2017
Stock Code: 1972
Annual Report

We are a leading developer, owner and operator of mixed-use, 
principally commercial, properties in Hong Kong and Mainland China, 
with a record of creating long-term value by transforming urban areas.
Our business comprises three main elements: 
 Property 
Property 
Hotel
 Investment 
Trading 
Investment
HKRI Taikoo Hui
Shanghai

2017 Highlights
Staff engagement event in Hong Kong called 
“Making Swire Places”, as part of our  
SD 2030 Strategy 
April – Hong Kong
details on page 80
ALASSIO units handed over  
to purchasers
April onwards – Hong Kong
details on page 35
Opening of the new 
ArtisTree at Taikoo Place,  
a 7,000 sq ft space dedicated 
to arts and culture
June – Hong Kong
details on page 81
Naming of Swire Hotels’  
fourth House hotel,  
“The Middle House” 
May – Shanghai
details on page 36

Relaunch of the Blueprint  
co-working hub at Taikoo Place
October – Hong Kong
details on page 37
Swire Properties listed in Dow Jones 
Sustainability World Index and Global  
Real Estate Sustainability Benchmark
September – Hong Kong 
details on page 83
Grand opening of HKRI Taikoo Hui in Shanghai
November – Shanghai
details on page 30
Fifth annual White Christmas  
Street Fair at Taikoo Place 
December – Hong Kong 
details on page 81

2	
Company Profile
3	
Financial Highlights
4	
Ten-Year Financial Summary
7	
Chairman’s Statement
10	
Key Business Strategies
MANAGEMENT DISCUSSION & ANALYSIS
14	
Review of Operations
42	
Financial Review
49	
Financing
CORPORATE GOVERNANCE & 
SUSTAINABILITY
60	
Corporate Governance
71	
Risk Management
72	
Directors and Officers
74	
Directors’ Report
80	
Sustainable Development
Contents
AUDITOR’S REPORT AND ACCOUNTS
86	
Independent Auditor’s Report
90	
Consolidated Statement of Profit or Loss
91	
Consolidated Statement of Other  
	
Comprehensive Income
92	
Consolidated Statement of Financial Position
93	
Consolidated Statement of Cash Flows
94	
Consolidated Statement of Changes in Equity
95	
Notes to the Financial Statements
150	
Principal Accounting Policies
153	
Principal Subsidiary, Joint Venture and  
	
Associated Companies
SUPPLEMENTARY INFORMATION
156	
Schedule of Principal Group Properties
167	
Glossary 
168	
Financial Calendar and Information for Investors

2	
Swire Properties Annual Report    2017
Swire Properties is a leading developer, owner and operator of 
mixed-use, principally commercial, properties in Hong Kong 
and Mainland China, with a record of creating long-term value 
by transforming urban areas. Our business comprises three 
main elements: property investment, property trading and 
hotel investment.
Founded in Hong Kong in 1972, Swire Properties is listed on The Stock Exchange of Hong Kong 
Limited and, with its subsidiaries, employs over 5,000 people.
In Hong Kong, we have spent over 40 years developing an industrial area into what is now 
Taikoo Place and Cityplaza, one of Hong Kong’s largest business districts comprising office 
space, the largest shopping mall on Hong Kong Island and a hotel. Pacific Place, built on the 
former Victoria Barracks site, is one of Hong Kong’s premier retail and business addresses.  
In Mainland China, Swire Properties has five major mixed-use projects in operation or under 
development in Beijing, Guangzhou, Chengdu and Shanghai. Similar in scale to our 
developments in Hong Kong, our Mainland China properties are in commercial districts with 
excellent transport connections.
Swire Properties has interests in the luxury residential market in Hong Kong and in Miami  
in the U.S.A. Swire Hotels develops and manages hotels in Hong Kong and Mainland China  
and in Miami in the U.S.A.
The Company has a significant presence in Miami, U.S.A. where it develops investment and 
residential trading properties. The first phase of Brickell City Centre, a large scale mixed-use 
project in the Brickell financial district in Miami, was completed in 2016 and its components 
opened between March 2016 and February 2017. The Company has an office in Singapore to 
explore opportunities in the property markets in Southeast Asia.
Company  
Profile

Financial Highlights
Results 
For the year
Note
2017
HK$M 
2016
HK$M 
 
Change
Revenue
18,558
16,792
+11%
Operating profit
34,930
17,320
+102%
Profit attributable to the Company’s shareholders
 
Underlying
(a), (b)
7,834
7,112
+10%
 
Reported
33,957
15,050
+126%
Cash generated from operations
13,680
10,767
+27%
Net cash inflow before financing
4,869
1,998
+144%
HK$
HK$
Earnings per share
 
Underlying
(c)
1.34
1.22
+10%
 
Reported
(c)
5.80
2.57
+126%
Dividends per share
 
First interim
0.25
0.23
+9%
 
Second interim
0.52
0.48
+8%
Financial Position
At 31st December
HK$M 
HK$M 
Total equity (including non-controlling interests)
259,378
227,225
+14%
Net debt
35,347
35,377
-0%
Gearing ratio
(a)
13.6%
15.6%
-2.0%pt.
HK$ 
HK$
Equity attributable to the Company’s shareholders per share
(a)
44.00
38.52
+14%
Notes:
(a)	Refer to glossary on page 167 for definition.
(b)	A reconciliation between reported profit and underlying profit attributable to the Company’s shareholders is provided on page 15.
(c)	Refer to note 14 in the financial statements for the weighted average number of shares.
2017
2016
5,000
4,000
8,000
7,000
6,000
3,000
2,000
1,000
0
-1,000
1,200
7,112
6,029
1,154
7,834
(43)
(117)
6,723
Underlying 
profit/(loss) 
by segment
Property investment
Property trading
Hotels
HK$M

Ten-Year Financial Summary
2008
HK$M
2009
HK$M
2010
HK$M
2011
HK$M
2012
HK$M
2013
HK$M
2014
HK$M
2015
HK$M
2016
HK$M
2017
HK$M
STATEMENT OF PROFIT OR LOSS
Revenue
 
Property investment
6,901
7,516
7,953
8,651
9,123
9,786
10,456
10,857
10,902
11,380 
 
Property trading
889
643
400
213
4,147
2,207
3,842
4,463
4,760
5,833 
 
Hotels
156
172
518
717
782
942
1,089
1,127
1,130
1,345 
7,946
8,331
8,871
9,581
14,052
12,935
15,387
16,447
16,792
18,558
Profit Attributable to the  
 
Company’s Shareholders
 
Property investment
3,318
3,965
4,574
4,638
4,896
5,426
6,029
6,231
5,938
6,671 
 
Property trading
95
23
87
7
1,659
720
1,020
1,089
1,199
1,111 
 
Hotels
73
(332)
(109)
(33)
14
(46)
30
(303)
(117)
(43)
 
Change in fair value of  
 
 
investment properties
(236)
13,596
21,478
20,496
12,184
6,425
2,437
7,055
8,030
26,218 
3,250
17,252
26,030
25,108
18,753
12,525
9,516
14,072
15,050
33,957 
Dividends for the year
2,966
25
2,426
11,067
3,510
3,510
3,861
4,154
4,154
4,505 
Retained profit 
284
17,227
23,604
14,041
15,243
9,015
5,655
9,918
10,896
29,452 
STATEMENT OF FINANCIAL POSITION
Net Assets Employed
 
Property investment
140,440
155,374
183,062
191,116
207,577
218,556
226,607
235,917
248,466
283,045 
 
Property trading
3,496
3,772
6,303
6,581
7,309
9,408
8,210
7,452
6,616
3,942 
 
Hotels
4,037
5,523
5,797
6,421
7,111
7,200
7,801
7,928
7,520
7,738 
147,973
164,669
195,162
204,118
221,997
235,164
242,618
251,297
262,602
294,725
Financed by
 
Equity attributable to the  
 
 
Company’s shareholders
110,235
129,778
157,847
175,886
192,434
202,350
207,691
216,247
225,369
257,381 
 
Non-controlling interests
1,068
424
479
532
642
800
856
1,702
1,856
1,997 
 
Net debt
36,670
34,467
36,836
27,700
28,921
32,014
34,071
33,348
35,377
35,347 
147,973
164,669
195,162
204,118
221,997
235,164
242,618
251,297
262,602
294,725
HK$
HK$
HK$
HK$
HK$
HK$
HK$
HK$
HK$
HK$
Earnings per share
0.59
3.14
4.57
4.40
3.21
2.14
1.63
2.41
2.57
5.80 
Dividends per share
0.54
–
0.43
1.94
0.60
0.60
0.66
0.71
0.71
0.77 
Equity attributable to shareholders  
 
per share
20.07
23.60
27.74
30.07
32.89
34.59
35.50
36.97
38.52
44.00
RATIOS
Return on average equity attributable  
 
to the Company’s shareholders
3.0%
14.4%
18.1%
15.0%
10.2%
6.3%
4.6%
6.6%
6.8%
14.1%
Gearing ratio 
33.0%
26.5%
23.3%
15.7%
15.0%
15.8%
16.3%
15.3%
15.6%
13.6%
Interest cover – times
4.79
17.56
21.79
18.23
15.72
10.02
8.96
13.56
15.48
38.81
Dividend cover – times
1.10
N/A
10.73
2.27
5.34
3.57
2.46
3.39
3.62
7.54
UNDERLYING
Profit (HK$M)
3,540
3,721
4,767
12,914
6,935
6,348
7,152
7,078
7,112
7,834 
Return on average equity attributable  
 
to the Company’s shareholders
3.2%
3.1%
3.3%
7.7%
3.8%
3.2%
3.5%
3.3%
3.2%
3.2%
Earnings per share (HK$)
0.64
0.68
0.84
2.26
1.19
1.09
1.22
1.21
1.22
1.34 
Interest cover – times
4.48
4.33
5.37
12.01
7.90
6.43
7.58
7.75
8.89
10.68 
Dividend cover – times
1.19
N/A
1.96
1.17
1.98
1.81
1.85
1.70
1.71
1.74 
Notes: 
1.	 The information for all years is shown in accordance with the Group’s current accounting policies and disclosure practices. Consequently figures for years prior to 2017  
may be different from those originally presented.
2.	 The equity attributable to the Company’s shareholders and the returns by segment for 2017 and 2016 are shown in the Financial Review – Investment Appraisal and 
Performance Review on page 48.	
3.	 Underlying profit is discussed on pages 15 to 17.
4.	 The earnings per share, dividends per share and equity per share for the years prior to 2010 have been recalculated based on the weighted average number of ordinary 
shares which reflect the Company’s shares in issue for those years adjusted for the 1,108,132,451 shares issued on 25th January 2010 as consideration to acquire Swire 
Properties US Inc. and Swire Properties One LLC, and the bonus element in respect of the 3,969,615,000 shares issued at par, which was below market value, issued on  
31st December 2009. 
5.	 Refer to Glossary on page 167 for definitions and ratios.

Swire Properties Annual Report    2017	
5
08
09
10
11
12
13
14
16
15
17
20,000
15,000
10,000
5,000
0
Property investment
Property trading
Hotels
Revenue
HK$M
16
08
09
10
11
12
13
14
17
15
300,000
250,000
200,000
100,000
150,000
50,000
Property investment
Property trading
Hotels
Net Assets Employed
HK$M
16
4
5
6
3
2
1
0
08
09
10
17
11
12
13
14
15
Earnings per share
Dividends per share
Underlying earnings per share
Earnings and Dividends 
Per Share
HK$

6	
Swire Properties Annual Report    2017
Ten-Year Financial Summary
16
08
09
10
11
12
13
14
17
15
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
-5,000
Profit Attributable 
to the Company’s 
Shareholders  
Property 
investment
Property 
trading
Total 
attributable 
profit
Hotels
Change in fair value of 
investment properties
Total underlying profit
HK$M
16
08
09
10
11
12
13
14
17
15
300,000
250,000
200,000
100,000
150,000
50,000
Total equity
Net debt
Total Equity and 
Net Debt
HK$M
16
08
09
10
11
12
13
14
17
15
30
20
10
0
%
Group
Group – underlying
Returns on 
Average Equity

Swire Properties Annual Report    2017	
7
Chairman’s
Statement
Our consolidated profit attributable to shareholders for 2017 
was HK$33,957 million, compared to HK$15,050 million in 
2016. Underlying profit attributable to shareholders, which 
principally adjusts for changes in the valuation of investment 
properties, increased by HK$722 million from HK$7,112 million 
in 2016 to HK$7,834 million in 2017.
Dividends
The Directors have declared a second interim dividend of HK$0.52  (2016: HK$0.48) per share 
which, together with the first interim dividend of HK$0.25 per share paid in October 2017, 
amounts to full year dividends of HK$0.77 (2016: HK$0.71) per share. The second interim 
dividend, which totals HK$3,042 million (2016: HK$2,808 million), will be paid on Thursday, 3rd 
May 2018 to shareholders registered at the close of business on the record date, being Friday, 
6th April 2018. Shares of the Company will be traded ex-dividend from Tuesday, 3rd April 2018.
Key Developments
In April 2017, pre-sold units at ALASSIO, the Company’s fourth residential development in Mid-
Levels West on Hong Kong Island, started to be handed over to the purchasers. All units in the 
development were handed over by the end of June.
In November 2017, Swire Properties and HKR International celebrated the grand opening of their 
joint venture development in Shanghai, HKRI Taikoo Hui. With an aggregate gross floor area 
(“GFA”) of approximately 3,469,000 square feet, the development comprises a shopping mall, 
two Grade-A office towers, two luxury hotels and one serviced apartment building. The two hotels 
and serviced apartment building are expected to open later in the first half of 2018.

