Citigroup: SWIRE PROPERTIES (01972) profit and dividend last year are in line with expectations. Rating "Buy"

Citibank released a research report stating that it rates SWIREPROPERTIES (01972) as "buy" with a target price of HK$23.8. Taikoo's basic profit before tax for 2025 increased by 27% year-on-year to HK$8.62 billion, including HK$2.36 billion in gains from asset sales. Recurring basic profit before tax decreased by 3% year-on-year to HK$6.26 billion, in line with the bank's expectations. This was due to resilient retail rental income in China and net savings in financing costs (a 50 basis point decrease in borrowing costs), which offset the weak performance of office rental income. Operating cash flow reached HK$10 billion, an increase of 54% year-on-year. Pre-financing cash net inflow was HK$10.7 billion, compared to a net outflow of HK$2.5 billion in 2024. The annual dividend per share is HK$1.15, an increase of 4.5% year-on-year. The dividend payout ratio is equal to 77% of basic profit before tax (compared to 95% in 2024), with a dividend yield of 4.8%.