【01972】Swire Plaza and Citygate's first-quarter sales increase by 14% and 22%
Swire Properties: Optimistic about the retail outlook for the rest of the year, and the negative rent adjustments for office buildings are expected to narrow

Swire Properties (01972) Announces first quarter operational data, with retail market strength leading to stable sales performance across its China-Hong Kong malls, including strong growth in Swire Grand Plaza and East Asia City Boutique Warehouse, with retail sales up 13.9% and 21.8% respectively, outperforming the market, while Pacific Place Center rises 3.4%.

Swire Properties’ Hong Kong malls maintain 100% occupancy rate

A Swire Properties spokesperson stated that retail sales performance was excellent, mainly benefiting from popular marketing campaigns, ongoing economic growth momentum, and steady recovery in inbound tourist numbers, providing solid support for local consumption. During the period, the occupancy rate of its malls remained at 100%.

The spokesperson expressed optimism about the market outlook for the rest of the year and will continue to monitor geopolitical uncertainties and changes in consumer patterns. The company will keep optimizing its tenant mix and planning attractive marketing activities to boost foot traffic and strengthen overall mall appeal.

Regarding office buildings, Swire Place office occupancy rate remains at 96%, with rents down 14%; Pacific Place (overall) occupancy is 89%, with rents down 14%; Island East Centre and Tower 1 of Pacific Place have occupancy rates of 91%, with rents down 13%. The Swire spokesperson indicated that the trend of companies seeking quality office spaces (flight-to-quality) has driven office leasing, with Swire Place and Pacific Place continuing to benefit from tenants’ pursuit of premium offices and Hong Kong’s active IPO market.

Swire Place offices and Pacific Place leasing activity remains active

The Swire spokesperson said that the overall rent adjustment rate for office renewals in the first quarter remained negative, but these figures have not yet reflected the recent rebound in leasing momentum. As market rent levels stabilize, negative rent adjustments at Swire Place are expected to narrow in the second half.

The spokesperson further stated that leasing activities at Swire Place offices and Pacific Place remain active, with increased visits and on-site inspections. During the period, Swire Place successfully attracted four new tenants from finance, legal, and tech sectors, and completed six renewals and three expansions of existing tenants; Pacific Place also welcomed six new tenants from banking, finance, retail, and tech industries.

In Mainland China, six retail projects recorded year-on-year growth in sales and foot traffic in the first quarter, with Beijing Sanlitun Taikoo Li, Shanghai Xingye Taikoo Hui, Qiantan Taikoo Li, Chengdu Taikoo Li, and Guangzhou Taikoo Hui achieving double-digit sales growth, outperforming the overall retail market in China.

Source: HKEX Announcement

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