Swire Properties Stock

Good afternoon, ladies and gentlemen. Welcome to Swire Properties 2026 Interim Results Analyst Briefing. Joining us at today's briefing are Mr. Tim Blackburn, Chief Executive of Swire Properties; and Mr. Roy Shearer, Chief Financial Officer of Swire Properties. Tim and Roy will first take us through the 2026 interim results, then we proceed to a Q&A session. Before we start the presentation, let me first take a look at a short video on the company's key highlights over the past 6 months. Please enjoy.

[Presentation]

I now invite Tim and Roy to take us through the presentation. Tim, please?

Great. Well, thank you. Thank you very much. I hope you enjoyed the video. It's been a busy first half of the year, but a very warm welcome, good afternoon to Swire Properties 2026 Interim Results Briefing. As usual, I'll take you through the highlights for the first 6 months of the year, the key developments and the progress we've been making with our HKD 100 billion investment plan. I'll cover some of the key portfolio updates. And then Roy will cover the financial highlights, our SD 2050 strategy and our sustainability achievements for the first half. And I'll close briefly with some comments on the outlook for the second half of the year, and then we'll take some questions.

So our performance in the first 6 months of the year has been strong. We reported an underlying profit of HKD 4.9 billion, which is an increase of 11% year-on-year, thanks to the significant contribution from residential sales and the encouraging performance of the retail portfolio, both in Hong Kong and in the Chinese Mainland.

Recurring underlying profit of HKD 4.7 billion increased by 36% year-on-year, thanks primarily to the sale of the 2 houses in Deep Water Bay and the resilience of the office portfolio, the positive momentum in the retail portfolio and the improvement in our managed hotels, all underpinned by the successful portfolio upgrades and the active capital recycling of noncore assets and the progress we're making with the HKD 100 billion investment plan.

We've declared a first interim dividend of HKD 0.37 to HKD 0.37 per share in the first half of '26, an increase of 6% year-on-year, which is consistent with our commitment to enhancing shareholder returns and our aim to deliver mid-single-digit annual dividend growth and to paying out approximately 50% of underlying profit in ordinary dividends over time. And we're now approaching our 10th consecutive year of delivering sustainable dividend growth.

So with a strong balance sheet and a healthy gearing ratio, the business remains on a solid financial footing. We're well placed to achieve our long-term growth targets, thanks to the active capital recycling strategy. We have a diverse, high-quality development pipeline across all our core markets, combined with a track record of strong execution capability in Hong Kong and in the Chinese Mainland.

In terms of key developments, I'll just touch on some of the highlights year-to-date. So in accordance with the HKD 100 billion plan, we've continued to invest in the asset reinforcement of our office and retail portfolios in Hong Kong and the Mainland. In Guangzhou, our first Taikoo Li in the Greater Bay Area is progressing well. Beijing, we've successfully opened 5 luxury flagship Maisons, which has transformed Taikoo Li Sanlitun into culture and fashion landmark in the capital.

And in Hong Kong, we successfully completed the sales order for 2 prime sites in Quarry Bay, which will be redeveloped into the next generation of high-quality office and commercial space in Taikoo Place. We're seeing strong demand for residential properties across all markets. Pleased with the market response to the Lujiazui Taikoo Yuan Residences in Shanghai, where we've now completed all 6 stages of the presales and achieving proceeds of over CNY 16 billion.

Q1, as I mentioned, we completed the sale of the 2 luxury houses in Deepwater Bay for HKD 2.2 billion, and we're seeing good momentum at the Headland Residences on Hong Kong Island. We recently commenced the VIP presales for Upper House Residences in Bangkok and the presales of Mandarin Oriental Residences in Miami, which have now exceeded 60% prior to the groundbreaking in October.

And finally, on the capital recycling front, we've continued to divest of noncore properties in Hong Kong, and we expect to complete the sale of 44th floor of One Island East to the SFC by the end of this year. So in terms of active capital recycling, I think this chart shows that we've got a good record -- a good track record of active capital recycling over the past 5 years.

After a busy period in 2025, primarily with the divestment of the commercial portfolio in Miami, cumulative proceeds are now approaching HKD 60 billion, which provides liquidity to support the HKD 100 billion investment plan to improve our returns and drive long-term growth and support the progressive dividend policy. Since announcing the HKD 100 billion investment plan in the second quarter of '21, we've made solid progress with 69% committed across the 3 core markets.

In the Chinese Mainland, we're on track to double our GFA, and we're focused on preparing for handover to tenants and multiple new openings scheduled over the next 6 to 12 months. In Hong Kong, we continue to evaluate long-term asset reinforcement opportunities at Pacific Place and Taikoo Place. On the trading front, we continue to develop a diverse pipeline of premium residential developments across all core markets, including in Southeast Asia.

This slide just provides a bit more detail on the completion schedule for over 15 million square feet GFA of new projects over the next few years. As we enter what we refer to as the harvest phase, our immediate focus will be on the disciplined execution of the retail strategy in the Chinese Mainland with Sanya and Beijing in 2026 and in Guangzhou, Xian and Hong Kong in 2027. Looking further ahead down the line, we've got a diverse pipeline of residential projects in Hong Kong and Southeast Asia and in Miami, which will complete post 2028.

So moving to the investment portfolio. Despite the improving sentiment due to the strong IPO pipeline, the Hong Kong office market remains oversupplied. Our portfolio has been resilient, which reflects the flight to quality trend and the overall occupancy has increased to 92% to reflect the prevailing soft market environment, but we are seeing evidence of a central-led recovery. And as occupancy in Central improves, we expect to be in positive reversion territory again as we head into the new year. The retail portfolio in Hong Kong continues to perform very well.

Overall occupancy remains at 100% and retail sales were positive, most notably at Pacific Place and City Gare Outlets, which both achieved strong growth year-on-year. The attributable gross rental income improved and the attributable valuation for the overall portfolio also increased. Contribution of our Chinese Mainland portfolio has now increased to 46% of our attributable gross rental income. And notably, as you can see from the pie chart here, the contributions -- the rental contributions from the Chinese Mainland retail portfolio now exceed those from the Hong Kong office portfolio.

Over the past 10 years, in terms of attributable gross rental income, we've delivered steady CAGR. Year-to-date, it's up 13% year-on-year and we anticipate an increasing contribution from our Chinese Mainland portfolios as we bring 5 new projects online over the next few years to double our GFA in the Chinese Mainland. So working in partnership with the core luxury brands, we've embarked on a significant phase of transformation and trade mix upgrading across all our existing malls in Shanghai and Beijing, for example, and together with an exciting pipeline of new Taikoo Li style open lane retail developments in Shanghai, in Guangzhou, Sanya and Xian, embracing cultural heritage, elevating local brands and reflecting local context.

