Group 1: Core Business Performance - The Hong Kong office market is facing significant challenges, with a vacancy rate rising to 13.6% in the first half of 2025, indicating an oversupply situation [2] - The rental rate for the company's Hong Kong office properties has declined from 93% at the end of 2024 to 91% by the end of Q2 2025, with specific declines of 1% for Taikoo Place and 3% for Taikoo Square [2] - Rental rates for the two core properties have decreased by 14% and 15% respectively, reflecting competitive market conditions [2] Group 2: Retail Market Performance - In contrast to the office sector, the company's retail properties have shown stable growth, with key projects maintaining a 100% occupancy rate [4] - Notable sales growth was observed in Shanghai's Taikoo Hui, which increased by 13.5%, and Beijing's Sanlitun Taikoo Li, which grew by 6.8% [4] - The performance disparity among retail projects is influenced by local economic conditions and operational factors, necessitating targeted strategies for maintaining retail business stability [4] Group 3: Future Development Projects - Several new projects, including Beijing Taikoo Place and Xi'an Taikoo Li, are under construction and are expected to be completed between 2026 and 2027, which will provide new growth momentum for the company [5]

Core Viewpoint - The company reported strong retail performance in its shopping centers, with most locations showing year-on-year growth in retail sales for the first half of 2025, indicating a robust recovery in the retail sector [1][2]. Group 1: Retail Performance - Shanghai Xinyi Taikoo Hui saw a retail sales increase of 13.5% year-on-year, while Beijing Sanlitun Taikoo Li grew by 6.8% [1]. - Chengdu Taikoo Li and Shanghai Qiantan Taikoo Li reported retail sales growth of 4% and 0.2% respectively, with Beijing Yiti Port remaining flat and Guangzhou Taikoo Hui declining by 2.1%, a significant improvement from a 10.7% decline in 2024 [1]. - The overall trend indicates that major shopping centers are benefiting from the continued entry of luxury brands, which is expected to further enhance retail sales and rental income in the coming years [1]. Group 2: Hong Kong Market Insights - Hong Kong shopping centers maintained full occupancy with a slight improvement in retail sales growth, contrasting with street shops affected by tourist spending [2]. - Taikoo Place, Taikoo City Centre, and Cityplaza reported retail sales growth of 1.4%, 2%, and a decline of 3.3% respectively, with a consistent 100% occupancy rate for six consecutive quarters [2]. - The Hong Kong office market remains under pressure due to historical rent reductions, with new supply continuing to impact rental rates, although new lease rates have not seen significant declines [2]. Group 3: Investment Outlook - The company’s assets are primarily located in prime shopping districts, providing a strong competitive advantage and operational capabilities that enhance project performance [2]. - Projected net profit growth for the company is estimated at 449%, 54%, and 37% for 2025 to 2027, with dividends expected to grow at 5% annually [2]. - The current estimated net present value per share is HKD 23.92, with a projected dividend yield of 5.6% for 2025, maintaining a "recommended" rating [2].

Core Insights - Swire Properties and Kering Group have established a partnership focused on sustainability to enhance ESG performance in retail spaces across mainland China and Hong Kong [1] - The collaboration is formalized through a memorandum of understanding, integrating Kering's "Kering Green Building Guidelines" into Swire Properties' "Green Retail Partnership" program [1] - The initiative aims to promote sustainable store design, improve ESG data sharing and monitoring, and enhance environmental performance in store operations [1] Group 1 - The partnership is expected to transform environmental commitments into actionable steps at the store level, emphasizing the importance of collaboration in achieving sustainability goals [1] - Kering's Chief Sustainability Officer highlighted the necessity of integrating sustainability throughout the value chain, from design to retail operations [1] - Swire Properties' retail business director expressed enthusiasm for strengthening collaboration with Kering to enhance overall sustainability performance in retail projects [1]

Group 1 - Kering Group and Swire Properties have established a partnership focused on sustainability to enhance ESG performance in new and existing stores in mainland China and Hong Kong [1] - Kering's Chief Sustainability Officer, Marie-Claire Daveu, emphasized the importance of integrating sustainability into every aspect of the value chain, from design to retail operations [1][2] - The partnership includes Kering's "Kering Green Building Guidelines" and participation in Swire Properties' "Green Retail Partnership" program, set to launch in 2024 [1] Group 2 - The "Green Retail Partnership" will incorporate sustainability considerations throughout the entire leasing cycle, including store design, renovation, and operations [2] - Swire Properties will provide technical guidance for Kering's new stores to implement sustainable design and renovation practices, covering areas such as lighting, interior layout, eco-friendly materials, and energy and water management [2]

Core Insights - Kering Group and Swire Properties have established a partnership focused on sustainability to enhance Kering's ESG performance in retail spaces across mainland China and Hong Kong [1][2] - The collaboration includes the implementation of Kering's "Kering Green Building Guidelines" and participation in Swire Properties' upcoming "Green Retail Partnership" program, set to launch in 2024 [1] Group 1 - Kering's Chief Sustainability Officer, Marie-Claire Daveu, emphasized the importance of integrating sustainability into every aspect of the value chain, from design to retail operations [1] - Swire Properties' retail business director expressed enthusiasm for strengthening the long-term partnership with Kering [1] Group 2 - The "Green Retail Partnership" will incorporate sustainability considerations throughout the entire leasing cycle, including store design, renovation, and operations [2] - Swire Properties will provide technical guidance for Kering's new stores to implement sustainable design and renovation practices, covering areas such as lighting, interior layout, eco-friendly materials, and energy and water management [2]

