CHIEF EXECUTIVE'S STATEMENT We are looking to increase the scale of our investments in As we continue to work towards achieving our 1.5°C-aligned the Chinese Mainland. Taikoo Li Xi’an will be our next major science-based targets, it is crucial that we work closely with landmark, alongside our new retail-led project in Sanya. our partners to advance our greater goals. To that end, we We also remain focused on expanding our presence in the introduced our proprietary Green Performance Pledge Greater Bay Area and we have been making encouraging (GPP), which provides our office tenants with the tools and progress in Guangzhou and Shenzhen. technology to enhance their overall ESG performance Our acquisition of the remaining 50% equity interest of within our office portfolios. Sino-Ocean Taikoo Li Chengdu will contribute to our growth Since the launch of the GPP pilot between August 2021 plan, whilst the recent opening of ZHANGYUAN West Zone and December 2022, 52 office tenants – representing in Shanghai, which is jointly operated and managed by Swire 37.9% of occupied lettable floor area from the Company’s Properties and our local government partner, has reinforced Hong Kong office portfolio (over 2.5 million square feet) – Swire Properties’ reputation for urban regeneration, have signed up which is a very encouraging result for our historical preservation and innovative retail concepts. innovative new tenant engagement platform. We have On the residential front, we are making steady headway begun piloting the programme in our Chinese Mainland with the expansion of our property trading portfolio. We portfolio and aim to engage 50% of our tenant base in are keen to build on our premium residential brand, and Hong Kong and the Chinese Mainland by 2025. currently have an ambitious trading pipeline of six projects We are adopting various approaches to transformational under development in Hong Kong and South East Asia, placemaking, including “smart” placemaking, to ensure including our newly announced luxury residential project that we are designing buildings for the future. We have in Bangkok, Thailand, with a residential component also been making a significant and ongoing investment in our being planned for our new Taikoo Li Xi’an development. office portfolio to create best-in-class buildings which can With HK$20 billion designated for strategic investment in deliver a fully integrated user experience and excellent our trading pipeline, we have the appetite to do more. digital connectivity. Our efforts were recognised in 2022 Currently we have teams across the region who are actively with Two Taikoo Place and Six Pacific Place becoming the looking for the right partners and suitable sites for further first buildings in Hong Kong to be WiredScore and investment opportunities. SmartScore certified, both achieving the highest Platinum In 2022 we made the strategic decision to expand our hotel certification level. Taikoo Place and Pacific Place were also business through third-party management agreements. confirmed as the first WiredScore-certified portfolios in We will open two new third party-owned House Collective Hong Kong, reinforcing our status as a leader in designing hotels in two new cities – in Nanshan district in Shenzhen the most innovative and smart buildings in the industry. and Shibuya in Tokyo. This is part of our wider development We will continue to accelerate the process of digital strategy in the Greater Bay Area and highlights The House transformation with a team dedicated to identifying and Collective’s brand recognition as a premium hotel name in promoting the adoption of emerging technologies for our the Asia Pacific region. portfolios. Additionally, New Ventures is responsible for a US$50 million corporate venture capital fund to source and Charting a Sustainable Future invest in emerging technologies globally, ensuring that we We continued to demonstrate leadership in sustainability stay ahead of the curve while gaining valuable insights to in 2022, reaching numerous milestones throughout the accelerate growth. year which were recognised internationally. Swire 50th Anniversary Celebrations in 2022 Properties advanced from 7th to 4th position in the Dow Jones Sustainability World Index 2022, in addition to Our 50th anniversary year gave us the opportunity to retaining the Global Sector Leader title (Mixed-use sector) celebrate with our people, our partners and our in the 2022 Global Real Estate Sustainability Benchmark communities. The anniversary campaign, which was rolled for the sixth consecutive year. out over the year under the tagline “ORIGINAL. ALWAYS.”, paid tribute to the innovative mindset which has shaped the Company’s success over the past five decades. 26