8	
Swire Properties Annual Report    2017
Chairman’s Statement
In December 2017, Swire Properties entered into a long-term agreement for the lease of the Beijing 
Sanlitun Yashow Building. The retail building has an aggregate GFA of approximately 296,000 square 
feet and will be redeveloped as an extension to Taikoo Li Sanlitun.
In January 2018, One Taikoo Place, the first of two premium Grade-A office buildings in the Taikoo 
Place redevelopment, was topped out. One Taikoo Place has an aggregate GFA of around one million 
square feet, and is expected to be completed later in 2018.
In February 2018, Swire Properties entered into an equity transfer agreement for the acquisition of a 
50% interest in Shanghai Qianxiu Company Limited (“Shanghai Qianxiu”) from a subsidiary of 
Shanghai Lujiazui Finance & Trade Zone Development Co., Ltd. (“LJZ”), subject to satisfaction of 
conditions precedent. If the acquisition is completed, Swire Properties and LJZ will each hold a 50% 
interest in Shanghai Qianxiu, and the joint venture will develop a retail project with an aggregate GFA 
of approximately 1,250,000 square feet in Qiantan, Pudong New District in Shanghai.
Operating Performance
Underlying profit increased to HK$7,834 million in 2017 from HK$7,112 million in 2016, mainly 
because of a higher profit from property investment. The underlying profit from property investment 
increased by 12%. The underlying profit from property trading decreased slightly. Hotel losses 
decreased.
Gross rental income was HK$11,252 million in 2017, compared to HK$10,773 million in 2016. In 
Hong Kong, office rental income increased due to positive rental reversions and firm occupancy.  
This was despite the loss of rental income resulting from the Taikoo Place redevelopment. Retail 
rental income in Hong Kong was little changed in 2017. In Mainland China, gross rental income 
increased by 12%, mainly due to positive rental reversions and improved occupancy. In the U.S.A., 
gross rental income increased following the opening of the first phase of the Brickell City Centre 
development in 2016.
Underlying profit from property trading in 2017 arose mainly from the handover of pre-sold units at 
the ALASSIO development in Hong Kong. Property sales slowed in the U.S.A.
Hotels reported reduced losses in 2017, reflecting improved results from EAST, Miami since its 
opening. Occupancy was stable at our managed hotels in Hong Kong and Mainland China.
On an attributable basis, net investment property valuation gains in 2017, after deferred tax relating 
to investment properties in Mainland China and the U.S.A., were HK$26,218 million, compared to net 
gains of HK$8,030 million in 2016.
Finance
Net debt at 31st December 2017 was HK$35,347 million, compared with HK$35,377 million at 31st 
December 2016. Gearing decreased from 15.6% at 31st December 2016 to 13.6% at 31st December 
2017. The small decrease in net debt was mainly due to the receipt of rental income from investment 
properties and the receipt of sales proceeds from the ALASSIO development in Hong Kong, almost 
fully offset by expenditure on investment properties in Hong Kong and dividends paid. Cash and 
undrawn committed facilities totalled HK$12,269 million at 31st December 2017, compared with 
HK$10,178 million at 31st December 2016.

Swire Properties Annual Report    2017	
9
Sustainable Development
In 2017, Swire Properties continued with its sustainable development 2030 strategy. Swire Properties 
is included in the Dow Jones Sustainability World Index (“DJSI World”), the Global Real Estate 
Sustainability Benchmark (“GRESB”), the FTSE4Good Index, the Hang Seng Corporate Sustainability 
Index and the MSCI World ESG Leaders Index.
In January 2018, Swire Properties issued its first green bond, raising US$500 million for 10 years at a 
coupon rate of 3.5%. Proceeds from the bond will be used to finance or refinance green projects.
Prospects
In the central district of Hong Kong, high occupancy and limited supply will continue to underpin 
office rents in 2018. High occupancy is expected to result in office rents in our Pacific Place and 
Taikoo Place developments being resilient despite increased supply in Kowloon East and other 
districts. In Guangzhou, with the absence of significant new supply together with strong demand 
from Mainland Chinese companies, we expect office vacancy rates to decrease and rents to increase 
in 2018. In Beijing, with increased supply, we expect office rents to come under pressure in 2018. In 
Shanghai, with limited new supply in the Jingan district and stable demand, we expect office rents to 
be stable in 2018. In Miami, new supply of Grade-A office space is limited and demand is stable. We 
therefore expect rents to increase.
Demand for retail space in Hong Kong is forecast to be stable in 2018. We expect retail sales to grow 
satisfactorily in Beijing and Guangzhou, and to be robust in Chengdu. In Shanghai, post the opening 
of HKRI Taikoo Hui, retail sales should continue to grow steadily. Retail rents in Chengdu and 
Shanghai are expected to grow moderately despite increased supply of space and competition.  
In the U.S.A., weak retail sales in Miami have made some retailers cautious about expansion.
In Hong Kong, demand for furnished accommodation at Pacific Place Apartments and Taikoo Place 
Apartments is expected to be stable in 2018.
In Hong Kong, notwithstanding the expectation of a gradual increase in interest rates and increased 
private housing supply, we believe that demand for residential property will remain resilient.  
In Miami, the exchange rate of the US dollar against major South American currencies is strong 
compared with what it was earlier in the decade. The strength will continue to suppress demand for 
condominiums by non-US buyers. Trading profits are expected to be recognised in 2018 from sales 
of houses at WHITESANDS in Hong Kong and units at the Reach and Rise developments in Miami.
Trading conditions for our existing hotels are expected to be stable in 2018. A managed hotel 
(The Middle House) and a non-managed hotel (The Sukhothai Shanghai) are expected to open in 
Shanghai later in the first half of 2018. A non-managed hotel which is part of the Tung Chung Town 
Lot No. 11 development in Hong Kong is expected to open early in 2019.
On behalf of the shareholders and my fellow Directors, I wish to express our appreciation to all our 
employees, whose commitment and hard work have been central to our continuing success.
John Slosar
Chairman
Hong Kong, 15th March 2018

10	
Swire Properties Annual Report    2017
Key Business 
Strategies
1. 	 Continue to create long-term value by conceiving, designing, developing, 
owning and managing transformational mixed-use and other projects in 
urban areas
We will continue to design projects which we believe will have the necessary scale, mix of 
uses and transport links to become key commercial destinations and to transform the areas 
in which they are situated.
2. 	 Maximise the earnings and value of our completed properties through 
active asset management and by reinforcing our assets through 
enhancement, redevelopment and new additions
We intend to manage our completed properties actively (including by optimising the mix of 
retail tenants and early renewal negotiations with office tenants) and with a view to the 
long term, to maintain consistently high levels of service and to enhance and reinforce our 
assets. By doing so, we believe that we will maximise the occupancy and earnings potential 
of our properties.
Tenants increasingly scrutinise the sustainable development credentials of landlords and 
buildings. We aim to be at the forefront of sustainable development by designing energy 
efficient buildings through the innovative use of design, materials and new technology, 
and by engagement with tenants and others with whom we do business.
As a leading developer, owner and operator of mixed-use, 
principally commercial, properties in Hong Kong and Mainland 
China, our strategic objective is sustainable growth in 
shareholder value in the long term. To achieve this objective,  
we employ five strategies.

Swire Properties Annual Report    2017	
11
3. 	 Continue with our luxury residential property activities
We will look to acquire appropriate sites for development of luxury residential projects for 
trading and investment in the markets in which we operate.
4. 	 Remain focused principally on Hong Kong and Mainland China 
In Hong Kong, we will continue to focus on reinforcing our existing investment property assets 
and seeking new sites suitable for transformational developments and for residential projects.
We aim to replicate in Mainland China our success in Hong Kong. We intend to take a measured 
approach to land purchases in Mainland China and will focus on developments where we can 
secure sites through early engagement with local governments who recognise our strengths in 
developing large-scale mixed-use projects.
We will seek residential development opportunities in Mainland China. These are likely to be 
ancillary to our mixed-use developments. However, in the right locations and cities we may also 
consider standalone residential development opportunities. Our residential developments will 
be aimed at buyers of luxury properties, where we believe we have a competitive advantage.
While we will continue to concentrate on Hong Kong and Mainland China, we intend to expand 
selectively elsewhere. For example, we are undertaking the Brickell City Centre mixed-use 
development in Miami, U.S.A.
5. 	 Manage our capital base conservatively
We intend to maintain a strong balance sheet with a view to investing in and financing our 
projects in a disciplined and targeted manner.
We aim to maintain exposure to a range of debt maturities and a range of debt types and 
lenders. Our current debt profile reflects a mix of revolving and term bank loans and medium 
term notes.
In implementing the above strategies, the principal risks and uncertainties facing the Group are that 
the economies in which it operates (in particular Hong Kong and Mainland China) will not perform 
as well in the future as they have in the past and the uncertainties as to whether this will happen.

Management 
Discussion & 
Analysis

Pacific Place
Hong Kong

14	
Swire Properties Annual Report    2017
Review of 
Operations
2017
HK$M
2016
HK$M
Revenue
Gross Rental Income derived from
 
Offices
6,124
6,053
 
Retail
4,616
4,304
 
Residential
512
416
Other Revenue (1)
128
129
Property Investment
11,380
10,902
Property Trading
5,833
4,760
Hotels
1,345
1,130
Total Revenue
18,558
16,792
Operating Profit/(Loss) derived from
 
Property investment
8,172
7,752
 
Valuation gains on investment properties
25,463
8,418
 
Property trading
1,397
1,332
 
Hotels
(102)
(182)
Total Operating Profit
34,930
17,320
Share of Post-tax Profits from Joint Venture and Associated Companies
1,792
1,419
Profit Attributable to the Company’s Shareholders
33,957
15,050
(1)	 Other revenue is mainly estate management fees.

Swire Properties Annual Report    2017	
15
Additional information is provided in the following section to reconcile reported and underlying profit attributable to the 
Company’s shareholders. These reconciling items principally adjust for net revaluation movements on investment properties 
and the associated deferred tax in Mainland China and the U.S.A., and for other deferred tax provisions in relation to investment 
properties. There is a further adjustment to remove the effect of the movement in the fair value of the liability in respect of a put 
option in favour of the owner of a non-controlling interest.
Note
2017
HK$M
2016
HK$M
Underlying Profit
Profit attributable to the Company’s shareholders per financial statements
33,957
15,050
Adjustments in respect of investment properties:
 
Revaluation of investment properties
(a)
(26,846)
(9,610)
 
Deferred tax on investment properties
(b)
574
1,459
 
Realised profit on sale of properties
(c)
50
3
 
Depreciation of investment properties occupied by the Group
(d)
20
20
 
Non-controlling interests’ share of revaluation movements less deferred tax
54
121
 
Movements in the fair value of the liability in respect of a put option in favour of  
 
 
the owner of a non-controlling interest
(e)
25
69
Underlying Profit Attributable to the Company’s Shareholders
7,834
7,112
Notes:
(a)	This represents the net revaluation movements as shown in the consolidated statement of profit or loss and the Group’s share of net 
revaluation movements of joint venture companies.
(b)	This represents deferred tax movements on the Group’s investment properties, plus the Group’s share of deferred tax movements on 
investment properties held by joint venture companies. These comprise deferred tax on revaluation movements on investment properties in 
Mainland China and the U.S.A., and deferred tax provisions made in respect of investment properties held for the long-term where it is 
considered that the liability will not reverse for some considerable time.
(c)	Prior to the implementation of HKAS 40, changes in the fair value of investment properties were recorded in the revaluation reserve rather 
than the consolidated statement of profit or loss. On sale, the revaluation gains were transferred from the revaluation reserve to the 
consolidated statement of profit or loss.
(d)	Prior to the implementation of HKAS 40, no depreciation was charged on investment properties occupied by the Group.
(e)	The value of the put option in favour of the owner of a non-controlling interest is calculated principally by reference to the estimated fair 
value of the portion of the underlying investment property in which the owner of the non-controlling interest is interested.

16	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Review of Operations
Underlying Profit
Underlying profit increased to HK$7,834 million in 2017 from 
HK$7,112 million in 2016, mainly because of a higher profit 
from property investment. The underlying profit from 
property investment increased by 12%. The underlying profit 
from property trading decreased slightly. Hotel losses 
decreased. Gross rental income was HK$11,252 million in 
2017, compared to HK$10,773 million in 2016. In Hong Kong, 
office rental income increased due to positive rental 
reversions and firm occupancy. This was despite the loss of 
rental income resulting from the Taikoo Place 
redevelopment. Retail rental income in Hong Kong was little 
changed in 2017. In Mainland China, gross rental income 
increased by 12%, mainly due to positive rental reversions 
and improved occupancy. In the U.S.A., gross rental income 
increased following the opening of the first phase of the 
Brickell City Centre development in 2016. Underlying profit 
from property trading in 2017 arose mainly from the handover 
of pre-sold units at the ALASSIO development in Hong Kong. 
Property sales slowed in the U.S.A. Hotels reported reduced 
losses in 2017, reflecting improved results from EAST, Miami 
since its opening. Occupancy was stable at our managed 
hotels in Hong Kong and Mainland China.
2016
2017
 
8,000
7,800
7,600
7,000
7,200
7,400
6,800
+694
-46
+74
7,834
7,112
Increase in profit from 
property investment
Decrease in profit from 
property trading
Decrease in loss 
from hotels
Underlying profit 
in 2017
Underlying profit in 2016
Movement in 
Underlying Profit 
HK$M
16
08
09
10
11
12
13
14
17
15
300,000
200,000
250,000
150,000
100,000
50,000
0
Completed
Under development
Valuation of 
Investment Properties
HK$M

Swire Properties Annual Report    2017	
17
16
08
09
10
11
12
13
14
17
15
12,000
10,000
8,000
6,000
4,000
2,000
0
Hong Kong office
Hong Kong retail
Hong Kong residential
Mainland China
U.S.A. and elsewhere
Gross Rental Income
HK$M
16
08
09
10
11
12
13
14
17
15
16,000
12,000
14,000
8,000
10,000
4,000
2,000
6,000
0
-2,000
Property investment
Property trading
Hotels
Sale of investment properties
Underlying 
Operating Profit
HK$M
23
24
17
18
19
20
21
22
30,000
25,000
20,000
15,000
10,000
5,000
0
Hong Kong
Mainland China
U.S.A. and elsewhere
Attributable Completed 
Investment Property 
Portfolio by Location
GFA 
(000 sq. ft.)

