Group 1 - The core point of the article is that Swire Properties has been actively repurchasing its shares, indicating a strategy to support its stock price amidst market fluctuations [1] - On March 10, the company repurchased 600,000 shares at a price range of HKD 15.960 to HKD 16.260, totaling HKD 9.6655 million [1] - The stock closed at HKD 16.080 on the same day, reflecting a slight decline of 0.12% with a total trading volume of HKD 53.4375 million [1] Group 2 - Since October 3, 2024, the company has conducted share repurchases for 106 consecutive days, accumulating a total of 63.105 million shares repurchased and a total expenditure of HKD 996 million [1] - During this period, the stock has experienced a cumulative decline of 6.94% [1] - In 2024 alone, the company has executed 45 repurchase transactions, acquiring a total of 26.505 million shares for a total of HKD 409 million [1]

Group 1 - The core point of the article is that Swire Properties has been actively repurchasing its shares, indicating a strategy to support its stock price amidst a declining market trend [1] - On February 28, the company repurchased 600,000 shares at a price range of HKD 15.380 to HKD 15.560, totaling HKD 9.2817 million [1] - The stock closed at HKD 15.400 on the same day, reflecting a decrease of 1.28% with a total trading volume of HKD 55.7749 million [1] Group 2 - Since October 3, 2024, the company has conducted share repurchases for 100 consecutive days, accumulating a total of 59.505 million shares repurchased and a total expenditure of HKD 938 million [1] - During this period, the stock has experienced a cumulative decline of 10.88% [1] - In 2024 alone, the company has executed 39 repurchase transactions, acquiring a total of 22.905 million shares for a total of HKD 352 million [1]

Investment Rating - The report maintains an "Outperform" rating for the company with a target price of HK$18.00, while the current price is HK$15.28 [5][23]. Core Insights - The company's performance for 2024 is expected to be weak, with core earnings projected to decline by 10% to HK$6.5 billion, primarily due to a sluggish office market, stagnant retail sector, and high interest costs [1][2]. - Earnings are anticipated to stabilize in 2025 and slightly recover in 2026, influenced by factors such as declining rental income from mainland malls and the absence of contributions from new projects [2][11]. - Despite challenges, the company is expected to fulfill its dividend growth commitment, with a projected increase of 2.9% for the full year 2024 [1][2]. Financial Forecasts - Total revenue is forecasted to decrease from HK$14.67 billion in 2023 to HK$13.89 billion in 2024, representing a year-on-year decline of 5.3% [3][11]. - The company’s core profit is expected to drop from HK$7.29 billion in 2023 to HK$6.54 billion in 2024, a decrease of 10.2% [3][11]. - The projected basic earnings per share (EPS) for 2024 is HK$1.12, down from HK$1.25 in 2023 [3][11]. - The dividend per share is expected to increase from HK$1.05 in 2023 to HK$1.08 in 2024, reflecting a dividend yield of 7.1% to 7.5% over the forecast period [3][11]. Market Conditions - The report highlights that the retail sales in Hong Kong continue to be affected by local tourism loss and changing consumer spending patterns, while the office rental market remains weak [1][2]. - The company’s properties in mainland China are also experiencing a decline in rental income due to consumer downgrading [2][19]. Share Buyback Program - The company has made progress on its HK$1.5 billion share buyback program, having repurchased 28.2 million shares, which is approximately 29% of the total program [21].

Group 1 - The core point of the article is that Swire Properties has been actively repurchasing its shares, indicating a strategy to support its stock price amidst a decline [1] - On February 20, the company repurchased 600,000 shares at a price range of HKD 14.880 to HKD 15.160, totaling HKD 8.9976 million [1] - The stock closed at HKD 14.940 on the same day, reflecting a decrease of 0.53% with a total trading volume of HKD 89.5639 million [1] Group 2 - Since October 3, 2024, the company has conducted share repurchases for 94 consecutive days, totaling 55.905 million shares and an aggregate amount of HKD 883 million [1] - During this period, the stock has experienced a cumulative decline of 13.54% [1] - In 2024, the company has executed 33 repurchase transactions, acquiring a total of 19.305 million shares for a total of HKD 296 million [1]

Financial Performance - Total revenue for the first half of 2024 was HKD 7,279 million, a slight decrease of 0% compared to HKD 7,297 million in the same period of 2023[8]. - The company's attributable profit decreased by 1% to HKD 3,857 million from HKD 3,901 million year-on-year[8]. - Basic earnings per share decreased by 1% to HKD 0.66 from HKD 0.67 in the previous year[8]. - The net cash inflow from operations was HKD 3,701 million, down 12% from HKD 4,221 million in the same period last year[8]. - The total profit for the period was HKD 5,275 million, down 1.0% from HKD 5,327 million year-on-year[136]. - Net profit attributable to shareholders for the period was HKD 1,796 million, a decrease of 19.1% from HKD 2,223 million in the same period last year[136]. - The company reported a net cash inflow from operating activities of HKD 2,365 million, compared to HKD 3,340 million in the previous year, indicating a 29% decrease[139]. - The company’s total equity as of June 30, 2024, was HKD 284,155 million, a decrease from HKD 288,149 million, reflecting a decline of about 1.38%[138]. Investment and Development - The company has committed over 60% of its HKD 100 billion investment plan, with HKD 50 billion allocated for projects in mainland China and HKD 30 billion for expanding its core commercial property portfolio in Hong Kong[10]. - The company plans to double its total floor area in mainland China by 2032, focusing on first-tier and emerging first-tier cities[13]. - The company is actively seeking opportunities to sell non-core assets to strengthen its balance sheet and support future investment plans in core markets[10]. - The company completed the latest