Review of Operations Investment Properties – U.S.A. residential towers (Reach and Rise) developed for sale. All the residential units at Reach and Rise have been sold. Overview Brickell City Centre, Miami The Group owns 62.93% of the shopping centre at the Brickell City Centre development. The remaining interest Brickell City Centre is an urban mixed-use development in in the shopping centre is owned by Simon Property the Brickell financial district of Miami, U.S.A. It has a site Group (25%) and Bal Harbour Shops (12.07%). Bal area of 504,017 square feet (approximately 11.6 acres). Harbour Shops has an option, which has been exercisable The first phase of the Brickell City Centre development since February 2020, to sell its interest to the Group. comprises a shopping centre, two office towers (Two and The shopping centre was 100% leased (including by way Three Brickell City Centre, which were sold in 2020), a of letters of intent) at 30th June 2024. Retail sales in the hotel with serviced apartments (EAST Miami, which was first half of 2024 increased by 4% compared to the same sold in 2021) managed by Swire Hotels and two period in 2023. The contributions from parking and digital advertising also increased. Brickell City Centre, Miami (1) GFA (sq. ft.) Attributable (100% Basis) Interest Completed Shopping centre 496,508 62.9% Held for Development or Sale Brickell City Centre land 1,510,000 100% Total 2,006,508 (1) Represents leasable/saleable area except for the car parking spaces, roof top and circulation areas. As part of our active capital recycling strategy, we will continue to explore divestment opportunities in the U.S.A. Miami Market Outlook In Miami, retail sales at the Brickell City Centre mall are expected to continue to benefit from an improving tenant mix and population growth in central Miami. Valuation of Investment Properties The portfolio of investment properties was valued at 30th June 2024 on the basis of market value (96% by value having been valued by Cushman & Wakefield Limited and 2% by value having been valued by another independent valuer). The amount of this valuation was HK$280,228 million, compared to HK$281,271 million at 31st December 2023. The decrease in the valuation of the investment property portfolio primarily reflected a decrease in the fair value of the office investment properties in Hong Kong and foreign exchange translation losses in respect of the investment properties in the Chinese Mainland, partly offset by the additions in the first half of 2024 and an increase in the fair value of certain existing retail investment properties in the Chinese Mainland (reflecting a reduction of 25 basis points in the capitalisation rates). Under HKAS 40, hotel properties are not accounted for as investment properties. The hotel buildings are included within property, plant and equipment. The leasehold land is included within right-of-use assets. Both are recorded at cost less accumulated depreciation or amortisation and any provision for impairment. 38 Swire Properties Limited Interim Report 2024