Swire Properties (1972) H2 2025 earnings summary

Executive summary

• Underlying profit rose 27% year-on-year to HK$8,620 million, mainly due to gains from asset disposals and capital recycling, while recurring underlying profit declined 3% to HK$6,260 million due to lower rental income and higher expenses.

• Full-year dividend per share increased 5% to HK$1.15, marking nine consecutive years of mid-single-digit growth and a payout ratio near 50% of underlying profit.

• Strong execution of capital recycling, with cumulative proceeds nearing HK$60 billion, supporting long-term growth and reducing gearing.

• Resilient business momentum in retail and steady office occupancy, with a robust project pipeline across all markets.

• Reported loss attributable to shareholders widened to HK$1,533 million, driven by a HK$7,716 million fair value loss on investment properties.

Financial highlights

• Revenue increased 11% year-on-year to HK$16,041 million; underlying profit: HK$8,620 million (+27% YoY); recurring underlying profit: HK$6,260 million (-3% YoY).

• Attributable gross rental income declined 2% year-on-year; excluding Miami disposal, the decrease was 1%.

• Net debt reduced by 10% to HK$39,540 million; gearing ratio improved to 14.6%.

• Weighted average cost of debt declined to 3.5% from 4%.

• Underlying earnings per share rose 28% to HK$1.49.

Outlook and guidance

• Positive outlook for retail in Hong Kong and the Chinese Mainland, with continued strong consumer sentiment and trade mix upgrades.

• Office sector in Hong Kong expected to remain resilient but faces weak demand and high vacancy; Chinese Mainland office market subdued but benefits from flight to quality.

• Focus remains on disciplined execution of the HK$100 billion investment plan and sustainable dividend growth.

• Advancing global sustainability leadership with new SD2050 vision and refreshed KPIs.

• Retail and residential segments expected to benefit from improving consumer confidence and policy support.