Financial Data and Key Metrics Changes - The core rental business saw a decline of 3%, which was anticipated at the beginning of the year, with hopes for improvement in the second half [7][9] - Overall revenue contribution from property sales and hotel business accounted for 33% of total revenue, down 6% [9] - The net gearing of Hang Lung Properties stood at 33.5%, reflecting a slight increase of 0.1% compared to December [37] - The average borrowing cost decreased to 3.9%, a decline of around 40 basis points from the previous year [39] Business Line Data and Key Metrics Changes - Rental revenue in Mainland China decreased by 1% in the first half, an improvement from a 4% decline in 2024 [12] - Retail business remained flat compared to a 3% decline in 2024, with base rent increases offsetting sales rent drops [13] - Office rental revenue continued to face challenges, with a decline of 4% [12] - New letting increased by 36%, indicating a strong demand for new tenants despite market challenges [19] Market Data and Key Metrics Changes - Hong Kong's rental revenue decreased by 4%, while residential and service apartment rentals improved by 11% [34] - The retail sector in Hong Kong saw a decline of 7%, but the overall sales were down by only 2% compared to the market's 4% decline [34] - The Mainland retail landscape is evolving, with some athleisure brands performing better than luxury brands [17] Company Strategy and Development Direction - The company is focusing on enhancing its retail offerings through events and tenant management to adapt to the changing retail landscape [18] - A national program is being launched to improve operational efficiency and attract foot traffic in second-tier cities [18] - The company is exploring hybrid property models to expand its retail business in cities where it already has a presence [64] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about stability and potential growth in the second half of the year, with expectations for mild growth in retail sales [6][66] - The company is committed to maintaining its dividend policy, aiming for stability rather than frequent resets [75] - Management acknowledged the challenges in the office rental market but emphasized the retention of quality tenants as a key strategy [30] Other Important Information - The company has increased its exposure to renminbi-denominated loans, which helps manage finance costs and provides a natural hedge [39] - The company is committed to sustainability, with 80% of projects in Mainland China powered by renewable energy [43] Q&A Session Summary Question: Future of hybrid property models for retail expansion - Management indicated that hybrid models will be considered when there is demand and synergy with existing projects [64][65] Question: Tenant sales trends for the next twelve months - Management anticipates a potential improvement from negative sales to mild growth in the second half of the year [66] Question: Improvement in the second quarter despite trade war concerns - Management attributed the improvement to increased occupancy and traffic, along with external factors like stock market stabilization [70][72] Question: Dividend policy for the full year - Management intends to maintain a flat dividend, with no plans for cuts unless circumstances change [75] Question: Potential issuance of convertible bonds - Management is cautious about dilutive instruments and currently does not consider issuing convertible bonds [76][77] Question: Progress on transitioning properties in Shenyang and Wuhan - Management reported improvements in occupancy and traffic, with a focus on enhancing the tenant mix to attract customers [78][79]

Financial Performance - Q1 2025 - LVS Consolidated Net Revenue was $2862 million, a decrease of $97 million compared to Q1 2024[10] - Net Income Attributable to LVS was $352 million, a decrease of $142 million compared to Q1 2024[10] - Adjusted Property EBITDA was $1140 million, a decrease of $67 million compared to Q1 2024[10] - Adjusted Property EBITDA Margin was 398%, a decrease of 100 bps compared to Q1 2024[10] - Macao Operations Adjusted Property EBITDA was $535 million, a decrease of 123% compared to Q1 2024[13] - Marina Bay Sands Adjusted Property EBITDA was $605 million, an increase of 13% compared to Q1 2024[13] Capital Allocation - LVS repurchased $450 million of its stock in Q1 2025[10, 11] - LVS paid $179 million in dividends, which is $025 per share[11] - The LVS Board of Directors increased the share repurchase authorization to $20 billion on April 22, 2025[8, 11] Macao Market - Macao market generated gaming revenue of approximately $72 billion in 1Q25, up 1% from 1Q24[26] - Mass gaming revenue in Macao was approximately $63 billion, up 1% from 1Q24[26] - Visitation from China excluding Guangdong province remained at approximately 75% of 1Q19 levels[26] - Total visitation to Macao in 1Q25 was approximately 99 million people, which is approximately 95% of 1Q19 levels[57] Marina Bay Sands - Mass win at Marina Bay Sands was $778 million, up 13% from $687 million in 1Q24[29] - Marina Bay Sands Adjusted Property EBITDA margin was 520%[29]