phase of the Taikoo Place redevelopment, which includes two Grade A office buildings and 70,000 square feet of green space[12]. - The company is undertaking a cautious investment plan of HKD 100 billion to drive long-term growth despite macroeconomic uncertainties[26]. - The group has nine residential projects under development, including four in Hong Kong and plans for a residential project in Miami, USA[39]. - The group plans to develop a retail-led integrated project, with phased completion starting from the end of 2025[62]. Market Outlook - The company is optimistic about the long-term recovery of the Hong Kong office market, particularly with increased IPO activities and demand from mainland Chinese enterprises[12]. - The company anticipates a cautious approach from retailers regarding business expansion in mainland China in H2 2024, despite strong demand for luxury retail spaces in Guangzhou and Chengdu[20]. - The company has observed a decline in retail business in Hong Kong and mainland China after a strong rebound last year, but sees emerging retail trends, particularly in immersive luxury retail experiences[15]. - The company is focused on enhancing its property portfolio quality and performance while pursuing sustainable development goals[26]. Sustainability and Corporate Responsibility - The company was recognized as the only real estate management and development company in the "Best 1%" category of the S&P Global Sustainability Yearbook (China Edition)[7]. - The company aims to become a leader in sustainable development performance among global peers by 2030[7]. - The company has achieved significant recognition in sustainable development, with its Taikoo Place becoming the first community in Hong Kong to receive a Gold rating under the LEED certification program[16]. - The company has set a goal for at least 80% of its bonds and loans to come from green finance by 2030, aligning with the Hong Kong government's green transformation and carbon neutrality plans[16]. Financial Position and Debt Management - The net debt increased by 3% to HKD 37,796 million from HKD 36,679 million[8]. - The capital net debt ratio rose to 13.3%, an increase of 0.6 percentage points from 12.7%[8]. - The company maintains a strong financial foundation with a healthy debt ratio, supported by a HKD 100 billion investment plan initiated in 2022, particularly focusing on the mainland market[18]. - The company’s debt composition as of June 30, 2024, was 59% in HKD, 33% in RMB, and 8% in USD[128]. - The interest coverage ratio (basic) was 10.8 for the six months ended June 30, 2024, down from 24.8 for the same period in 2023[130]. Shareholder Returns - The company announced an interim dividend of HKD 0.34 per share for H1 2024, representing a 3% increase compared to the interim dividend of HKD 0.33 per share in H1 2023[11]. - The company declared and/or paid dividends amounting to HKD 4,212 million for the first half of 2024, compared to HKD 3,978 million in the same period of 2023, marking an increase of about 5.88%[140]. Corporate Governance - The company has complied with all codes of the Corporate Governance Code during the accounting period covered by the interim report[189]. - The interim results have been reviewed by the company's audit committee and external auditors[189]. - The company has adopted a securities trading code for directors and relevant employees, which is no less stringent than the standard code[189].

Financial Performance - Revenue for the first half of 2024 was HK$7,279 million, showing no significant change compared to HK$7,297 million in the same period of 2023[3] - Basic profit attributable to shareholders decreased by 1% to HK$3,857 million in the first half of 2024, compared to HK$3,901 million in 2023[3] - Recurring basic profit attributable to shareholders decreased by 8% to HK$3,570 million in the first half of 2024, down from HK$3,892 million in 2023[3] - Reported profit attributable to shareholders dropped by 19% to HK$1,796 million in the first half of 2024, compared to HK$2,223 million in 2023[3] - Cash flow from operations decreased by 12% to HK$3,701 million in the first half of 2024, down from HK$4,221 million in 2023[3] - Net debt increased by 3% to HK$37,796 million as of June 30, 2024, compared to HK$36,679 million at the end of 2023[3] - The company's capital net debt ratio increased by 0.6 percentage points to 13.3% as of June 30, 2024[3] - The first interim dividend increased by 3% to HK$0.34 per share in 2024, compared to HK$0.33 in 2023[3] - The company's total revenue for the first half of 2024 was HKD 7.279 billion, compared to HKD 7.297 billion in the same period in 2023[31] - The company's reported profit attributable to shareholders for the first half of 2024 was HKD 1,796 million, compared to HKD 2,223 million in the same period in 2023[32] - The fair value loss on investment properties for the first half of 2024 was HKD 831 million, a decrease from HKD 1,648 million in the first half of 2023[32] - The basic profit for the first half of 2024 was HKD 3,857 million, a slight decrease from HKD 3,901 million in the first half of 2023[34] - The recurring basic profit (excluding profit from asset sales) for the first half of 2024 was HKD 3,570 million, down from HKD 3,892 million in the first half of 2023[34] - Revenue for the six months ended June 30, 2024, was HKD 7,279 million, compared to HKD 7,297 million in the same period in 2023, showing a slight decrease[156] - Profit before tax for the six months ended June 30, 2024, was HKD 3,098 million, compared to HKD 3,218 million in the same period in 2023[142] - Net profit attributable to company shareholders was HKD 1,796 million for the six months ended June 30, 2024, down from HKD 2,223 million in the same period in 2023[142] - Basic and diluted earnings per share for the six months ended June 30, 2024, were HKD 0.31, compared to HKD 0.38 in the same period in 2023[142] - Total comprehensive income for the six months ended June 30, 2024, was HKD 262 million, up from HKD 165 million in the same period in 2023[143] - Net financial expenses for the six months ended June 30, 2024, were HKD 469 million, compared to HKD 179 million in