Swire Properties posts HK$10b underlying profit

Business | 14 Mar 2019 2:57 pm

Swire Properties (1972) underlying net profit for 2018 increased by 30 percent to HK$10.15 billion in 2018.

Recurring underlying profit excluding the profit on the sale of interests in investment properties, fell by 4 percent to HK$7.52 billion in 2018.

The increase in underlying profit was largely the result of profit from the sale of a subsidiary which

owned an office building in Kowloon Bay and interests in other investment properties in

Hong Kong. This was partly offset by a drop in profit from property trading.

The board declared a second interim dividend of 57 HK cents, up 10 percent from 2017.

Net profit, including the changes in the valuation of investment properties, fell by 16 percent to HK$28.67 billion.

Total revenue fell by 21 percent to HK$14.72 billion, and operating profit fell by 16 percent to HK$29.37 billion.

Gross rental income was HK$12.12 billion in 2018, compared with HK$11.25 billion in 2017.

Hong Kong office rental income increased

due to positive rental reversions, firm occupancy

and the opening of One Taikoo Place in the last

quarter of 2018. Retail rental income in Hong

Kong improved in 2018.

Gross rental income from the Hong Kong office portfolio in 2018 was HK$5.87 billion, a 4 percent increase from 2017. The increase partly reflected

rental income from One Taikoo Place, which opened in the last quarter of 2018.

The Hong Kong retail portfolio gross rental income was HK$2.75 billion in 2018, a 6 percent increase from the year before. Retail sales increased by 12 percent at The Mall, Pacific Place, by 6 percent at Cityplaza and by 4 percent at Citygate.

In Hong Kong, rental demand for residential

investment properties is expected to be stable this year, Chairman Merlin Swire said in a statement.

The completed residential portfolio comprises Pacific Place Apartments at Pacific Place, Taikoo Place Apartments in Quarry Bay, Star Studios in Wan Chai and a small number of luxury houses and

apartments on Hong Kong Island, with an aggregate gross floor area of 583,590 square feet.

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