Financial Data and Key Metrics Changes - Total revenue for the company was $460 million, a decrease of 4.1% year-on-year [14] - Underlying profit was $129 million, down by 6.6% [14] - Dividend per share remained flat at $1.44 [14][33] - Year-end occupancy rates were 99% for retail, 90% for office, and 61% for residential [15] Business Line Data and Key Metrics Changes - Retail turnover increased to $43 million, up by 1.4%, with occupancy at 99% [15] - Office turnover decreased to $1.578 billion, down by 8.7%, with occupancy at 90% [16] - The retail sector showed improvement in the second half of 2022, while the office sector faced challenges due to structural changes accelerated by COVID-19 [15][16] Market Data and Key Metrics Changes - The overall retail market showed resilience during the COVID period, with expectations of increased spending as Hong Kong recovers [16] - The office market faced pressure from global economic uncertainties and increased supply, leading to a vacancy rate of about 10%, lower than the average for Hong Kong Grade A offices [17] Company Strategy and Development Direction - The company is focused on strategic execution with an emphasis on financial discipline, risk management, and dynamic asset enhancement [5] - Plans for rejuvenating the Lee Gardens area include integrating the community and enhancing urban vibrancy [10][12] - The company aims to develop premium Grade A office space and a Lifestyle Park, targeting completion by 2026 [10][26] Management's Comments on Operating Environment and Future Outlook - The management acknowledged ongoing challenges from the pandemic, geopolitical tensions, and inflation but expressed optimism about the recovery of Hong Kong's economy [13] - The reopening of borders is expected to revive Hong Kong's status as a financial and tourist hub, with a positive long-term outlook for the company [13] Other Important Information - The company has issued the largest green loan in Hong Kong for the Caroline Hill project, amounting to $1 billion, with total sustainable finance transactions reaching $19.3 billion, representing 48% of total debt [32][31] Q&A Session Summary Question: What is the expectation on rental reversion trend for retail in FY 2023? - Management noted that the general climate has improved since the border reopened, with positive sentiment reflected in tenant inquiries and rental negotiations [38][40] Question: What is the capital expenditure plan for FY 2023? - The capital expenditure for 2023 is expected to be between HKD 500 million to HKD 1 billion, factoring in ongoing asset enhancement initiatives [43] Question: How is retail sales trending in February post China's reopening? - Retail tenant sales in January showed a mid-teen positive growth year-on-year, indicating a rebound in sales [47] Question: Are we seeing any signs of an increase in office demand post reopening? - Management indicated that while there is new supply in the market, Lee Gardens remains a competitive destination for office tenants due to its community and facilities [50][52] Question: Have we experienced any cap rate expansions? - There has been no change in cap rates, with independent valuers not seeing immediate pressure to adjust them [53] Question: What are the thoughts on new share issuance to lower the company's gearing ratio? - Management stated that current gearing is within industry norms, and there is no immediate need for new capital issuance [56]