Performance | Swire: Hong Kong Office Supply Remains Ample, Market Continues Under Pressure

SighingCashier · 2026-03-12T10:05:35+00:00

Swire and Swire Properties Chairman Peter B. Bradley stated that although office rents in Hong Kong continue to be under pressure, the decline in renewal rents has narrowed. The retail business is performing well, with shopping mall occupancy reaching 100%. Swire Coca-Cola President Su Wei mentioned that rising aluminum prices are affecting packaging costs, and the group will adopt a diversified strategy to meet these challenges.

SighingCashier

2026-03-12 10:05:35

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Swire (00019) and Swire Properties (01972) Chairman Guy Bradley stated at the earnings release that since Q4 last year, the decline in renewal rents has narrowed, but the market remains under pressure due to the high supply of office space in Hong Kong.

Regarding retail, Bradley pointed out that the Hong Kong retail market has been gradually improving last year. The performance of his three shopping malls has been stable, with occupancy rates maintained at 100%, and retail income from these malls has also increased. He is optimistic about the outlook.

Additionally, Swire Coca-Cola President Su Wei said that rising aluminum prices have affected packaging. The group will use a balanced approach to hedge against rising supply costs, such as sourcing from different suppliers and adopting various packaging solutions to address the cost increase.

When asked whether beverage prices might face upward pressure, she responded that the group operates in different markets with varying conditions. For example, in Southeast Asia, canned Coca-Cola is the main product, and rising aluminum prices will have some impact on that market. However, the group will implement diversification strategies to avoid over-reliance on a single solution and will take a series of measures to cope with rising costs.

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