the same period in 2023[142] - Investment property fair value changes resulted in a loss of HKD 842 million for the six months ended June 30, 2024, compared to a loss of HKD 1,332 million in the same period in 2023[142] - Tax expenses for the six months ended June 30, 2024, were HKD 1,208 million, up from HKD 954 million in the same period in 2023[142] - Total assets decreased from HKD 336,699 million in 2023 to HKD 333,741 million in 2024[144] - Investment properties decreased slightly from HKD 281,463 million in 2023 to HKD 280,396 million in 2024[144] - Cash and cash equivalents increased from HKD 5,097 million in 2023 to HKD 5,528 million in 2024[144] - Net cash from operating activities decreased from HKD 3,374 million in 2023 to HKD 2,445 million in 2024[145] - Net cash used in investing activities decreased significantly from HKD 6,761 million in 2023 to HKD 1,161 million in 2024[145] - Net cash from financing activities turned negative, from HKD 3,247 million in 2023 to HKD (765) million in 2024[145] - Total equity decreased from HKD 288,149 million in 2023 to HKD 284,155 million in 2024[144] - Dividends paid to company shareholders increased from HKD 3,978 million in 2023 to HKD 4,212 million in 2024[145] - Long-term borrowings and bonds increased from HKD 33,606 million in 2023 to HKD 34,403 million in 2024[144] - Trade and other receivables increased slightly from HKD 3,506 million in 2023 to HKD 3,584 million in 2024[144] - The company's total equity as of June 30, 2024, was HKD 284,155 million, a decrease from HKD 288,149 million at the beginning of the year[146] - The company reported a profit for the period of HKD 1,796 million, with a total comprehensive income of HKD 205 million[146] - Property investment segment generated HKD 6,727 million in external revenue and HKD 4,170 million in operating profit after depreciation and amortization[147] - The property trading segment recorded a loss of HKD 54 million in operating profit after depreciation and amortization[147] - The hotel segment reported a loss of HKD 57 million in operating profit after depreciation and amortization[147] - Investment property fair value changes resulted in a loss of HKD 842 million[147] - Total assets of the group as of June 30, 2024, were HKD 353,849 million, with property investment contributing HKD 287,181 million[148] - Total liabilities of the group as of June 30, 2024, were HKD 69,694 million, with property investment liabilities at HKD 51,529 million[149] - Non-controlling interests as of June 30, 2024, amounted to HKD 3,080 million[149] - Rental income from investment properties for the six months ended June 30, 2024, was HKD 6,665 million, slightly down from HKD 6,677 million in the same period in 2023[156] - Revenue from property sales for the six months ended June 30, 2024, was HKD 88 million, compared to HKD 89 million in the same period in 2023[156] - Hotel revenue for the six months ended June 30, 2024, was HKD 464 million, down from HKD 476 million in the same period in 2023[156] - Direct leasing expenses related to investment properties for the six months ended June 30, 2024, were HKD 1,501 million, up from HKD 1,483 million in the same period in 2023[157] - Total sales cost for the six months ended June 30, 2024, was HKD 2,004 million, compared to HKD 1,970 million in the same period in 2023[157] - Other losses net amount for the six months ended June 30, 2024, was HKD 103 million, compared to HKD 65 million in the same period in 2023[158] - Trade receivables impairment expense for the six months ended June 30, 2024, was HKD 6 million, down from HKD 9 million in 2023[160] - Staff costs for the six months ended June 30, 2024, increased to HKD 1,170 million from HKD 1,041 million in 2023[160] - Current tax expense for the six months ended June 30, 2024, was HKD 674 million, up from HKD 617 million in 2023[163] - Deferred tax expense related to investment property fair value changes for the six months ended June 30, 2024, was HKD 397 million, compared to HKD 88 million in 2023[163] - The company declared an interim dividend of HKD 0.34 per share for the year ending December 31, 2024, totaling HKD 1,989 million[166] - Basic earnings per share for the six months ended June 30, 2024, were HKD 1.796 billion, down from HKD 2.223 billion in 2023[167] - The weighted average number of ordinary shares outstanding during the period was 5.85 billion[167] - Property, plant, and equipment decreased from HKD 6,849 million to HKD 6,188 million, with a net book value of HKD 3,381 million as of June 30, 2024[169] - Investment properties decreased slightly from HKD 281,271 million to HKD 280,396 million, with fair value losses of HKD 842 million[170] - Intangible assets decreased from HKD 1,939 million to HKD 1,914 million, with a net book value of HKD 1,496 million as of June 30, 2024[171] - Right-of-use assets increased to HKD 2,759 million, with additions of HKD 14 million during the period[173] - Total cash outflows for leases amounted to HKD 64 million, including HKD 10 million for interest and HKD 39 million for principal repayments[174] - Joint venture equity increased to HKD 19,860 million, with a significant acquisition in the YTD Phase II project increasing the company's stake to 49.895%[175] - Associates' equity decreased slightly to HKD 9,663 million, with goodwill remaining unchanged at HKD 670 million[176] - The fair value of financial instruments classified as Level 2 was HKD 99 million, while Level 3 was HKD 629 million, totaling HKD 728 million as of June 30, 2024[177] - The fair value of financial liabilities, including long-term borrowings and bonds, was HKD 42,198 million as of June 30, 2024, compared to HKD 40,598 million as of December 31, 2023[182] - The fair value of non-listed equity investments increased by HKD 6 million during the period, reaching HKD 629 million as of June 30, 2024[179] - The fair value of a put option for a non-controlling interest in the US increased by HKD 48 million, reaching HKD 645 million as of June 30, 2024[179] - Trade receivables decreased to HKD 375 million as of June 30, 2024, from HKD 500 million as of December 31, 2023[185] - Other receivables increased to HKD 3,070 