Review of Operations Retail Overview The completed retail portfolio in Hong Kong comprises an aggregate of 3.2 million square feet of space on a 100% basis. Total attributable gross rental income from our retail properties in Hong Kong was HK$1,324 million in the first half of 2023. At 30th June 2023, our retail properties in Hong Kong were valued at HK$54,832 million. Of this amount, the Group’s attributable interest was HK$45,903 million. The portfolio principally consists of The Mall at Pacific Place, Cityplaza at Taikoo Shing and Citygate Outlets at Tung Chung. The Mall at Pacific Place and Cityplaza are wholly-owned by the Group. The malls are managed by the Group. Following the lifting of all travel restrictions and COVID-19 related measures, and with the investment in marketing and loyalty initiatives, the Hong Kong retail portfolio has recovered significantly in the past few months. Sales have returned to pre-pandemic levels in some of our malls. There are still factors such as a strong US currency, a rebound in outbound travel and a high interest rate environment which might affect local consumptions. However, we remain confident that the sales momentum will continue and expect further improvement in Hong Kong retail businesses in the second half of 2023. During the first half, retail sales increased by 60%, 12% and 62% respectively at The Mall at Pacific Place, Cityplaza and Citygate Outlets. Hong Kong Retail Portfolio GFA (sq. ft.) Occupancy Attributable (100% Basis) (at 30th June 2023) Interest The Mall, Pacific Place 711,182 97% 100% Cityplaza 1,096,898 100% 100% Citygate Outlets 803,582 100% 26.67% (1) Others 549,558 99% 26.67%/60%/100% Total 3,161,220 (1) Others largely comprise Taikoo Shing neighbourhood shops and StarCrest retail premises (which are wholly-owned), Island Place retail premises (60% owned) and Tung Chung Crescent neighbourhood shops (26.67% owned). Gross rental income from the retail portfolio in Hong Kong was HK$1,230 million in the first half of 2023, an increase of 17% compared to the same period in 2022. The increase reflected the recovery after the lifting of all COVID-19 related measures and significant reduction in the rental concessions given to tenants. The malls were almost fully let throughout the period. 26 Swire Properties Limited Interim Report 2023