Hong Kong's Swire Pacific profit slides on property slump, Cathay stabilises
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Profit fell to HK$4.32 billion (US$556 million) from HK$28.9 billion in 2023, the group said in a stock exchange filing on Thursday, after booking deficits in the value of its development and investment properties. Excluding the deficits and other one-off charges, the group's recurring underlying profit weakened 11 per cent to HK$9.28 billion, it added.
Cathay Pacific maintained its earnings last year as global travel rebounded further post-pandemic, it said. Swire Pacific also said it booked capital gains from the sale of its Coca-Cola franchise in the US last year to focus on its new ventures in the beverage markets in Thailand and Laos.
03:39
Shop occupancy recovers in Hong Kong, but vacant stores still visible across the city
Shop occupancy recovers in Hong Kong, but vacant stores still visible across the city
'The office market in Hong Kong is expected to remain subdued in 2025 as a result of the uncertainty of the economic environment' despite signs of revival in the city's financial market, chairman Tim Blackburn said. Corporate cost-cutting measures hurt demand for office space, he added.
Swire owns
82 per cent of Swire Properties , one of the largest commercial landlords and retail operators in Hong Kong, whose assets include Pacific Place in Admiralty and Taikoo Place in Quarry Bay. It posted a HK$766 million loss versus a HK$2.64 billion profit in 2023, due to weaker sales and an erosion in the fair value of its assets.
Gross rental income from its Hong Kong office portfolio declined 7 per cent year-on-year to HK$5.1 billion, while income from its shopping malls and retail venues fell 3 per cent year on year to HK$2.4 billion due to weak demand, high vacancy rates and new supplies, the developer said. The near-term results were likely to remain subdued, it added.
01:29
Hong Kong government to bail out Cathay Pacific with HK$30 billion in loans and direct stake
Hong Kong government to bail out Cathay Pacific with HK$30 billion in loans and direct stake
Meanwhile, Swire Properties said its mainland China business improved, especially in the retail segment where gross rental income grew by 7 per cent year on year as footfall and retail sales benefited from Beijing's stimulus measures in late September. Retail sales growth could pick up this year, it added.
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