18	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Review of Operations
Portfolio Overview
The aggregate GFA attributable to the Group at  
31st December 2017 was approximately 29.2 million 
square feet.
Of the aggregate GFA attributable to the Group, 
approximately 26.6 million square feet are investment 
properties, comprising completed investment properties 
of approximately 22.5 million square feet and investment 
properties under development or held for future 
development of approximately 4.1 million square feet.  
In Hong Kong, the investment property portfolio comprises 
approximately 15.1 million square feet attributable to the 
Group of primarily Grade-A office and retail premises, 
hotels, serviced apartments and other luxury residential 
accommodation. In Mainland China, Swire Properties has 
interests in five major commercial mixed-use developments 
in prime locations in Beijing, Guangzhou, Chengdu and 
Shanghai. These developments are expected to comprise 
approximately 8.8 million square feet of attributable GFA 
when they are all completed. Outside Hong Kong and 
Mainland China, the investment property portfolio 
principally comprises the Brickell City Centre development 
and interests in hotels in Miami in the U.S.A.
The tables below illustrate the GFA (or expected GFA) attributable to the Group of the investment property portfolio at  
31st December 2017.
Completed Investment Properties
(GFA attributable to the Group in million square feet)
Office
Retail
Hotels(1)
Residential/
Serviced
Apartments
Under 
Planning
Total
Hong Kong
9.0
2.5
0.7
0.6
–
12.8
Mainland China
2.9
4.5
1.0
0.1
–
8.5
U.S.A.
0.3
0.3
0.5
0.1
–
1.2
Total
12.2
7.3
2.2
0.8
–
22.5
30,000
25,000
20,000
15,000
10,000
5,000
0
23
24
17
18
19
20
21
22
Attributable Completed 
Investment Property 
Portfolio by Type
GFA 
(000 sq. ft.)
Office
Retail
Hotels/Residential/Serviced apartments
Under planning

Swire Properties Annual Report    2017	
19
Investment Properties Under Development or Held for Future Development
(expected GFA attributable to the Group in million square feet)
Office
Retail
Hotels(1)
Residential/
Serviced
Apartments
Under 
Planning
Total
Hong Kong
2.2
0.1
–
–
–
2.3
Mainland China
–
–
0.2
0.1
–
0.3
U.S.A. and elsewhere
–
–
–
0.1
1.4(2)
1.5
Total
2.2
0.1
0.2
0.2
1.4
4.1
Total Investment Properties
(GFA (or expected GFA) attributable to the Group in million square feet)
Office
Retail
Hotels(1)
Residential/
Serviced
Apartments
Under 
Planning
Total
Total
14.4
7.4
2.4
1.0
1.4
26.6
(1)	 Hotels are accounted for under property, plant and equipment in the financial statements.
(2)	 The site is accounted for under properties held for development in the financial statements.
(3)	 The above excludes an office building in Kowloon Bay, the holding company of which was conditionally agreed to be sold in 2016.  
This site was initially accounted for under other non-current assets in 2016 and was reclassified to other current assets in the 2017  
financial statements.
The trading portfolio comprises completed developments available for sale in Hong Kong, Mainland China and Miami, U.S.A. The 
principal completed developments available for sale are the WHITESANDS development in Hong Kong, the remaining portion of 
the office property, Pinnacle One at Sino-Ocean Taikoo Li Chengdu in Mainland China and the Reach and Rise developments at 
Brickell City Centre in Miami. There are also land banks in Miami and Fort Lauderdale in Florida, U.S.A.
The table below illustrates the GFA (or expected GFA) attributable to the Group of the trading property portfolio at  
31st December 2017.
Trading Properties
(GFA (or expected GFA) attributable to the Group in million square feet)
Completed
Under 
Development
or Held for
Development
Total
Hong Kong(1)
–
–
–
Mainland China
0.3
–
0.3
U.S.A.
0.4
1.9
2.3
Total
0.7
1.9
2.6
(1)	 The aggregate GFA in Hong Kong is less than 0.1 million.

20	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Review of Operations
Investment Properties – Hong Kong
Offices
Overview
The completed office portfolio in Hong Kong comprises an aggregate of 9.3 million square feet of space on a 100% basis. 
Total attributable gross rental income from our office properties in Hong Kong was HK$5,990 million in 2017. At 31st December 
2017, our office properties in Hong Kong were valued at HK$157,167 million. Of this amount, Swire Properties’ attributable 
interest was HK$149,803 million.
Hong Kong Office Portfolio
GFA (sq. ft.)
(100% Basis)
Occupancy
(at 31st December 2017)
Attributable 
Interest
Pacific Place
2,186,433
100%
100%
Cityplaza(1)
1,398,421
97%
100%
Taikoo Place Office Towers(2)
3,136,717
99%
50%/100%
One Island East
1,537,011
100%
100%
Others(3)
1,077,161
99%
20%/50%/100%
Total
9,335,743
(1)	 Excluding 10 floors in Cityplaza Three owned by the Hong Kong government.
(2)	 Including PCCW Tower, of which Swire Properties owns 50%.
(3)	 Others comprise One Citygate (20% owned), 625 King’s Road (50% owned), Berkshire House (50% owned), Generali Tower (wholly-owned) 
and 28 Hennessy Road (wholly-owned).
Gross rental income from the Hong Kong office portfolio in 2017 was HK$5,660 million, a slight increase from 2016 despite loss 
of gross rental income at Warwick House and Cornwall House as a result of the Taikoo Place redevelopment. There were positive 
rental reversions and occupancy was firm. At 31st December 2017, the office portfolio was 99% let. Demand for the Group’s 
office space in Hong Kong was strong in all districts.
The chart below shows the mix of tenants of the office properties by the principal nature of their businesses (based on internal 
classifications) as a percentage of the office area at 31st December 2017.
At 31st December 2017, the top ten office tenants (based on attributable gross rental income in the twelve months ended  
31st December 2017) together occupied approximately 20% of the Group’s total attributable office area in Hong Kong.
26.0%
12.5%
8.9%
16.8%
9.2%
9.1%
13.6%
3.9%
Banking/Finance/
Securities/Investment
Professional services 
(Accounting/Legal/
Management consulting/
Corporate secretarial)
Insurance
Technology/
Media/Telecoms
Real estate/Construction/
Property development/
Architecture
Trading
Advertising and 
public relations
Others
Office Area by 
Tenants’ Businesses
(at 31st December 2017)

Swire Properties Annual Report    2017	
21
Pacific Place
The offices at One, Two and Three Pacific Place performed 
well in 2017. Occupancy and rental rates were robust, mainly 
because existing tenants wanted more space. Demand from 
Mainland China entities was strong. The occupancy rate was 
almost 100% at 31st December 2017. Joincap Securities, 
Tai Chong Cheang Steamship and Willsun Fertility HK 
became tenants. CLSA, Temple Chambers, Sino-Ocean, FIL 
Asia, Moelis & Co., TD Bank, Huarong Investment Stock and 
China Overseas leased more space. Hogan Lovells, Sotheby’s, 
CIFI Holdings, Chiba Bank, Parkside Chambers, Industrial 
Bank of Korea, Matthews Global Investors, CTI Capital,  
Bird & Bird, Richard Mille and Tencent renewed their leases.
Cityplaza
The occupancy rate at the three office towers (Cityplaza 
One, Three and Four) was 97% at 31st December 2017. 
Avaya became a tenant. Juniper Networks, Fortinet, Nikon, 
MSIG, BBDO, SAS and Mitsubishi Electric renewed their 
leases. The Hong Kong government occupied all of its 10 
floors at Cityplaza Three.
Taikoo Place
There are six office towers at Taikoo Place (including PCCW 
Tower, in which we have a 50% interest). The occupancy rate 
was 99% at 31st December 2017. Ageas, Balenciaga, Boston 
Scientific, Coty, Crestron Electronics, Fubon Life, LG Chem, 
Luxury Timepieces, IMG, Ingersoll Rand and Western Digital 
became tenants. BNP Paribas, FWD and LVMH leased more 
space. ANZ, Bank of China (Hong Kong), Berkshire Hathaway 
Specialty Insurance, Bluebell, China Airlines, Dairy Farm, 
DC Holdings, Extrawell Pharmaceutical, Galderma, HKT, 
Nobel Biocare, Schindler Lifts (Hong Kong), Sompo 
Insurance, TBWA Hong Kong and The Executive Centre 
renewed their leases.
One Island East, our landmark property in Taikoo Place, 
had an occupancy rate of 100% at 31st December 2017. 
AllianceBernstein, Biostime, Covestro, Freshfields Bruckhaus 
Deringer and Pfizer became tenants. Accenture leased more 
space. Neo Derm and Zurich renewed their leases.
Demolition of Warwick House has been completed and 
demolition of Cornwall House is in progress. Construction of 
One Taikoo Place is in progress, with completion expected 
later in 2018. Tenants have committed to lease 75% of the 
space in the building.
Hong Kong Office Market Outlook
In the central district of Hong Kong, high occupancy and 
limited supply will continue to underpin office rents in 2018. 
High occupancy is expected to result in office rents in our 
Pacific Place and Taikoo Place developments being resilient 
despite increased supply in Kowloon East and other districts.
Taikoo Place
Hong Kong

22	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Review of Operations
The following chart shows the percentage of the total rental income attributable to the Group from its office properties in 
Hong Kong for the month ended 31st December 2017, derived from leases expiring in the periods with no committed renewals 
or new lettings. Tenancies accounting for approximately 9.8% of rental income in the month of December 2017 are due to expire 
in 2018, with tenancies accounting for a further 21.9% of such rental income due to expire in 2019.
Retail
Overview
The completed retail portfolio in Hong Kong comprises an aggregate of 2.8 million square feet of space on a 100% basis. 
The portfolio principally consists of The Mall at Pacific Place, Cityplaza at Taikoo Shing and Citygate Outlets at Tung Chung. 
The malls are wholly-owned by Swire Properties (except for Citygate Outlets, in which Swire Properties has a 20% interest)  
and are managed by Swire Properties. Total attributable gross rental income from our retail properties in Hong Kong was 
HK$2,681 million in 2017. At 31st December 2017, our retail properties in Hong Kong were valued at HK$54,504 million. Of this 
amount, Swire Properties’ attributable interest was HK$47,016 million.
Hong Kong Retail Portfolio
GFA (sq. ft.)
(100% Basis)
Occupancy
(at 31st December 2017)
Attributable
Interest
The Mall, Pacific Place
711,182
100%
100%
Cityplaza
1,105,227
100%
100%
Citygate Outlets
462,428
100%
20%
Others(1)
542,779
100%
20%/60%/100%
Total
2,821,616
(1)	 Others largely comprise Taikoo Shing neighbourhood shops and StarCrest retail premises (which are wholly-owned), Island Place retail 
premises (60% owned) and Tung Chung Crescent neighbourhood shops (20% owned).
80%
70%
60%
50%
40%
30%
10%
20%
0
2018
2019
Office Lease 
Expiry Profile
(at 31st December 2017)
2020 and later

Swire Properties Annual Report    2017	
23
The Hong Kong retail portfolio’s gross rental income was HK$2,609 million, little changed from that in 2016. The Group’s malls 
were almost fully let throughout the year.
Retail sales increased by 7% at The Mall, Pacific Place and by 0.2% at Citygate, but decreased by 3% at Cityplaza. The decrease 
was largely due to temporary closure of shops and reconfiguration works.
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 31st December 2017.
At 31st December 2017, the top ten retail tenants (based on attributable gross rental income in the twelve months ended 
31st December 2017) together occupied approximately 25% of our total attributable retail area in Hong Kong.
The Mall at Pacific Place
The Mall at Pacific Place is an integral part of the mixed-use 
Pacific Place development. The offices and the four hotels at 
Pacific Place provide a secure flow of shoppers for The Mall. 
There was a 7% increase in retail sales at The Mall in 2017. 
The retail market improved moderately, the tenant mix was 
changed and a customer loyalty programme was introduced.
The Mall was fully let during the year, with the only void 
periods resulting from tenant changes and reconfiguration 
works. Pure Yoga, Caviar House & Prunier, Dalloyau, 
Nakamura Tokichi, J Select, Puyi Optical, The Kooples, COS, 
Phase Eight, Tasaki, Columbia, Saloon by Hair Corner,  
Hon 10 and Whistles became tenants. DVF, iBlues,  
Jimmy Choo, Kent & Curwen and Roger Dubuis were 
relocated. Ye Shanghai was refitted.
The MTR South Island Line (which started to operate at 
the end of 2016) provides a connection to The Mall from 
the south side of Hong Kong Island. When the MTR Shatin 
to Central Link opens, it will provide an additional 
connection to The Mall.
18.0%
1.4%
3.8%
1.0%
17.4%
25.4%
26.7%
6.3%
Department stores
Food and beverages
Jewellery and watches
Fashion and accessories
Cinemas
Ice rink
Supermarkets
Others
Retail Area by 
Tenants’ Businesses
(at 31st December 2017)

