The chart below shows the mix of the tenants of the retail properties by the principal nature of their businesses (based on internal classifications) as a percentage of the retail area at 30th June 2024. Retail Area by Tenants’ Businesses (At 30th June 2024) 24.5% 27.3% Fashion and accessories Department stores Jewellery and watches 0.9% 1.8% Food and beverages Supermarkets Ice rink 4.2% 5.5% Cinemas Others 20.5% 15.3% At 30th June 2024, the top ten retail tenants (based on attributable gross rental income in the six months ended 30th June 2024) together occupied approximately 26% of the Group’s total attributable retail area in Hong Kong. Hong Kong Retail Market Outlook It is expected that footfall and tenants’ sales in Hong Kong will continue to face a number of challenges particularly from the outbound travel and the changing tourist spending pattern. With our continuous trade mix refinement, strong marketing campaigns, loyalty programme initiatives and world-class events organised by the HKSAR Government, it is anticipated that the sales performance of our malls will remain resilient. The following chart shows the percentage of attributable gross rental income from the retail properties in Hong Kong, for the month ended 30th June 2024, derived from leases expiring in the periods with no committed renewals or new lettings. Tenancies accounting for approximately 8.3% of the attributable gross rental income in the month of June 2024 are due to expire in the second half of 2024, with tenancies accounting for a further 26.0% of such rental income due to expire in 2025. Retail Lease 70% Expiry Profile 60% (At 30th June 2024) 50% 40% 30% 20% 10% 0 July – December 2024 2025 2026 and later 27
2024 Interim Report EN Page 28 Page 30