Across the Chinese Mainland, I think this chart is an important one. But across the Chinese Mainland, the malls have been extremely busy with exciting upgrades to improve the tenant mix and enhance the overall retail experience. We see positive signs of recovery. Overall, retail sales have grown by 23% year-on-year on an attributable basis. All our malls in the Chinese Mainland have reported high occupancy and strong sales growth.

You can see from the chart, HKR Taikoo Hui, 82%; Taikoo Li Sanlitun in Beijing at 63%, significantly outperforming, attributable gross rental income was up 14% and the valuation up 4%. For the office, the performance of our Chinese Mainland office portfolio is resilient despite the market oversupply. Occupancy has been improving, particularly in Beijing and gross attributable gross rental income was up 3%. We're focused on the synergies with our mixed-use developments, focusing exclusively on core locations in Tier 1 cities in Guangzhou, Beijing and in Shanghai.

So I mentioned a little earlier the entering this period we refer to as the harvest phase. Several of our new developments will be completed in 2026. And thanks to the $100 billion investment plan, we've laid these solid foundations for growth across the Chinese Mainland for premium retail-led mixed-use developments in Beijing and Shanghai. And we're looking forward to the opening in December of Taikoo Li in Sanya, which will be our first Taikoo Li in a tropical resort destination in Hainan.

Moving to our residential trading portfolio. Across the core markets in Hong Kong, Chinese Mainland and Southeast Asia, we now have a very diverse pipeline of 9 projects under development, representing over 3.5 million square feet on an attributable basis with phased completions over the next 4 years. Presales for a 10th project, the Mandarin Oriental Residences in Miami are also progressing well with commitments proceeds exceeding USD 1.6 billion.

A little bit more detail on this slide about the trading portfolio with regards to pricing and sales velocity. But just to highlight a few in Hong Kong, we're delighted with the sale of 6 Deep Water Bay in March for $2.2 billion. I think that at the time that reflected close to a record at HKD 150,000 a square foot.

In Shanghai, the 2 tower -- the developments at Century Summit and Century Heights in Qiantan achieved presales of 98%, while Lujiazui Taikoo Yuan achieved record pricing for the sixth batch, our final batch at nearly HKD 192,000 per square meter and cumulative presales, as I mentioned, of over HKD 16 billion. In Hong Kong, Headland Residences were over 350 units presold. So momentum is picking up, reflecting the improving market sentiment. And in late July, we launched the presales of Upper House Residences in Bangkok, which is our first branded residence development for Swire Hotels globally.

Lastly, this slide provides an overview of the diverse pipeline of trading properties across those markets, which will provide consistent trading profits from 2026 onwards. The performance of the hotel portfolio has been improving over the last 6 months, reflecting higher occupancy and improving RevPARs following the decision to unify all the properties under the Upper House brand. And the Swire Hotels team continues to explore third-party hotel management agreements, and we look forward to the opening of the Upper House Shenzhen in the middle of next year, followed by 4 new houses in the Chinese Mainland and Shibuya in Tokyo as well as the Upper House Residences in Bangkok. So on that note, I will hand over to Roy.

Thank you, Tim. So I will start with the financial highlights. So as you heard from Tim, in the first half of 2026, underlying profit increased 11% to HKD 4.9 billion and recurring underlying profit increased 36% to HKD 4.7 billion. This was largely due to the sale of the 2 residential properties at Deep Water Bay Road and higher rental income from the retail portfolio. The underlying profit growth was partially offset by the nonrecurring gain recognized in 2025 following the disposal of our interest in Brickell City Centre. In hotels, performance improved across all markets.

Turning to rental income. Our investment property portfolio delivered a solid performance. Attributable gross rental income increased 3% year-on-year. But if you take out the impact of the Miami disposal, then like-for-like we were actually up 6%. Hong Kong office income remained stable despite negative rental reversions, supported by high occupancy and increased leasing activity.

Hong Kong retail income increased 3%, driven by the continued recovery of the Mall at Pacific Place. All Hong Kong malls maintained 100% occupancy. In the Chinese Mainland, retail rental income grew 14%, driven by sales growth across all malls with 4 out of 6 malls delivering double-digit sales growth. We remain committed to creating long-term shareholder value through sustainable dividend growth.

The first interim dividend has increased 6% to $0.37 per share. This puts us on track to achieve 10 consecutive years of dividend growth and reflects both the strength of our underlying business and our confidence in its long-term prospects. Our dividend policy remains unchanged. Our objective is to deliver sustainable annual dividend growth with a payout of approximately half of underlying profit over time.

Turning to valuations. Our investment portfolio is valued at 272 billion, which is an increase of 1% from the start of the year. This increase mainly reflects CapEx on the portfolio and favorable FX translation gains from our Chinese Mainland assets. We also booked a fair value gain of $578 million this year -- this half compared with the first fair value loss last year of $6.1 billion for the full year 2025.

So this change in fair value, together with some cap rate reductions in the Hong Kong office portfolio is an encouraging sign of improving market conditions and demonstrates the resilience of our assets. Our balance sheet remains strong. Net debt increased 2% to $40 billion, while gearing increased slightly from 14.6% to 14.8%. Importantly, leverage remains low and comfortably within the target range.

Our weighted average cost of debt continued to decline, falling by 20 basis points to 3.3%, reflecting refinancing at lower funding costs and a general drop in interest rates. We continue to maintain a healthy liquidity position. Available committed facilities totaled HKD 60 billion with cash and undrawn committed facilities of around HKD 20 billion.

Our debt maturity profile remains well spread and our funding base is also well balanced with around 2/3 of debt at fixed rates and 45% denominated in renminbi. Our credit rating remains unchanged with A2 from Moody's and A from Fitch. And finally, capital commitments stand at HKD 28.6 billion, including HKD 9.3 billion relating to joint ventures and associated companies. These are phased over several years with the bulk of the Hong Kong commitments after 2029.

So to wrap up on the financials. Overall, our financial position remains very strong. We continue to deliver earnings and dividend growth, maintain a highly resilient balance sheet and preserve considerable financial flexibility for future investments.

I will now turn to our progress on sustainability. So you saw in the video at the start that we've launched our SD 2050 vision and strategy earlier this year. And this advances our long-term commitment to put sustainability at the heart of our business and set a bold path to a new 2050 vision to build the world's most sustainable communities.

