Swire Properties post $766m loss on revaluations

Cici Cao

Swire Properties (1972) swung to a net loss of HK$766 million last year from a net profit of HK$2.64 billion a year prior, blaming the losses from property revaluation.

Swire Pacific's (0019, 0087) property unit recorded a fair value loss on investment properties of around HK$6.3 billion - 43 percent higher than 2023.

Chief executive Tim Blackburn anticipates the Hong Kong market for office leasing to remain sluggish in 2025, as rent continues to face pressure from weak demand and over supply.

He predicts the flagging market will continue to even 2027, yet noting a narrowing drop in rent.

The company declared a dividend of 76 HK cents, bringing the full-year payout to HK$1.10 - a 5 percent growth from a year prior.

It said 67 percent of its HK$100 billion strategic investment plan revealed earlier has been committed.

Its parent Swire Pacific saw net profit slump 85 percent year-on-year to HK$4.32 billion in 2024. But it raised the final dividend by 5 percent to HK$2.1 per A share and 42 HK cents per B share.

Underlying profit, excluding fair value changes for investment properties, amounted to HK$10.47 billion, plunging 71 percent year-on-year, while the recurrent underlying profit dropped 11 percent to HK$9.28 billion.

Swire Pacific attributed the drop to less beverage business profits after selling its US Coca-Cola business.

However, aviation divisions including Cathay Pacific Airways (0293) contributed largely. The flagship airline reported a 1 percent rise in 2024 net profit to HK$9.89 billion.

Shares of Swire Properties edged up 1.12 percent to HK$16.32 yesterday. Swire Pacific's A shares dropped 5.67 percent and its B shares lost 6.5 percent.