Swire Properties (1972) Q3 2024 TU earnings summary

Executive summary

• Office occupancy in Hong Kong remained stable, with Pacific Place at 95% and Taikoo Place at 93% as of 30 Sep 2024, while Chinese Mainland offices showed mixed trends.

• Retail occupancy in Hong Kong and Chinese Mainland properties was strong, with most malls at or near full occupancy as of 30 Sep 2024.

• Several major investment and trading property projects are under development in Hong Kong, Chinese Mainland, Jakarta, and Bangkok, with phased completions from 2025 to 2029.

Segment performance

• Hong Kong office portfolio saw slight declines in occupancy at Pacific Place (down from 98% to 95%) but improvements at Taikoo Place (up from 91% to 93%) and One Island East (up from 93% to 95%).

• Retail sales in Hong Kong malls were mixed for the nine months ended 30 Sep 2024, with Cityplaza down 3.9% and Citygate Outlets up 4.8% year-over-year.

• Chinese Mainland retail properties had varied retail sales performance, with Taikoo Li Sanlitun up 13.7% and Taikoo Hui Guangzhou down 2.1% for the period.

• Trading property sales in Hong Kong and Chinese Mainland are progressing, with significant pre-sales expected to be recognized in 2025 and 2026.

Significant events and developments

• Major development projects underway include Taikoo Place Beijing, Taikoo Li Xi'an, and Lujiazui Taikoo Yuan in Shanghai, with expected completions from 2025 to 2027.

• Structural and reconfiguration works are ongoing at several retail properties in Beijing, Shanghai, and Chengdu, impacting retail sales figures.