Goldman Sachs: Swire Properties' performance last year met expectations, target price raised to HK$30.

Goldman Sachs released a research report stating that Swire Properties' performance for the 2025 fiscal year meets expectations, with rental income recovering healthily and residential sales executing steadily. The company reported a net loss of 1.5 billion Hong Kong dollars, mainly due to a revaluation loss of 7.8 billion Hong Kong dollars in its Hong Kong office portfolio, which recorded a decline in rental income due to lease renewals, even though the capital rate has been reduced by 12.5 basis points. Underlying profit after tax decreased by 3% year-on-year to 6.26 billion Hong Kong dollars, in line with the bank's expectations, reflecting a significant loss incurred by the property trading business due to upfront sales and marketing expenses for residential projects. Net leasing income also decreased by 2% year-on-year to 6.8 billion Hong Kong dollars after losing rental income from the sale of the Brickell City Centre retail mall. Partially offsetting these impacts is the improvement in the performance of the Hong Kong and Mainland hotel business, with an increase in revenue from each available rented room in its portfolio. The bank raised its target price from 29 Hong Kong dollars to 30 Hong Kong dollars, with a "Buy" rating.