million as of June 30, 2024, from HKD 2,889 million as of December 31, 2023[185] - The fair value of derivative financial instruments used for hedging purposes was HKD 99 million in assets and HKD 10 million in liabilities as of June 30, 2024[184] - The discount rate used for the valuation of the put option for a non-controlling interest in the US remained at 6.3% as of June 30, 2024[180] - The fair value of financial instruments classified as Level 3 is determined using unobservable inputs such as yield and market price, which do not significantly alter the valuation under reasonable assumptions[180] - The company does not engage in speculative derivative transactions and uses derivatives solely for risk management purposes[183] - Trade payables decreased to HKD 859 million as of June 30, 2024, from HKD 1,046 million as of December 31, 2023[187] - Rental deposits from tenants increased to HKD 3,046 million as of June 30, 2024, from HKD 2,965 million as of December 31, 2023[187] - Deferred tax liabilities increased to HKD 14,368 million as of June 30, 2024, from HKD 13,994 million as of January 1, 2024[189] - The company's reserves totaled HKD 270,626 million as of June 30, 2024, with a profit reserve of HKD 274,273 million[192] - Non-controlling interests increased to HKD 3,080 million as of June 30, 2024, from HKD 3,067 million as of January 1, 2024[193] - Capital commitments for investment properties amounted to HKD 17,809 million as of June 30, 2024, with HKD 5,443 million contracted but not provided[194] - The company committed to injecting HKD 1,817 million into joint ventures as of June 30, 2024, compared to HKD 275 million as of December 31, 2023[195] - Guarantees provided for joint ventures' bank loans and other liabilities totaled HKD 4,062 million as of June 30, 2024, up from HKD 3,996 million as of December 31, 2023[196] - Service fees paid to Hong Kong Swire Group for the six months ended June 30, 2024, amounted to HKD 99 million, compared to HKD 106 million in the same period in 2023[197] - Administrative service costs shared with Hong Kong Swire Group for the six months ended June 30, 2024, were HKD 59 million, up from HKD 49 million in the same period in 2023[197] - Rent received from Hong Kong Swire Group's member companies under the lease framework agreement for the six months ended June 30, 2024, totaled HKD 52 million, slightly down from HKD 53 million in the same period in 2023[198] - Rent received from Swire Pacific's member companies under the lease framework agreement for the six months ended June 30, 2024, was HKD 24 million, up from HKD 21 million in the same period in 2023[198] - Interest income from joint ventures for the six months ended June 30, 2024, increased to HKD 73 million from HKD 54 million in the same period in 2023[199] - Service revenue provided to joint ventures for the six months ended June 30, 2024, rose to HKD 35 million from HKD 31 million in the same period in 2023[199] - Rent income from related parties for the six months ended June 30, 2024, was HKD 52 million, compared to HKD 53 million in the same period in 2023[199] - Hotel income from related parties for the six months ended June 30, 2024, remained stable at HKD 7 million, consistent with the same period in 2023[199] - The lease framework agreement with Hong Kong Swire Group and Swire Pacific was renewed for another three years, effective from January 1, 2025, to December 31, 2027[198] - The service agreement with Hong Kong Swire Group was renewed for three years on October 1, 2022, and will expire on December 31, 2025[197] Investment and Development - The company has committed over 60% of its HKD 100 billion investment plan, with HKD 50 billion allocated to the Mainland China market, HKD 30 billion to Hong Kong's core commercial properties, and HKD 20 billion to residential projects in Hong Kong, Mainland China, and Southeast Asia[7] - The company's investment plan outlines a growth roadmap for the next decade, with confidence in long-term growth in Hong Kong and Mainland China, particularly in Beijing, Shanghai, and the Greater Bay Area[7] - The company is actively pursuing a capital recycling strategy, exploring opportunities to sell non-core assets to strengthen its balance sheet and support future investment plans[7] - The company's new investment projects in Mainland China, including large-scale developments in Beijing, Shanghai, Sanya, and Xi'an, are progressing well, with increasing contributions to rental income growth[7] - The company completed the latest phase of the Taikoo Place redevelopment, including the opening of Taikoo Place One and Two, adding 70,000 square feet of green space, and introducing new dining concepts[8] - The company expanded its Pacific Place portfolio in Admiralty, including the completion of the new Grade A office building Pacific Place Six, with ongoing infrastructure improvements enhancing connectivity[8] - The company plans to expand its investment in the Greater Bay Area, including a large-scale retail development project in Guangzhou's Liwan District in collaboration with Guangzhou Pearl River Industrial Group[12] - The company successfully acquired a new retail property at Tianhe Road 387 in Guangzhou, which will be renovated and added to the Taikoo Hui luxury retail portfolio by August 2024[12] - The company is upgrading existing projects in mainland China, including Beijing's Sanlitun Taikoo Li North and Shanghai's Taikoo Hui, to expand its luxury retail portfolio[12] - The company aims to develop 11 retail-led commercial projects in 6 mainland Chinese cities by 2027[12] - The company plans to double its total floor area in mainland China by 2032 under a HKD 100 billion investment plan[14] - The company has two major investments in Shanghai's Pudong District, including the Qiantan Integrated Development Project and the newly named Lujiazui Taikoo Source[14] - The company announced plans to increase its stake in Beijing's INDIGO Phase II, with the transaction completed in August 2024[14] - The company has launched its first high-end residential brand in mainland China as part of the Lujiazui Ta

