Investment Rating - The report maintains an "Outperform" rating for the real estate sector, indicating a positive outlook despite current challenges [1]. Core Insights - The report highlights the competitive landscape of Hong Kong commercial real estate, emphasizing that Hong Kong developers dominate the high-end market in mainland China, with significant advantages in sales per square meter compared to domestic developers [2][17]. - It notes that the real estate market is showing signs of stabilization, with policies expected to support demand and mitigate risks, particularly in first-tier cities [3]. - The report suggests that the financial health of Hong Kong developers is generally robust, with a focus on high-end commercial properties, which positions them well to benefit from increased consumer spending in mainland China [6][28]. Summary by Sections 1. Hong Kong Commercial Real Estate Landscape - Hong Kong developers like Hang Lung, Swire, and Sun Hung Kai dominate the high-end commercial sector, capturing a significant market share in major cities such as Shanghai, Beijing, and Guangzhou [2][17]. - The average sales per square meter for Hong Kong high-end projects (8.6 billion/10,000 sqm) significantly outperforms domestic counterparts (5.6 billion/10,000 sqm) [20]. 2. Market Performance - The report indicates that both A-shares and Hong Kong real estate stocks underperformed the broader market, with A-shares down 0.72% and Hong Kong real estate down 0.95% [3]. - The issuance of real estate credit bonds totaled 17.84 billion, with a net financing amount of 11.50 billion, reflecting ongoing challenges in the sector [4]. 3. REITs Market - The REITs index showed a slight decline of 0.11%, with the property-type REITs index at 118.22 points and the franchise-type REITs index at 118.85 points [4]. - The report notes that REITs have outperformed the CSI 300 index over the past month by 2.92 percentage points [4]. 4. Housing Market Trends - New and second-hand housing transaction volumes have seen significant year-on-year declines, with new housing down 34.37% and second-hand housing down 19.46% [6]. - The report anticipates a gradual recovery in the second-hand housing market, while new housing metrics are expected to stabilize [6]. 5. Land Market Dynamics - The report highlights a substantial increase in land supply and transaction volumes across major cities, with a 144.35% increase in supply and a 40.81% increase in transactions [5]. - The premium rate for land transactions has shown a slight increase, indicating a competitive bidding environment [5]. 6. Policy Outlook - The report outlines expectations for future policies aimed at stabilizing the housing market, including potential adjustments to purchase restrictions in first-tier cities and measures to alleviate inventory pressures [3].

Core Viewpoint - Swire Group's Hong Kong headquarters has laid off approximately 10% of its staff, affecting around 40 employees across departments such as sustainability, finance, and risk management, including the head of sustainability, Mark Harper [1][2]. Group 1: Company Restructuring - The recent layoffs mark the first significant job cuts at Swire Group's headquarters in years, as the company aims to enhance overall efficiency and streamline processes [2]. - Swire Group, established in 1816, operates in five major sectors: real estate, aviation, beverages, marine services, and trading, employing over 121,000 people globally, with more than 500 at its Hong Kong headquarters [2]. Group 2: Real Estate Performance - Swire Properties' retail business has shown signs of recovery, with all three core shopping centers in Hong Kong maintaining a 100% occupancy rate and experiencing varying degrees of sales growth as of the end of September [2]. - Specific sales growth figures include a 3.6% increase for Taikoo Place, 3% for Taikoo City, and 0.2% for Cityplaza [2]. Group 3: Mainland Market Activity - The retail market in mainland China is more vibrant, with notable sales growth reported: 41.9% for Shanghai's Xinyi Taikoo Hui, 7.8% for Beijing's Sanlitun Taikoo Li, and 5.6% for Shanghai's Qiantan Taikoo Li [3]. Group 4: Office Property Challenges - The office property segment remains weak, with rental rates declining by 13% at Taikoo Place and 15% at Taikoo Square [5]. - As of the end of September, the overall office occupancy rate in Hong Kong was 92%, down from 93% in 2024, with Taikoo Square's occupancy dropping from 93% to 90% [5]. Group 5: Financial Performance - Swire Properties reported a significant fair value loss of HKD 4.68 billion in investment properties for the first half of the year, compared to HKD 879 million in the same period last year, primarily due to the Hong Kong office portfolio [6]. - Despite the challenges, the company achieved a revenue of HKD 8.723 billion, a 20% year-on-year increase, while the attributable recurring profit decreased by 4% to HKD 3.42 billion [6]. - This marks the first time in 15 years that Swire Properties has reported a loss in interim attributable profit, although the sale of multiple properties in Miami contributed to a 15% increase in basic earnings to HKD 4.42 billion [8].

1. 已落成投資物業 辦公樓物業 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 SWIRE PACIFIC LIMITED 太古股份有限公司 (於香港註冊成立的有限公司) (股份代號：00019 及 00087) 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) 公告 太古地產有限公司 二零二五年第三季度 營運數據滙報 本滙報載述太古地產有限公司二零二五年第三季度若干營運數據資料。有關資料 乃根據內部管理紀錄編製，並未經外聘核數師審核或審閱。 | 租金調幅 (1) | 主要物業 | 租用率 | 租用面積 | 最新租金 | ( | 2025 | 截至 | 年 | ( | 巿值 | ) | (新簽訂或 | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- ...

