Xin Lang Cai Jing·2025-08-08 05:53Group 1: Financial Performance - Swire Properties reported a revenue of HKD 87.23 billion for the first half of 2025, a 20% increase year-on-year, but recorded a loss attributable to shareholders of HKD 12.02 billion, marking the first mid-year loss since 2010 [1][3] - The basic profit increased by 15% to HKD 44.2 billion, with basic earnings per share at HKD 0.76, primarily driven by the sale of assets related to the Miami Brickell City Centre [1][3] - The recurring basic profit attributable to shareholders decreased by 4% from HKD 35.7 billion in the first half of 2024 to HKD 34.2 billion in 2025, reflecting a decline in rental income from office properties in Hong Kong [1][3] Group 2: Property Valuation and Market Conditions - The key factor contributing to the loss was a significant decline in the fair value of investment properties, which recorded a loss of HKD 46.8 billion in the first half of 2025, compared to a gain of HKD 8.79 billion in the same period of 2024 [3] - The rental income from office properties in Hong Kong fell by 4.7% to HKD 26.36 billion, with an overall occupancy rate of 88% as of June 30 [3][5] - The overall vacancy rate in the Hong Kong office market increased to 13.6%, with Central Grade A office rents down nearly 45% from the peak in 2019 [5] Group 3: Retail Performance - The retail market in mainland China showed strong performance, with rental income increasing by 2% to HKD 22.72 billion, and retail sales in mainland properties growing by 1% year-on-year [6] - Swire Properties reported that its retail properties in Hong Kong experienced a slight decline in rental income of 2%, but achieved a 100% occupancy rate in key shopping centers [5][6] Group 4: Investment Strategy - The company continues to execute its HKD 100 billion investment plan over the next decade, focusing on core markets including mainland China, Hong Kong, and Southeast Asia [7][8] - As of now, 67% of the planned investment has been allocated, with significant projects in cities like Xi'an, Sanya, and Shanghai [8] - The company aims to double its total built area in mainland China and Hong Kong by 2032, with ongoing developments in six operational shopping centers [8][9]