The wave of 50 billion investments is about to land! After Swire Properties' leadership change, how will they secure a dominant voice in high-end commercial real estate?

How will the new CFO, Shih Shih-hua, drive the expansion of mainland business?

Produced by | Zhongfang Network

Reviewed by | Li Xiaoyan

In the dual market environment of a deep adjustment in the mainland real estate industry and phased pressure on Hong Kong commercial real estate, Swire Properties recently released its full-year performance announcement for 2025, delivering a solid report card with revenue growth, profit increase, financial optimization, and leading core business in the mainland. For the year, revenue reached HKD 16.041 billion, a year-on-year increase of 11%; basic earnings attributable to shareholders were HKD 8.620 billion, a significant increase of 27% compared to the previous year, demonstrating the ability of leading Hong Kong real estate companies to navigate through the industry-wide contraction cycle. With a management transition and the intensive launch of new projects in the mainland, Swire Properties is laying a solid foundation for long-term high-quality development through asset optimization, focusing on core areas, and concentrating on the mainland.

Financial report data shows that the company’s performance growth was mainly attributed to one-time gains from the strategic disposal of non-core assets. In 2025, Swire Properties concentrated on selling non-core assets such as the Miami Brickell City Centre shopping mall and the Tsing Yi industrial building in Hong Kong, recording sale proceeds of approximately HKD 2.36 billion, a significant increase from HKD 289 million in the same period of 2024, directly driving a notable increase in overall profit. Excluding these one-time gains, the company’s recurring basic profit was HKD 6.260 billion, a slight year-on-year decrease of 3%, mainly affected by the downturn in the Hong Kong office market and the clearance of overseas assets. The short-term operational fluctuations did not alter the company’s overall robust foundation, but rather reflected the strategic foresight in actively optimizing the asset structure and focusing on high-return core areas.

From the performance of business segments, the Hong Kong market has shown a differentiated pattern with office buildings under pressure and retail remaining resilient. The Hong Kong office market became the main drag on annual performance, with consolidated rental income of HKD 4.885 billion, down 4% year-on-year. Coupled with the impact of new market supply and vacancy rate pressure, the fair value loss of investment properties expanded to HKD 7.716 billion. However, high-quality core assets maintained strong competitiveness, with an occupancy rate of mature buildings reaching 91%. In the fourth quarter, demand from the financial sector rebounded, and only 7.6% of leases were expiring in 2026, making short-term renewal pressures manageable. The Hong Kong retail segment performed brilliantly, with sales at the three core malls—Pacific Place, Cityplaza, and Citygate Outlets—increasing by 6%, 3%, and 2%, respectively, maintaining a 100% occupancy rate, and growing faster than the overall Hong Kong retail market, showcasing the rare value of high-end commercial operations.

The mainland retail business has become Swire Properties’ most core growth engine and performance ballast, achieving resilient growth against the industry downturn. In 2025, attributable rental income from mainland retail properties was HKD 5.353 billion, a year-on-year increase of 2%; rental income from subsidiary malls rose 3% year-on-year to HKD 4.628 billion, with core project occupancy rates remaining high: 99% for Taikoo Li Sanlitun in Beijing, 100% for Taikoo Hui in Guangzhou, 97% for Taikoo Li in Chengdu, and 98% for Taikoo Li in Qiantan, Shanghai, solidifying its position as a leading commercial landmark.

The Shanghai Xinyi Taikoo Hui performed the best, with the launch of the Louis Vuitton “Louis Space” flagship store driving sales growth of about 50% for the year, resulting in positive rental growth. Taikoo Li Sanlitun in Beijing completed brand upgrades, introducing luxury standalone stores such as Dior Maison and Louis Vuitton Maison in the North District, and enhancing trendy sports offerings in the South District, achieving an 11% increase in annual sales, with the first two months of 2026 continuing strong double-digit growth. Although Taikoo Li in Qiantan, Shanghai, and Yi Tidi Port in Beijing faced short-term fluctuations due to factors like market cultivation and surrounding construction, sales continued to grow, and occupancy rates remained high, with long-term growth potential unchanged. Against the backdrop of consumption recovery and the trend of high-end consumption returning, Swire Properties is continuously leading the domestic high-end commercial market through precise leasing, innovative scenarios, and brand operations.