At its core, we have 4 long-term commitments to zero, zero harm, net zero carbon, zero waste to landfill and water neutrality. These commitments are supported by 140 targets over the next decade, organized across 5 strategic pillars: people, places, partners, planet and performance. In the next 2 slides, I'll highlight some selected commitments and progress across 3 of these pillars.

Under the planet pillar, we have made strong progress in both carbon and nature, and we're proud to be the first real estate company in Hong Kong and the Chinese Mainland to have our near-term, long-term and net zero targets validated under the new SBTi building criteria. We have also established targets covering whole building and use carbon and embodied carbon. For nature and biodiversity, we have developed a nature transition plan, which aims to stop and reverse biodiversity loss while supporting our placemaking approach. We're also the first company in Hong Kong and the Chinese Mainland to have our nature strategy recognized by its now for nature.

Under the partners pillar, we're extending our impact beyond our own operations through working closely with both tenants and suppliers. Our green performance pledge continues to be well received by our office tenants. We now have 256 tenants signed up, which brings us very close to a 2030 KPI of 70%. On the retail side, our green retail partnership is also expanding with a target of 100 retail tenants, and we already have commitments secured from global leaders, including LVMH and Kering.

And finally, turning to the performance pillar. Green financing remains our preferred funding strategy, and we're making good progress. 75% of our current financing already comes from green bonds and sustainability-linked loan, and we're targeting 90% by 2035. This shows how sustainability is increasingly embedded in how we allocate capital, how we maintain funding discipline and how we deliver long-term business performance. With that, I will hand back to Tim to cover the outlook.

Okay. Thank you. Thanks, Roy. Just a few comments on the outlook. We're seeing -- clearly, we're seeing positive momentum across the portfolios and our first half performance demonstrates that resilience. The office portfolio has been very resilient, enjoying higher occupancy and narrowing reversions, especially at Pacific Place.

So as market rents stabilize, we see a gradually improving outlook for premium office space on Hong Kong Island. Thanks to their differentiated positioning in Hong Kong, our malls have maintained 100% occupancy with strong retail sales, and we will continue to upgrade the trade mix and invest in major events, loyalty programs and premium customer lounges to improve the overall experience for our retail customers. Our retail performance in the Chinese Mainland has been strong, and the outlook is positive as consumer sentiment continues to improve and the positive impact of our trade mix upgrading is further realized.

As we look ahead into the second half of the year, we'll be focusing on disciplined execution as several new projects approach completion milestones and we enter the harvest phase. On the resi front, market sentiment in Hong Kong and Shanghai remains positive. We're seeing strong demand for high-quality prime residential developments across the portfolio. We'll continue to evaluate opportunities for active capital recycling and for continuous investment in our core markets to deliver enhanced shareholder returns.

So in summary, we're making good progress with our $100 billion investment plan. We have a balanced and diversified portfolio with strong fundamentals. Our new SD 2050 vision provides a clear road map to improve our industry-leading ESG performance, and we are committed to delivering progressive mid-single-digit dividend for our shareholders. Thank you. So on that note, I think we'll some time for questions.

Yes. Thank you, Tim and Roy. [Operator Instructions]. First, gentlemen in the front.

This is Karl Chan from JPMorgan. I have 2 questions. The first question is on China Mainland China retail because I guess if we look at the overall retail sales in China, I think it started to soften in May. So just curious, is this something that you also see among your shopping malls in Mainland China? And then what would be your outlook on tenant sales in Mainland China in the second half of the year? That would be my first question.

And then the second question is on Hong Kong office. So I think it's encouraging that the overall rental income is turning flattish. And then just curious in terms of rental reversion for both Pacific Place and Taikoo Place, when do you expect that it could potentially turn stable or neutral or even positive? So that would be my second question.

Thanks, Karl. On Chinese Mainland retail, I think -- well, I think we saw -- as I mentioned earlier, we saw a strong second quarter. And we continue to see, particularly in Sanlitun, strong, very strong growth in retail sales across -- for our Taikoo Li and Taikoo Hui retail malls.

As far as sort of the midpoint of the year is concerned, that we see a relatively strong July. There's some variability. I think that's largely weather related, some very hot weather and some heavy rains in certain parts of the country. But certainly, retail sales continue to be healthy across the portfolio. I think you'll see maybe some normalization of our retail sales growth in HKR Taikoo Hui in Shanghai with the Lui is now cycling on a 12 months. So we'll start to see some normalization, but still a very healthy trend.

And we're looking forward, I think with the plans to open the new Taikoo Li in Sanya end of the year, we're working very closely with the brands to capture that momentum in Hainan as well. As far as Hong Kong office is concerned, we see the negative reversions narrowing across the portfolio. We're seeing some positive growth specifically in Pacific Place. So to answer your question, I think in early 2027, we'll see some opportunities for positive reversions in Pacific Place. It will take a little bit longer in Taikoo Place.

Thanks, Tim. Next, in the front.

This is Cindy from Citi. I have 2 questions. The first is on the new retail asset at Chinese Mainland. So how is the ramping up of Julong Wan comparing with your internal expectations? Did any metrics exceeding your budget? And for the Sanya as you mentioned, you are working very closely on that. So is there any data you can share on pre-leasing rate? Or what's the strategy on overall trade mix and positioning? Has there been any anchor brands that you might be able to share with us for now? And which months do you plan for the grand opening actually?

Second question, maybe for CFO, Roy. It's actually great to see you on the stage. So what is on top of your to-do list after taking office? Do you expect any shift in the overall capital allocation priorities? And noting that the HKD 100 billion plan is already near 70% committed. So do you see any potential change in the future deployment progress?

I'll take the first part. I think your question on Chinese Mainland retail, particularly on the new retail malls. We're very happy with the progress that the team are making in Guangzhou in Julong Wan. It's a fantastic site. In Phase 1, we have about 75% of the retail is open in Phase 1 as well. We're seeing very solid traffic numbers. And we expect that the opening rate will continue through the balance of this year. We're looking for some opportunities to introduce new brands. And I think certainly next year, we'll start to see the opening of some of the luxury brands as well. But this project still has some time to go.

So Phase 1 is what we refer to as an activation zone rather than a formal opening of the mall. Because of its waterfront location, we're able to activate the F&B and a lot of the retail quite successfully. So we're happy with that. And I think it's very complementary to Taikoo Hui and the expansion in Xi'an. In Sanya, we're aiming for the soft opening in late December this year, and we're on track to achieve that. About 70% of the retail is committed. So we'll be opening with 70% in Phase 1. And then the grand opening is scheduled for Chinese New Year, and this is to really capture the peak season for tourism in Hainan. So both those projects are looking very exciting.