Financing and Investment - The company successfully issued RMB 3.2 billion green bonds, becoming the first Hong Kong enterprise to publicly issue RMB green bonds[8] - 60% of bond and loan financing came from green finance, with a successful issuance of RMB 3.2 billion green bonds[32] - The company plans to invest HKD 100 billion over the next decade in various projects in Hong Kong and mainland China, with HKD 30 billion allocated for residential sales projects including Southeast Asia[72] - Approximately 60% of the HKD 100 billion investment plan has been committed to new and ongoing development projects[42] - The company is investing HKD 100 billion in expanding its residential property portfolio in Southeast Asia, focusing on four major cities: Jakarta, Ho Chi Minh City, Bangkok, and Singapore[53] - The company is strategically acquiring properties to enhance its office business footprint in the region[43] - The group plans to develop residential projects on land reserves in Miami, with ongoing projects in various regions including Hong Kong, mainland China, Indonesia, Vietnam, and Thailand[79] Acquisitions and Developments - The acquisition of remaining equity in the Chengdu project was completed, officially renaming it "Chengdu Taikoo Li"[8] - The group increased its stake in Chengdu Taikoo Li from 50% to 65% for a consideration of RMB 1 billion, and subsequently acquired 100% interests in property management and investment properties for RMB 5.9 million and RMB 4.49 billion respectively[73] - In February 2023, the group acquired a 40% interest in land in Bangkok for approximately THB 2.4 billion, with plans to develop it for residential use[73] - The company is developing multiple large-scale projects in first-tier and emerging first-tier cities in mainland China, including the largest "Taikoo Li" project in Xi'an[45] - The company has committed to several key projects, including residential developments in Hong Kong and retail-led projects in cities like Xi'an and Sanya[72] - The company is exploring new investment opportunities in the Greater Bay Area, including a new hotel series in Shenzhen[45] Financial Performance - Revenue for 2023 reached HKD 14,670 million, representing a 6% increase from HKD 13,826 million in 2022[34] - Basic earnings attributable to shareholders increased by 33% to HKD 11,570 million, up from HKD 8,706 million[34] - The reported earnings attributable to shareholders decreased by 67% to HKD 2,637 million from HKD 7,980 million[34] - The net profit attributable to shareholders for property investment was HKD 7,325 million in 2023, compared to HKD 8,025 million in 2022, reflecting a decrease of 8.7%[36] - The total equity, including non-controlling interests, decreased by 1% to HKD 288,149 million from HKD 292,258 million[34] - The total assets of the company reached HKD 324,828 million in 2023, up from HKD 311,205 million in 2022, representing an increase of 4.9%[36] Sustainability and ESG - The company has a sustainable development strategy for 2030, focusing on community revitalization and enhancing the quality of life for residents[20] - The company has maintained a "AAA" rating for six consecutive years in the global ESG scoring[13] - The company aims to achieve net-zero emissions by 2050 and is actively participating in international initiatives to mitigate climate change[49] - The company aims to achieve net-zero emissions by 2030 and has been recognized in the Dow Jones Sustainability World Index, ranking second in 2023[54] - 50% of tenants signed the "Environmental Performance Charter," covering over 3.5 million square feet of lettable area[30] Employee Engagement and Training - The company has been recognized as one of the top five most attractive employers in Hong Kong according to the Randstad 2023 Employer Brand Survey[16] - Average training hours per employee increased to 23 hours, achieving 89% of the target for a 25% increase by 2025[24] - The lost time injury rate (LTIR) for non-hotel operations was 0.64, below the target of ≤1.2[25] - 35.7% of board members are female, exceeding the target of at least 30%[32] Market Performance and Trends - The Hong Kong retail property portfolio showed strong recovery, with some malls returning to pre-pandemic sales levels[44] - Retail sales in mainland China have significantly exceeded pre-pandemic levels, with strong recovery observed in shopping malls following the lifting of pandemic restrictions[52] - The Hong Kong office market remains weak, with increased supply leading to higher vacancy rates and pressure on demand due to economic uncertainty and high interest rates[51] - The overall demand for retail space in Guangzhou and Chengdu remains strong, while demand in Shanghai and Beijing is expected to stabilize[126] Property Portfolio and Occupancy - The total floor area of the mainland property portfolio is 30.51 million square feet, with 14.14 million square feet completed and 16.38 million square feet under development[109] - The total floor area of completed retail properties in mainland China was 7.84 million square feet, with an occupancy rate of 94%[113] - The total floor area of completed office properties in mainland China is 4.2 million square feet, with the group's attributable interest being 2.9 million square feet[128] - The occupancy rate of the office property portfolio was 89% as of December 31, 2023, and 93% when excluding the newly completed Taikoo Place Two[84] Hotel Management and Performance - The hotel business in Hong Kong and mainland China is expected to continue improving with the increase in international visitors, with the group's hotel, The Upper House, ranked fourth in the "World's 50 Best Hotels" list[53] - The hotel management segment recorded an EBITDA of HKD 88 million in 2023, a significant recovery from a loss of HKD 118 million in 2022[166] - The average room revenue and occupancy rates for the hotels have rebounded strongly following the reopening of borders[167] - The company is expanding its hotel management business, focusing on extending its hotel brand beyond Hong Kong[178]