24	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Review of Operations
Cityplaza
Hong Kong
Market, SP Flower & Tea Room, MO&Co., Stride Rite, initial, 
Clémence by rue Madame, Juicy Couture, Regina Miracle, 
Covermark and Yiu Fung Store became tenants, as did a 
new cinema tenant, MOViE MOViE Cityplaza.
Citygate Outlets
Citygate Outlets was fully let in 2017, except for the area 
being reconstructed as part of the adjacent Tung Chung 
Town Lot No. 11 development. Citygate is in a good 
location near tourist attractions and transport links. It 
attracts tourists and local shoppers. Retail sales increased 
by 0.2%, despite the closure of the area which is being 
reconstructed. The new development is expected to open 
later this year or early in 2019.
Hong Kong Retail Market Outlook
Demand for retail space in Hong Kong is forecast to be 
stable in 2018.
Cityplaza
Cityplaza is one of the most popular regional shopping 
centres in Hong Kong and is the largest shopping centre on 
Hong Kong Island, with a total floor area of approximately 
1.1 million square feet. It is accessible from Tai Koo MTR 
Station. There are more than 170 shops including  
30 restaurants, a cinema, an indoor ice rink and more than 
800  parking spaces. Cityplaza principally serves customers 
who live or work in the eastern part of Hong Kong Island. 
Patronage is also derived from business and leisure 
travellers who stay at the EAST, Hong Kong hotel.
Cityplaza was almost fully let in 2017, except for void 
periods during tenancy changes and reconfiguration 
works. Retail sales decreased by 3%, largely because of the 
temporary closure of some shops and the cinema. 
ABC Cooking Studio, Patagonia, Chanel Beauté, APM 
Monaco, innisfree, Zoff, JC Shop, Dan Ryan’s, The Night

Swire Properties Annual Report    2017	
25
The following chart shows the percentage of the total rental income attributable to the Group from its retail properties in 
Hong Kong, for the month ended 31st December 2017, derived from leases expiring in the periods with no committed renewals 
or new lettings. Tenancies accounting for approximately 33.0% of rental income in the month of December 2017 are due to 
expire in 2018, with tenancies accounting for a further 24.4% of such rental income due to expire in 2019.
Residential
The completed residential portfolio comprises Pacific Place 
Apartments at Pacific Place, Taikoo Place Apartments at 
Taikoo Place, STAR STUDIOS in Wanchai and a small number 
of luxury houses and apartments on Hong Kong Island, with 
an aggregate GFA of 593,543 square feet. Gross rental 
income increased compared with that of 2016, due to 
improved occupancy at the serviced apartments and rental 
income from STAR STUDIOS since its opening in 2016. 
Occupancy at the residential portfolio was approximately 
85% at 31st December 2017. Demand for furnished 
accommodation at Pacific Place Apartments and Taikoo 
Place Apartments is expected to be stable in 2018.
Investment Properties Under Development
Tung Chung Town Lot No. 11
This commercial site next to Citygate Outlets is being 
developed into a commercial building with an aggregate 
retail and hotel GFA of approximately 474,000 square feet. 
Superstructure works are in progress. The development is 
expected to be completed later this year. Swire Properties 
has a 20% interest in the development.
Taikoo Place Redevelopment
The first phase of the Taikoo Place redevelopment (the 
redevelopment of Somerset House) is the construction of a 
48-storey (above 2-storey basement) Grade-A office building 
with an aggregate GFA of approximately 1,020,000 square 
feet, to be called One Taikoo Place. The building was topped 
out in January 2018. The facade and finishing works are in 
progress. The redevelopment is expected to be completed 
later in 2018.
The second phase of the Taikoo Place redevelopment (the 
redevelopment of Cornwall House and Warwick House) is the 
construction of an office building with an aggregate GFA of 
approximately 1,000,000 square feet, to be called Two Taikoo 
Place. Demolition of Warwick House has been completed, 
and demolition of Cornwall House and foundation works for 
Two Taikoo Place are in progress. Completion of the 
redevelopment is expected in 2021 or 2022.
South Island Place
This commercial site at 8-10 Wong Chuk Hang Road is being 
developed into an office building with an aggregate GFA of 
approximately 382,500 square feet. Superstructure works are 
in progress. The development is expected to be completed 
later in 2018. Swire Properties has a 50% interest in the 
development.
2018
2019
60%
50%
40%
30%
10%
20%
0
Retail Lease 
Expiry Profile
(at 31st December 2017)
2020 and later

26	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Review of Operations
Mainland China Property Portfolio(1)
GFA (sq. ft.) (100% Basis)
Total 
Investment 
Properties
Hotels, Trading 
Properties 
and Others 
Attributable 
Interest
Completed
Taikoo Li Sanlitun, Beijing 
1,465,771
1,296,308
169,463
100%
TaiKoo Hui, Guangzhou
3,840,197
3,256,013
584,184
97%
INDIGO, Beijing
1,893,226
1,534,957
358,269
50%
Sino-Ocean Taikoo Li Chengdu(2)
2,184,018
1,362,669
821,349
50%
HKRI Taikoo Hui, Shanghai(3)
2,930,595
2,930,595
–
50%
Hui Fang, Guangzhou
90,847
90,847
–
100%
Others 
2,917
1,458
1,459
100%
Sub-Total
12,407,571
10,472,847
1,934,724
Under Development
HKRI Taikoo Hui, Shanghai(3)
538,799
149,088
389,711
50%
Total
12,946,370
10,621,935
2,324,435
(1)	 Including the hotel and property trading portions of these projects.
(2)	 The office portion of Sino-Ocean Taikoo Li Chengdu, Pinnacle One, was developed for trading purposes.
(3)	 Construction of the shopping mall and the office towers at HKRI Taikoo Hui has been completed. Construction of the remainder of the 
development was completed in January 2018.
The Group’s gross rental income from investment properties in Mainland China increased by 12% to HK$2,303 million in 2017.  
HK$1,922 million was from retail properties and HK$369 million was from office properties.
Po Wah Building, 1-11 Landale Street and  
2-12 Anton Street
In December 2017, Swire Properties successfully bid in the 
compulsory sale of a site (Po Wah Building, 1-11 Landale 
Street and 2-12 Anton Street) at the junction of Queen’s 
Road East, Landale Street and Anton Street in Hong Kong.  
Redevelopment of this site is being planned. The site area is 
approximately 14,400 square feet. There are six tenement 
blocks and a 13-storey composite building on the site.
Other
The development of an office building at the commercial 
site at the junction of Wang Chiu Road and Lam Lee Street in 
Kowloon Bay with an aggregate GFA of approximately 
555,000 square feet was completed and the occupation 
permit was issued in December 2017. In October 2016, 
Swire Properties conditionally agreed to sell its 100% interest 
in the company which owns this investment property 
development. The property was transferred to other non-
current assets at fair value in the financial statements at the 
same time and was reclassified to other current assets in the 
2017 financial statements. Completion of the sale is 
conditional upon the relevant certificate of compliance being 
obtained on or before 31st December 2018.
Investment Properties –  
Mainland China
The property portfolio in Mainland China comprises an 
aggregate of 12.9 million square feet of space at 31st 
December 2017, 9.1 million square feet of which is 
attributable to the Group. Completed properties amount to 
12.4 million square feet, with 0.5 million square feet under 
development. Total attributable gross rental income from our 
investment properties in Mainland China grew by 27% to 
HK$3,311 million in 2017. At 31st December 2017, our 
investment property portfolio in Mainland China was valued 
at HK$69,134 million. Of this amount, Swire Properties’ 
attributable interest was HK$48,871 million.

Swire Properties Annual Report    2017	
27
The chart below illustrates the expected attributable area of the completed property portfolio (excluding the property trading 
portion) in Mainland China.
Completed Investment Properties
Taikoo Li Sanlitun, Beijing
Situated in the Sanlitun area of the Chaoyang district of Beijing, Taikoo Li Sanlitun was our first retail development in Mainland 
China. It comprises two neighbouring retail sites, South and North. There are approximately 250 retail outlets.
Taikoo Li Sanlitun South concentrates on contemporary fashion and lifestyle brands, with tenants including the largest adidas 
store in the world, the first Apple store in Mainland China, H&M, Starbucks, Uniqlo, and a 1,597-seat Megabox cinema. In 2017, 
Kiehl’s Coffee Shop and Popcorn General Store opened their first Mainland China stores in Taikoo Li Sanlitun South. Chanel 
Beauty Boutique, Coach, G-SHOCK and HEYTEA Black became tenants. Tenants in Taikoo Li Sanlitun North are principally 
retailers of luxury, designer fashion and lifestyle brands, including Alexander McQueen, Christian Louboutin, Givenchy, I.T Beijing 
Market, Kenzo, Moncler and Miu Miu. Comme Moi, Giuseppe Zanotti Design, OFF-WHITE, Roberto Cavalli and Thom Browne 
became tenants in 2017.
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 31st December 2017.
42.6%
5.0%
1.6%
27.0%
5.5%
18.3%
Fashion and accessories
Food and beverages
Supermarkets
Cinemas
Jewellery and 
watches
Others
Retail Area by 
Tenants’ Businesses
(at 31st December 2017)
2017
10,000
8,000
6,000
2,000
4,000
0
Attributable Area of 
Completed Property 
Portfolio (excluding the 
property trading portion) 
in Mainland China
Taikoo Li Sanlitun, 
Beijing
TaiKoo Hui, 
Guangzhou
INDIGO, Beijing
Hui Fang, Guangzhou
Sino-Ocean Taikoo Li 
Chengdu
HKRI Taikoo Hui, 
Shanghai
Others
GFA
(000 sq. ft.)
2018 and later

28	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Review of Operations
TaiKoo Hui, Guangzhou
TaiKoo Hui is a large-scale retail-led mixed-use development in a prime location in the Tianhe district of Guangzhou. The 
development comprises a shopping mall, two Grade-A office towers, a cultural centre owned by a third party and a 287-room 
Mandarin Oriental hotel with serviced apartments.
Gross rental income grew satisfactorily in 2017. Retail sales increased by 27% in 2017, reflecting in part improvements to the 
tenant mix and a customer loyalty programme. Tenants include Bottega Veneta, Cartier, Chanel, Gucci, Hermes, I.T, Louis 
Vuitton, Uniqlo, Fangsuo bookstore, and Ole Supermarket. Dolce & Gabbana (menswear), Gentle Monster, Lululemon, Qeelin, 
Salvatore Ferragamo (menswear) and Victoria’s Secret became tenants in 2017. At 31st December 2017, the occupancy rate at 
the shopping mall was 99%.
At 31st December 2017, the occupancy rate at the office towers at TaiKoo Hui was 99%.
The Mandarin Oriental, Guangzhou is a leading luxury hotel in Guangzhou. Occupancy improved in 2017 and its performance 
was good.
Swire Properties has a 97% interest in the TaiKoo Hui development, which is a joint venture with Guangzhou Da Yang Properties 
Investment Limited.
Guangzhou Market Outlook
In Guangzhou, with the absence of significant new supply together with strong demand from Mainland Chinese companies, 
office vacancy rates are expected to decrease and rents to increase in 2018.
Retail sales are expected to grow satisfactorily in Guangzhou in 2018. Demand for retail space from international retailers and 
food and beverage operators is strong.
TaiKoo Hui, Guangzhou
GFA (sq. ft.)
(100% Basis)
Occupancy
(at 31st December 2017)
Attributable
Interest
Retail
1,472,730
99%
97%
Office
1,731,766
99%
97%
Serviced apartments 
51,517
88%
97%
Total
3,256,013
97%
Taikoo Li Sanlitun, Beijing
GFA (sq. ft.)
(100% Basis)
Occupancy
(at 31st December 2017)
Attributable
Interest
Taikoo Li Sanlitun
1,296,308
99%
100%
Gross rental income at Taikoo Li Sanlitun recorded satisfactory growth in 2017, reflecting positive growth in reversionary rents. 
Retail sales grew by 4%. The occupancy rate was 99% at 31st December 2017.
Demand for retail space in Taikoo Li Sanlitun is solid as it reinforces its position as a fashionable retail destination. This is 
expected to have a positive impact on occupancy and rents.
In December 2017, Swire Properties entered into a long-term agreement for the lease of the Beijing Sanlitun Yashow Building. 
The retail building has an aggregate GFA of approximately 296,000 square feet and will be redeveloped as an extension to 
Taikoo Li Sanlitun.
Beijing Retail Market Outlook
Retail sales are expected to grow satisfactorily in Beijing in 2018. Demand for luxury goods remains weak, but demand for 
fashion and lifestyle brands and food and beverages is expected to remain solid.