Thank you for the question, Cindy, and thank you for the welcome. It's a good time to be joining Square Properties with such a strong financial position and many exciting projects. It probably won't surprise you to hear me say there is no change in the strategy with the change in the CFO. We have a very clear strategy in place, and we're making good progress.

You heard from Tim that we're almost 70% through the $100 billion plan. That is going to grow our recurring earnings base along with the increased proportion of residential. We will continue to focus on capital recycling. And all of that means we can continue to maintain the progressive dividend. So in terms of your question, what my focus is, it's really making sure that we execute on that strategy, and we execute that strategy with very strong financial discipline.

Thank you, Tim. Next question.

Karl Choi from Bank of America. Two questions. Also sticking with Mainland China, I want to ask about the office side because you will have -- you have new office properties opening up in both Beijing and Shanghai. Given the difficult office market, can you give us a little bit of your leasing strategy or leasing progress? Any plan to dispose some of those if possible?

Because I think there was some news earlier about the possible disposal of some office space there. And second question is now that, Tim, you mentioned you're close to the harvesting stage for some of your Mainland Chinese investments and you have done some pre-leasing deals. Can you give us an update on the return sort of characteristics or attribute that you expect from the Mainland Chinese investments opening up in the next 1 to 2 years?

Maybe I'll take the first -- Karl, thanks for your question. So as far as the office market in the Chinese Mainland is concerned, I mean, our portfolio is pretty stable. The encouraging signs in terms of occupancy in Beijing. I think we're at highest occupancy for One Indigo since the pandemic, in fact, at 97%. The team are working hard on the pre-leasing for Taikoo Place in Beijing, and we'll be able to announce a few more details of the pre-leasing rate.

But currently, we're between 30% and 40% pre-committed in Taikoo Place Beijing, which I think is pretty encouraging at this stage. And we'll be opening in phases. In terms of the occupiers, I mean, we've seen keen interest from MNCs, as you would expect, and some domestic TMT and retail customers as well. In terms of disposals, I mean I think at this point in time, we're really focused on the execution to make sure we can deliver these projects on time based on the development milestones. We'll evaluate opportunities on a case-by-case basis, but nothing specific.

Yes. So on the second question on returns in Chinese Mainland. So overall, we are happy with the returns that we've achieved and what we expect to achieve on the new projects. They all clear our investment hurdle rates. And focusing on residential, I think we are very happy with the progress of the residential in Chinese Mainland. I think it's a very good use of capital, and it really helps -- it really complements, sorry, our recurring earnings base, and it will become a more significant part of our earnings going forward.

So given the quick turn of cash on Chinese residential, it then contributes to capital recycling, it puts cash back into the business quicker and then ultimately helps with that ability to continue with the strong dividend.

Next question.

This is Mark Leung from UBS. I think I got 2 questions here. The first question is regarding on the Hong Kong office outlook because recently overnight, we got more potential restriction coming from the Mainland Chinese government about maybe insurance or maybe ODI. So I want to check with management how do you view on the office outlook in second half? And have we seen any slowdown in the leasing activity or negotiations since June? I think that's the first question.

And the second question is regarding on the China retail. So I saw that in first half, actually, our retail sales is growing -- rental income actually is growing at par with the tenant sales. So which is really strong and encouraging. Should we expect that trend should further continue? I think that's my 2 questions.

Okay. Well, as far as the office outlook is concerned, and we're still seeing strong demand for Grade A office in Pacific Place with occupancy at 98%. And similarly, in Taikoo Place, we've got a high level of inspections and interest in -- from new occupiers and also for expansion space. So we don't see any slowdown in demand for the office portfolio in Hong Kong. In fact, I think the list of inquiries is very active. In terms of Chinese Mainland, we're seeing, as you said, positive sales growth, and we hope to convert that into positive reversions in the second half of this year.

Okay. In the interest of time, we'll take the last question, if there's any. If no further questions, this will conclude our analyst briefing today. Thank you very much for joining us.

Thank you.

Good afternoon, ladies and gentlemen. Welcome to Swire Properties' 2025 Annual Results Analyst Briefing.

Joining us at today's briefing are Mr. Tim Blackburn, Chief Executive of Swire Properties; and Ms. Fanny Lung, Chief Financial Officer of Swire Properties.

Tim and Fanny will first take us through the 2025 annual results, then we'll proceed to a Q&A session.

Before we start the presentation, may we first take a look at a short video on the company's key developments and milestones last year. Please enjoy.

[Presentation]

May I now invite Tim and Fanny to take us through the presentation. Tim, please?

Great. Well, good afternoon and a very warm welcome. I hope you enjoyed that sort of summary video of what's been a very busy 6 months. Welcome to the Swire Properties' 2025 Annual Results Briefing.

I'll take you through the results highlights for the full year, touching on some key developments and progress we've made with our strategy across our 3 core markets and some of the portfolio updates. And Fanny will take you through the financial highlights, our ESG performance and our sustainability achievements over the past 12 months. And then I'll close with some brief comments and outlook for the year ahead.

Okay. So, we're pleased to report the underlying profit of $8.62 billion, an increase of 27% year-on-year, due primarily to the sale of several non-core assets in Miami and in Hong Kong, which is directly in accordance with our active capital recycling strategy. Despite the loss of rental income from Brickell City Centre, The Mall, after disposal and lower office rental income in Hong Kong, we've achieved a recurring underlying profit of $6.3 billion, a testament to the resilience of the office portfolio and the positive momentum in the retail portfolios in Hong Kong and in the Chinese Mainland. This is all underpinned by the successful portfolio upgrades and the HKD 100 billion investment plan.

The company has declared a second interim dividend of $0.80 per share in '25 for a full-year dividend of $1.15 per share, an increase of 5% year-on-year, which is consistent with our commitment to enhancing shareholder returns and our aim to deliver mid-single-digit annual dividend growth and to paying out approximately 50% of our underlying profit in ordinary dividends over time.

I'm also pleased to highlight that this represents a mid-single-digit annual dividend growth for 9 consecutive years. So, with a strong balance sheet and a healthy gearing ratio, the business remains on a solid financial footing. We're well placed to achieve our long-term growth targets, thanks to an active capital recycling strategy, a diverse development pipeline across all core markets, combined with a proven track record and strong execution capabilities in Hong Kong and in the Chinese Mainland.

