Swire Properties sees a net loss of HK$800 million last year

Swire Properties (1972) warned of swing to a net loss of HK$800 million last year, but said this will not undermine its dividend growth capability.

The developer issued a profit warning that it expects to report a net loss the year ending December 2024, compared to a net profit of HK$2.6 billion in 2023.

Swire Properties also expects underlying profit, excluding revalution gains, for the year ending last year to be around HK$6.8 billion, 41 percent lower than one year ago, mainly reflecting the absence in the period of a one-off profit of around HK$3.3 billion from the completion of the sale of nine floors at One Island East in December 2023, as well as lower profits in 2024 from the sale of car parking spaces in Hong Kong.

The company also expects to record a fair value loss on investment properties of HK$6.3 billion in 2024, compared with a fair value loss on investment properties of HK$4.4 billion in 2023.

Swire Properties said that the change in fair value of investment properties is non-cash in nature and will not have any impact on the company's operating cash flow or underlying profit.

Although the company's full year results for 2024 were impacted by the weak Hong Kong office market, the company's Hong Kong office portfolio outperformed the corresponding Hong Kong regional market in terms of occupancy last year, the British landlord said.

STAFF REPORTER