In terms of financial health, Swire Properties has achieved continuous improvement in its debt structure through asset optimization, enhancing its cash flow safety net. The net debt for the year decreased from HKD 43.746 billion to HKD 39.54 billion, a decrease of 10%; the capital debt ratio was optimized from 15.7% to 14.6%, a very low level in the industry, significantly enhancing its risk resistance capability. The company adheres to a stable dividend policy, with an annual dividend of HKD 1.15 per share, a year-on-year increase of 5%, and has committed to gradually increasing it by a mid-single-digit percentage each year, demonstrating confidence in long-term development and continuous returns to shareholders against the backdrop of widespread dividend cuts in the industry.

The announcement of changes in the board of directors released alongside the financial report marks the completion of a smooth transition of the core management team for Swire Properties, injecting new momentum into the implementation of its strategy. Current Executive Director and Chief Financial Officer Long Yanyi will retire in May, and Shih Shih-hua will take over as CFO. During Long Yanyi’s tenure, the proportion of RMB financing was significantly increased to 49%, providing solid financial support for the expansion of mainland business; the new CFO possesses extensive experience in financial management and multinational corporate operations, which will assist the company in continuously optimizing its financing structure and advancing its investment layout in the mainland. Additionally, the company has appointed Chan Ming-hin as a non-executive director and a member of the audit committee, further improving its governance structure.

The management team for mainland business has completed its adjustments in advance, with frontline operational backbones promoted to key positions. Yu Guoan, responsible for Taikoo Li Sanlitun, and Wu Yushan, general manager of Taikoo Li Chengdu, will respectively manage new projects and overall retail operations, with a seasoned operational team taking on the intensive openings of new projects to ensure that operational quality and expansion pace proceed in sync.

Currently, Swire Properties’ HKD 50 billion investment plan for the mainland has completed HKD 46 billion in deployment, with most projects entering the construction phase, and 2026 will usher in a concentrated opening period. Beijing Taikoo Li has reached its roof, marking the brand’s debut in the mainland; Sanya Taikoo Li is positioned as a high-end retail destination for vacations, opening in phases this year, partnering with China Duty Free Group to create a new commercial landmark in Haitang Bay; Guangzhou Julong Bay Taikoo Li opened in December 2025, filling the gap in the Taikoo Li format in the Greater Bay Area; and Shanghai Lujiazui Taikoo Source has seen explosive pre-sales, recording pre-sale revenue of HKD 11.7 billion. Xi’an Taikoo Li is steadily under construction and will be completed in phases by 2027, forming a national high-end commercial landscape covering the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Greater Bay Area, the Southwest, and Hainan.

Overall, 2025 is a crucial year for Swire Properties, marked by strategic optimization and readiness for takeoff. One-time asset gains have contributed to impressive performance growth, the mainland retail business continues to lead, financial structures are continuously optimized, management transitions are smooth and orderly, and new projects are entering a concentrated harvest period. Although the Hong Kong office market still faces short-term pressures, recurring profits have shown slight fluctuations but have not affected the company’s long-term development logic.

As a benchmark Hong Kong-funded real estate enterprise deeply engaged in the mainland market, Swire Properties adheres to the strategic line of “light on non-core, heavy on core, and steady in the mainland,” leveraging top-notch commercial operational capabilities, a healthy financial status, and a dense reserve of quality projects to maintain its fundamentals and expand new spaces during the industry adjustment period. With continuous consumption recovery and gradual project rollouts, Swire Properties will further consolidate its leading position in the mainland high-end commercial market and achieve steady improvements in operational performance and brand value with a long-term perspective through the cycle.