So, this slide shows some of the highlights of what was a very busy year, another busy year for Swire Properties. And I'll touch on a few of them. On the capital recycling front, in Miami, we successfully completed the divestment of our commercial interest in Brickell City Centre in July. In Hong Kong, we completed the sale of non-core industrial site in Tsing Yi, and the remaining Taikoo Shing car parking spaces in October and November. And in December, we completed the sale of the 43rd floor of One Island East to the SFC as planned.

We also celebrated some landmark events on the retail front in the Chinese Mainland. And following the hugely successful launch of LOUIS VUITTON's The Louis on Nanjing Xi Lu, in June, we opened several flagship luxury maisons in Taikoo Li Sanlitun in December. And these have fundamentally transformed the North Block.

Over the Christmas holiday period, we opened the first phase of Taikoo Li Julong Wan in Guangzhou, and this is the first of our new retail-led centers as part of our HKD 100 billion plan. The market's response has been very positive, reaffirming our commitment to the increasing demand for experiential retail.

2025 was also a significant period for our residential portfolio. And over the last 6 months, we've launched pre-sales at The Headland Residences in Hong Kong. We've sold the fourth batch of residential pre-sales at Taikoo Yuan Residences in Shanghai. We've announced the VIP pre-sales for Upper House Residences and Wireless Residences in Bangkok. And we successfully completed the sale of 2 luxury houses at Deep Water Bay Road for $2.2 billion, which is one of the highest priced luxury residential transactions in Hong Kong in recent years.

This is an important slide, which you've seen before, it highlights our track record of active capital recycling. And thanks to the divestment of the non-core assets in Miami, we recycled $7.3 billion in the second half of 2025, increasing our cumulative disposal proceeds to $58.7 billion and providing the liquidity for a HKD 100 billion investment plan to drive growth for the next decade and to support the progressive dividend policy.

So on the HKD 100 billion investment plan, as previously reported, we're making solid progress over the last few years across all markets, with 67% now committed. And in the Chinese Mainland, we remain focused on retail-led mixed-use projects in Tier 1 and emerging Tier 1 cities.

We're on track to double our GFA in the Chinese Mainland by 2032. In Hong Kong, we're pacing our plans for future expansion opportunities at Pacific Place and at Taikoo Place, reflecting the challenging market conditions. And on the residential front, we're continuing to build a diverse pipeline of trading projects in all markets.

For those projects, this is the completion schedule for over 12 million square foot GFA of new projects over the next few years. And clearly, our focus will be on disciplined execution of our retail-led strategy in the Chinese Mainland, with new Taikoo Li and Taikoo Hui branded projects opening in Beijing, in Sanya, in Shanghai, in Guangzhou and in Xi'an. And we also have a diverse pipeline of premium residential projects across all markets, which are well placed with improving market conditions.

I'll move briefly to the investment portfolio. Clearly, the office market in Hong Kong remains challenging due to the supply overhang. Nevertheless, we see a pickup in the level of inquiries and in take-up. Overall occupancy of 91% across our office portfolio, we're outperforming the relevant submarkets, consistent with the flight to quality trend in core locations and thanks to our commitment to placemaking and our industry-leading ESG credentials.

At Pacific Place, occupancy has improved to 96%. Taikoo Place occupancy at One Island East, One Taikoo Place, has remained stable at 91% and occupancy across the other Taikoo Place Towers is at 88%. And encouragingly, occupancy at Two Taikoo Place, our newest triple grade-A office, has increased by 5% to 73%. Attributable gross rental income was down 5%. Attributable valuation in the office portfolio declined by 3%. So overall, negative rental reversions are narrowing, while rental levels are stabilizing in Central. They continue to reflect the prevailing soft market environment. And our strategy will be to continue to focus on tenant retention given the current market outlook.

On the retail front, Hong Kong has been very resilient in 2025. Occupancy at Pacific Place, Cityplaza and Citygate Outlets was maintained at 100%. And encouragingly, retail sales growth was positive across all our malls in Hong Kong, outperforming the Hong Kong market overall. Attributable gross rental income was flat year-on-year. Attributable valuation for the overall retail portfolio declined slightly by 3%.

So, this slide shows our combined Chinese Mainland portfolio now contributes 43% of our attributable gross rental income. And notably, the rental contributions from the Chinese Mainland retail portfolio now exceed those from the Hong Kong office portfolio. Over the past 10 years, in terms of attributable gross rental income, we've delivered steady CAGR of 10%. And over the medium term, we anticipate an increasing contribution from our Chinese Mainland portfolios as we bring some exciting new projects online.

So in terms of exciting new projects, I've mentioned some of these earlier and key developments. But together with our core luxury brand partners, we're embarking on a significant phase of transformational upgrading across our existing malls in Shanghai and in Beijing, for example, together with an exciting pipeline of new Taikoo Li style open-lane retail developments in Guangzhou, Sanya and Xi'an, which embrace cultural heritage and reflect the local context.

Across the Chinese Mainland, all our existing malls have been busy with strategic upgrades, improving the overall retail experience. We've seen positive signs of recovery. Overall retail sales were up 7% year-on-year on an attributable basis and significantly ahead of sales in 2019 on a like-for-like basis as a benchmark. All of our malls in the Chinese Mainland reported positive sales growth with HKRI Taikoo Hui in Shanghai and Taikoo Li Sanlitun in Beijing outperforming. Attributable gross rental income was positive. Occupancy remains high across the whole portfolio and valuation was up by 9%.

Office in China -- in the Chinese Mainland, the portfolio was stable, resilient despite market oversupply, and we remain focused on integrated mixed-use developments and core locations in Tier 1 cities; Guangzhou, Beijing and in Shanghai. So, many of our retail-led mixed-use developments will be launched this year in 2026. We've got an extremely busy program ahead. But thanks to the HKD 100 billion investment plan, we have laid solid foundations for growth in the Chinese Mainland, especially for premium retail-led portfolio with GFA, as I mentioned, almost doubling over the next 5 years.

Moving to the residential trading portfolio. We have an interesting and diverse pipeline of 11 projects currently under development, representing nearly 4 million square feet on an attributable basis across core markets in Hong Kong, Shanghai and in Southeast Asia, with phased completions equally over the next 5 years.

