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） ...

Company Overview Swire Properties is a leading integrated property developer, owner, and operator in Hong Kong and Mainland China, specializing in commercial real estate, property trading, and hotel management, and has achieved its 2030 sustainability vision six years early - The company is a leading integrated property developer, owner, and operator in Hong Kong and Mainland China, primarily focused on commercial property projects, with businesses including property investment, property trading, and hotel investment and management[4](index=4&type=chunk) - The company has operations in high-end and premium residential markets in Hong Kong, Mainland China, Indonesia, Vietnam, and Thailand, with a planned project in Miami, USA; Swire Hotels has confirmed expansion plans into Japan[4](index=4&type=chunk) - The company achieved its 2030 vision of being a global leader in sustainable development six years ahead of schedule and is now focusing on setting 2050 targets[11](index=11&type=chunk)[23](index=23&type=chunk)[35](index=35&type=chunk) - Sustainable development highlights for the first half of 2025 include: being ranked in the top 1% of S&P Global Corporate Sustainability Assessment scores in The S&P Global Sustainability Yearbook, becoming the first Asia Pacific real estate developer to receive a "Medium Green" rating from S&P Global Ratings' Climate Transition Assessment, over 150 tenants participating in the "Environmental Performance Charter", over 130 F&B tenants receiving "Green Kitchen" certification, and launching the "Green Retail Partnership"[11](index=11&type=chunk) Financial Highlights In the first half of 2025, the company's underlying profit increased by 15% year-on-year to HK$4.42 billion, driven by asset disposals, while recurring underlying profit decreased by 4%; revenue grew by 20%, and cash from operations significantly increased by 65%, maintaining a robust financial position with a net debt-to-capital ratio of 15.7%, and an interim dividend increase of 3% was announced Key Financial Results for 1H 2025 (HK$ million) | Indicator | 1H 2025 | 1H 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 8,723 | 7,279 | +20% | | Profit attributable to shareholders (Underlying) | 4,420 | 3,857 | +15% | | Profit attributable to shareholders (Recurring Underlying) | 3,420 | 3,570 | -4% | | Profit attributable to shareholders (Reported) | (1,202) | 1,796 | N/A | | Cash from operations | 6,103 | 3,701 | +65% | | Net cash inflow before financing | 6,683 | 1,284 | +420% | | Earnings per share (Underlying) | HK$0.76 | HK$0.66 | +15% | | Earnings per share (Recurring Underlying) | HK$0.59 | HK$0.61 | -3% | | Earnings per share (Reported) | (HK$0.21) | HK$0.31 | N/A | | First interim dividend | HK$0.35 | HK$0.34 | +3% | Financial Position as at June 30, 2025 (HK$ million) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total equity | 272,547 | 278,427 | -2% | | Net debt | 42,853 | 43,746 | -2% | | Net debt-to-capital ratio | 15.7% | 15.7% | Zero percentage points | | Equity per share attributable to shareholders | HK$47.01 | HK$47.35 | -1% | Underlying Profit by Segment for 1H 2025 (HK$ million) | Segment | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | Property Investment | 3,747 | 3,693 | | Property Trading | (282) | (61) | | Hotels | (45) | (62) | | Recurring Underlying Profit | 3,420 | 3,570 | | Disposal of assets | 1,000 | 287 | | **Underlying Profit** | **4,420** | **3,857** | Chairman's Statement Despite global economic uncertainties, Swire Properties delivered strong performance in the first half of 2025, leveraging its premium property portfolio and community-building strategy, continuing to advance its HK$100 billion investment plan, strengthening financial resilience through capital recycling, achieving progressive dividend growth, and confidently pursuing long-term prospects in core markets after achieving its sustainability vision early - Underlying profit for the first half of 2025 increased by **15%** to **HK$4.42 billion**, primarily driven by profit from the disposal of Brickell City Centre retail mall and adjacent land in Miami[18](index=18&type=chunk) - Recurring underlying profit attributable to shareholders decreased by **4%**, mainly reflecting lower Hong Kong office rental income and increased sales and marketing expenses for residential trading projects[18](index=18&type=chunk) - The first interim dividend for 2025 was declared at **HK$0.35 per share**, a **3% increase** from 2024, with a target of mid-single-digit annual dividend growth and distributing