Swire Properties Annual Report    2017	
29
INDIGO, Beijing
INDIGO is a retail-led mixed-use development in the Jiang Tai area in the Chaoyang district of Beijing. The development consists 
of a shopping mall, a Grade-A office tower (ONE INDIGO) and a 369-room business hotel (EAST, Beijing). The development is 
directly linked to the Beijing Metro Line 14 and is near the airport expressway.
Occupancy at the shopping mall was 99% at 31st December 2017. 93% of the lettable retail space was open. Retail sales 
increased by 60% in 2017. H&M, Massimo Dutti, Muji, Page One bookstore, BHG supermarket and a seven-house, 1,000-seat 
CGV cinema are tenants. Armani Exchange, BANXIAOXUE, Joseph, MO&Co., Stella Luna, Tanni, Koyama, Meat Mate, B&O, Chow 
Tai Fook, Make Up Forever, Fresh, Origin and Roseonly became tenants in 2017. The mall is becoming a significant lifestyle 
shopping centre in north-east Beijing.
ONE INDIGO was 98% leased at 31st December 2017. Business at EAST, Beijing improved in 2017.
INDIGO is a 50:50 joint venture with Sino-Ocean Group Holding Limited.
Beijing Office Market Outlook
With increased supply, office rents in Beijing are expected to come under pressure in 2018.
INDIGO, Beijing
GFA (sq. ft.)
(100% Basis)
Occupancy
(at 31st December 2017)
Attributable
Interest
Retail
939,493
99%
50%
Office
595,464
98%
50%
Total
1,534,957
50%
INDIGO
Beijing

30	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Review of Operations
Sino-Ocean Taikoo Li Chengdu
GFA (sq. ft.)
(100% Basis)
Occupancy
(at 31st December 2017)
Attributable
Interest
Retail
1,235,090
95%
50%
Serviced apartments
127,579
65%
50%
Total
1,362,669
50%
Sino-Ocean Taikoo Li Chengdu
Sino-Ocean Taikoo Li Chengdu is in the Jinjiang district of 
Chengdu and is part of the Chunxi Road/Daci Temple 
shopping district. It is a large-scale retail-led development 
consisting of a retail complex, a boutique hotel (The Temple 
House), which has 100 guest rooms and 42 serviced 
apartments, and a Grade-A office tower (Pinnacle One). It is 
directly connected to the Chunxi Road metro station.
Sino-Ocean Taikoo Li Chengdu is our second Taikoo Li project 
in Mainland China. adidas, Apple, Cartier, Gucci, Hermes, 
I.T/i.t, Muji, ZARA, Fangsuo bookstore, Ole Supermarket and 
a 1,720-seat Palace Cinema are tenants. Atelier Cologne, 
Delvaux, Gentle Monster, Jo Malone, Lululemon and Thom 
Browne opened their first stores in south-west Mainland 
China in 2017. Retail sales increased by 49% in 2017. The 
development is gaining popularity as a shopping destination 
in Chengdu. At 31st December 2017, occupancy at the mall 
was 95%. 92% of the lettable retail space was open.
Sino-Ocean Taikoo Li Chengdu is a 50:50 joint venture with 
Sino-Ocean Group Holding Limited.
Chengdu Retail Market Outlook
Retail sales in Chengdu are expected to be robust in 2018.  
Demand for retail space in prime locations is solid and is 
expected to grow in 2018. Chengdu is attractive to 
international retailers, particularly of luxury brands. Retail 
rents are expected to grow moderately despite increased 
supply of space and competition.
HKRI Taikoo Hui, Shanghai
HKRI Taikoo Hui is a large-scale retail-led mixed-use development. It occupies a prime location on Nanjing West Road, one of 
Shanghai’s major shopping and business thoroughfares, in the Jingan district of Puxi, Shanghai. It has excellent transport 
connections, being adjacent to the existing Nanjing West Road metro station (which serves three metro lines) and near the 
Yan’an Expressway. The project comprises a retail mall, two office towers, two hotels and a serviced apartment tower and is 
expected to become a landmark development in Shanghai.
HKRI Taikoo Hui, Shanghai
GFA (sq. ft.)
(100% Basis)
Occupancy
(at 31st December 2017) 
Attributable
Interest
Retail
1,102,535
96%
50%
Office
1,828,060
82%
50%
Hotels(1)
389,711
N/A
50%
Serviced apartments
149,088
N/A
50%
Total
3,469,394
50%
(1)	 The hotels are accounted for under property, plant and equipment in the financial statements.

Swire Properties Annual Report    2017	
31
HKRI Taikoo Hui is our second Taikoo Hui project in Mainland 
China. The shopping mall officially opened in November 
2017. The world’s largest Starbucks Reserve Roastery and a 
city’super supermarket have opened. Chanel Beauty, COS, 
Dior, G Givenchy, i.t, Kenzo, La Mer, Lancome, McQ, 
SpaceCycle and Tesla have become tenants. At 31st 
December 2017, tenants had committed (including by way 
of letters of intent) to take 96% of the retail space. 86% of 
the lettable retail space was open.
The two office towers at HKRI Taikoo Hui have been 
completed and are now occupied. At 31st December 2017, 
tenants had committed (including by way of letter of intent) 
to take 82% of the office space.
Interior decoration works at the two hotels and a serviced 
apartment tower are in progress. They are expected to open 
later in the first half of 2018.
HKRI Taikoo Hui is a 50:50 joint venture with HKR 
International Limited.
Shanghai Market Outlook
Post the opening of HKRI Taikoo Hui, retail sales should 
continue to grow steadily. Retail rents are expected to  
grow moderately despite increased supply of space  
and competition.
With limited new supply in the Jingan district and stable 
demand, office rents are expected to be stable in 2018.
Other
In January 2014, Swire Properties China Holdings Limited 
(a wholly-owned subsidiary of the Company) entered into 
a framework agreement with CITIC Real Estate Co., Ltd. 
(a subsidiary of CITIC Limited) and Dalian Port Real Estate 
Co., Ltd. signifying the parties’ intention to develop a  
mixed-use development comprising a retail complex and 
apartments in Dalian through a joint venture. The proposed 
joint venture and development were subject to certain 
conditions precedent, which were not satisfied. Accordingly, 
the proposed joint venture and development will 
not proceed.
Investment Properties – U.S.A.
Brickell City Centre, Miami
Brickell City Centre is an urban mixed-use development in 
the Brickell financial district of Miami, Florida. It has a site 
area of 504,017 square feet (approximately 11.6 acres).
The first phase of the Brickell City Centre development 
consists of a shopping centre, two office buildings (Two 
Brickell City Centre and Three Brickell City Centre), a hotel 
and serviced apartments (EAST, Miami) managed by Swire 
Hotels and two residential towers (Reach and Rise). The 
residential towers have been developed for sale.
The first phase of the Brickell City Centre development was 
completed in 2016, and its components opened between 
March 2016 and February 2017. At 31st December 2017, 
Two and Three Brickell City Centre were fully leased and the 
shopping centre was 88% leased.  70% of the space at the 
shopping centre was open.
The shopping centre was developed jointly with Bal Harbour 
Shops and Simon Property Group. Swire Properties is the 
primary developer of Brickell City Centre.
At 31st December 2017, Swire Properties owned 100% of  
the office, hotel and remaining unsold residential portions 
and 60.25% of the shopping centre at the Brickell City Centre 
development. The remaining interest in the shopping centre 
was held by Simon Property Group (25%) and Bal Harbour 
Shops (14.75%). Bal Harbour Shops has an option, 
exercisable from the second anniversary of the grand 
opening of the shopping centre, to sell its interest to  
Swire Properties.
One Brickell City Centre is planned to be a mixed-use 
development comprising retail, office, hotel and residential 
space in an 80-storey tower. It will incorporate the site at 
700 Brickell Avenue acquired by Swire Properties in 2013. 
Development of this site will connect the first phase of the 
Brickell City Centre development with Brickell Avenue. Swire 
Properties owns 100% of One Brickell City Centre.

32	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Review of Operations
Brickell City 
Centre
Miami
Brickell City Centre, Miami
GFA (sq. ft.)(3)
(100% Basis)
Attributable 
Interest
Completed
Shopping centre
496,508
60.3%
Two and Three Brickell City Centre
263,384
100%
EAST, Miami – hotel(1)
218,000
100%
EAST, Miami – serviced apartments
109,000
100%
Reach and Rise(2)
322,564
100%
Sub-Total
1,409,456
Future Development
Residential
523,000
100%
One Brickell City Centre
1,444,000
100%
Total
3,376,456
(1)	 The hotel is accounted for under property, plant and equipment in the financial statements.
(2)	 Remaining unsold units at 31st December 2017.
(3)	 Represents leasable/saleable area except for carpark, roof top and circulation areas.
Miami Market Outlook
Weak retail sales have made some retailers cautious about expansion.
New supply of Grade-A office space is limited and demand is stable. Office rents are expected to increase.

Swire Properties Annual Report    2017	
33
Property Trading
The trading portfolio comprises completed developments available for sale in Hong Kong, Mainland China and Miami, U.S.A. 
The principal completed developments available for sale are the WHITESANDS development in Hong Kong, the remaining 
portion of the office property, Pinnacle One at Sino-Ocean Taikoo Li Chengdu in Mainland China and the Reach and Rise 
developments at Brickell City Centre in Miami. There are also land banks in Miami and Fort Lauderdale in Florida, U.S.A.
Valuation of Investment Properties
The portfolio of investment properties was valued at 31st 
December 2017 on the basis of market value (94% by  
value having been valued by Cushman & Wakefield  
Limited and 3% by value having been valued by another 
independent valuer). The amount of this valuation was  
HK$267,292 million, compared to HK$235,101 million at  
31st December 2016.
The increase in the valuation of the investment property 
portfolio is mainly due to an increase in the valuation of the 
office properties in Hong Kong following rental increases and 
a reduction of 25 basis points in the capitalisation rate 
applicable to office properties in Hong Kong.
Under HKAS 40, hotel properties are not accounted for as 
investment properties but are included within property, plant 
and equipment at cost less accumulated depreciation and 
any provision for impairment.
 
270
230
250
210
260
220
240
235.1
+2.1
+4.7
-0.1
-0.2
+23.7
267.3
+2.0
Movement in 
Investment Properties 
Net additions
Net transfers to property, 
plant and equipment/
other assets  
Net fair value 
losses in U.S.A.
Net fair value gains 
in Mainland China
At 31st December 2017 
At 1st January 2017 
Net fair value gains 
in Hong Kong
Translation 
differences 
HK$ Bn
1st Jan 2017
31st Dec 2017

34	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Review of Operations
Property Trading Portfolio (At 31st December 2017)
GFA (sq. ft.)
(100% Basis)
Actual/Expected
Construction
Completion Date
Attributable
Interest
Completed (1)
Hong Kong
– WHITESANDS
26,710(2)
2015
100%
Mainland China
– Pinnacle One, Chengdu
593,139(3)
2014
50%
U.S.A.
– ASIA, Miami
5,359(2)
2008
100%
– Reach, Miami
51,053(2)
2016
100%
– Rise, Miami
271,511(2)
2016
100%
Held for Development
Hong Kong
– 21-31 Wing Fung Street
29,928
2021
100%
U.S.A.
– Fort Lauderdale, Florida
825,000
N/A
75%
– South Brickell Key, Miami, Florida
550,000
N/A
100%
– Brickell City Centre, Miami, Florida – North Squared site
523,000
N/A
100%
(1)	 Remaining unsold portion.
(2)	 Remaining saleable area.
(3)	 Including portion which is subject to the outcome of court proceedings.
Hong Kong
Residential Developments in Mid-Levels West, Hong Kong
Swire Properties has developed four sites in Mid-Levels West, a residential district on Hong Kong Island. A map showing the 
locations of these sites is set out below.
AZURA
ARGENTA
AREZZO
ALASSIO
Mid-Levels West, 
Hong Kong
AREZZO
33 Seymour Road
ALASSIO
100 Caine Road
ARGENTA
63 Seymour Road
AZURA
2A Seymour Road
Castle Road
Castle Road
Robinson Road
Caine Road
Seymour Road

Swire Properties Annual Report    2017	
35
ALASSIO, 100 Caine Road
All 197 units at the ALASSIO development had been sold at 
31st December 2017. The profit from the sales of all the units 
was recognised in 2017. The property is managed by Swire 
Properties.
WHITESANDS, 160 South Lantau Road
The development consists of 28 detached houses with an 
aggregate GFA of 64,410 square feet. 21 houses had been sold 
at 13th March 2018. The profit from the sale of two houses 
was recognised before 2017 and the profit from the sale of  
14 houses was recognised in 2017. The property is managed 
by Swire Properties.
21-31 Wing Fung Street
In August 2017, Swire Properties acquired a 100% interest in a 
property at 21-31 Wing Fung Street, Hong Kong. The property 
has the potential to be redeveloped into a 34,000 square feet 
residential block with a retail podium.
Hong Kong Residential Market Outlook
In Hong Kong, notwithstanding the expectation of a gradual 
increase in interest rates and increased private housing 
supply, demand is expected to remain resilient. Trading profits 
are expected to be recognised in 2018 from sales of houses at 
WHITESANDS.
Mainland China
At Sino-Ocean Taikoo Li Chengdu, 89% of the office’s total GFA 
(approximately 1.15 million square feet) and 350 carparking 
spaces were pre-sold in 2013. The profit from the sales of 
approximately 52% of the pre-sold GFA was recognised in 
2015. Application was made to the court to cancel the sale of 
the remaining pre-sold GFA and 350 carparking spaces as part 
of the consideration was not received on time. The application 
succeeded. The buyer has appealed.
U.S.A.
The residential portion of the first phase of the Brickell City 
Centre development was developed for trading purposes. 
There are 780 units in Reach and Rise, with an aggregate GFA 
of 1,134,078 square feet.
The Reach and Rise developments were completed, and 
handover to purchasers commenced, in 2016. 363 units at 
Reach and 214 units at Rise had been sold at 13th March 2018. 
The profits from the sales of 12 units at Reach and 28 units at 
Rise were recognised in 2017.
Since the ASIA development was completed in 2008, 122 out 
of the 123 units have been sold. One penthouse unit  
remains unsold.
WHITESANDS
Hong Kong

