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Swire Properties chairman John Slosar says Pacific Place has no major leases expiring this year. Photo: Felix Wong

Swire Properties’ underlying profit up 12.7pc to HK$7.15 billion

Swire Group

Swire Properties, which owns an investment property portfolio of 21.3 million square feet in Hong Kong and on the mainland, posted a 12.7 per cent jump in full-year underlying profit to HK$7.15 billion on higher rental income and property sales.

The strong result also gave an earnings boost to its parent, Swire Pacific.

The conglomerate said its underlying profit for last year grow 15 per cent to HK$9.73 billion on higher profits from its property, aviation, beverage and trading and industrial divisions.

Swire Properties, which owns the Pacific Place office-retail development in Admiralty, said its net profit fell 24 per cent last year to HK$9.51 billion on smaller gains on property revaluations. Turnover jumped 19 per cent to HK$15.38 billion.

John Slosar, who chairs both Swire Pacific and Swire Properties, said he expected demand for office spaces in Hong Kong, particularly from financial institutions, was likely to be subdued this year, which could put pressure on rents in Central.

“Pacific Place, however, has no major leases expiring in 2015 and occupancy rates are expected to remain stable,” he said in an exchange filing after the stock market’s morning close on Thursday.

Gross rental income rose 6.65 per cent to HK$10.32 billion, reflecting positive rental reversions from office and retail properties in Hong Kong.

Swire Properties declared a final dividend of 44 HK cents a share, up from 40 HK cents a year ago.

Swire Pacific declared final dividends of HK$3.90 per A share and 78 HK cents per B share.

Ahead of the result announcement, shares of Swire Properties closed up 1.911 per cent to close the morning session at HK$24, while Swire Pacific A shares rose 1.27 per cent to HK$103.70.

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