Swire Properties expects $800m loss for 2024

This is driven by larger fair value loss on investment properties and lower one-off gains.

Swire Properties expects to report a $800m loss for 2024, compared to a $2.6b profit in 2023, due to a larger fair value loss on investment properties and lower one-off gains from asset sales.

The company attributes the decline to a $6.3b fair value loss on investment properties, higher finance costs, and weaker rental income from its Hong Kong office portfolio. In 2023, Swire Properties benefited from a $3.3b one-off gain from the sale of nine floors of One Island East, a boost that was absent in 2024. Additionally, profits from the sale of car parking spaces declined compared to the previous year.

Meanwhile, Swire Properties' recurring underlying profit is expected to be $6.5b for 2024, down from $7.3bn in 2023. The decline is primarily due to increased borrowing costs and continued weakness in the Hong Kong office market. However, the company noted that its office portfolio outperformed relevant submarkets in terms of occupancy.

Final audited results for 2024 are expected to be released in the company’s annual report.