36	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Review of Operations
Hotel Portfolio (managed by Swire Hotels)
No. of Rooms 
(100% Basis)
Attributable 
Interest
Completed
Hong Kong
– The Upper House
117
100%
– EAST, Hong Kong
345
100%
– Headland Hotel(1)
501
0%
Mainland China
– The Opposite House
99
100%
– EAST, Beijing 
369
50%
– The Temple House(2)
142
50%
U.S.A.
– EAST, Miami(2)
352
100%
Under Development
Mainland China
– The Middle House at HKRI Taikoo Hui, Shanghai(3)
213
50%
Total
2,138
(1)	 Headland Hotel is owned by Airline Property Limited, a wholly-owned subsidiary of Cathay Pacific Airways Limited.
(2)	 Including serviced apartments in the hotel tower.
(3)	 Including one hotel and one serviced apartment tower.
Miami Residential Market Outlook
In Miami, the exchange rate of the US dollar against 
major South American currencies is strong compared 
with what it was earlier in the decade. The strength will 
continue to suppress demand for condominiums by 
non-US buyers.
Estate Management
Swire Properties manages 19 residential estates which 
it has developed. It also manages OPUS, a residential 
property in Hong Kong which Swire Properties 
redeveloped for Swire Pacific. The management services 
include day to day assistance for occupants, 
management, maintenance, cleaning, security and 
renovation of common areas and facilities. Swire 
Properties places great emphasis on maintaining good 
relationships with occupants.
Hotels
Managed Hotels and Restaurants
Overview
Swire Properties owns and manages (through Swire Hotels) 
hotels in Hong Kong, Mainland China and the U.S.A. The 
House Collective, comprising The Upper House in Hong 
Kong, The Opposite House in Beijing and The Temple House 
in Chengdu, is a group of small and distinctive luxury hotels. 
EAST are business hotels in Hong Kong, Beijing and Miami.
In 2017, trading conditions in Hong Kong were stable. 
The performance of our hotels in Mainland China and in the 
U.S.A. improved. Earlier this year, TripAdvisor named The 
Upper House number 3 in its “Top 25 Luxury Hotels in the 
World” category and number 1 in its “Top 25 Hotels in China” 
category. TripAdvisor also named The Opposite House and 
The Temple House as number 4 and number 6 respectively in 
its “Top 25 Hotels in China” category.
The Middle House (including serviced apartments known as 
The Middle House Residences) at HKRI Taikoo Hui in 
Shanghai is expected to open later in the first half of 2018.

Swire Properties Annual Report    2017	
37
The Upper House
At The Upper House, a 117-room luxury hotel at Pacific Place, 
revenue per available room improved in 2017. During the year, 
the hotel received awards from Condé Nast Traveler and The 
Telegraph. Café Gray Deluxe received awards from Taste of 
Hong Kong.
EAST, Hong Kong
At EAST, Hong Kong, a 345-room hotel in Taikoo Shing, 
revenue per available room was stable in 2017. The food and 
beverage business was difficult, because of disruption caused 
by the Taikoo Place redevelopment. During the year, the hotel 
received awards from Clean the World and TripAdvisor. The 
hotel’s Sugar bar received an award from hkclubbing.com.
The Opposite House
The Opposite House is a 99-room luxury hotel at Taikoo Li 
Sanlitun, Beijing. Its occupancy improved slightly in 2017,  
but its revenue per available room was adversely affected by 
increased competition. During the year, the hotel received 
awards from Condé Nast Traveler and Forbes. Jing Yaa Tang 
and Sureño restaurants received awards from Time Out and 
City Weekend.
EAST, Beijing
EAST, Beijing is a 369-room business hotel at INDIGO in 
Beijing, in which Swire Properties holds a 50% interest. 
Revenue per available room and occupancy improved in 2017. 
During the year, the hotel received awards from City Weekend 
and Sohu. The hotel’s Feast (Food by EAST) restaurant 
received awards from Tatler and The Beijinger.
REPUBLIC
Hong Kong
The Temple House
The Temple House consists of 100 hotel rooms and 42 
serviced apartments, the latter known as The Temple House 
Residences. It is part of the Sino-Ocean Taikoo Li Chengdu 
project, in which Swire Properties holds a 50% interest. 
Revenue per available room and occupancy improved in 
2017. During the year, the hotel received awards from  
Travel + Leisure and Condé Nast Traveler. TIVANO 
restaurant and Jing bar received awards from China Wine 
List of the Year. The hotel’s MI XUN Spa received an award 
from SpaChina.
EAST, Miami
EAST, Miami at the Brickell City Centre Development in 
Miami consists of 263 hotel rooms and 89 serviced 
apartments. It opened in 2016 and is building up its 
occupancy levels. Revenue per available room is improving. 
During the year, the hotel received awards from Condé  
Nast Traveler and AIA Miami.
Swire Restaurants
Swire Hotels operates restaurants in Hong Kong. There are 
PUBLIC cafés at One Island East and North Point, and a 
REPUBLIC café at Devon House. The Continental is a 
European restaurant at Pacific Place. Mr & Mrs Fox is a 
restaurant with an international menu in Quarry Bay. The 
Plat du Jour restaurants are French bistros at Pacific Place 
and in Quarry Bay. Tong Bar & Café operates in Blueprint, 
our co-working space at Taikoo Place. During the year,  
Mr & Mrs Fox and The Continental received awards from the 
South China Morning Post and the Luxury Travel Guide.

38	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Review of Operations
Non-managed Hotels
Overview
Swire Properties has ownership interests in (but does not manage) hotels with 3,140 rooms in aggregate.
Hotel Portfolio (not managed by the Group)
No. of Rooms
(100% Basis)
Attributable
Interest
Completed
Hong Kong
– Island Shangri-La Hong Kong
565
20%
– JW Marriott Hotel Hong Kong
602
20%
– Conrad Hong Kong
513
20%
– Novotel Citygate Hong Kong
440
20%
Mainland China
– Mandarin Oriental, Guangzhou(1)
287
97%
U.S.A.
– Mandarin Oriental, Miami
326
75%
Under Development
Hong Kong
– Hotel at Tung Chung Town Lot No. 11
206
20%
Mainland China
– The Sukhothai Shanghai
201
50%
Total
3,140
(1)	 Including serviced apartments in the hotel tower.
The performance of the non-managed hotels in Hong Kong was stable, as was that of the Mandarin Oriental, Miami in the U.S.A. 
The Mandarin Oriental, Guangzhou is a leading luxury hotel in Guangzhou. Occupancy improved in 2017 and its performance 
was good.
Hotels Market Outlook
Trading conditions for our hotels are expected to be stable in 2018. At HKRI Taikoo Hui in Shanghai, two hotels (The Middle  
House – managed, and the Sukhothai – non-managed) and a serviced apartment tower (The Middle House Residences) are 
expected to open later in the first half of 2018. A non-managed hotel which is part of the Tung Chung Town Lot No. 11 
development in Hong Kong is expected to open early in 2019.

Swire Properties Annual Report    2017	
39
Profile of Capital Commitments at 31st December 2017 for Investment Properties and Hotels
Expenditure
Forecast year of expenditure
Commitments(1)
2017
HK$M
2018
HK$M
2019
HK$M
2020
HK$M
2021  
and later 
HK$M 
At 31st December 2017
HK$M
Hong Kong 
5,017
4,047
1,361
2,768
3,994
12,170
Mainland China 
917
789
646
118
–
1,553
U.S.A. and elsewhere
926
151
281
26
19
477
Total
6,860
4,987
2,288
2,912
4,013
14,200
(1)	 The capital commitments represent the Group’s capital commitments of HK$12,773 million plus the Group’s share of the capital 
commitments of joint venture companies of HK$1,427 million. The Group was committed to funding HK$341 million of the capital 
commitments of joint venture companies.
Capital expenditure in 2017 on Mainland China investment 
properties and hotels, including the Group’s share of the 
capital expenditure of joint venture companies, amounted to 
HK$917 million (2016: HK$1,070 million). Outstanding capital 
commitments at 31st December 2017 were HK$1,553 million 
(2016: HK$1,882 million), including the Group’s share of  
the capital commitments of joint venture companies of 
HK$652 million (2016: HK$1,279 million). The Group was 
committed to funding HK$36 million (2016: HK$226 million) 
of the capital commitments of joint venture companies in 
Mainland China.
Capital expenditure in 2017 on investment properties  
and hotels in the U.S.A. and elsewhere amounted to  
HK$926 million (2016: HK$950 million). Outstanding capital 
commitments at 31st December 2017 were HK$477 million 
(2016: HK$735 million).
Capital Commitments
Capital Expenditure and Commitments
Capital expenditure in 2017 on Hong Kong investment 
properties and hotels, including the Group’s share of the 
capital expenditure of joint venture companies, 
amounted to HK$5,017 million (2016: HK$5,549 million). 
Outstanding capital commitments at 31st December 
2017 were HK$12,170 million (2016: HK$15,711 million), 
including the Group’s share of the capital commitments 
of joint venture companies of HK$775 million (2016: 
HK$1,214 million). The Group was committed to funding 
HK$305 million (2016: HK$588 million) of the capital 
commitments of joint venture companies in Hong Kong.

Management Discussion & Analysis    Review of Operations
Hong Kong
Taikoo Place
Cityplaza
Two Taikoo Place 
(Under Development)
~1,000,000 sf
Island Eastern Corridor
Tai Koo Shing 
Road
Pan Hoi Street
Oxford House
501,253 sf
Berkshire House
388,838 sf
Devon House
803,452 sf
King’s Road
One Island East
1,537,011 sf
PCCW Tower
620,148 sf
One Taikoo Place 
 (Under Development)
~1,020,000 sf
Dorset House
609,540 sf
Lincoln House
333,529 sf
Taikoo Place  
Apartments
75,068 sf
Cambridge House
268,795 sf
Cityplaza 
(Shopping Mall)
1,105,227 sf
Cityplaza Three
226,060 sf
Cityplaza Four
543,576 sf
Cityplaza One
628,785 sf
Tai Koo Station
Quarry Bay 
Station
Westlands Road
EAST, Hong Kong
199,633 sf
Citygate
Novotel Citygate 
Hong Kong
 236,758 sf
One Citygate
160,522 sf
Tat Tung Road
Tung Chung Station
North Lantau 
Highway
Tat Tung Road
Mei Tung Street
Pacific Place
Queensway
Hennessy Road
Queen’s
Road East
Island Shangri-La  
Hong Kong
605,728 sf
Conrad  
Hong Kong
555,590 sf
One 
Pacific Place
863,266 sf
The Upper 
House
158,738 sf
Three  
Pacific Place
627,657 sf
Generali Tower
81,346 sf 
JW 
Marriott
Hong  
Kong
525,904 sf
Two
Pacific 
Place 
695,510 sf
Pacific Place 
Apartments
443,075 sf
Pacific Place 
(Shopping Mall)
711,182 sf
Three Pacific 
Place Link
28 Hennessy  
Road
145,390 sf 
Po Wah Building,
1-11 Landale Street
and 2-12 Anton Street
(Under Planning)
Admiralty
Station
STAR STUDIOS
52,273 sf
U.S.A.
Brickell City Centre
Miami, Florida
SW 8th Street
Brickell Plaza
SE 7th Street
SW 1st  
Avenue
South Miami Avenue
Rise 
271,511 sf*
Two Brickell  
City Centre
128,842 sf
SE 6th Street
Miami River
Miami 
River
SE 5th Street
Three Brickell 
City Centre
134,542 sf
Metromover
Eighth 
Street Station
Future 
Development
1,444,000 sf
Metrorail
Brickell Station
SW 9th Street
Reach 
51,053 sf*
Brickell City Centre
(Shopping Mall)
496,508 sf
Future 
Development
523,000 sf
EAST, Miami
327,000 sf
*	Rise and Reach are developed for 
trading purpose. Floor area shown 
represents the unsold portion.
Citygate Outlets
462,428 sf
(of which ~120,000 sf
is under renovation)
Tung Chung
Town Lot No. 11
(Under Development)
~474,000 sf
21-31
Wing Fung Street
(Under Planning)
~34,000 sf

*	 Shopping mall and HKRI Centre 1 were completed in 2016.
**	 HKRI Centre 2 was completed in 2017.
***	Hotels & Serviced Apartments were completed in January 2018 and are expected to  
open later in the first half of 2018.
Mainland China
TaiKoo Hui
Guangzhou
Tianhe East Road
Tianhe Road
Serviced 
Apartments
51,517 sf
TaiKoo Hui Towers 1 & 2 
1,731,766 sf
Mandarin Oriental,  
Guangzhou
584,184 sf
TaiKoo Hui
(Shopping Mall)
1,472,730 sf
HKRI Centre 1  
(Office)*
1,129,014 sf
Shipaiqiao Station
Taikoo Li Sanlitun
Beijing
Taikoo Li Sanlitun 
South
776,909 sf
Taikoo Li Sanlitun 
North
519,399 sf
Sanlitun Road
The Opposite  
House
169,463 sf
HKRI Taikoo Hui
Shanghai
Shimenyi Road
West Nanjing Road
Weihai Road
HKRI Centre 2  
(Office)**
699,046 sf
West Nanjing
Road Station 
Shopping
Mall*
1,102,535 sf
The Middle 
House
Residences***
149,088 sf
The Sukhothai  
Shanghai***
247,669 sf
The Middle House***
142,042 sf
West Nanjing
Road Station
INDIGO
Beijing
Jiuxianqiao Road
ONE INDIGO
595,464 sf
EAST, Beijing
358,269 sf
INDIGO
(Shopping Mall)
939,493 sf
Jiangtai Station
*	Pinnacle One is developed for trading purpose. 
Floor area shown represents the unsold portion 
(including portion which is subject to the  
outcome of court proceedings).
Sino-Ocean Taikoo Li Chengdu
Chengdu
Dacisi Road
Sino-Ocean  
Taikoo Li Chengdu
(Shopping Centre)
1,235,090 sf
Pinnacle One*
593,139 sf
Hongxing Road
Dongda Street
Chunxi Road Station
The Temple House
355,789 sf
Note:
These diagrams are not to scale and  
are for illustration purpose only.
These diagrams illustrate the major 
developments of Swire Properties. For 
details of other developments, please 
refer to the Schedule of Principal Group 
Properties on pages 156 to 166.

