Group 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]

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 ...

Investment Rating - The report indicates a positive outlook for the property investment market, with an expected year-on-year growth of 5-10% in total investment volume for the year [8]. Core Insights - In the first half of 2025, the national large-scale property investment transaction volume reached 132.1 billion, a 19% increase compared to the same period last year, despite a 29% decrease in the number of transactions [5][3]. - Institutional buyers are optimistic about consumer and residential assets, with retail property and rental residential transaction volumes doubling year-on-year [3][5]. - Capitalization rates for various asset types in first-tier cities have shown a narrowing increase compared to the second half of last year, although there remains short-term upward pressure [3][5]. Summary by Sections Market Overview - The investment sentiment remains cautious, with institutional capital focusing on high-quality real estate [5]. - The transaction volume for retail properties and rental residential assets increased by 166% and 200% respectively compared to the previous year [5]. Capitalization Rates - The capitalization rates for Grade A office buildings, retail properties, and high-standard warehouses in first-tier cities have expanded by nearly 20 basis points compared to the end of last year [5][9]. - The average capital value of office buildings in first-tier cities has decreased by 43% since 2022, indicating a continued interest in core office assets [8]. Future Predictions - The report anticipates that the market activity will marginally improve in the second half of the year, driven by an expanding pool of available assets and increased risk premiums [8]. - The focus for investment in the second half of the year will remain on consumer and residential sectors, with particular attention to the evolution of trade tariffs and domestic demand stimulation policies [8].

Summary of Key Points from J.P. Morgan's Expert Meeting on Hong Kong Property Sector Industry Overview - **Industry**: Hong Kong Property Sector - **Expert**: Mr. Joseph Tsang, Chairman of Jones Lang LaSalle (JLL) Hong Kong Core Insights Residential Property - JLL forecasts a **5% decline** in home prices for mass units and **5-10% decline** for luxury units in 2025, primarily due to oversupply and financial pressures on developers [1][4] - JLL expects home prices to stabilize in 2026 (up or down **1-2%**) if HIBOR remains low and geopolitical shocks are absent [1][4][8] - J.P. Morgan's more optimistic forecast anticipates a **3-5% rebound** in home prices in 2026 if certain conditions are met [1][4] - Rental growth is expected to be **0-5%** in 2025 due to an influx of new talent and students [1][4] Office Market - JLL predicts **5% decline** in Grade-A office rents and **5-10% decline** in capital values in 2025, with high vacancy rates (13.2%) persisting [1][4][13] - Rising IPO activity may stimulate demand, but insufficient to reverse current trends [1][4][13] - Tenants prefer newer office buildings with ESG specifications, leading to pressure on older assets [1][4][13] Retail Sector - Retail rents and capital values are expected to drop **5-10%** in 2025, but substantial corrections have already occurred (high-street shops are **72% below peak**) [1][4][18] - JLL anticipates a stabilization of retail rents in 2026, supported by active leasing momentum [1][4][18] - Retail assets yielding **~6%** are attracting strong buyer interest, indicating a potential floor for valuations [1][4][5] Additional Considerations - **CRE Risks**: Overall debt associated with commercial real estate (CRE) risks may exceed **HK$400 billion**, with 34% classified as high risk [1][5][16] - **Mainland Chinese Buyers**: They account for **~50%** of homebuyers in urban districts, significantly influencing market dynamics [1][10] - **Government Response**: While the government is aware of the CRE situation, no comprehensive strategy has been implemented yet [1][16] Investment Recommendations - Top picks in the sector include: - **Swire Properties**: Improving China retail and potential buyback - **Link REIT**: Improving HK retail and Stock Connect - **Wharf REIC**: Stabilizing HK discretionary retail - **Henderson Land**: Stabilizing HK residential market with high yield [1][5] This summary encapsulates the key insights and forecasts regarding the Hong Kong property sector as discussed in the expert meeting, highlighting potential investment opportunities and risks.

