Interim underlying profit at Swire Properties jumps 34pc
Property developer is optimistic about future performance as office, retail and residential demand are expected to increase in second half
Swire Properties posted a 34.2 per cent jump in first-half underlying profit to HK$3.78 billion on strong property sales and rising rental income, with the property giant looking to build on its gains as it expected a positive performance in the second half.
The strong result also gave a earnings boost to its parent Swire Pacific. The conglomerate said its underlying profit for the same period grew 31 per cent to HK$4.33 billion on higher profits from its property, aviation, beverage and trading and industrial divisions.
Fall in retail sales … has resulted in retailers becoming more cautious
John Slosar, who chairs both Swire Pacific and Swire Properties, said demand for space in Swire Properties' office buildings is expected to show further improvement, with modest additional demand in the Central district and firm rental levels on renewals in Island East.
Swire Properties chief executive Martin Cubbon said the performance of the company's retail properties outperformed the market, despite the fall in retail sales in the city.
"We remain optimistic about the retail sector," he said.
The company is confident about the future performance of its retail properties such as Pacific Place and the Taikoo Shing mall.
"The fall in retail sales in Hong Kong has resulted in retailers becoming more cautious. However, this is not expected to have a significant adverse effect on Swire Properties' retail properties in Hong Kong which remain fully let," a company report said.