Swire Properties:Takeaways from the Hong Kong NDR

Introductory management comments .

Swire Properties (Swire) reported good earnings growth in 2012, even after Festival Walk was sold in 2011. The company?s gearing level remains modest and it is gaining traction in China. The disappointment in 2012 was the lack of investment.

Swire is building up expertise in retail property in China. Although management said it was hard to talk about sustainability, it believed the company did not have a bad start to 2013 in terms of retail sales spending.

Management is positive on prospects in Miami, South Florida, and is exploring further opportunities in the city. Swire will continue looking for new opportunities, but will not bid aggressively while policy uncertainties and government intervention continue in Hong Kong and Singapore. It has already invested small amounts in Singapore and management is pleased about winning the Tung Chung commercial site through a consortium.

Karen Fan