Swire Properties (abbrev. Swire Properties) reported solid first-half 2026 results, underscored by stronger recurring income and residential sales.

• Financial Performance – Revenue rose 8% year-on-year to HK$9.41 billion, driven mainly by retail rental growth and residential unit sales. – Underlying profit attributable to shareholders increased 11% to HK$4.90 billion; recurring underlying profit surged 36% to HK$4.66 billion. – Reported profit turned positive at HK$3.63 billion versus a HK$1.20 billion loss a year earlier, reflecting a HK$26 million net fair-value gain on investment properties against a HK$4.68 billion loss last year. – Underlying earnings per share climbed 12% to HK$0.85; recurring EPS advanced 37% to HK$0.81.

• Segment Highlights (Underlying Basis) – Property Investment: HK$3.45 billion, down from HK$3.75 billion, as 2025’s Miami asset disposal reduced rental base despite higher retail income. – Property Trading: HK$1.21 billion profit versus a HK$0.28 billion loss, boosted by the sale of two houses at 6 Deep Water Bay Road, Hong Kong. – Hotels: Returned to a HK$5 million profit from a HK$45 million loss on improved occupancy and RevPAR in Hong Kong, Chinese Mainland and Miami.

• Cash Flow and Balance Sheet – Cash generated from operations edged up 6% to HK$6.46 billion; net cash inflow before financing fell 38% to HK$4.17 billion following higher capex. – Net debt closed at HK$40.27 billion, up 2%, with a gearing ratio of 14.8% (end-2025: 14.6%). – Total equity stood at HK$272.98 billion, marginally higher than end-2025.

• Dividend – First interim dividend declared at HK$0.37 per share, a 6% increase; payout aligns with the company’s policy to distribute about half of underlying profit over time.

• Operational Metrics – Hong Kong retail portfolio maintained 100% occupancy; retail sales at Pacific Place Mall posted record May sales. – Hong Kong office occupancy held at 90% overall, with Two Taikoo Place 80% let and Six Pacific Place 70% let. – Chinese Mainland malls outperformed the market; portfolio retail sales rose 23% on an attributable basis, led by Taikoo Li Sanlitun (+63%) and HKRI Taikoo Hui (+82%). – Residential pre-sales: 98% of Century Summit & Century Heights (Shanghai) and 354 units at THE HEADLAND RESIDENCES (Hong Kong) sold by end-July; Lujiazui Taikoo Yuan Residences 316 of 378 units pre-sold since launch.

• Investment & Development – HK$100 billion decade-long investment plan is 69% committed, including seven Chinese Mainland projects and multiple Hong Kong residential and commercial redevelopments. – Key pipeline assets such as Taikoo Place Beijing, Taikoo Li Xi’an, Taikoo Li Sanya and Taikoo Li Julong Wan Guangzhou progressing for phased completions from 2026 onwards.

Management reiterated confidence in portfolio resilience, citing placemaking expertise, diversified assets across Hong Kong, Chinese Mainland and South-East Asia, and disciplined capital recycling to support sustainable dividend growth.