Review of Operations Retail sales and gross rental income at HKRI Taikoo Hui in spending behaviour from customers (as compared to Shanghai decreased by 20% and 24%, respectively in the pre-COVID-19 pattern) is expected. However, in the long first half of 2024, reflecting disruption caused by the term, it is expected that onshore spending will still major structural and reconfiguration works to cater for account for the majority of the total retail business in the tenant mix improvement. The mall was 92% let at 30th Chinese Mainland. June 2024 including spaces allocated to prospective tenants who have signed letters of intent. The overall demand for retail space is expected to be stable with retailers taking a relatively more prudent Retail sales at Taikoo Li Qiantan in Shanghai remained expansion approach in the second half of 2024. It is unchanged in the first half of 2024 while gross rental expected that the demand for retail space from retailers income increased steadily by 10%, reflecting higher of luxury brands will remain strong in Guangzhou and occupancy. At 30th June 2024, tenants had committed to Chengdu. In Shanghai and Beijing, demand for retail take 99% of the retail space, with 96% of the lettable space from fashion, sports, cosmetics, lifestyle brands retail space having opened. and food and beverage operators is expected to be solid. Chinese Mainland Retail Market Outlook The following chart shows the percentage of attributable 2024 is expected to be a year of normalisation, with gross rental income from the retail properties in the retailers taking a more prudent approach while Chinese Mainland, for the month ended 30th June 2024, maintaining a positive outlook in the medium to long derived from leases expiring in the periods with no term. Retailers are expected to focus on offering committed renewals or new lettings. Tenancies exclusive content and customer engagement, and accounting for approximately 17.7% of the attributable highlighting the importance of the unique positioning, gross rental income in the month of June 2024 are due to brand mix and quality services across our portfolios. expire in the second half of 2024, with tenancies Inbound and outbound travels are anticipated to increase accounting for a further 25.2% of such rental income due and a recalibration between onshore and offshore to expire in 2025. Retail Lease 60% Expiry Profile 50% (At 30th June 2024) 40% 30% 20% 10% 0 July – December 2024 2025 2026 and later 32 Swire Properties Limited Interim Report 2024