SWIRE PROPERTIES (01972): It is expected that the lease renewal rental rate for office buildings in Hong Kong will narrow in the second half of the year, and there may be positive growth for Pacific Place next year.

SWIRE PROPERTIES (01972) CEO Penny Pang stated at the mid-term performance meeting that the negative rental renewal rate for office buildings in Hong Kong narrowed in the first half of the year, and he expects it to continue to narrow in the second half. Pang added that the current occupancy rate of Pacific Place is 98%, and he anticipates a positive adjustment in rental renewals next year. The occupancy rate of Taikoo Place is also above 90%, but the rental renewal adjustments remain negative. Regarding the mainland, he noted that the retail portfolio showed strong performance in the first half of the year. Although performance slightly slowed in July due to weather impacts, it remained healthy, and he expressed confidence in the outlook for the remainder of the year. He also mentioned that the retail portfolio has not been significantly affected by consumer spending in mainland China, and core customers still find the retail experience interesting and stimulating. SWIRE PROPERTIES reported a mid-term performance for 2026, achieving revenues of HKD 9.413 billion, an 8% year-on-year increase; shareholders' basic profit attributable to shareholders reached HKD 4.9 billion, an 11% increase year-on-year; recurring profit increased 36% year-on-year to HKD 4.661 billion, with a proposed mid-term dividend of HKD 0.37 per share, compared to HKD 0.35 per share in the same period last year, an increase of nearly 6%. Swire (00019)(00087) Chairman Gareth Wright pointed out at the mid-term performance meeting that SWIRE PROPERTIES will continue to seize opportunities to sell non-core assets. He also mentioned that Cathay Pacific (00293), Hong Kong Aircraft Engineering, and Coca-Cola under Swire all have large-scale investment plans, with investments in core markets such as mainland China, Hong Kong, and Southeast Asia. The group feels assured about this investment direction and sees no reason to halt investments. In the earnings report, Swire Coca-Cola anticipates there will still be uncertainties regarding raw material prices in the next six months. Swire Coca-Cola President Su Wei pointed out that the company has been purchasing raw materials in advance to mitigate costs and overall business impacts. When asked if he would reduce his stake in CATHAY PAC AIR (00293), Swire Chairman Gareth Wright stated that he is very confident in Cathay Pacific, has significant investments in it, and will not reduce his stake.