Retail sales and gross rental income (after deduction of 2022. At 31st December 2022, tenants had committed rental concessions) at HKRI Taikoo Hui decreased by 36% (including by way of letters of intent) to take 93% of the and 17% respectively in 2022. Shops were closed in April retail space and 83% of the lettable retail space was open. and May. The mall was 97% let at 31st December 2022. Chinese Mainland Retail Market Outlook Taikoo Li Qiantan, Shanghai Consumer confidence is expected to improve in the Jointly developed with a subsidiary of Shanghai Lujiazui Chinese Mainland, following the adjustments made to Finance & Trade Zone Development Co., Ltd., Taikoo Li COVID-19 policies at the end of 2022. Inbound and Qiantan is a retail development in Qiantan, Pudong outbound travel is expected to increase. In Guangzhou and new district in Shanghai. Connected with 3 metro lines, Chengdu, demand for retail space from retailers of luxury it has an aggregate GFA of 1,188,727 square feet and brands is expected to be strong. In Shanghai, demand for space for around 250 shops. It is our second development retail space from retailers of luxury fashion, cosmetics and in Shanghai and the third Taikoo Li project in the lifestyle brands, and from operators of food and beverage Chinese Mainland. outlets, is expected to be steady. In Beijing, retail sales and The development officially opened in September 2021. demand for retail space are expected to be moderate. Footfall and retail sales were initially strong in 2022. They The following chart shows the percentage of attributable were adversely affected by COVID-19 related measures gross rental income from the retail properties in the from March to May. A number of new flagship stores Chinese Mainland, for the month ended 31st December opened after operation resumption including Bulgari, 2022, derived from leases expiring in the periods with no Cartier, Dior, Gucci, Hermès, Louis Vuitton, Max Mara, committed renewals or new lettings. Tenancies accounting Mikomoto, Moncler, China’s first Museum of Ice Cream, for approximately 32.1% of the attributable gross rental Team Wang and Valentino. The first MUJI flagship store income in the month of December 2022 are due to expire in with Marche in the Chinese Mainland became tenant in 2023, with tenancies accounting for a further 25.8% of such rental income due to expire in 2024. RETAIL LEASE EXPIRY PROFILE 50% (At 31st December 2022) 40% 30% 20% 10% 0 2023 2024 2025 and later SWIRE PROPERTIES ANNUAL REPORT 2022 51