Swire Properties Earnings: Results in Line; Share Buyback a Positive

Narrow-moat Swire Properties’ first-half results are in line with our expectations. Recurring underlying profit declined by 8% year on year, given weakness across Hong Kong office and retail properties, partly offset by the full period contribution of Taikoo Li Chengdu and rental improvement in Taikoo Li Sanlitun in Beijing, given tenant mix improvement. We have updated the handover timing of residential properties in Hong Kong, leading to a 6% reduction in our 2026 adjusted net income forecast, offset by higher earnings in 2028.