approximately half of underlying profit as ordinary dividends[20](index=20&type=chunk) - The company repurchased **44,736,600 shares** totaling **HK$707 million** at an average price of **HK$15.8 per share**[20](index=20&type=chunk) - The HK$100 billion investment plan is progressing well, with **67%** of funds committed, focusing on three core markets: Hong Kong, Mainland China, and Southeast Asia[17](index=17&type=chunk) - The company achieved its 2030 sustainability vision six years ahead of schedule and is now focused on setting 2050 targets, committed to creating the world's most sustainable communities[23](index=23&type=chunk) Chief Executive's Report Despite a challenging operating environment, Swire Properties maintained robust performance and growth momentum in the first half of 2025 through a focus on quality, innovation, and strategic execution, continuing to advance its HK$100 billion investment plan in core markets across Hong Kong, Mainland China, and Southeast Asia, while making progress in asset recycling, sustainability, and digital transformation - Recurring underlying pre-tax profit from investment properties decreased in the first half of 2025, mainly due to lower Hong Kong office rental income[28](index=28&type=chunk) - The Hong Kong office market remains challenging, but the company's portfolio remains resilient with stable occupancy rates, and Two Taikoo Place and Six Pacific Place are progressing well with leasing[28](index=28&type=chunk) - Retail sales in Mainland China stabilized, with overall footfall increasing, reflecting the attractiveness of the company's malls, and competitive advantages were enhanced through tenant mix optimization and experiential activities[28](index=28&type=chunk)[29](index=29&type=chunk) - The disposal of interests in Brickell City Centre retail mall, car parks, and adjacent vacant land in Miami was completed, with proceeds to be reinvested into the HK$100 billion investment plan[30](index=30&type=chunk) - The company is committed to accelerating digital transformation, initiating multiple generative AI projects to enhance operational flexibility and customer experience[36](index=36&type=chunk) - Hotel business performance was mixed, with slower recovery in Hong Kong hotels, varied results for Mainland China hotels, and continued strong performance from EAST Miami in the US[29](index=29&type=chunk) Business Review This section details the company's business performance in the first half of 2025, including a financial overview, progress of the HK$100 billion investment plan, major asset transactions, and specific conditions and market outlook for investment properties, property trading, and hotel businesses in Hong Kong, Mainland China, and the United States, demonstrating the company's resilience and growth potential through strategic investments and asset management amidst macroeconomic challenges 2025 First Half Total Revenue (HK$ million) | Revenue Source | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | Gross rental income | 6,576 | 6,727 | | Property trading | 1,706 | 88 | | Hotels | 441 | 464 | | **Total Revenue** | **8,723** | **7,279** | 2025 First Half Operating Profit/(Loss) (HK$ million) | Indicator | 1H 2025 | 1H 2024 | | :--- | :--- | :--- | | Property investment (from operations) | 3,918 | 4,389 | | Fair value loss on investment properties | (3,900) | (842) | | Property trading | 511 | (54) | | Hotels | (53) | (57) | | **Total Operating Profit** | **355** | **3,217** | - Reported loss attributable to shareholders was **HK$1.202 billion**, primarily due to a fair value loss on investment properties of **HK$4.68 billion** (mainly from the Hong Kong office portfolio)[44](index=44&type=chunk) - The HK$100 billion investment plan has committed approximately **HK$67 billion** in total (HK$11 billion in Hong Kong, HK$46 billion in Mainland China, and HK$10 billion in residential property trading projects)[48](index=48&type=chunk) - In April 2025, the Group acquired a **12.07% interest** in Brickell City Centre retail mall in Miami for **US$73.5 million**, increasing its total interest to **75%**[49](index=49&type=chunk) - In June 2025, the Group completed the disposal of its **75% interest** in Brickell City Centre retail mall, along with car parks and certain common facilities, to Simon Property Group for a total consideration of up to **US$548.7 million**[50](index=50&type=chunk) [Investment Properties — Hong Kong](index=23&type=section&id=投資物業%20—%20香港) The Hong Kong investment property portfolio faced challenges in the first half of 2025, with declining office rental