Financial Performance - Revenue for 2023 increased by 6% to HKD 14,670 million compared to HKD 13,826 million in 2022[4] - Basic earnings attributable to shareholders rose by 33% to HKD 11,570 million from HKD 8,706 million in 2022[4] - The company reported a net profit attributable to shareholders of HKD 2,637 million for 2023, down from HKD 7,980 million in 2022, reflecting a decrease of 67.0%[25] - The basic earnings per share increased by 33% to HKD 1.98 from HKD 1.49 in 2022[4] - The total comprehensive income for 2023 was HKD 1,869 million, compared to HKD 3,340 million in 2022[144] - The profit for the year 2023 was HKD 2,637 million, compared to HKD 7,980 million in 2022, indicating a decrease of about 67%[175] - The recurring basic profit for 2023 was HKD 7.285 billion, compared to HKD 7.176 billion in 2022, indicating a stable performance despite market challenges[17] Cash Flow and Debt - Cash generated from operations increased by 18% to HKD 7,492 million, up from HKD 6,332 million in 2022[4] - The company reported a net debt of HKD 36,679 million, a 94% increase from HKD 18,947 million in 2022[4] - The company’s total borrowings amounted to HKD 41,169 million in 2023, a significant increase from HKD 22,835 million in 2022[138] - The net cash position at the end of 2023 was HKD 5,097 million, compared to HKD 4,502 million at the end of 2022, showing an increase of 13.2%[147] - The weighted average debt maturity is 3.0 years, with a weighted average cost of debt at 4.1%[135] - The company’s cash interest coverage ratio was 4.0 in 2023, reflecting strong cash flow management[139] Investment and Development Plans - The company plans to invest HKD 100 billion over the next decade, with nearly 60% of the funds already committed to new and ongoing development projects[5] - The company plans to invest HKD 300 billion to expand its flagship projects in Hong Kong, with the latest Grade A office building achieving a rental rate of 62%[8] - The company plans to invest HKD 500 billion in the Chinese mainland market, focusing on large-scale integrated development projects[10] - The company aims to double its total floor area in mainland China by 2032, currently operating six international projects in four major cities[5] - The investment plan of HKD 100 billion is progressing smoothly, with nearly 60% of the planned funds committed to new projects aimed at long-term development in key markets[16] Retail and Commercial Performance - The retail portfolio in Hong Kong showed strong recovery in 2023, with retail sales significantly increasing, and membership rewards program members grew by over 30%[9] - Rental income from retail properties rose to HKD 7,143 million in 2023, up from HKD 5,849 million in 2022, marking a significant increase of 22.1%[25] - The retail sales of Taikoo Plaza, East Point City, and Taikoo City Center increased by 44%, 43%, and 6% respectively in 2023, while overall retail sales in Hong Kong rose by 16%[52] - The total rental income from investment properties in mainland China for 2023 was HKD 6.045 billion, reflecting a 38% increase compared to 2022, driven by the recovery post-pandemic and enhanced tenant mix in shopping malls[67] - The total area of completed retail properties in mainland China was 780,000 square feet, with attributable rental income rising 20% to HKD 5.101 billion in 2023[68] Sustainability and Community Engagement - The company is committed to achieving net-zero emissions by 2050 and is actively implementing sustainable development solutions across its property portfolio[16] - The company has launched a supply chain sustainability participation program in Hong Kong and mainland China, collaborating with EcoVadis to enhance supplier performance[21] - The "GPP Academy" program, initiated in 2023, aims to promote knowledge sharing among office tenants to improve sustainability performance[20] - The company is committed to community engagement and has launched various initiatives to stimulate the local economy post-pandemic[13] Market Outlook and Challenges - The office market in Hong Kong is expected to remain under pressure in 2024 due to low demand and increased supply, with rental rates facing downward pressure[18] - The outlook for the Hong Kong office market in 2024 remains bleak due to weak demand and increased supply, with continued downward pressure on rental rates[47] - Retail sales in mainland China are expected to stabilize in 2024 after years of double-digit growth, with a cautious attitude from retailers but an optimistic long-term outlook[79] Property Portfolio and Acquisitions - As of December 31, 2023, the group's total attributable property portfolio amounted to approximately 39.1 million square feet, with 34.4 million square feet being investment properties and hotels[32] - The group has nine ongoing residential development projects, including four in Hong Kong and two in mainland China[36] - The group acquired the remaining 35% interest in Chengdu Taikoo Li in February 2023, increasing its ownership to 100%[69] - The group signed an agreement to sell 12 office floors in Hong Kong for HKD 5.4 billion, with the sale expected to complete in stages from December 2025 to December 2028[31] Hotel Performance - The hotel management segment recorded an EBITDA of HKD 88 million in 2023, a significant recovery from an EBITDA loss of HKD 118 million in 2022[118] - The average room revenue and occupancy rates for hotels in Hong Kong and mainland China have significantly rebounded following the lifting of pandemic-related restrictions[118] - The group anticipates further improvement in hotel performance in Hong Kong and growth in mainland China hotel business in 2024[129]