42	
Swire Properties Annual Report    2017
Financial 
Review
References are to “Notes to the Financial Statements” on pages 95 to 149.
Consolidated Statement of Profit or Loss
2017
HK$M
2016
HK$M 
Reference
Revenue
The increase in revenue of HK$1,766 million compared to 2016 was 
principally due to higher revenue from the sale of residential units in 
Hong Kong and higher rental income from investment properties.
Revenue from property trading increased by HK$1,073 million from 2016. 
In 2017, revenue was recognised from 197 ALASSIO units and 14 
WHITESANDS houses in Hong Kong and from 12 Reach units and 28  
Rise units in Miami, U.S.A. In 2016, revenue was recognised from 347 
Reach units and 171 Rise units in Miami, U.S.A., and from 15 AREZZO 
units, one MOUNT PARKER RESIDENCES unit and one WHITESANDS 
house in Hong Kong.
Rental income from investment properties increased by HK$479 million.  
In Mainland China, gross rental income increased by HK$241 million, 
reflecting higher retail rents. In the U.S.A., gross rental income increased by 
HK$154 million following the opening of the office towers and shopping 
centre in the first phase of the Brickell City Centre development in 2016.  
In Hong Kong, gross rental income increased by HK$84 million, reflecting 
higher gross rental income from the office and residential portfolios.
Revenue from hotels increased by HK$215 million, largely due to better 
results from EAST, Miami since its opening in 2016.
18,558
16,792
Note 4

Swire Properties Annual Report    2017	
43
Consolidated Statement of Profit or Loss (continued)
2017
HK$M
2016
HK$M 
Reference
Gross Profit
Gross profit increased by HK$683 million. Gross profit from investment 
properties increased by HK$340 million, reflecting better performances 
from the retail portfolio in Mainland China and the office portfolio in 
Hong Kong and a full year of operations at the first phase of the Brickell 
City Centre development in the U.S.A. Gross profit from property trading 
increased by HK$229 million. This reflected the recognition of profits on 
the sale of units at ALASSIO and houses at WHITESANDS in Hong Kong, 
partially offset by lower profits on the sale of units at the Reach and Rise 
developments in the U.S.A. Gross profit from hotels increased by HK$122 
million, due mainly to a full year of operations at EAST, Miami and a 
better performance at the Mandarin Oriental, Guangzhou.
10,989
10,306
Operating Profit
The increase in operating profit of HK$17,610 million was principally due 
to higher net revaluation gains on investment properties and a higher 
gross profit from investment properties.
A net revaluation gain on investment properties of HK$25,463 million was 
recorded in 2017, HK$17,045 million more than in 2016. Investment 
properties in Hong Kong recorded a net revaluation gain of HK$23,650 
million, principally due to higher rents at the offices in Pacific Place and 
Taikoo Place, and a reduction of 25 basis points in the capitalisation rate 
applicable to office properties in Hong Kong. Investment properties in 
Mainland China recorded a revaluation gain of HK$2,042 million, 
principally due to higher rents at TaiKoo Hui and Taikoo Li Sanlitun. 
Investment properties at Brickell City Centre in Miami, U.S.A. recorded  
a revaluation loss of HK$168 million mainly due to slightly lower  
retail rents.
Administrative and selling expenses increased by HK$75 million 
compared to 2016, principally due to a full year of depreciation charges 
at EAST, Miami and higher staff costs.
34,930
17,320
Notes 6  
and 8(a)
Net Finance Charges
The reduction of HK$219 million principally reflected a decrease in the 
amount and cost of borrowings in Hong Kong and Mainland China and a 
reduced change in the fair value of a put option in favour of the owner of 
a non-controlling interest in Brickell City Centre. This was partially offset 
by an increase in finance charges as a result of interest ceasing to be 
capitalised in respect of Brickell City Centre as it was completed.
900
1,119
Note 10

44	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Financial Review
Consolidated Statement of Profit or Loss (continued)
2017
HK$M
2016
HK$M 
Reference
Share of Profits Less Losses of Joint Venture Companies
The increase of HK$366 million principally reflected higher net 
revaluation gains of HK$219 million, higher operating profit from HKRI 
Taikoo Hui following its phased opening in 2016 and higher operating 
profit from Sino-Ocean Taikoo Li in Mainland China.
1,646
1,280
Note 8(a)
Taxation
The decrease of HK$604 million was principally due to deferred tax 
credits arising from the change in tax rate in the U.S.A. and an increase in 
the fair value of investment properties in Mainland China, partly offset  
by higher operating profit after excluding non-assessable income 
(principally revaluation gains on Hong Kong investment properties) and 
the effect of a reduction in the fair value of investment properties in  
the U.S.A.
1,807
2,411
Note 11
Profit Attributable to the Company’s Shareholders
The increase of HK$18,907 million reflected higher net revaluation gains 
from investment properties, higher profits from investment properties, a 
higher share of profits from joint venture companies, and lower losses 
from hotels.
33,957
15,050
Note 8(a)
Consolidated Statement of Financial Position
2017
HK$M
2016
HK$M 
Reference
Property, Plant and Equipment
The decrease in property, plant and equipment was principally due to 
depreciation and reclassification of certain owner-occupied properties in 
Hong Kong as investment properties, partially offset by additions to plant 
and equipment and other capital expenditure at EAST, Miami at the 
Brickell City Centre development in the U.S.A.
8,371
8,471
Note 15
Investment Properties
The increase in investment properties of HK$32,163 million was 
principally due to a revaluation gain of HK$25,463 million and additions 
during the year of HK$4,749 million (including capital expenditure at the 
Taikoo Place redevelopment and other projects in Hong Kong and at the 
Brickell City Centre development). In addition, there was a foreign 
exchange translation gain of HK$2,117 million (principally in respect of 
investment properties in Mainland China).
267,531
235,368
Note 16

Swire Properties Annual Report    2017	
45
Consolidated Statement of Financial Position (continued)
2017
HK$M
2016
HK$M 
Reference
Properties Held for Development
The increase of HK$63 million principally reflected development 
expenditure at and a foreign exchange translation gain in respect of the 
Brickell City Centre development.
1,342
1,279
Note 18
Investment in Joint Venture Companies
The increase of HK$3,041 million principally reflected (i) funding 
advanced for projects in Hong Kong, (ii) the Company’s share of profits of 
joint venture companies (including revaluation gains) and (iii) the 
Company’s share of foreign exchange translation gains arising from joint 
venture companies in Mainland China.
23,026
19,985
Note 19
Other Current Assets and Other Non-current Assets
The increase represents development costs incurred in respect of the 
Kowloon Bay development in 2017.
6,262
5,479
Note 32
Properties Under Development and For Sale
The decrease of HK$3,369 million reflected sales of residential units at 
the ALASSIO and houses at the WHITESANDS developments in Hong 
Kong and at the Reach and Rise developments at Brickell City Centre in 
the U.S.A., partially offset by reclassification of the Wing Fung Street 
property (which was previously classified as an investment property) as a 
property under development.
2,300
5,669
Note 22
Trade and Other Payables (including non-current portion)
The decrease of HK$632 million principally reflected a HK$651 million 
decrease in accrued capital expenditure and a HK$703 million decrease 
in other current payables, partially offset by the receipt of deposits of 
HK$653 million in respect of the sale of a subsidiary owning a property in 
Kowloon Bay, Hong Kong and a HK$46 million increase in the value of a 
put option in respect of a non-controlling interest.
8,536
9,168
Note 27
Long-Term Loans and Bonds (including the component due within  
one year)
The increase of HK$2,326 million was principally due to the issue of 
medium term notes of HK$2,090 million and the drawdown of additional 
bank loans to repay the amount due to Swire Finance Limited by reason 
of the redemption of that company’s US$300 million perpetual capital 
securities and to fund capital and development expenditure in Hong 
Kong, partly offset by prepayment of bank loans in Mainland China.
31,380
29,054
Note 28

46	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Financial Review
Consolidated Statement of Financial Position (continued)
2017
HK$M
2016
HK$M 
Reference
Loans Due to a Fellow Subsidiary Company – Swire Finance Limited 
(including the component due within one year)
The decrease of HK$2,328 million reflected repayment of the amount 
due to Swire Finance Limited by reason of the redemption of that 
company’s US$300 million perpetual capital securities.
5,176
7,504
Note 29
Deferred Tax Liabilities 
The increase of HK$683 million principally reflected deferred tax in 
respect of depreciation allowances relating to investment properties and 
in respect of revaluation gains on investment properties in Mainland 
China, partly offset by the effect of revaluation losses on investment 
properties and the change in tax rate in the U.S.A.
8,523
7,840
Note 31
Equity Attributable to the Company’s Shareholders
The increase in equity attributable to the Company’s shareholders 
represented the total comprehensive income for the year attributable to 
the Company’s shareholders (HK$36,283 million), as reduced by 
dividends paid to the Company’s shareholders.
257,381
225,369
Notes 34 
and 35
Non-Controlling Interests
The increase in non-controlling interests of HK$141 million reflected 
capital contributions of HK$241 million from the owner of a non-
controlling interest at the Brickell City Centre development during the 
year plus profits earned by companies in which there are non-controlling 
interests, partially offset by dividends paid to the owners of non-
controlling interests.
1,997
1,856
Note 37
Consolidated Statement of Cash Flows
2017
HK$M
2016
HK$M 
Reference
Cash Generated from Operations
Cash generated from operations of HK$13,680 million principally 
comprised cash inflows from investment properties of approximately 
HK$9,060 million in Hong Kong and Mainland China, from property 
trading of approximately HK$5,168 million and from a deposit of  
HK$653 million received on the sale of the subsidiary company which 
owns an investment property in Kowloon Bay, Hong Kong, partially  
offset by operating expenses of approximately HK$1,145 million and 
expenditure on properties under development and for sale of 
approximately HK$689 million.
13,680
10,767
Note 42(a)

Swire Properties Annual Report    2017	
47
Consolidated Statement of Cash Flows (continued)
2017
HK$M
2016
HK$M 
Reference
Tax Paid
The decrease principally reflected less assessable profits arising from 
property trading in Hong Kong.
1,044
1,413
Dividends Received from Joint Venture and Associated Companies 
and Available-for-sale Assets
The decrease of HK$250 million principally reflected less dividends 
received from hotel investment and other joint venture companies.
249
499
Purchase of Property, Plant and Equipment
The amount of HK$217 million in 2017 principally reflected additions to 
plant and equipment and other capital expenditure at EAST, Miami at the 
Brickell City Centre development in the U.S.A.
217
349
Note 42(b)
Additions to Investment Properties
The amount of HK$5,179 million in 2017 principally reflected capital 
expenditure at the Taikoo Place redevelopment and other projects in 
Hong Kong and at the Brickell City Centre development in the U.S.A.
5,179
5,883
Additions to Other Current Assets/Other Non-current Assets
The amount of HK$623 million represented development costs incurred 
on the property in Kowloon Bay, Hong Kong, the sale of the subsidiary 
owning which has been agreed.
623
254
Equity and Loans (Net of Repayment) to Joint Venture Companies
The amount of HK$865 million in 2017 principally reflected funding by 
way of debt and equity for projects in Hong Kong and Mainland China.
865
72
Loans Drawn and Refinancing (Net of Repayment)
The amount of HK$1,889 million in 2017 principally reflected the issue of 
medium term notes of HK$2,090 million and the drawdown of additional 
bank loans to repay the amount due to Swire Finance Limited by reason 
of the redemption of that company’s US$300 million perpetual capital 
securities and to fund capital and development expenditure in Hong 
Kong, partly offset by prepayment of bank loans in Mainland China. Refer 
to Financing section on pages 49 to 57 for further details.
1,889
4,190
Decrease in Loans Due to a Fellow Subsidiary Company –  
Swire Finance Limited
The amount of HK$2,329 million in 2017 reflected repayment of the 
amount due to Swire Finance Limited by reason of the redemption of that 
company’s US$300 million perpetual capital securities.
2,329
4,658

48	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Financial Review
Investment Appraisal and Performance Review
Net Assets Employed
Capital Commitments(1)
2017
HK$M
2016
HK$M
2017
HK$M
2016
HK$M
Property investment
283,045
248,466
13,940
17,628
Property trading
3,942
6,616
–
–
Hotels
7,738
7,520
260
700
Total net assets employed
294,725
262,602
14,200
18,328
Less: net debt
(35,347)
(35,377)
Less: non-controlling interests
(1,997)
(1,856)
Equity attributable to the Company’s shareholders
257,381
225,369
 Equity Attributable to the 
Company’s Shareholders(2) 
 Return on Average Equity 
Attributable to the 
Company’s Shareholders(2)
2017
HK$M
2016
HK$M
2017
2016
Property investment
248,783
216,723
14.1%
6.6%
Property trading
1,853
2,060
56.8%
48.2%
Hotels
6,745
6,586
-0.6%
-1.7%
Total
257,381
225,369
14.1%
6.8%
(1)	 The capital commitments represent the Group’s capital commitments plus the Group’s share of the capital commitments of joint  
venture companies.
(2)	 Refer to Glossary on page 167 for definitions.

