Swire Properties (1972) Q2 2024 TU earnings summary

Executive summary

• Swire Properties reported stable occupancy rates in both office and retail segments across Hong Kong and the Chinese Mainland for Q2 2024, with some properties achieving full occupancy.

• Retail sales performance was mixed, with declines in Hong Kong and the Chinese Mainland, but growth at Brickell City Centre in Miami.

• Multiple development and trading property projects are progressing on schedule in Hong Kong, the Chinese Mainland, Indonesia, and Thailand.

Segment performance

• Hong Kong office occupancy remained high, with Pacific Place at 97% and Taikoo Place at 93% as of June 2024.

• Chinese Mainland office occupancy was stable, with Taikoo Hui at 91% and HKRI Centre at 96%.

• Hong Kong retail occupancy reached 100% at Cityplaza and Citygate Outlets, and 100% at The Mall, Pacific Place.

• Retail sales in Hong Kong declined by 13.1% at The Mall, Pacific Place, and 4.3% at Cityplaza for the first half of 2024.

• Mainland China retail sales saw declines at INDIGO Beijing (-2.6%), Taikoo Li Chengdu (-17.2%), and HKRI Taikoo Hui Shanghai (-19.6%).

• Brickell City Centre in Miami posted a 4.0% increase in retail sales.

Significant events and developments

• Major investment property and hotel developments are underway in Beijing, Xi'an, Sanya, Shanghai, and Guangzhou, with phased completions from late 2025 to 2029.

• Trading property projects in Hong Kong, Shanghai, Jakarta, and Bangkok are progressing, with several units sold or pre-sold and handovers expected between 2024 and 2029.

• Reconfiguration and enhancement works are ongoing at several retail properties in Mainland China.