Financial Performance - The company reported a revenue of HKD 7,297 million for the six months ended June 30, 2023, representing a 6% increase from HKD 6,910 million in the previous year[8]. - The basic earnings attributable to shareholders decreased by 6% to HKD 3,901 million, down from HKD 4,169 million in the previous year[8]. - The company achieved a cash flow from operations of HKD 4,221 million, which is a 7% increase compared to HKD 3,933 million in the previous year[8]. - The reported profit attributable to shareholders for the first half of 2023 was HKD 2.1223 billion, a decrease from HKD 4.348 billion in the first half of 2022[12]. - The recurring basic profit increased by HKD 220 million to HKD 3.892 billion, reflecting a strong recovery in retail properties and hotel business in Hong Kong and mainland China[12]. - The total operating profit of HKD 2,873 million, a decrease from HKD 4,894 million in the previous year, representing a decline of about 41.3%[29]. - The company achieved a net profit attributable to shareholders of HKD 2,223 million, down from HKD 4,348 million in 2022, marking a decrease of approximately 48.9%[29]. - The total profit amounted to HKD 5,327 million, up from HKD 5,039 million, reflecting a growth of 5.7% year-on-year[127]. - The net profit attributable to shareholders for the period was HKD 2,223 million, down 48.9% from HKD 4,348 million in the same period last year[127]. Investment and Expansion Plans - The company has committed approximately 40% of its HKD 100 billion investment plan to new projects, indicating a clear roadmap for future business expansion[11]. - The company plans to invest HKD 50 billion in mainland China, aiming to double the total floor area by 2032[16]. - The company is actively expanding into other first-tier and emerging first-tier cities in China, with major investment projects underway in Xi'an and Sanya[11]. - The company has a HKD 100 billion investment plan aimed at developing new projects in core markets and emerging cities[20]. - Swire Properties plans to double the total floor area in mainland China as part of its investment strategy, focusing on first-tier cities like Beijing, Shanghai, and Guangzhou, while also entering new markets like Xi'an and Sanya[22]. - The company is actively expanding its residential business in Southeast Asia with an investment of HKD 20 billion, focusing on major cities like Ho Chi Minh City and Jakarta[15]. - The company plans to develop a luxury residential project in Miami, named "One Island Drive," which will consist of two buildings, with sales expected to begin in early 2024[35]. - The group has eight large commercial development projects in key locations in mainland China, expected to provide an attributable total floor area of approximately 14.8 million square feet upon completion[36]. Dividend and Shareholder Returns - The company’s first interim dividend increased by 3% to HKD 0.33 per share, compared to HKD 0.32 per share in the previous year[8]. - The first interim dividend for 2023 is HKD 0.33 per share, representing a 3% increase compared to the first interim dividend paid in 2022[12]. - The company declared dividends of HKD 3,978 million for the current period, which is a slight increase from HKD 3,744 million in the previous year[131]. - The group declared an interim dividend of HKD 1,931 million for the year ending December 31, 2023, compared to HKD 3,978 million for the previous year[169]. Debt and Financial Position - The company’s net debt increased by 56% to HKD 29,514 million from HKD 18,947 million in the previous year[8]. - The company’s capital-to-net-debt ratio rose to 10.2%, an increase of 3.7 percentage points from 6.5% in the previous year[8]. - The debt-to-equity ratio increased to 10.2% as of June 30, 2023, compared to 5.3% in the previous year[122]. - The total liabilities as of June 30, 2023, were HKD 47,116 million, an increase from HKD 33,918 million at the end of 2022, representing a growth of approximately 38.5%[129]. - The company reported a net cash inflow from operating activities of HKD 3,374 million for the first half of 2023, compared to HKD 3,179 million in the previous year, reflecting a growth of approximately 6.1%[130]. - The company issued bonds worth HKD 3.251 billion during the first half of 2023[113]. - The total borrowings amounted to HKD 33,108 million, an increase of 45% from HKD 22,835 million as of December 31, 2022[115]. Property and Asset Management - The company’s investment properties increased to HKD 284,607 million as of June 30, 2023, from HKD 271,368 million at the end of 2022, reflecting a growth of about 4.9%[129]. - The total rental income from investment properties amounted to HKD 6,677 million for the six months ended June 30, 2023, compared to HKD 6,215 million in the prior year, reflecting an increase of about 7.4%[142]. - The total rental income from the mainland office property portfolio decreased by 5% to HKD 427 million in the first half of 2023, while excluding currency fluctuations, it increased by 1%[72]. - The total rental income from Hong Kong retail properties for the first half of 2023 was HKD 1.32 billion, reflecting a 17% increase compared to the same period in 2022[52]. - The occupancy rate of the office property portfolio in Hong Kong was 90% as of June 30, 2023, with a rate of 94% excluding the newly completed Taikoo Place Two[46]. - The group has completed the sale of 2,114 out of 2,530 parking spaces at Taikoo City as of August 4, 2023, with 1,460 sales confirmed by June 30, 2023[61]. Sustainability and Corporate Governance - The company is implementing an internal carbon pricing mechanism to quantify the potential impact of carbon emissions on investment projects[17]. - The company has signed over 70 tenants under its "Environmental Performance Charter" since its launch in 2022, promoting sustainability initiatives[25]. - The company is committed to maintaining its leadership in environmental, social, and governance (ESG) areas while accelerating digital transformation[19]. - The company has been included in the 2023 Bloomberg Gender Equality Index, reflecting its commitment to gender equality in the workplace[25]. - The company adhered to all corporate governance codes during the reporting period[179]. Market Outlook and Future Guidance - The company is optimistic about the remaining part of 2023 and plans to focus on a HKD 100 billion investment plan in Hong Kong, mainland China, and Southeast Asia[28]. - Future guidance suggests a projected revenue growth of 12% for the second half of 2023, driven by increased demand in the residential sector[193]. - The company is focusing on sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2030[193]. - The group expects further improvement in retail business in Hong Kong in the second half of 2023, driven by strong marketing activities and membership reward programs[54].