Core Insights - Kering Group and Swire Properties have established a partnership focused on sustainability to enhance environmental, social, and governance performance in retail stores across mainland China and Hong Kong [1][2] - The collaboration aims to integrate sustainability into all aspects of the value chain, from design and procurement to retail operations [1] - Both companies will work closely to improve the overall sustainability performance of their retail projects and achieve their respective sustainability goals [1] Group 1 - Kering's Chief Sustainability Officer emphasized the importance of embedding sustainability into the entire retail value chain [1] - Swire Properties will provide technical guidance for Kering's new stores, focusing on sustainable design and renovation practices [1] - The partnership will enhance data monitoring and sharing to improve the environmental performance of store operations [1] Group 2 - A joint working group will be established to maximize sustainable benefits from the collaboration between Kering and Swire Properties [2] - The working group will focus on improving data sharing for existing stores and discussing key areas such as climate risk assessment and renewable energy applications [2] - Both companies will collaborate on developing solutions to enhance sustainability performance in various operational aspects [2]

8月4日，开云集团(Kering)与太古地产宣布建立以可持续发展为核心的合作伙伴关系，旨在提升开云集 团于中国内地及香港特别行政区太古地产旗下商场内所有新开及现有门店的环境、社会及公司治理 (ESG)表现。 此次合作结合开云集团的"开云绿筑共建指南"，开云集团及旗下高端精品品牌将参与太古地产的"Green Retail Partnership"计划。该计划是太古地产于2024年为零售合作伙伴打造的专属可持续发展计划，重点 包括推动可持续门店设计、加强ESG数据共享和监测，以及提升门店运营的环保表现。 太古地产将为开云集团的新开门店提供技术指引，指导其实践可持续设计及装修，包括照明、室内设计 布局、环保物料，以及能源与用水管理等范畴。双方还将加强数据监测和分享，并提升门店运营的环保 表现。 为扩大业主与租户合作所带来的可持续效益，双方将成立联合工作小组，推动落实合作内容和措施，包 括改善开云集团设于太古地产零售商场的现有门店的数据分享，以及加强双方就气候风险评估、可再生 能源应用、隐含碳排放、循环设计，以及能源、用水及废物管理等重点范畴的积极探讨，并一同研发提 升可持续发展表现的方案。 (开云集团) ...

Investment Rating - The report maintains a "Recommended" investment rating for Swire Properties (01972.HK) [1][6]. Core Views - The report highlights the significant advantages of Swire Properties in prime shopping districts, with retail sales in major shopping centers showing continuous improvement. For instance, retail sales in Shanghai's Xinyi Taikoo Hui, Beijing's Sanlitun Taikoo Li, and Shanghai's Qiantan Taikoo Li increased by 13.5%, 6.8%, and 4% year-on-year, respectively, in the first half of 2025 [1][6]. - The report anticipates that the company's rental income will continue to grow due to its strong operational and leasing capabilities, with projected net profit growth of 449%, 54%, and 37% for 2025, 2026, and 2027, respectively [1][6]. Financial Summary - Total revenue is projected to increase from HKD 14,428 million in 2024 to HKD 18,638 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 24.3% [1][7]. - The net profit attributable to shareholders is expected to recover from a loss of HKD 766 million in 2024 to HKD 5,671 million by 2027, indicating a significant turnaround [1][7]. - Earnings per share (EPS) is forecasted to rise from -0.13 HKD in 2024 to 0.99 HKD in 2027, demonstrating a strong recovery trajectory [1][7]. Market Performance - The report notes that Swire Properties' shopping centers in Hong Kong have maintained full occupancy, with retail sales growth improving sequentially. For example, retail sales growth for Taikoo Place and Taikoo City Centre was 1.4% and 2%, respectively, in the first half of 2025 [1][6]. - The overall office market in Hong Kong remains relatively weak due to ongoing downward pressure on rents from new supply, but the company has managed to maintain stable rental rates for its office spaces [1][6]. Valuation - The report estimates a target price of HKD 23.92 per share, with a current price of HKD 20.50, suggesting a potential upside [2][6]. - The dividend discount model (DDM) indicates a current per-share net present value of HKD 23.92, corresponding to a dividend yield of 5.6% for 2025 [1][6].

Core Insights - Swire Properties (01972) reported an overall office occupancy rate of 91% in Hong Kong for Q2 2025 [1] - The occupancy rate for Taikoo Place (overall) reached 90%, with a rental decrease of 15% [1] - In mainland China, the occupancy rate for Taikoo Hui office buildings was 91%, while the occupancy rate for one building at Pacific Place was 86% [1] - The occupancy rates for Hong Kong's Two and Three Exchange Square reached 95% [1] Summary by Category Hong Kong Office Market - Overall office occupancy rate in Hong Kong stands at 91% for Q2 2025 [1] - Taikoo Place achieved a 90% occupancy rate, with a 15% reduction in rental prices [1] - Two and Three Exchange Square reported a high occupancy rate of 95% [1] Mainland China Office Market - Taikoo Hui office buildings in mainland China recorded a 91% occupancy rate [1] - One building at Pacific Place had an occupancy rate of 86% [1]

Core Viewpoint - Swire Properties (01972.HK) announced that as of June 30, 2025, the overall office property occupancy rate in Hong Kong is 91% [1] Summary by Relevant Categories Rental Performance - As of June 30, 2025, the rental rates for Taikoo Place have decreased by 14% [1] - The rental rates for Taikoo Square have decreased by 15% [1]