2026 Interim Results

Swire Properties' underlying profit attributable to shareholders increased by 11% to HK$4,900 million in the first half of 2026, which principally reflected the profit on the sale of two residential houses at 6 Deep Water Bay Road. This was partly offset by the non-recurring profit recognised in the first half of 2025 on the disposal of interests in the Brickell City Centre retail mall and an adjacent land parcel in Miami, USA. Recurring underlying profit attributable to shareholders increased by 36% from HK$3,420 million in the first half of 2025 to HK$4,661 million in the first half of 2026, primarily reflecting increased rental income from its retail portfolio, in addition to the sale of two residential houses.

Swire Properties continues to make good progress on its HK$100 billion investment plan, which provides a clear framework for long-term growth. Close to 70% has already been committed.

In Hong Kong, malls maintained 100% occupancy. Sales performance was encouraging across the retail portfolio, with The Mall at Pacific Place in particular showing a strong recovery alongside continued growth at Cityplaza and Citygate Outlets, supported by targeted marketing and promotional campaigns. The Hong Kong office market remained competitive in the first half of 2026, reflecting high vacancy and ongoing new supply. Despite these conditions, the portfolio maintained high occupancy. Leasing activity has improved in recent months, supported by stronger capital market sentiment and an active IPO pipeline.
 
In the Chinese Mainland, the retail portfolio continued to perform strongly, outperforming the market, with growth in both footfall and retail sales. Taikoo Li Sanlitun continued to benefit from its recent upgrade, while HKRI Taikoo Hui strengthened its position through new retail concepts and brand launches, including "The Louis" and Rolex Prestige.

Swire Properties also maintained positive momentum across its residential portfolio in Southeast Asia. In Jakarta, the first tower of Savyavasa has entered the handover and moving-in stage, while the company’s first residential project in Bangkok, also the world’s first Upper House branded residences, has attracted strong market interest.

The Cathay group achieved a strong financial performance in the first half of 2026. Including airlines, subsidiaries and associates, it reported an attributable profit of HK$6,243 million in the first half of 2026, compared with  HK$3,651 million in the first half of 2025. Its airlines and subsidiaries reported an attributable profit of HK$4,880 million for the first half of 2026, compared with HK$3,832 million in the first half of 2025. The net results from associates, the majority of which are recognised three months in arrears, reflected an attributable profit of HK$410 million, compared with a loss of HK$181 million in the first half of 2025.

The Cathay group's result was positively impacted by ongoing underlying demand for Cathay Pacific and Cathay Cargo, improved performance from HK Express, and stronger contributions from associates. As a group, it carried more passengers and cargo, and operated more flights, compared with the first half of 2025. Having got off to a strong start in the first quarter, the Cathay group faced a more challenging second quarter due to the situation in the Middle East and the resulting significant increase in jet fuel prices. Measures were introduced to mitigate some of the increased cost, including adjustments to passenger and cargo fuel surcharges.

The Cathay group continues to make important investments and has already committed around HK$150 billion in investments into its fleet, cabin and lounge products, and digital innovation. This investment reflects its commitment to growing its business for the long term, contributing to the development of the Hong Kong international aviation hub and thereby leading to even greater opportunities for Cathay and Hong Kong as a whole.