Financial Performance - For the first half of 2023, the company reported a revenue of HKD 7,297 million, representing a 6% increase from HKD 6,910 million in the same period of 2022[3]. - The basic earnings attributable to shareholders decreased by 6% to HKD 3,901 million, down from HKD 4,169 million in the previous year[3]. - The company’s basic earnings per share (EPS) for the first half of 2023 was HKD 0.67, unchanged from the previous year when adjusted for regular earnings[3]. - The company reported a net profit attributable to shareholders of HKD 2,223 million, down 48.9% from HKD 4,348 million in the same period last year[139]. - The group reported a profit attributable to shareholders of HKD 3,855 million for the six months ended June 30, 2023, compared to HKD 3,957 million in the same period last year, a decrease of 2.6%[146]. - The company reported a total comprehensive income of HKD 165 million for the six months ended June 30, 2023, compared to HKD 1,899 million for the same period in 2022[140]. Cash Flow and Debt - The company’s cash flow from operations increased by 7% to HKD 4,221 million, compared to HKD 3,933 million in the prior year[3]. - The net debt increased by 56% to HKD 29,514 million, up from HKD 18,947 million[3]. - The company reported a net cash outflow from investing activities of HKD 6,761 million, compared to HKD 5,118 million in the same period last year, reflecting an increase in investment expenditures[142]. - The total borrowings as of June 30, 2023, amounted to HKD 33,108 million, compared to HKD 22,835 million as of December 31, 2022, indicating a significant increase of approximately 45%[123]. - The net debt-to-equity ratio increased to 10.2% as of June 30, 2023, up from 5.3% in the previous year[132]. Investment and Development Plans - The company has committed approximately 40% of its HKD 100 billion investment plan to new projects, indicating a clear roadmap for future business expansion[6]. - The company aims to double its total floor area in mainland China by 2032, with a planned investment of HKD 50 billion in recent projects[13]. - The company plans to invest HKD 100 billion over the next ten years in development projects in Hong Kong and mainland China, with HKD 30 billion allocated to Hong Kong, HKD 50 billion to mainland China, and HKD 20 billion to residential sales projects[39]. - The company is exploring investment opportunities in the Greater Bay Area, with plans for large projects in Guangzhou, Shanghai, and Shenzhen[17]. Retail and Hotel Performance - The hotel business has shown significant recovery, with all hotels experiencing strong rebounds post-global travel resumption[28]. - The Hong Kong retail portfolio has shown significant recovery, primarily due to the government's lifting of all travel and pandemic restrictions, leading to a resurgence in consumer confidence[19]. - Retail sales in mainland China increased by 41% in the first half of 2023 compared to pre-pandemic levels, with specific properties showing significant growth: Beijing Sanlitun Taikoo Li up 29%, Chengdu Taikoo Li up 27%, and Guangzhou Taikoo Hui up 16%[75]. - The hotel segment generated revenue of HKD 476 million, up from HKD 262 million in the same period last year, marking an increase of 81.7%[150]. Sustainability and Community Initiatives - The company is implementing an internal carbon pricing mechanism to quantify the potential impact of carbon emissions on investment projects and redistribute funds to low-carbon initiatives[15]. - The "2030 Sustainability Strategy" is being advanced, focusing on collaboration with tenants to exceed sustainability goals[29]. - The company is implementing a series of community-focused initiatives to promote a healthy work environment, reflecting its commitment to innovative community building[13]. Market Outlook and Challenges - The office market in Hong Kong is expected to remain weak for the remainder of 2023 due to rising vacancy rates and increased supply[26]. - The market outlook remains cautious in the short term due to rising interest rates and economic uncertainty, but is expected to stabilize in the medium to long term due to solid demand and economic recovery[109]. - The company anticipates continued improvement in foot traffic and sales in its Hong Kong markets, supported by government initiatives[12]. Dividend and Shareholder Returns - The company plans to distribute an interim dividend of 3% for the first half of 2023, with a target of annual dividend growth in single digits[9]. - The company declared an interim dividend of HKD 1,931 million for the year ending December 31, 2023[194].