Group 1 - The company, China Overseas Development, announced a property acquisition involving a 50.5% stake in Company A (Shanghai New Dong'an) and a 30.5% stake in Company B (Shanghai New Bai'an) for approximately RMB 73.41 billion and RMB 8.12 billion respectively [1][2] - Company A and Company B are both limited companies established in China, primarily engaged in property development and investment, holding land in the Dong'an project located in Xuhui District, Shanghai [1][2] - The acquisition aligns with the company's core business strategy, enhancing its market share and brand presence in Shanghai, a key area for strategic development [2] Group 2 - The Dong'an project is strategically located in a prime area of Shanghai, benefiting from excellent infrastructure and transportation links to surrounding commercial districts [2] - The joint bidding approach allows the company to leverage contributions from other partners, successfully acquiring the assets while mitigating investment risks [2]

Group 1 - The Japanese real estate market experienced an unprecedented influx of foreign investment in the first half of 2025, with investment amounts surging by 45%, surpassing 1 trillion yen [1][6] - The continuous rise in land prices in Japan for four consecutive years, driven by yen depreciation, a strong recovery in tourism, and persistent inflationary pressures, has made the market highly attractive [1][3] - Tokyo's rental yield reached 4.2%, with occupancy rates consistently above 96%, showcasing the market's resilience and appeal [1][4] Group 2 - In contrast, the Chinese real estate market saw a decline during the same period, with real estate investment dropping by 11.2% and rental prices in 50 major cities decreasing by 1.37% [1][3] - The average land price in Japan increased by 2.7%, marking the strongest performance since 1991, with projections indicating the market value will grow from $436 billion in 2024 to $557 billion by 2033 [3][6] - Foreign investors are particularly interested in multi-family residential properties due to their high occupancy rates and stable rental income, with significant transactions recorded in Tokyo and Osaka [3][6] Group 3 - The average rental yield across Japan stands at 4.2%, significantly higher than that of major Chinese cities, with Tokyo's residential rents increasing by 6.4% year-on-year [4][6] - Major foreign investments include Blackstone's acquisition of the Tokyo Garden Terrace Kioicho project for approximately 400 billion yen, setting a new record for foreign investment in Japan's real estate [6] - The trend of foreign investment is expected to continue, with interest from major buyers in properties such as Nissan's headquarters in Yokohama, indicating a robust outlook for the Japanese real estate market [6]

Core Viewpoint - Kowloon Warehouse Group (00004) reported a significant turnaround in its financial performance for the half-year ending June 30, 2025, with a notable increase in shareholder profit compared to the previous year [1] Financial Performance - Revenue for the period was HKD 5.669 billion, representing a year-on-year decrease of 19.38% [1] - Shareholder profit reached HKD 535 million, a recovery from a loss of HKD 2.637 billion in the same period last year, indicating a successful turnaround [1] - Basic earnings per share were HKD 0.18, and the company proposed an interim dividend of HKD 0.2 per share [1] Investment Property Revenue - Investment property revenue decreased by 4% to HKD 2.281 billion, down from HKD 2.364 billion in 2024 [1] - Operating profit from investment properties fell by 6% to HKD 1.484 billion, compared to HKD 1.573 billion in 2024, attributed to soft rental rates for shopping malls and office buildings [1]

Core Viewpoint - The performance of Swire Properties in 1H25 met market expectations, with a revenue increase of 20% year-on-year to HKD 8.72 billion, while the recurring net profit attributable to shareholders decreased by 4% to HKD 3.42 billion, but increased by 15% to HKD 4.42 billion when considering asset disposal gains [1][2] Financial Performance - Revenue for 1H25 rose by 20% to HKD 8.72 billion - Recurring net profit attributable to shareholders decreased by 4% to HKD 3.42 billion - Basic profit attributable to shareholders increased by 15% to HKD 4.42 billion, aligning with market expectations - Interim dividend declared at HKD 0.35 per share, a 3% increase year-on-year, corresponding to a current dividend yield of 1.66% [1] Operational Highlights - Retail sales in mainland shopping centers improved, with a 1% year-on-year increase in 1H25, compared to a decline of 7% in 1H24 - Notable retail sales growth in Shanghai Taikoo Hui (+14%) and Beijing Sanlitun Taikoo Li (+7%) - Rental income from mainland shopping centers increased by 2% to HKD 2.27 billion in 1H25 - Hong Kong office rental income decreased by 5% to HKD 2.46 billion, with an occupancy rate of 88% [1][2] Asset Disposal and Financial Strategy - The company recorded asset disposal gains of HKD 1 billion in 1H25, primarily from the Miami shopping center and adjacent land, with a total consideration of up to USD 760 million - The net debt ratio remained stable at 15.7% compared to the end of 2024 [2] Investment Plans - The company has a HKD 100 billion investment plan, with HKD 50 billion allocated to the mainland market, of which HKD 46 billion is already earmarked - Upcoming projects include the phased opening of Guangzhou Julong Bay Taikoo Li by the end of 2025, the opening of Sanya Taikoo Li in 2026, and the completion of Xi'an Taikoo Li in 2027 [2] Shareholder Returns and Financial Safety - The company reiterated its guidance for a mid-single-digit annual growth in dividends, supported by asset disposals and residential sales - The company has confirmed or planned asset disposals for the second half of the year, including the Miami site and the sale of the 43rd floor of the Eastern Island Center [2] Earnings Forecast and Valuation - Earnings forecasts remain largely unchanged, with expected recurring net profit for 2025 and 2026 projected to decrease by 5% and increase by 17% to HKD 6.17 billion and HKD 7.20 billion, respectively [2] Rating and Target Price - The company maintains an outperform rating with a target price of HKD 23.8 per share, implying a 30% target NAV discount and a 4.8% target dividend yield for 2025, indicating a 13% upside potential [3]