Core Viewpoint - Federal Realty Investment Trust (FRT) is preparing to report its second-quarter 2025 results, with analysts and investors keen to evaluate its performance amid current economic conditions [1] Company Performance - In the last reported quarter, FRT's funds from operations (FFO) per share was $1.70, exceeding the Zacks Consensus Estimate by $0.01, and reflecting a 3.7% increase from $1.64 in the same quarter last year [2] - Over the past four quarters, FRT has surpassed estimates twice, met once, and missed once, with an average beat of 0.15% [3] U.S. Retail Real Estate Market - The U.S. shopping center market experienced a slight pullback in net absorption, with negative net absorption of 6.5 million square feet in Q2 2025, an improvement from negative 7.1 million square feet in Q1 2025 [4][5] - The national vacancy rate increased by 50 basis points year over year to 5.8%, although it remains lower than the 6.4% level from 2017 to 2019 [6] - Asking rents for U.S. shopping centers rose by 2.3% year over year to $24.99 per square foot in Q2 2025 [7] Factors Influencing FRT's Performance - FRT is expected to benefit from its premium retail assets in upscale locations and a diverse tenant base, with 80% of its centers featuring grocery components [8][9] - The estimated leased occupancy rate for FRT is 95.4%, a decrease of 30 basis points sequentially, while rent per square foot is projected to grow by 0.7% year over year [9] - FRT's Q2 FFO per share is projected at $1.73, reflecting a 2.4% year-over-year increase, with rental revenues expected to grow by 3.4% [10] Revenue Projections - The Zacks Consensus Estimate for FRT's quarterly revenues is $310.70 million, indicating a 4.95% increase from the previous year [11] - Rental income from minimum rents is projected at $201.56 million, up from $194.55 million in the year-ago period [11] Interest Expenses - High interest expenses are anticipated to have a slight negative impact on FRT's performance during the quarter, with a marginal year-over-year increase expected [12] Analyst Sentiment - Analysts have shown cautious confidence in FRT, with the Zacks Consensus Estimate for Q2 FFO per share remaining unchanged at $1.73 for over three months [13] - FRT has an Earnings ESP of +2.37% and a Zacks Rank of 3, indicating a potential for a positive surprise in FFO [14]

Group 1 - The core viewpoint of the report indicates that Hang Lung Properties' earnings per share for the first half of the year fell by 13% year-on-year to HKD 0.33, which is below the market expectation of HKD 0.35 [1] - Net income decreased by 9% year-on-year, which is worse than the anticipated decline of 6%, while the equity base expanded by 6% [1] - The interim dividend remains at HKD 0.12, unchanged from the same period last year, with a 12-month dividend yield of 6.7%, which is still attractive, but the feasibility of achieving a final dividend of HKD 0.4 is uncertain [1] Group 2 - Retail sales in mainland China continue to be weak, declining by 4% year-on-year, while retail sales in Hong Kong also decreased by 2% [1] - Office rental income in mainland China fell by 5% year-on-year, remaining weak, although retail leasing performance outside Wuhan and Shenyang is relatively stable [1] - The net debt ratio remains stable at 33.5%, and financing costs have improved to 3.9% [1] Group 3 - Morgan Stanley has set a target price of HKD 6.5 for Hang Lung Properties and maintains a "market perform" rating [1]

Market Overview - In the first half of the year, the market saw a significant supply of 420,000 square meters entering in the second quarter, leading to a total stock increase of 5.7% to 7.783 million square meters [1] - The net absorption in the second quarter rebounded significantly, reaching three times the average level of the past five years, driven by the large-scale new supply [1] - Despite this, the overall average vacancy rate slightly increased by 0.4 percentage points to 7.1% due to the lower occupancy rates of some new projects compared to the existing average [1] Shenzhen Retail Market Insights - The vacancy rate below 10% is considered a healthy level, with notable highlights in the Shenzhen market including stable consumption and unique supply characteristics [2] - New projects and renovations, such as K11 and Garden City, have shown strong consumer attraction and operational adjustments, despite temporarily increasing vacancy rates [2] - The performance of retail properties in Shenzhen is better than in Guangzhou, with significant attention on the first stores in key shopping malls [2] Demand and Rental Trends - In the first half of the year, the restaurant sector remained the primary source of demand, although the proportion of new restaurant openings decreased by nearly 5 percentage points in the second quarter compared to the first [2] - Continuous upgrades of quality existing projects have introduced multiple first stores in various regions, enhancing the diversity of retail brands in Shenzhen [2] - Rental expectations from owners remained stable, with the rental index unchanged quarter-on-quarter but down 1.6% year-on-year, averaging RMB 523.6 per square meter per month [2] Future Supply Outlook - Looking ahead to the second half of 2025, over 450,000 square meters of new supply is expected, with total stock projected to increase by 11.8% year-on-year, surpassing 8 million square meters [3] - Two new projects are anticipated to open in the third quarter, contributing a total of 225,000 square meters of supply [3] - The ongoing brand placements and upgrades in existing benchmark projects are expected to attract more emerging popular brands favored by consumers [3]