Core Viewpoint - Swire Properties reported a revenue of HKD 87.2 billion for the first half of 2025, marking a 20% year-on-year increase, while the profit attributable to shareholders showed a loss of HKD 12 billion, contrasting with pre-pandemic performance [2][4]. Retail Performance - The retail sales across Swire Properties' nine major malls in Hong Kong and mainland China have rebounded, with most locations nearing or exceeding 2019 levels, indicating the resilience of high-end retail [2][4]. - Specific retail sales performance for key properties shows significant recovery, with notable increases in sales for properties like Shanghai Xinyi Taikoo Hui and Beijing Sanlitun Taikoo Li, while Guangzhou Taikoo Hui experienced a decline [3][9][13]. Financial Metrics - The rental income from retail properties in mainland China rose by 2% to HKD 22.72 billion, with retail sales up by 1%, outperforming the market average and exceeding pre-pandemic levels by 70% [8]. - In Hong Kong, rental income from retail properties fell by 2% to HKD 11.69 billion, despite maintaining full occupancy, reflecting a decline in turnover-based rents [10][11]. Strategic Initiatives - Swire Properties is shifting focus from traditional rental income to innovative asset management and operational strategies, including the expansion of its retail offerings and enhancing tenant mix to adapt to changing consumer behaviors [4][16]. - The company is also pursuing new projects, such as the Guangzhou Cultural Center acquisition, to expand its commercial footprint and enhance the overall retail experience [16]. Market Trends - The retail landscape in Hong Kong is undergoing structural changes due to increased competition from online shopping and cross-border consumption, prompting Swire Properties to adapt its strategies accordingly [10][12]. - The company is exploring opportunities for diversification in its retail offerings, including introducing new brands and enhancing experiential retail to attract a broader customer base [21][23].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 SWIRE PACIFIC LIMITED 太古股份有限公司 (於香港註冊成立的有限公司) (股份代號：00019 及 00087) 1. 已落成投資物業 辦公樓物業 | 主要物業 | 租用率 | | | | 租用面積 | | | 租金調幅 (1) | | | | | 最新租金 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | (新簽訂或 | 巿值 ) | 6 月 | ( 截至 30 | 2025 日止六個月 | 年 ) | | | ( | | | | ( 於 2024 年 12 月 31 日 ) | ( 於 2025 6 月 30 | 年 日 ) | | 已續約) | | ( | | 包括租金檢討 | ) | 年 | | | | | | ...

Core Insights - The "Lujiazui Swire Source" project is a significant part of the expansion and efficiency enhancement of Lujiazui Financial City and the "One River, One River" construction plan in Shanghai [1][2] - The project covers a total construction area of approximately 540,000 square meters and is designed to integrate waterfront luxury residences, international commercial spaces, and cultural activity areas [1] - The project aims to create a vibrant high-end lifestyle multi-format complex, differentiating its commercial positioning from existing Swire brands like "Taikoo Li" and "Taikoo Hui" [1] Project Overview - The project is located on a site that was previously the Minsheng Wharf, now being redeveloped by Lujiazui Group and Swire Properties [1] - It emphasizes the advantages of its riverside location and aims to respond to the Shanghai government’s planning direction for creating an "open, shared, multifunctional, and eco-friendly" waterfront space [1] Residential and Commercial Aspects - The residential portion of the project is expected to be delivered between 2026 and 2027, showcasing the results of urban renewal in Shanghai [2] - The commercial section will focus on high-end lifestyle brands, potentially introducing over 130 premium and selected lifestyle brand tenants, including supermarkets, diverse dining options, and both international and local fashion and home brands [1]

Core Insights - The article highlights the competitive landscape of foreign-funded commercial real estate companies in mainland China, showcasing their unique strategies and project developments in the market [1]. Group 1: Company Strategies and Developments - Swire Properties has established a strong presence in mainland China with its "Swire" brand, focusing on high-quality commercial projects [1]. - New World Development has successfully launched several landmark commercial complexes in key cities, leveraging its experience from Hong Kong [5]. - K11 Group emphasizes a "Cultural Commerce" model, integrating art and culture into its commercial spaces, with multiple projects already operational [9][12]. - Hongkong Land has introduced a new series of high-end commercial brands, targeting affluent consumers in major cities [21]. - Hysan Development is expanding its footprint with a focus on high-end retail and mixed-use developments [1]. Group 2: Project Launches and Future Plans - In 2023, at least 14 new projects are expected to enter the market from various foreign-funded companies, with a significant focus on non-first-tier cities [1]. - Swire Properties plans to launch six new projects in the coming years, including major developments in Beijing and Shanghai [18]. - New World Development has six upcoming projects, including the largest commercial complex in Shanghai [7]. - K11 Group aims to open 30 new cultural commercial projects over the next five years, expanding its unique brand further [12]. - Hongkong Land is set to launch multiple new projects, including a significant development in Nanjing [24]. Group 3: Market Trends and Insights - The article notes a trend of foreign companies diversifying their product lines and adjusting their market strategies to cater to local consumer preferences [1]. - There is a growing emphasis on integrating cultural and artistic elements into commercial spaces, as seen with K11 and other brands [9][12]. - The competitive landscape is characterized by a mix of high-end and mid-range offerings, with companies like Swire and New World focusing on premium developments while others explore more accessible options [1][5].