Swire Properties (1972) Q4 2024 earnings summary

Executive summary

• Office occupancy rates in Hong Kong remained high, with Pacific Place at 95% and Taikoo Place at 93% as of 31 Dec 2024, though some properties saw slight declines year-over-year.

• Retail occupancy in Hong Kong and Chinese Mainland properties was strong, with most malls at or near full occupancy by year-end 2024.

• Retail sales performance varied, with declines in Hong Kong malls (e.g., Pacific Place -10.7%) but some growth in Mainland China and Miami.

Segment performance

• Hong Kong office segment saw stable occupancy but negative rent reversions, with Pacific Place rents down 16% and Taikoo Place down 10% year-over-year.

• Mainland China office occupancy remained robust, with Taikoo Hui at 90% and HKRI Centre at 96% as of year-end 2024.

• Retail segment in Hong Kong maintained 100% occupancy at Cityplaza and Citygate Outlets, but retail sales declined across all major malls.

• Mainland China retail properties showed mixed sales trends, with Taikoo Li Qiantan up 3.4% but others like Taikoo Li Sanlitun down 10.7%.

Significant events and developments

• Multiple investment and trading property projects are under development in Hong Kong, Mainland China, Bangkok, and Jakarta, with several major completions expected from 2025 to 2029.

• LA MONTAGNE in Hong Kong obtained its occupation permit in November 2024, with sales recognition for 131 units expected in 2025.

• Structural and reconfiguration works are ongoing at several Mainland China retail properties to enhance tenant mix.