A little bit more detail of that trading portfolio with regards to increased trading profits anticipated from 2026. And as I mentioned earlier, Hong Kong, we recently had the sale of the 2 luxury houses, 6 Deep Water Bay Road, reflecting an average sale price of close to $150 a square foot. With approximately 150 units now pre-sold, The Headland Residences look well placed to capture the improving market sentiment. And in Shanghai, Century Summit and Century Heights almost 98% pre-sold and Taikoo Yuan Residences approximately 90% pre-sold across the first 4 batches, and we are planning to launch the remaining 2 batches this year. And in Jakarta, over 50% pre-sold at Savyavasa. We're now handing over units at our premium residential development in South Jakarta.

This slide just illustrates the diverse pipeline of trading properties in Hong Kong and Southeast Asia, which will generate that increased contribution from trading profits in the next few years.

And then finally, moving to our hotel portfolio. The performance of the hotel portfolio has been improving, reflecting higher occupancy and RevPAR. And importantly, in October, we announced the decision to adopt The Upper House brand for all properties. We continue to explore third-party hotel management agreements, and we're looking forward to 5 new houses opening over the next few years in the Chinese Mainland and in Tokyo, as well as the Upper House Residences in Bangkok, our first branded residences globally.

So on that note, I'll hand over to Fanny.

Thank you, Tim.

Let's look at the underlying profit. In 2025, the underlying profit increased by 27% to $8.62 billion. The strong performance was mainly driven by gains from the disposal of non-core assets, reflecting our successful execution of capital recycling strategy. Recurring underlying profit declined by 3% to $6.26 billion, largely due to the loss of rental income following the disposal of Brickell City Centre retail mall and lower Hong Kong office rental income.

The underlying loss from property trading was due to increased sales and marketing expenses, while hotel performance improved in both Hong Kong and the Chinese Mainland. Our investment property portfolio delivered a resilient performance, with attributable gross rental income down 2% year-on-year. Disregarding the impact of Miami disposal, attributable gross rental income reduced slightly by 1%. Hong Kong office sector saw a 5% decline, reflecting negative rental reversions under the adverse market condition of high vacancy rates and new supply. However, our office leasing activity improved since Q4 2025, supported by better market sentiment and continued flight-to-quality demand.

Our retail malls in Hong Kong remained fully let throughout the year with signs of stabilization emerging in the second half, resulting in accelerated retail sales and rental growth in the second half of the year. In the Chinese Mainland, retail rental income increased by 2%. Foot traffic and retail sales increased, reflecting transformational upgrades and continued enhancement of the tenant mix at our malls. Both retail sales and rental growth accelerated in the second half of the year.

The Board remains committed to create long-term shareholder value by delivering sustainable dividend growth. For 2025, dividend per share increased by 5% to $1.15, marking the ninth consecutive year of mid-single-digit dividend growth. Our dividend strategy aims to deliver mid-single-digit annual growth in dividends and a payout of approximately half of the underlying profit over time.

As of December 2025, valuation of our investment property portfolio stood at $268.3 billion, representing a 1% decrease from December 2024. The decrease mainly reflected fair value losses, primarily from the investment properties in Hong Kong office and the disposal of certain non-core assets, partly offset by portfolio additions and foreign exchange translation gains from the Chinese Mainland. Additions principally reflected capital expenditure on Taikoo Place redevelopment in Hong Kong, Taikoo Li Sanlitun in Beijing and Taikoo Li Xi'an. There was a reduction of 12.5 basis points in the cap rates for certain Hong Kong office properties.

At the end of December 2025, net debt decreased by 10% year-on-year to $39.5 billion, with gearing improving to 14.6%. This was driven by strong cash inflows generated from the disposal of non-cash, non-core assets and sales of residential trading properties. Weighted average cost of debt declined from 4% to 3.5%, reflecting lower interest rate and an increased proportion of renminbi bonds and loans at a lower funding cost.

Our liquidity position remains strong. As at December 2025, available committed facilities increased to $62.6 billion, with cash and undrawn committed facilities totaling $23.4 billion. Our debt maturing profile remains well spread. We continue to increase renminbi borrowings to support expansion in the Chinese Mainland. As at December 2025, renminbi funding proportion increased to 49%.

Our credit rating remains unchanged at A2 under Moody's and single A under Fitch. Total capital commitments amounted to $29.5 billion as at December 2025, including $9.8 billion relating to joint ventures and associated companies. Majority of the capital commitments for the Hong Kong portfolio are expected to be deployed after 2029.

So, now I move on to sustainability highlights. We continue to be highly recognized by many global and regional sustainability indices and benchmarks. We are pleased to continue to rank #1 in the Hang Seng Corporate Sustainability Index for the eighth consecutive year. We have also maintained our Global Sector Leader title under the mixed-use category for the GRESB for the ninth consecutive year. We also received a Pioneer Award in the Green Building Leadership in the developer category at the Green Building Award 2025 of Hong Kong GPC.

2025 was a defining year for our sustainable development strategy. I'm pleased to report that we have achieved most of our 2025 sustainability targets across our pillars as highlighted here. Reaching this milestone demonstrates our strength of our long-term planning, effective execution and successful integration of sustainability into our business strategy and operations.

For climate change, attaining net-zero emissions by 2050 remains one of our highest sustainability priorities, and we are well on track. We achieved an absolute reduction of 52% in our Scope 1 and Scope 2 emissions, surpassing both our 2025 and 2030 science-based targets. Carbon intensity associated with tenants operations also decreased by 63%, exceeding our 2030 target.

We continue to ramp up our renewable energy adoption. Hong Kong RI Taikoo Hui and Taikoo Li Qiantan have secured off-site renewable electricity in Q2 and Q3 of 2025, respectively. Meanwhile, Taikoo Li Sanlitun, INDIGO, Taikoo Hui Guangzhou and Taikoo Li Chengdu continued to secure 100% off-site renewable electricity.

Moving on to tenant engagement. The Green Performance Pledge continued to gain momentum. The overall sign-up rate has exceeded our 2025 target, with more than 180 office tenants, representing 66% of our occupied lettable floor area had signed up. Thanks to the unwavering support from our office tenants in Hong Kong, we have achieved a collective reduction of approximately 436,000 kilowatts of electricity consumption and diverted over 200 tons of waste.

Our Green Kitchen Initiative also achieved a significant milestone by solicitating over 140 F&B tenants across our Hong Kong and Chinese Mainland portfolios committed to the initiative. In 2025, we made significant progress on our Green Retail Partnership with LVMH and Kering Group to enhance ESG performance across their stores.

We remain committed to zero harm. Through the successful implementation of our health and safety road map, supported by our investment in technology, training and awareness programs, we achieved a record best performance this year with our lost-time injury rate achieving a 53.6% year-on-year improvement. This year also marks the 25th anniversary of our community ambassador program, a milestone that reflects our long-standing commitment to community investment.

