UBS: SWIRE PROPERTIES (01972) full-year performance in line with expectations, target price of HK$29.6, rated "Buy"

UBS released a research report stating that SWIRE PROPERTIES (01972) basic profit in 2025 is expected to be HK$6.3 billion, a 3% decrease compared to the previous year, in line with the bank's expectations. The company announced a final dividend increase to HK$0.80 per share, along with an interim dividend of HK$0.35, bringing the total annual dividend to HK$1.15 per share, a 5% year-on-year increase. With active asset recycling strategies in Miami and Hong Kong, the net gearing ratio decreased from 15.7% in the interim period to 14.6% at the end of last year. The bank has set a target price of HK$29.6 and a "buy" rating. Management stated at the performance meeting that mainland tenant sales have recorded double-digit growth since the beginning of the year, and the strong momentum is expected to continue into the first and second quarters of this year. Additionally, Hong Kong tenant sales have continued to grow healthily since the beginning of the year, with rent renewals at Pacific Place and Citygate Outlets seeing an increase. Looking ahead, the company will continue to seek capital recycling opportunities, including the possible issuance of a Chinese Real Estate Investment Trust (C-REIT).