Financial Data and Key Metrics Changes - The underlying profit increased by 27% year-on-year to HKD 8.62 billion, driven by the sale of non-core assets in Miami and Hong Kong [3][16] - Recurring underlying profit declined by 3% to HKD 6.26 billion due to loss of rental income from disposed assets and lower office rental income in Hong Kong [16][18] - The full-year dividend increased by 5% to HKD 1.15 per share, marking the ninth consecutive year of mid-single-digit dividend growth [4][18] Business Line Data and Key Metrics Changes - The office portfolio in Hong Kong experienced a 5% decline in attributable gross rental income, with overall occupancy at 91% [9][10] - Retail sales growth in Hong Kong was positive, with occupancy rates maintained at 100% across major malls [10][11] - The Chinese mainland retail portfolio contributed 43% of attributable gross rental income, with retail rental income increasing by 2% [10][12] Market Data and Key Metrics Changes - The Chinese mainland retail sales were up 7% year-on-year, with significant growth in foot traffic and sales [11][12] - The office market in the Chinese mainland remained stable despite oversupply, with a focus on integrated mixed-use developments [12][28] - The overall occupancy in the office portfolio in Hong Kong improved, particularly at Pacific Place, which reached 96% [9][10] Company Strategy and Development Direction - The company is committed to a HKD 100 billion investment plan, with 67% already committed to various projects [7][8] - Focus on capital recycling strategy, successfully divesting non-core assets to fund growth and maintain a strong balance sheet [5][7] - Emphasis on retail-led mixed-use projects in Tier One and emerging Tier One cities in the Chinese mainland [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite current geopolitical tensions, with a positive outlook for retail performance in both Hong Kong and the Chinese mainland [27][28] - The office sector is expected to remain subdued in the Chinese mainland, but the company anticipates benefits from the flight to quality trend [28][29] - Healthy demand for prime residential developments in Hong Kong and Southeast Asia is expected to continue [28][29] Other Important Information - The company achieved a 52% reduction in Scope 1 and Scope 2 emissions, surpassing sustainability targets [22] - The company maintains a strong liquidity position with available committed facilities totaling HKD 62.6 billion [20][21] - The company received multiple sustainability awards, including ranking number one in the Hang Seng Corporate Sustainability Index for eight consecutive years [22][25] Q&A Session Summary Question: Expectations for retail momentum in China for 2026 - Management expects positive momentum to carry into 2026, with double-digit improvements in retail sales and strong footfall in centers [36][38] Question: CFO succession and continuity in capital allocation - Management confirmed continuity in strategy and capital allocation priorities, with a focus on mid-single-digit dividend growth [40][41] Question: Plans for issuing C REIT and pre-leasing data - Management is monitoring the C REIT market and is open to opportunities that enhance capital efficiency [47] - Pre-leasing is progressing well, with collaborative efforts in designing new malls with brand partners [48][49] Question: Impact of Middle East conflicts and AI on office demand - Management noted a pickup in inquiries and leasing activity but anticipates some hesitation in decision-making due to geopolitical tensions [58][59] - The company is considering the long-term impact of AI on office demand and is focused on providing high-quality office products [62]

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