Our decarbonization and Green Building investment are supported by green financing. As of December 2025, approximately 70% of our current bond and loan facilities are from green financing, surpassing our 2025 target of 50%. In 2025, Swire Properties was awarded Best Issuer for Sustainable Finance Hong Kong, as well as Best Green Bond Real Estate Hong Kong at The Asset Triple A Awards.

Last but not the least, we undertook a comprehensive review of our SD 2030 Strategy. Reimagining our long-term sustainability ambitions to ensure they support our growth plan, we unveiled our new SD 2050 vision, building the world's most sustainable communities. Anchored by our 4 commitments to zero, zero harm, net-zero carbon, zero waste to landfill and water neutrality, SD 2050 is structured around 27 focus areas, with 140 KPIs established across 5 strategic pillars. Please stay tuned for the launch of this SD 2050 strategy in our sustainability report, which will be published in early April.

With that, I'm going to pass it back to Tim to talk about the outlook. Thank you.

Great. Thank you, Fanny.

We'll look to -- I'll try and summarize and then a few comments on the outlook. I think suffice to say, our strong performance in 2025 demonstrates the resilience of the business. And notwithstanding the current and fast-evolving events in the Gulf and the near-term volatility, we're well positioned to meet future challenges, thanks to the strength of the balance sheet, the quality of the portfolios and the diversity of the investment pipeline.

In Hong Kong, thanks to their differentiated positioning, our 3 malls have maintained 100% occupancy, retail sales outperforming the market. And in the Chinese Mainland, retail performance has also been strong. The outlook is positive as consumer sentiment improves and the positive impact of our trade mix upgrading is bearing fruit. Given the high vacancy rates, we expect the office sector to remain subdued in the Chinese Mainland, but we're confident that our portfolio will continue to benefit from the flight-to-quality trend.

In Hong Kong, our prime office portfolio has proven to be resilient and enjoying higher occupancy rates, reflecting that flight-to-quality, our successful placemaking efforts and industry-leading ESG performance. Leasing momentum is improving, thanks to the recovery in capital markets and the robust IPO pipeline. And as market rents stabilize, we expect negative reversions to narrow. We'll focus on tenant retention in anticipation of the gradually improving outlook for premium office stock in core locations.

On the resi front, market sentiment, as I said, in Hong Kong is more positive, and we're seeing healthy demand for our quality prime residential developments in Shanghai and in Southeast Asia. And our hotel business has got off to a good start in 2026.

So in summary, nearly 4 years in, and we're making good progress with the HKD 100 billion investment plan. We have a balanced and diversified portfolio, strong fundamentals supported by the transformative placemaking strategy and a commitment to global sustainability leadership. We remain focused on disciplined execution as these new projects approach completion, and we remain committed to enhancing shareholder returns and delivering mid-single-digit annual dividend growth.

So, just leaves me with one sort of final comment. Chairman has left me with an unenviable task. And importantly, it's to extend my thanks to Fanny as our Chief Financial Officer and our retiring CFO. I wasn't going to mention the years, but I think you can say over 30 years of working with the group -- with the Swire Group across all sectors, Fanny has had a truly diverse and international career with the group, a very successful career with the group.

Fanny has -- she had a huge impact on, I think, all colleagues and the businesses she's worked in way beyond her role as a CFO and an FD. We'll miss her good counsel. We'll miss her good humor, and we'll certainly miss her dedication and we wish her well in her retirement. I know she's preparing well. She's handing over to Roy and that handover has started early. And I think Roy is still smiling, still looking forward to the challenge. I think Fanny leaves the desk and her office in excellent shape. And anyway, if you could just maybe join me in thanking Fanny and wishing her well in her retirement.

Thank you.

I think on that note, we may have time for a couple of quick questions.

Yes. Thank you, Tim and Fanny. We'll open the floor to questions. As the briefing is currently on webcast, please wait for the mic before your questions. Please let us know your name and organization and please ask no more than 2 questions at a time.

Lady in the front in the middle?

Tim and Fanny, this is Cindy from Citi. So, 2 questions from me. First is on China retail. So do management expect to carry forward accelerating momentum into '26? How is the sentiment in the first 2 months and especially during the Chinese New Year? Apart from jewelry, what other trades that actually outperformed? And how much of such retail streams are actually translating into rents?

The second question is actually on CFO succession. So first is, shall we expect further continuity in Swire's capital allocation priority? And second, specifically for Fanny, I want to understand if there's anything you wish you could have accomplished during your tenure and will now pending to be due by the new CFO to carry on?

Yes, I'll take the first question. Fanny, you can take the second question. Thanks, Cindy. Well, in terms of Chinese Mainland retail, I mean, the answer is yes. We've seen that positive momentum and that acceleration carry forward into the first quarter of this year. As I mentioned, with a lot of the trade mix upgrading and certainly in Sanlitun, for example, those very substantial luxury boutiques only opened in December. So, we're seeing the benefits come through in effective rent, certainly in improved turnover rent in the first couple of months of the year.

What I would say is that the first 2 months have been very encouraging. We've seen double-digit improvements in retail sales, and we expect that to continue through into the second quarter as well. Footfall is extremely strong in all of our centers. And I think this experiential -- this interest in experiential retail is really driving footfall, and we are outperforming in our -- in the cities in which we operate.

In terms of which brands are doing well, I mean, the luxury brands are performing well in our centers, and that's testament to the investment and the quality of those new stores. You're right, I mean, jewelry is going well, and we're seeing some emerging domestic brands as well, which are performing extremely well in Guangzhou, in Sanlitun and in Shanghai. So, we think the domestic brands are very complementary to what we're doing with the international brands and with the investments that the luxury brands are making as well.

Thank you very much for your good questions, Cindy. First of all, there shouldn't be any change in our strategy overall. We have a clear strategy, HKD 100 billion plan. And in terms of our treasury policy, we also clearly laid down that in relation to our expansion in Chinese Mainland. Our preference is to continue our renminbi funding so that we can match the risk. And we continue to aim for mid-single-digit dividend growth going forward, riding on the recurring underlying income generated from the new projects. So, that shouldn't be a surprise at all then.

Your most difficult question as to what I haven't accomplished, I think this one is, I would say that I would love to see that I can create more shareholders' value by reducing the NAV discount. I hope that the shareholders over the 9 years should be happy with the dividend performance of this company, with 9 consecutive year of mid-single-digit dividend growth, but the share price could be better. My treasurer reminded me this morning that when I first joined Swire Properties, the share price was $26. So, I'm still under the water, I think, at the moment.

