【Swire Group Performance】Swire Properties: Middle East Conflict Adds Near-term Uncertainty; Swire Pacific CEO: China-Hong Kong Investment Portfolio Not Directly Affected

SocialAnxietyStaker · 2026-03-12T09:24:04+00:00

The Middle East tensions have not altered Swire Group's long-term investment strategy, with limited impact on short-term uncertainties. The real estate market is performing strongly, with quality office buildings maintaining stable renewal rental rates. On the retail side, shopping malls maintain high occupancy rates and retail sales growth outlook is positive. Commodity prices have risen due to geopolitical factors, and the Group has implemented countermeasures to ease cost pressures.

SocialAnxietyStaker

2026-03-12 09:24:04

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The situation in the Middle East remains tense. Taikoo A (00019) Chairman White Delly stated that the short-term impact of the Middle East war will bring some uncertainties, but the group’s long-term investment opportunities and plans remain unchanged. They will continue to adopt this strategy in the future. Taikoo Land (01972) CEO Peng Guobang added that the development of the Middle East situation is concerning, but it is expected that the current investment portfolio in Hong Kong and China will not be directly affected. The group will closely monitor the developments.

Regarding the local property market, Peng Guobang pointed out that demand and prices for residential properties have gradually improved over the past few months. Recently, a sale of two detached houses at 6 Deep Water Bay Road for HKD 2.2 billion set a record for luxury homes in Hong Kong in recent years. Additionally, new projects have performed very strongly, and the group is well prepared to launch new projects at the appropriate time within the next 6 to 12 months.

Peng Guobang said that since Q4 last year, the negative growth in rental income has been narrowing, especially for high-quality office buildings in prime locations. However, due to oversupply, renewal rents remain under pressure.

In retail, Peng Guobang stated that Taikoo’s three major shopping malls in Hong Kong performed steadily last year, maintaining an occupancy rate of about 100%, with retail sales achieving positive growth. Therefore, the group is optimistic about the retail outlook for the coming year.

Commodity prices have risen sharply due to geopolitical risks. Swire Coca-Cola Global President Su Wei indicated that the impact of rising aluminum prices varies across markets. In some markets, such as Mainland China and Southeast Asia, demand is driven more by PET plastic bottles and canned drinks. As a result, rising costs have a greater impact on Southeast Asian operations. The group has developed a series of solutions, including reducing reliance on a single type of packaging and actively increasing the variety of packaging to offset cost pressures.

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