Initiation: Poised for take-off

Research evidence excerpt

Initiation: Poised for take-off

Macquarie Equity Research Swire Properties

Earnings turnaround led by residential property sales in FY26

Swire recorded 4x higher HK

residential sales in 2025, of We expect Swire Properties (Swire) will be able to deliver a stellar FY26, marking a turnaround

which we expect the bulk to in recurring underlying profit which declined over the past 2 years to a low of HK$6.3bn

be recognised in FY26. in FY25. Given the strong recovery in Hong Kong's residential market recently, we believe

Swire's FY26 earnings recovery will be led by the recognition of residential sales uponSteady growth in China

completion.residential sales will drive

medium-term earnings In 2025, Swire Properties recorded 334 units sold in Hong Kong for a value of HK$8mn,

growth, in our view. representing a four-year record. The bulk of the sales were from La Montagne and The

Headland Residences. The bulk of the La Montagne sales were recorded in 2025 upon

handover while the sales from The Headland Residences will be recognised from 2026

onwards.

Aside from HK residential sales, Swire's China residential sales continue to record steady

growth, booking 19% YoY growth in FY25. On 12 June 2026, Swire Properties announced

that, in the final batch of sales at Lujiazui Taikoo Yuan Residences (its latest China residential

project), it sold 48 out of 72 units on the first day. The last batch has achieved an average

price of Rmb191,800 psqm (+11% vs 2025 average price), the highest among Shanghai's new

residential developments launched this year.

Figure 3 - HK residential sales Figure 4 - CN residential sales

CN residential

HK residential CN residential

sales (units) HK residential sales (sqm) sales value

sales value (RMB'mn /

(HKD'mn) HKD'mn)

400 9.0 90 12,215 14,000 334