Swire Properties (1972) H2 2024 earnings summary

Executive summary

• Recurring underlying profit for 2024 was HK$6,479M, down 11% year-on-year due to higher finance charges and lower Hong Kong office rental income, partly from asset disposals.

• Dividend per share increased 5% to HK$1.10, marking the eighth consecutive year of growth; share buy-back program of up to HK$1.5Bn announced, with HK$750M spent and 47.8M shares repurchased by year-end.

• HK$100Bn strategic investment plan is 67% committed, focusing on Hong Kong, Chinese Mainland, and Southeast Asia, supported by strong liquidity.

• Achieved top global ranking in Dow Jones Best-in-Class World Index for sustainability, six years ahead of 2030 vision.

• Reported a net loss of HK$766M versus a profit of HK$2,637M last year, driven by a HK$6,299M fair value loss on investment properties, mainly in Hong Kong offices.

Financial highlights

• Revenue decreased 2% year-on-year to HK$14,428M.

• Recurring underlying profit fell 11% to HK$6,479M; underlying profit dropped 42% to HK$6,768M.

• Reported net loss: HK$766M (2023: profit of HK$2,637M); EPS: -HK$0.13 (2023: HK$0.45).

• Investment property valuation at year-end was HK$271.5Bn, down 3% from 2023, reflecting fair value and FX losses.

• Net debt increased to HK$43,746M; gearing ratio at 15.7%.

Outlook and guidance

• Hong Kong office market expected to remain subdued in 2025 due to oversupply and weak demand, with rents under pressure.

• Chinese Mainland retail sales growth anticipated to improve, driven by domestic demand and project upgrades.

• Focus on executing growth plans, portfolio upgrades, and capital recycling to support investment pipeline.

• Committed to sustainable dividend growth and enhancing shareholder value.

• Hotel outlook expected to improve in 2025, supported by tourism initiatives.