Group 1: Retail Market Performance - In Q2, Shanghai's retail market showed improved leasing demand with a net absorption of 156,000 square meters, driven by "consumption promotion" policies and emerging consumption trends [1] - Major brands, including luxury and sports brands, are increasingly interested in opening flagship and concept stores in core business districts, with Louis Vuitton recently launching a new landmark in Shanghai [1] - The vacancy rate in core business districts decreased by 0.3 percentage points to 9.6%, while the vacancy rate in non-core areas slightly increased by 0.3 percentage points to 14.1% due to ongoing market competition [1] Group 2: Rental Trends - Rental prices in Shanghai's retail properties continued to decline, with core district first-floor average rent decreasing by 1.1% to CNY 43.1 per square meter per day, and non-core area rent down by 1.8% to CNY 15 per square meter per day [2] - Landlords are offering rental discounts and attractive leasing terms to attract brands amid competitive market pressures [2] - Despite challenges, demand for leasing in sectors like sports apparel, trendy toys, and affordable dining is expected to grow due to consumer focus on health and entertainment [2] Group 3: Residential Market Insights - In Q2, Shanghai's overall new residential sales volume increased by 14.0% to 1.7 million square meters, with high-end residential sales showing a decline of 21.2% [2] - The pace of new residential project launches accelerated, with 1.67 million square meters of new supply introduced, a 114.5% increase from the previous quarter [2] - The average price of new high-end residential properties rose by 0.6% to CNY 147,900 per square meter, while the average price of second-hand high-end residential properties fell by 2.0% to CNY 132,800 per square meter [3]

Group 1 - The core viewpoint of the report indicates that the Shanghai investment market recorded 23 major transactions in Q2 2025, with investors continuing to increase their investments in core area assets [1] - The total transaction amount in the commercial real estate market reached 8.2 billion yuan, with an average transaction amount of 360 million yuan per project [1] - Transactions in the 100 million to 300 million yuan range accounted for 61% of the total number of transactions, indicating enhanced liquidity for mid-sized assets [1] Group 2 - High-net-worth investors and corporate buyers dominated the market, contributing 88% of the total transaction amount, with street shop commercial assets maintaining market activity [1][2] - Office assets accounted for 38% of the transaction amount, while long-term rental apartments surged to 27%, followed by retail properties at 18%, industrial at 7%, hotels at 4%, residential at 3%, and industrial parks at 3% [1] - Retail properties were the most active segment in terms of transaction volume, making up 35% of the total number of transactions, particularly street shop commercial assets in the 100 million to 300 million yuan range [1] Group 3 - The report reflects a strengthening expectation among investors regarding consumer recovery, with investment demand dominating the market at 66% [2] - The concentration of investments in core area assets highlights the scarcity and risk resilience of these properties in Shanghai [2]

Core Insights - The net absorption of retail properties in Shanghai reached 134,000 square meters in the first half of 2025, influenced by new supply and the entry of high-quality tenants [1] - The average daily rental price for retail properties in core business districts slightly decreased to 31.9 yuan per square meter [1] - The demand for the dining sector accounted for 45% of total demand, making it the largest segment, while retail demand increased to 41%, with apparel demand specifically at 23% [1] - Active expansion was noted in trendy apparel and outdoor sports brands [1] - Government initiatives promoting cross-industry collaboration in tourism, culture, and sports have further stimulated consumer potential, enriching the urban consumption experience and revitalizing the retail market [1]