Core Viewpoint - Morgan Stanley's research report indicates that Kowloon Development's rental income improved in the first half of the year, but management remains cautious about the outlook for the second half, anticipating a low single-digit decline in retail renewal rents, which aligns with market expectations [1] Group 1: Financial Performance - The management revealed that retail sales began to improve from May, with Harbour City merchants outperforming the market average [1] - The company believes it is necessary to observe the situation for a few more months to confirm whether the market has fully bottomed out [1] Group 2: Market Conditions - The decrease in HIBOR has led to reduced financing costs, and there may be slight improvements in rental income in the second half of the year [1] - Morgan Stanley currently forecasts a 1% and 2% growth in earnings per share and dividends for Kowloon Development in the fiscal year 2025, respectively [1] Group 3: Investment Rating - Morgan Stanley maintains an "Overweight" rating for Kowloon Development, with a target price of HKD 27.5, which corresponds to approximately a 50% discount to the net asset value (NAV) per share [1]

Core Viewpoint - Citigroup reports that the earnings of Wharf Real Estate Investment Company show resilience, with a flat underlying net profit of HKD 31.19 billion in the first half of the year [1] Financial Performance - Core earnings from investment properties and hotels increased by 3% year-on-year to HKD 31 billion, accounting for 55% of the bank's full-year forecast (52% for the first half of 2024) [1] - The company reported a book loss of HKD 24 billion, primarily due to a fair value loss of HKD 51 billion on investment properties (with a projected fair value loss of HKD 44 billion for the first half of 2024) [1] - The valuation of Harbour City decreased by 1.8%, while Times Square saw a decline of 3.9% [1] Dividend Declaration - The company declared an interim dividend of HKD 0.66 per share, representing a 3% year-on-year increase, with a maintained payout ratio of 65% based on core profits from Hong Kong investment properties and hotels [1] Investment Rating - Citigroup maintains a "Buy" rating on the company, with a target price set at HKD 25 [1]

2025 INTERIM RESULTS | ANALYSTS BRIEFING 7TH AUGUST 2025 DISCLAIMER This presentation has been prepared by Swire Properties Limited (the "Company", together with its subsidiaries, the "Group") solely for information purposes and the information contained herein has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the accuracy, fairness, completeness, reasonableness or correctness of the information or opinions presented h ...

Group 1 - The core viewpoint of the article highlights that Kowloon Development (01997) experienced a stock price increase of over 6%, reaching HKD 26.06 with a trading volume of HKD 115 million [1] - Kowloon Development reported its interim results for the first half of 2025, showing a revenue of HKD 6.407 billion, a year-on-year decrease of 1.45% [1] - The company recorded a loss attributable to shareholders of HKD 2.406 billion, which represents a significant year-on-year increase of 128.71% [1] Group 2 - Excluding the impairment of investment properties, the unaudited basic net profit for the period was HKD 3.119 billion, slightly down from HKD 3.123 billion in the same period last year [1] - The company declared its first interim dividend of HKD 0.66 per share, compared to HKD 0.64 per share in the same period last year [1]

Core Insights - Swire Properties (01972) reported a mid-year performance for 2025, with revenue reaching HKD 8.723 billion, a year-on-year increase of 20% [1] - The company's attributable basic profit rose to HKD 4.42 billion, reflecting a 15% growth compared to the previous year [1] - Basic earnings per share were reported at HKD 0.76, with an interim dividend of HKD 0.35 per share [1] Financial Performance - The basic profit for the first half of 2025 increased by 15% to HKD 4.42 billion, primarily due to the sale of interests in Brickell City Centre mall, parking spaces, and adjacent land [1] - However, the attributable recurring basic profit decreased by 4%, from HKD 3.57 billion in the first half of 2024 to HKD 3.42 billion in 2025, mainly due to a decline in rental income from Hong Kong office buildings and increased marketing expenses for upcoming residential projects [1] Investment Property Valuation - The fair value loss on investment properties for the first half of 2025 was HKD 4.68 billion, compared to HKD 0.879 billion in the same period of 2024 [1] - The fair value changes are non-cash in nature and do not impact the company's operating cash flow or attributable basic profit [1] - The company's balance sheet remains strong, and the fair value changes are not expected to affect its investment strategy [1]

Core Viewpoint - The company reported stable underlying net profit for the first half of 2025, with a slight decrease in revenue and operating profit compared to the previous year [1] Financial Performance - Underlying net profit for the first half of 2025 was HKD 3.119 billion, compared to HKD 3.123 billion in 2024, translating to earnings per share of HKD 1.03 [1] - Total revenue decreased by 1% to HKD 6.407 billion, while operating profit fell by 5% to HKD 4.684 billion [1] - Investment property revenue decreased by 3% to HKD 5.371 billion, with operating profit down 4% to HKD 4.528 billion [1] - Hotel revenue increased by 2% to HKD 766 million, with operating profit rising to HKD 47 million [1] - Development property revenue was HKD 58 million, resulting in an operating loss of HKD 1 million [1] Dividend Announcement - The first interim dividend declared is HKD 0.66 per share, an increase from HKD 0.64 in 2024, with a total payout of HKD 2.004 billion, representing 65% of the underlying net profit from investment properties and hotels [1] Impairment and Losses - The company recorded a net impairment loss on investment properties of HKD 5.118 billion, leading to a shareholder loss of HKD 2.406 billion for the first half of 2025, compared to a loss of HKD 1.052 billion in 2024 [1] - Basic loss per share was HKD 0.79 [1] Investment Income - Investment operating profit, primarily from dividend income, increased by 2% to HKD 143 million [1]