So, there will be a lot more work to be done. I think in order for the NAV discount to trade narrow down, we have done quite a lot in terms of this by having a successful capital recycling program. We did the share buyback before. We have a clear strategy. Our HKD 100 billion plan is executing on the right track. I think there may be things that the market is affecting the whole industry, which we can't change. But I'm sure that Roy will continue all these good works in order to create more sustainable long-term shareholders' value.

Thanks, Tim and Fanny. Next question? Gentleman in the second row.

This is Mark Leung from UBS. First of all, Fanny, really thanks a lot, Fanny, for your contributions. Regarding on your comment on the NAV discount, I want to follow up on that one. Because I think for Mainland actually has recently relaxed the asset restriction for C-REIT issuance. Do you have any plan to issue C-REIT in the near term? I think that's the first question.

And second question is regarding on the recurring income growth going forward. I'm not sure management can share any pre-leasing data for the 3 retail malls in Sanya, Guangzhou and Xi'an. That's my 2 questions.

Okay. Mark, thank you for your question. In relation to C-REIT, we have been watching the market development for many years. And we are very happy for the recent development, particularly a few regulatory restrictions being uplifted. Certainly, we will continue to look into this market, and we will not rule out any possibility on the C-REIT provided that it will provide some capital efficiency for shareholders' value creation then.

Mark, just on -- well, on the pre-leasing, I would say the pre-leasing is going well. In some of our centers, for example, in Julong Wan, we are opening these new centers in phases to enable some of the brands to occupy the space early. And what I would say, I think I mentioned in the briefing that most of the new centers are the Taikoo Li format. So rather than building the mall or the podium mall and then starting a pre-leasing process, actually, from the beginning, we are co-creating and designing these new malls with our brand partners. They are choosing locations. We are designing stores together so that we can open these stores early on in the opening process. So, that's a collaborative process. We are aligned with our strategy in the Chinese Mainland with the core brands. And that's a very exciting outlook for us in the next couple of years.

The next question, gentleman in the front?

Tim, Fanny, this is Karl Chan of JPMorgan. I have 2 questions. My first question is on Hong Kong retail because one of your peers mentioned that year-to-date, the tenant sales in the shopping malls in Hong Kong far exceeded expectation. So, just curious what we are seeing in the Hong Kong retail shopping malls? But then when we talk about rental reversion, I think most peers are still reporting a negative rental reversion for Hong Kong retail. So, just curious what's our outlook for rental reversion in our Hong Kong retail portfolio? So, that's my first question.

My second question is on capital recycling. Because if you look at Slide #6, which tracks the progress of disposal versus capital commitment. If we look at that chart, the blue bar, which is the cumulative disposal process is still lagging behind the capital commitment, right? So, just curious for 2026, what is the direction that we might anticipate? Do we expect that we will do more disposal in order to catch up the pace? Or do you think that 2026 will be a year for reinvestment? So, that would be my second question.

Fanny, should I take the first one, you take the second one? Okay. Thanks, Karl. Your question on Hong Kong retail, I mean, yes, we've had a good start in '26. Certainly, visitations and tourist visitations has been positive. So, we're seeing healthy sales growth this year. And yes, we're also seeing positive reversions in our retail malls, certainly in Pacific Place and in Citygate Outlets. Cityplaza may be slightly lagging, but overall, positive reversions for our retail portfolios.

In terms of capital recycling, I think we will continue to look for capital recycling opportunities. We mentioned before that what are considered to be a core and then what is -- so the remaining will be non-core then. We will continue to look for asset disposal in order to recycle the cash back to reinvest into the HKD 100 billion. But I think our criteria for the capital recycling is to also maximize the value of the divestment. So, there is no so-called specific target that we want to match the investment and also match the pace of that particular investment as well then.

Just to remind the opportunity going forward, we still have 2 floors to be handed over to SFC in the future, which is going to be confirmed. And apart from that, we also would look for -- continue to look for divestment opportunity going forward then.

In the interest of time, we'll take the last question. Gentleman in the second row. Yes.

Karl Choi from Bank of America. Two quick questions. First is about the impact from the Middle East conflicts, if any, so far. Just curious on the office side, are you seeing any slowdown in sort of decision-making as a result of what's happening? And on the flip side, have you heard about reduced leakage of retail sales, especially for your Mainland Chinese malls as a result of disruptions of travel, especially to Europe?

And second, a longer-term question. Since Swire is quite known for longer-term thinking, a lot of the capital markets are quite concerned about potential disruptions impact from AI. What's management's sort of latest thinking about that, especially as it pertains to office, a lot of concerns about less demand for office. Just curious if you could share your thoughts and if that could lead to some changes in your thinking about the portfolio mix and what's considered core versus non-core?

Thanks, Karl. Well, 3 very good questions. You helped me quite a lot with sort of giving me some of the answers. As far as the Middle East is concerned, well, I'd say in our office portfolio, the first couple of months of this year, as I mentioned, we're seeing a pickup in inquiries and also a pickup in leasing activity, demand for expansion space and new demand. But I think naturally, we would anticipate some hesitation around decision-making if things continue to escalate as they have been, and we'll be watching that very, very closely.

On the retail front, in terms of reduced leakage, I mean, we saw the benefit, I think, in maybe in Japan and in Thailand last year, where we saw reduced leakage to those markets and to the benefit of our retail malls in the Chinese Mainland. I think it's certainly possible if this continues that, that will be beneficial for Hong Kong and the Chinese Mainland retail sales as well.

In terms of capital flows and things, I mean, following some of the comments from the Financial Secretary, clearly, there are different views of what the impact might be in Hong Kong, but there is a view that there may be opportunities because of the stability in Hong Kong and Hong Kong's position as an international financial center. There may be some upside, notwithstanding the sort of the macro.

And your last question on office and the impact of AI. We're certainly giving this a lot of thought and a lot more thought, something we'll be trying to scenario plan. I mean, certainly, as far as the -- our office portfolio is concerned, it makes us focus on that debate around core, non-core and really making sure that we are putting the best product and the most innovative and resilient office product into the market so that we can continue to capture the flight-to-quality. There will be an impact inevitably on office demand. We want to make sure that we have the best product in the market and the best -- with our 2 flagships in Pacific Place and in Taikoo Place, they're ideally placed and extremely well amenitized and well connected. So, I think they will prove to be pretty resilient in any of those scenarios.

Thanks, Tim. And this will be the end to our analyst briefing today. Thank you very much for joining us.