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]

Group 1 - The core viewpoint of the article highlights the operational performance of Swire Properties for the second quarter of 2025, showcasing strong occupancy rates across its retail properties in mainland China [1] Group 2 - In Beijing, the occupancy rate of Taikoo Li Sanlitun reached 99%, up from 98% in the same period last year [1] - Guangzhou Taikoo Hui maintained a 100% occupancy rate, consistent with the previous year [1] - Beijing Yintai Center achieved a 100% occupancy rate, an increase from 98% year-on-year [1] - Chengdu Taikoo Li reported a 97% occupancy rate, up from 96% year-on-year [1] - Shanghai Xingye Taikoo Hui's occupancy rate was 94%, an increase from 93% year-on-year [1] - Shanghai Qiantan Taikoo Li maintained a stable occupancy rate of 98%, unchanged from the previous year [1] Group 3 - In terms of development, the total floor area of Beijing Taikoo Fang is 375,837 square meters, with completion expected to begin in mid-2026 [1] - Construction is currently underway for the above-ground, curtain wall, and electromechanical installation works [1] - Xi'an Taikoo Li and Sanya Taikoo Li are projected to be completed starting in 2027, with relevant construction also in progress [1]