Swire Properties (1972) H1 2026 earnings summary

Executive summary

• Underlying profit rose 11% year-on-year to HK$4,900 million, driven by strong residential sales and robust retail performance in Hong Kong and the Chinese Mainland.

• Recurring underlying profit increased 36% to HK$4,661 million, supported by retail rental growth and residential trading contributions.

• Interim dividend increased 6% to HK$0.37 per share, marking the 10th consecutive year of sustainable growth.

• Nearly 70% of the HK$100 billion investment plan is committed, with significant progress in core markets and a strong development pipeline.

• Reported profit was HK$3,631 million, reversing a loss in 2025, aided by a fair value gain on investment properties.

Financial highlights

• Revenue grew 8% year-on-year to HK$9,413 million for the six months ended 30 June 2026.

• Attributable gross rental income up 3% year-on-year; like-for-like growth excluding Miami disposal was 6%.

• Retail rental income in the Chinese Mainland grew 14% year-on-year, with four out of six malls achieving double-digit sales growth.

• Investment property valuation increased 1% to HK$272 billion, with a fair value gain of HK$578 million in H1 2026.

• Operating profit surged 1,379% to HK$5,250 million, with reported profit at HK$3,631 million versus a loss in 1H 2025.

Outlook and guidance

• Positive momentum expected to continue, with resilient office occupancy and narrowing negative reversions, especially at Pacific Place.

• Retail portfolios in Hong Kong and the Chinese Mainland expected to maintain strong performance, with ongoing trade mix upgrades and new project completions.

• Focus on disciplined execution as new projects approach completion and the business enters the harvest phase.

• Continued commitment to mid-single-digit annual dividend growth and active capital recycling.

• The Board remains committed to a progressive dividend policy and ongoing investment in core markets.