indicating a shift in policy direction from "preventing bubbles" to "stabilizing the market" [3] - Leading indicators show a continuous decline in interest rates, increased supply, improved inventory digestion rates, and a positive impact on demand from population recovery [3]

Core Insights - The report indicates that high-end consumer spending is becoming more cautious, leading to a year-on-year decline in retail property revenues for most companies in the first half of 2025 [2][5]. Group 1: Retail Property Performance - Many companies reported a decline in retail property income for the first half of 2025 compared to the same period in 2024 [2]. - For instance, Hang Lung's overall retail income in mainland China was 2.412 billion yuan, remaining flat year-on-year, with an overall occupancy rate of 94% [5]. - Specific performance metrics include: - Shanghai Hang Lung Plaza: 0% change in income, 98% occupancy [7] - Shenyang City Government Hang Lung Plaza: 37% decline in income, 86% occupancy [7] - Wuxi Hang Lung Plaza: 8% increase in income, 96% occupancy [7]. Group 2: New Developments and Strategic Moves - Hang Lung signed a 20-year operating lease with Hangzhou Baida Group, adding approximately 42,000 square meters of retail space, a 40% increase [7]. - Swire Properties reported stable or increasing occupancy rates across its properties, with Beijing Sanlitun Taikoo Li and Guangzhou Taikoo Hui achieving 100% occupancy [8][9]. Group 3: Sales Performance and Strategic Adjustments - CapitaLand China Trust's nine retail properties generated 629 million yuan in revenue, a 4.46% decline, attributed to lower occupancy and rental levels in certain locations [10]. - Dalian Wanda's strategic move to privatize and repurchase shares for 2.932 billion Hong Kong dollars aims to optimize governance and improve profitability [10]. - The introduction of new stores, including international brands, reflects a trend towards personalized and experiential retail [11][13]. Group 4: Trends in Retail Formats - The report highlights a shift in outlet malls towards more flexible and experience-oriented models, moving away from traditional discount centers [14]. - New outlet projects, such as the Huipin Warehouse City Outlet in Shanghai, emphasize self-service shopping and diverse brand offerings [13].

Group 1 - The forum "Disrupting Tradition: The 'Atypical' Cooperation Model and Community Building of New Museums" was co-hosted by the Hong Kong Palace Museum and Swire Properties, highlighting innovative collaboration in cultural and commercial spaces [1][3] - Swire Properties' "Taikoo Li" projects are designed to integrate art, culture, and commerce, creating open platforms that enhance community engagement and cultural vitality [1][3] - The Hong Kong Palace Museum emphasizes the importance of community collaboration to foster learning, dialogue, and social cohesion, which in turn supports economic vitality and sustainable development [3][4] Group 2 - The "Dual City Youth Cultural Talent Exchange Program," initiated in 2022 and sponsored by Swire Properties, aims to cultivate future cultural and artistic talents and promote the long-term development of the cultural and creative industries [3] - The forum format has expanded to Shanghai, indicating a trend of museums engaging with commercial projects to reshape urban cultural landscapes [3][4] - The collaboration between museums and commercial entities is increasingly seen as a way to enhance brand value, fulfill social responsibilities, and explore new growth points in the cultural and creative industries [4]

Core Viewpoint - The report from CICC indicates that the performance of key commercial operators in the retail sector has shown differentiation in the first half of 2025, with expectations for leading companies to strengthen their competitive advantages in the medium to long term due to location, customer loyalty, and operational capabilities [1][5]. Group 1: Performance Overview - Key commercial operators reported their 1H25 performance, with China Resources Vientiane Life's core net profit increasing by 15%, while major Hong Kong developers saw a core net profit decline of 4-9%, aligning with market expectations [1]. - High-end commercial operators experienced an average same-store sales growth of 2.2% in 1H25, an increase of 8.6 percentage points compared to the full year of 2024, while mass-market operators saw a slight increase of 0.1 percentage points to 7.6% [2]. Group 2: Rental and Operational Efficiency - Rental income for major operators in mainland China showed resilience, with average rental growth of 0.5% in both 2024 and 1H25, which is significantly better than retail sales performance [3]. - Heavy asset operators reported a gross profit margin increase of 0.3 percentage points to 73.9%, indicating ongoing operational efficiency improvements [4]. Group 3: Future Trends - The industry is expected to benefit from a "Matthew Effect," with leading commercial operators likely to solidify their competitive barriers in the medium to long term [5]. - The second half of the year is anticipated to have positive catalysts, including low base effects from last year's retail sales and continued supportive consumption policies [5]. Group 4: Investment Recommendations - The report recommends China Resources Vientiane Life and Swire Properties for their dual returns of growth and dividends, while suggesting to accumulate Hongkong Land at lower prices to capitalize on the Federal Reserve's interest rate cut window [6].

各位非登記持有人( 附註 1)： 二零二五年中期報告（「本次公司通訊」）之發布通知 太古地產有限公司（「公司」）的本次公司通訊之中、英文版本已上載於公司網站 (www.swireproperties.com) 之投資者關係網頁及香港交易及結算所有限公司（「香港交易所」）網站 (www.hkexnews.hk)，歡迎查閱。如 閣下已選擇收取公司通訊( 附註 2)之印刷本，現隨函附上 閣下所選擇的語言版本之本次公司通訊印刷本。 SWIRE PROPERTIES LIMITED 太古地產有限公司 (於香港註冊成立的有限公司) (股份代號：01972) 通 知 信 函 附註： 1. 本函件乃向公司之非登記持有人（「非登記持有人」指公司股份存放於中央結算及交收系統的人士或公司，透過香港中 央結算有限公司不時向公司發出通知表示該等人士或公司希望收到公司通訊）發出。倘若 閣下已出售或轉讓所持有的 所有公司股份，則無需理會本函及隨附的申請表格。 2. 「公司通訊」乃公司已發出或將予發出以供其任何證券持有人參照或採取行動的所有文件，包括（但不限於）年度和中 期財務報告及其摘要報告（及其中包含的所有報告及財務報表）、會議通告、上 ...

SWIRE PROPERTIES LIMITED 太古地產有限公司 (於香港註冊成立的有限公司) (股份代號：01972) 如果公司沒有收到 閣下的有效電郵地址，直至公司股份登記處收到 閣下有效的電郵地址前，閣下將(i)無法 收到任何有關發布公司通訊的電郵通知；及(ii)需要主動查看公司網站和香港交易所網站以留意公司通訊的發布。 公司可免費提供公司通訊的英文版和中文版的印刷本，並會在收到 閣下的書面要求（透過填妥、簽署及交回 申請表格予公司股份登記處的上述地址或電郵地址）後發送到 閣下於股東名冊上所示的地址。倘公司沒有收 到 閣下已填妥並簽署之申請表格要求收取公司通訊的印刷本， 閣下將被視為已選擇僅以電子方式透過公司 網站收取所有日後公司通訊，惟可供採取行動的公司通訊將個別發送予每位股東。 請注意，要求收取所有日後公司通訊印刷本的指示將有效至該指示被撤銷或取代，或直至公司於翌年刊發下一 份年度報告為止（以較早者為準），此後，如 閣下希望繼續收取公司通訊印刷本，則需要重新提交要求。 閣下如有任何與本函有關的疑問，請致電公司股份登記處電話 (852) 2862 8688，辦公時間為星期一至星期五 （公眾假期除外） ...