Review of Operations Chinese Mainland Office Market Outlook Office demand and market sentiment in Beijing, Shanghai and Guangzhou are expected to recover in the second half of 2023. However, economic outlook remains uncertain. The continued new supply of office space in Shanghai and Guangzhou, particularly in emerging decentralised submarkets, will exert downward pressure on rents. The following chart shows the percentage of attributable gross rental income from the office properties in the Chinese Mainland, for the month ended 30th June 2023, derived from leases expiring in the periods with no committed renewals or new lettings. Tenancies accounting for approximately 5.6% of the attributable gross rental income in the month of June 2023 are due to expire in the second half of 2023, with tenancies accounting for a further 19.2% of such rental income due to expire in 2024. Office Lease Expiry Profile (At 30th June 2023) Serviced Apartments Chinese Mainland Serviced Apartments There are 24 serviced apartments at the Mandarin Market Outlook Oriental in Taikoo Hui Guangzhou, 42 serviced The performance of the serviced apartments is expected apartments at The Temple House in Sino-Ocean to further improve steadily in the second half of 2023. Taikoo Li Chengdu and 102 serviced apartments at The Middle House Residences in HKRI Taikoo Hui Investment Properties Under Development Shanghai. INDIGO Phase Two, Beijing The performance of the serviced apartments in the INDIGO Phase Two is an extension of the existing INDIGO first half of 2023 recovered gradually following the development, with a GFA of approximately four million lifting of COVID-19 associated restrictions. Occupancy square feet. Jointly developed with the Sino-Ocean at the Mandarin Oriental in Guangzhou, The Temple group, INDIGO Phase Two will be an office-led mixed-use House in Chengdu and The Middle House Residences development and is planned to be completed in two in Shanghai was 71%, 41% and 83% respectively at phases, in 2025 and 2026. Basement and superstructure 30th June 2023. works are in progress. The Group has a 35% interest in INDIGO Phase Two. 34 Swire Properties Limited Interim Report 2023