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: Swire Properties Limited 太古地產有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 不適用 備註： Swire Properties Limited 太古地產有限公司並無法定股本，及其股本並無股份面值。 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01972 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 5,757,484,800 | | 0 | | 5,757,484,800 | | 增加 / 減少 (-) | | | 0 | | 0 | | ...

Group 1 - The core viewpoint is that top shopping centers exhibit strong stability, contrary to the market perception that they are vulnerable to economic downturns and online consumption impacts [2][6] - Despite a projected decline in retail sales growth in major cities like Beijing and Shanghai, top shopping centers have managed to achieve retail sales growth, with specific centers reporting increases of 30%, 6%, and 26% year-on-year [2][3] - The success of top shopping centers is attributed to their ability to attract consumer traffic and popular brands, creating a positive cycle of customer flow and brand presence, which helps maintain rental income stability [2][4] Group 2 - High-end shopping centers are facing challenges due to economic fluctuations, but those in stable competitive environments can still achieve retail growth by attracting fast-growing brands and upgrading their offerings [3][6] - The competitive advantage of shopping centers is not solely based on location or operational capabilities, but rather on their ability to provide an engaging shopping experience, known as "walkability" [4][5] - A robust management system is crucial for commercial real estate companies, as it differentiates them in a market where operational know-how is not scarce [5][7] Group 3 - Top shopping centers and commercial real estate companies are considered valuable assets, maintaining stability even during economic downturns by leveraging their scale advantages and effective marketing strategies [6][7] - Companies that excel in commercial real estate should possess strong management capabilities, stable existing shopping centers, and the ability to successfully launch new projects [7]

Investment Rating - The industry investment rating is "Positive" [2] Core Viewpoints - The real estate sector is at a historical low in holdings, combined with interest rate cuts, which enhances the attractiveness of investments in this sector [4] - The report highlights that the fund holdings in real estate stocks have reached a historical low, with a significant drop in market value from 14.1 billion to 3 billion, a decrease of 80% [19] - The report identifies several driving factors, including low fund holdings, global policy cycles, and high base pressure in Q4 2025, which necessitate further policy support [5] Summary by Sections 1. Real Estate Heavyweight Stock Analysis: Historical Low Holdings - The number of funds holding real estate stocks has reached a five-year low, with a decline from 372 funds in Q4 2020 to 194 funds in Q4 2023 [13] - The total market value of funds holding real estate stocks has decreased significantly, reaching a historical low of 3 billion by H1 2025 [19] - The report notes that the proportion of funds overweight in real estate stocks has remained around 55% over the past five years, indicating a stable but low allocation [23] 2. Impact of US Rate Cuts on Chinese Real Estate Stocks - The report discusses the correlation between US interest rate cuts and the valuation recovery of Chinese real estate stocks, suggesting that these cuts can alleviate pressure on the Chinese yuan and provide opportunities for local rate cuts [56] - It emphasizes that the US rate cuts can improve the financing environment for Chinese real estate companies, thereby enhancing their credit profiles and market valuations [58] - The report anticipates a 92.1% probability of a rate cut by the Federal Reserve in September 2025, which could further influence the Chinese real estate market positively [61]

Investment Rating - The report maintains a "Buy" rating for the real estate sector, specifically recommending China Merchants Shekou's issuance of 1 billion yuan in medium-term notes [2]. Core Insights - The real estate sector index increased by 3.9% in the 33rd week, ranking 6th among 31 primary industry sectors [8]. - New home transactions in 20 monitored cities decreased by 21% year-on-year, while second-hand home transactions in 11 cities saw a slight decline of 2% year-on-year [21][29]. - The report emphasizes the importance of effective policies and broad fiscal measures to support the market, with a focus on urban village renovations and inventory management [29]. Summary by Sections Industry Basic Data - The total number of listed companies in the real estate sector is 107, with a total market capitalization of 1,198.27 billion yuan and a circulating market capitalization of 1,148.68 billion yuan [2]. Sales Performance - In the 33rd week, the average daily transaction area for new homes in 20 cities was 20.0 million square meters, reflecting a 2% decrease from the previous week and a 21% decrease year-on-year [19]. - The total transaction area for new homes in the first seven months of the year was 63.8 million square meters, down 8% year-on-year [21]. Financing Activities - Most bond issuances in the week were from local state-owned enterprises, with China Merchants Shekou and Poly Real Estate issuing the largest amounts [27][28]. Investment Recommendations - The report suggests focusing on companies with strong product moats, stable rental income from quality commercial real estate, and the stock brokerage business in the existing housing market. Key companies to watch include Greentown China, China Resources Land, Swire Properties, China Resources Mixc Life, and Beike-W [29].