2025 Interim Results

At Swire Properties, underlying profit increased by 15% to HK$4,420 million in the first half of 2025, supported by a successful capital recycling strategy and rental resilience. The result principally reflected the profit arising from the disposal of interests in the Brickell City Centre retail mall in Miami, USA, along with car parking spaces and certain shared facilities, as well as a parcel of land adjacent to Brickell City Centre. The recurring underlying profit attributable to shareholders decreased by 4% from HK$3,570 million in the first half of 2024 to HK$3,420 million in the first half of 2025, primarily reflecting a reduction in office rental income in Hong Kong.

Swire Properties is making good progress with its HK$100 billion investment plan, of which 67% of the capital has already been deployed. It is prioritising the execution of this strategic plan with a focus on expansion in its three core markets of Hong Kong, the Chinese Mainland and Southeast Asia.

In Hong Kong, the retail market has softened in the face of an increase in outbound travel, shifting consumer behaviour and economic uncertainty. Nevertheless, Swire Properties’ malls maintained high occupancy, and its retail sales picked up in the second quarter and outperformed the market.

The office market in Hong Kong remains challenging, with high vacancy rates and new supply exerting downward pressure on rents. However, the office portfolio remains resilient, with largely steady occupancy and strong tenant retention.

In the Chinese Mainland, retail sales performed well relative to the market and remained steady in the first half of 2025, helped by an expanded stimulus package from the government. Overall foot traffic continued to increase, while strong collaborations and close relationships with tenants have given Swire Properties a competitive edge across its Chinese Mainland portfolios.

The Cathay group delivered a solid financial performance and other achievements in the first half of 2025, especially within the context of what has been an uncertain business environment. Including its airlines, subsidiaries and associates, the Cathay group reported an attributable profit of HK$3,651 million in the first half of 2025, compared with HK$3,613 million in the first half of 2024.

The first-half result was driven by higher passenger volumes albeit with lower yields, a consistent cargo performance and lower fuel price compared with the same period in 2024.

Its airlines and subsidiaries, excluding exceptional items, reported an attributable profit of HK$3,832 million in the first half of 2025, compared with HK$3,846 million in the first half of 2024. The results from associates, the majority of which are recognised three months in arrears, reflected an attributable loss of HK$181 million, compared with a loss in the first half of 2024 of HK$342 million.

In early January 2025, the Cathay group repurchased approximately 68%, or HK$4,558 million of the HK$6,722 million 2.75% guaranteed convertible bonds due 2026, which were issued in February 2021. The outstanding principal amount of the bonds is HK$2,164 million. The buyback reflects the Cathay group’s confidence in its long-term business prospects.