SWIRE PROPERTIES ANNUAL REPORT 2023 Profits and Sustained Expanding our Hong Kong Dividend Growth Office Portfolio Our underlying profit attributable to shareholders Under our HK$100 billion investment plan, HK$30 billion increased by HK$2,864 million from HK$8,706 million in has been allocated to grow our flagship developments 2022 to HK$11,570 million in 2023, primarily reflecting in Hong Kong. We are continuing to invest in the the gain on disposal of nine floors of One Island East in development of a Global Business District at Taikoo Hong Kong. Our recurring underlying profit increased by Place. Our recently completed triple Grade-A office HK$109 million from HK$7,176 million in 2022 to tower, Two Taikoo Place, is now 62% committed. HK$7,285 million in 2023, which principally reflected the The latest phase of Taikoo Place’s redevelopment will strong recovery of our retail portfolio and hotels in Hong be completed in the first half of 2024, and we will soon Kong and the Chinese Mainland. be unveiling an expansive, green, open space to Our reported profit attributable to shareholders in 2023 promote biodiversity, in addition to new elevated was HK$2,637 million, compared with HK$7,980 million in walkways, al fresco dining concepts and year-round arts 2022. There was a fair value loss on investment and cultural events. Taikoo Place is raising the bar once properties of HK$4,401 million in 2023 as compared to a again in line with our placemaking vision, and we are fair value gain on investment properties of HK$1,573 excited to see our plans coming to fruition this year. million in 2022. A change in the fair value of investment In December 2023, we completed the sale of nine floors properties is non-cash in nature and will not have any of office space at One Island East to our anchor tenant, impact on our operating cash flow nor on our underlying the Securities and Futures Commission (“SFC”), a deal profit attributable to shareholders. Our balance sheet which testifies to Taikoo Place’s status as a preferred remains strong. The overall financial position of the location for the financial sector. Company remains healthy and the change is not expected to have any impact on our investment strategy. We will continue to expand Taikoo Place, and our We declared a second interim dividend for 2023 of strategic acquisition of the Zung Fu Industrial Building HK$0.72 per share. This, together with the first interim and Wah Ha Factory Building will enable us to develop dividend of HK$0.33 per share paid in October 2023, our masterplan for the district and to continue our amounts to a full year dividend of HK$1.05 per share, office story. representing a 5% increase over the dividends for 2022. We are also making good progress on scaling our Pacific The second interim dividend for 2023 will be paid on Place portfolio, as the CBD progressively shifts towards Thursday, 2nd May 2024 to shareholders registered at the expanded Admiralty transport hub. To further the close of business on the record date, being Friday, enhance the connectivity of Pacific Place, we are 5th April 2024. Shares of the Company will be traded constructing a new footbridge between Pacific Place ex-dividend from Tuesday, 2nd April 2024. and Harcourt Garden, which will be completed by 2025. Our policy is to deliver sustainable growth in dividends We have completed Six Pacific Place, our newest and to pay out approximately half of our underlying profit Grade-A office tower, and we remain committed to in ordinary dividends over time. With the benefit of our further development of the Pacific Place neighborhood planned investments, we aim to deliver mid-single digit in the future. annual growth in dividends. 17