First Read Swire Properties Dual Engines Improving in 2Q26

研报英文原文证据摘录

First Read Swire Properties Dual Engines Improving in 2Q26

Global Research

2 August 2026ab

First Read

EquitiesSwire Properties

Dual Engines Improving in 2Q26 Hong Kong

Real Estate

12-month rating Buy

Strong Mainland Tenant Sales Growth Sustained in 2Q26

Swire reported its 2Q26 operating data on July 31. Overall, we note: (i) a slight 12m price target HK$29.60

improvement in its Hong Kong office portfolio, reflected in higher occupancy and spot

rents at Pacific Place; (ii) a further acceleration in Hong Kong retail sales; and (iii) the

Price (31 Jul 2026) HK$23.90

strong mainland China tenant sales growth seen in 1Q26 largely sustained in 2Q26. We

expect the share price to react modestly positively to the announcement. In mainland RIC: 1972.HK BBG: 1972 HK

China, Swire's recent tenant mix upgrades continued to deliver robust sales momentum. Trading data and key metrics

Beijing Sanlitun Taikoo Li and Shanghai HKRI Taikoo Hui recorded tenant sales growth of

52-wk range HK$27.00-20.40

63% and 82%, respectively, in 1H26, further accelerated from 56% and 81% in 1Q26.

Market cap. HK$140b/US$17.8b

Meanwhile, Shanghai Qiantan Taikoo Li sustained solid tenant sales growth of 14% in

Shares o/s 5,850m (ORD)

1H26, broadly in line with the 15% recorded in 1Q26. In contrast, Guangzhou Taikoo

Hui and Chengdu Taikoo Li reported slower tenant sales growth of 9% and 14%, Free float 18%

respectively, down from 18% and 18% in 1Q26. Avg. daily volume ('000) 3,314

Avg. daily value (m) HK$74.2

Slight Improvement in Hong Kong Office Portfolio Common s/h equity (12/26E) HK$272b

At Pacific Place, Swire achieved office occupancy of 98% in 2Q26, up 2 percentage P/BV (12/26E) 0.5x

points QoQ. Meanwhile, spot rents for Pacific Place One and Two improved to HK$90- EPS (UBS, diluted) (HK$)