Swire Properties Annual Report    2017	
49
Financing
A loan agreement entered into in 2010 between Swire Properties (Finance) Limited, the Company and Swire Finance 
Limited (“Swire Finance”, a wholly-owned subsidiary of Swire Pacific Limited) recorded the terms on which the Group 
borrowed from Swire Finance amounts equivalent to amounts borrowed by Swire Finance under the Swire Pacific group’s 
medium term note programme. Those terms substantially mirrored the terms of the bonds issued under that medium term 
note programme. Those bonds mature on various dates in 2018. No security has been given by the Group in respect of its 
obligations under that loan agreement. Upon maturity of the bonds to which that loan agreement relates, the Group will 
obtain new funding (as necessary) on a stand-alone basis without recourse to the Swire Pacific group.
•	 Capital Structure
•	 Financing Arrangements with the Swire Pacific Group
•	 Medium Term Note Programme
•	 Changes in Financing 
•	 Net Debt
•	 Sources of Finance
	 – Loans and Bonds
	 – Bank Balances and Short-term Deposits
•	 Maturity Profile and Refinancing
•	 Currency Profile
•	 Finance Charges
•	 Gearing Ratio and Interest Cover 
•	 Capital Management
•	 Attributable Net Debt
•	 Debt in Joint Venture and Associated Companies
Capital Structure
The Group aims to maintain a capital structure which 
enables it to invest in and finance projects in a disciplined 
and targeted manner.
The Group’s primary objectives when managing capital 
are to safeguard the Group’s ability to operate as a going 
concern, so that it can continue to provide returns for 
shareholders, and to secure access to finance at a 
reasonable cost.
The Group considers a number of factors in monitoring 
its capital structure, which principally include the gearing 
ratio, cash interest cover and the return cycle of its 
investments.
Financing Arrangements with the Swire Pacific Group

50	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Financing
Net Debt
Audited Financial Information
The Group’s borrowings are principally denominated in Hong Kong dollars, Renminbi and US dollars. Outstanding borrowings 
at 31st December 2017 and 2016 were as follows:
2017
HK$M
2016
HK$M
Borrowings included in non-current liabilities
 
Bank borrowings – unsecured
11,136
8,984
 
Bonds – unsecured
17,582
15,400
 
Borrowings from Swire Finance – unsecured
–
5,175
Borrowings included in current liabilities
 
Bank borrowings – unsecured
3,161
4,670
 
Bonds – unsecured
–
500
 
Borrowings from Swire Finance – unsecured
5,176
2,329
Total borrowings
37,055
37,058
Less: short-term deposits and bank balances
1,708
1,681
Net debt
35,347
35,377
Changes in Financing
Audited Financial Information
During the year, the Group raised approximately HK$10,498 million. This comprised:
•	 term and revolving loan facilities aggregating HK$4,500 million
•	 medium term notes of HK$2,090 million
•	 refinancing of a term loan facility of US$500 million
During the year, the Group made various repayments of debt including of the amount due under a loan agreement with Swire 
Finance corresponding to US$300 million perpetual capital securities which were redeemed at par in May 2017 by Swire Finance.
Subsequent to 31st December 2017, the Group issued medium term notes of US$500 million.
Loans and bonds
Loans due to Swire Finance
due within 
one year
HK$M
due after 
one year
HK$M
due within 
one year
HK$M
due after 
one year
HK$M
2017
HK$M
2016
HK$M
Bank loans, bonds and loans from  
 
Swire Finance
At 1st January
5,170
24,384
2,329
5,175
37,058
37,734
 
Loans drawn and refinanced
195
6,280
–
–
6,475
5,470
 
Bonds issued
–
2,090
–
–
2,090
5,078
 
Bonds matured
(500)
–
–
–
(500)
–
 
Repayment of loans
(4,267)
(1,909)
(2,329)
–
(8,505)
(11,016)
 
Reclassification
2,423
(2,423)
5,175
(5,175)
–
–
 
Currency adjustment
130
237
–
–
367
(249)
 
Other non-cash movements
10
59
1
–
70
41
At 31st December
3,161
28,718
5,176
–
37,055
37,058
Medium Term Note Programme
In 2012, Swire Properties MTN Financing Limited, a wholly-
owned subsidiary of the Company, established a US$3 billion 
Medium Term Note (“MTN”) Programme. The aggregate 
nominal amount of the MTN Programme was increased to 
US$4 billion in May 2017. Notes issued under the MTN 
Programme are unconditionally and irrevocably guaranteed 
by the Company. At 31st December 2017, the MTN 
Programme was rated A by Fitch and (P)A2 by Moody’s,  
in each case in respect of notes with a maturity of more  
than one year.
The MTN Programme enables the Group to raise money 
directly from the capital markets. Under the MTN 
Programme, notes may be issued in US dollars or in other 
currencies, in various amounts and for various tenors.

Swire Properties Annual Report    2017	
51
Sources of Finance
Audited Financial Information
At 31st December 2017, committed loan facilities and debt securities amounted to HK$47,323 million, of which HK$10,561 
million (22%) remained undrawn. In addition, the Group had undrawn uncommitted facilities totalling HK$804 million. 
Sources of funds at 31st December 2017 comprised:
Available 
HK$M
Drawn 
HK$M
Undrawn 
Expiring 
Within  
One Year  
HK$M
Undrawn 
Expiring 
After  
One Year  
HK$M
Facilities from third parties
 
Term loans
9,688
9,688
–
–
 
Revolving loans
14,804
4,243
–
10,561
 
Bonds
17,654
17,654
–
–
Facilities from Swire Finance
 
Bonds
5,177
5,177
–
–
Total committed facilities
47,323
36,762
–
10,561
Uncommitted facilities
 
Bank loans and overdrafts
1,303
499
804
–
Total 
48,626
37,261
804
10,561
Note: 
The figures above are stated before unamortised loan fees of HK$206 million.
i) Loans and Bonds
Audited Financial Information
For accounting purposes, loans and bonds are classified as follows:
2017
2016
Drawn, 
Before 
Unamortised 
Loan Fees
HK$M
Unamortised
 Loan Fees
HK$M
 Carrying 
Value
HK$M
Drawn, 
Before 
Unamortised 
Loan Fees
HK$M
Unamortised
 Loan Fees
HK$M
 Carrying 
Value 
HK$M
Group
Uncommitted bank loans  
 
and overdrafts
 
– unsecured
499
–
499
500
–
500
Long-term loans and bonds  
 
at amortised cost
 
– unsecured
36,762
(206)
36,556
36,736
(178)
36,558
Less: amount due within one year  
 
included under current liabilities
7,842
(4)
7,838
7,005
(6)
6,999
28,920
(202)
28,718
29,731
(172)
29,559

52	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Financing
ii) Bank Balances and Short-term Deposits
The Group had bank balances and short-term deposits of HK$1,708 million at 31st December 2017, compared to  
HK$1,681 million at 31st December 2016.
Maturity Profile and Refinancing
Bank loans and other borrowings are repayable on various dates up to 2027 (2016: up to 2026). The weighted average term and 
cost of the Group’s debt are:
2017
2016
Weighted average term of debt
3.8 years
3.7 years
Weighted average term of debt (excluding perpetuals)
3.8 years
3.9 years
Weighted average cost of debt
3.6%
4.1%
Weighted average cost of debt (excluding perpetuals)
3.5%
3.8%
The maturity profile of the Group’s available committed facilities is set out below:
 
14,000
8,000
10,000
12,000
6,000
4,000
2,000
0
18
19
20
21
22
24
26
27
25
23
Total Available 
Committed Facilities by 
Maturity
Facilities from 
third parties
Facilities from 
Swire Finance
Term and 
revolving loans
Bonds
Bonds
HK$M

Swire Properties Annual Report    2017	
53
Audited Financial Information
The table below sets forth the maturity profile of the Group’s borrowings:
2017
2016
HK$M 
HK$M 
Bank borrowings and bonds from third parties due
 
Within 1 year
3,161
9%
5,170
14%
 
1-2 years
2,232
6%
2,423
7%
 
2-5 years
17,297
46%
11,021
30%
 
After 5 years
9,189
25%
10,940
29%
Borrowings from Swire Finance due
 
Within 1 year
5,176
14%
2,329
6%
 
1-2 years
–
–
5,175
14%
Total
37,055
100%
37,058
100%
Less: Amount due within one year included under current liabilities
8,337
7,499
Amount due after one year included under non-current liabilities
28,718
29,559
Currency Profile
Audited Financial Information
An analysis of the carrying amounts of gross borrowings by currency (after cross-currency swaps) is shown below:
2017
2016
HK$M 
HK$M 
Currency
Hong Kong dollars
28,639
77%
27,315
74%
United States dollars
6,215
17%
6,775
18%
Renminbi
1,826
5%
2,689
7%
Singapore dollars
375
1%
279
1%
Total
37,055
100%
37,058
100%
Finance Charges
Audited Financial Information
An analysis of outstanding borrowings by reference to whether they bear interest at floating or fixed rates is shown below:
2017
2016
HK$M
HK$M
Fixed 
24,394
65%
23,480
63%
Floating
12,867
35%
13,756
37%
Sub-total
37,261
100%
37,236
100%
Less: Unamortised loan fee
206
178
Total
37,055
37,058

54	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Financing
Interest charged and earned during the year was as follows:
2017
HK$M
2016
HK$M
Interest charged on:
Bank loans and overdrafts
291
349
Bonds
572
516
Loans from fellow subsidiary companies
328
507
Loans from joint venture and related companies
6
7
Net fair value losses/(gains) on derivative instruments
 
Cash flow hedges – transferred from other comprehensive income
2
(5)
Other financing costs
150
146
1,349
1,520
Loss on the movement in the fair value of the liability in respect of a put option 
 
in favour of the owner of a non-controlling interest
6
114
Capitalised on:
 
Investment properties
(212)
(248)
 
Properties under development and for sale
–
(140)
 
Hotels 
–
(5)
 
Other current assets/other non-current assets
(160)
(25)
983
1,216
Interest income on:
Short-term deposits and bank balances
(14)
(26)
Loans to joint venture companies
(69)
(69)
Others
–
(2)
(83)
(97)
Net finance charges
900
1,119
The capitalised interest rates on funds both borrowed generally and used for the development of investment properties, 
properties under development and for sale, hotels and other current assets/other non-current assets were between 1.4%  
and 3.9% per annum (2016: 1.3% and 4.3% per annum).
Audited Financial Information (continued)
The exposure of the Group’s borrowings to fixed and floating interest rates can be illustrated as follows:
Fixed Interest Rates Maturing in:
Floating 
Interest 
Rates
HK$M
1 Year  
or Less
HK$M
1 to 5  
Years
HK$M
Over 5 
Years
HK$M
Total
HK$M
At 31st December 2017
12,748
5,176
9,943
9,188
37,055
At 31st December 2016
13,654
2,829
9,635
10,940
37,058

Swire Properties Annual Report    2017	
55
Audited Financial Information (continued)
The interest rates per annum (after interest rate and cross-currency swaps) at 31st December were as follows:
2017
2016
HK$
%
US$
%
RMB
%
SGD 
%
HK$
%
US$
%
RMB
%
SGD
%
Uncommitted bank  
 
loans and overdrafts
–
–
4.1-4.4
1.8
–
–
3.8
1.5
Long-term loans  
 
and bonds
1.3-5.2
2.0-2.9
4.3-4.4
1.8-2.0
1.2-5.2
1.2-2.5
4.3-4.4
1.4
Perpetual capital  
 
securities
–
–
–
–
–
7.2-8.8
–
–
Gearing Ratio and Interest Cover
The following graphs illustrate the gearing ratio and underlying interest cover for each of the last five years:
16
13
14
17
15
250,000
200,000
300,000
150,000
100,000
50,000
0
30
20
25
15
10
5
0
Gearing Ratio
Total equity
Net debt
Gearing ratio
HK$M
Ratio (%)
 
16
8,000
10,000
12,000
6,000
4,000
2,000
0
12
10
6
8
4
2
0
13
14
17
15
Underlying Interest 
Cover
Underlying operating profit
Net finance charges
Capitalised interest
Underlying interest cover
Underlying cash interest cover
HK$M
Times

56	
Swire Properties Annual Report    2017
Management Discussion & Analysis    Financing
Capital Management
Audited Financial Information
The Group’s primary objectives when managing capital are to safeguard the Group’s ability to operate as a going concern, 
so that it can continue to provide returns for shareholders, and to secure access to finance at a reasonable cost.
The Group considers a number of factors in monitoring its capital structure, which principally include the gearing ratio, cash 
interest cover and the return cycle of its investments. For the purpose of the gearing ratio, the Group defines net debt as 
total borrowings less short-term deposits and bank balances. Capital comprises total equity, as shown in the consolidated 
statement of financial position.
In order to maintain or adjust the gearing ratio, the Group may adjust the amount of dividends paid to shareholders, 
repurchase shares, raise new debt financing or sell assets to reduce debt. The gearing ratios at 31st December 2017 and 
31st December 2016 were as follows:
2017
HK$M
2016
HK$M
Total borrowings
37,055
37,058
Less: Short-term deposits and bank balances
1,708
1,681
Net debt
35,347
35,377
Total equity
259,378
227,225
Gearing ratio
13.6%
15.6%
The Group has certain covenants in respect of a number of its facilities from third-parties, including maintenance of a 
minimum amount of tangible net worth. The Group has significant headroom on all covenants, and does not expect any 
breach for the foreseeable future.
2017
2016
Gearing ratio(1)
13.6%
15.6%
Interest cover – times(1)
 
Per financial statements
38.8
15.5
 
Underlying
10.7
8.9
Cash interest cover – times(1)
 
Per financial statements
27.5
11.3
 
Underlying
7.5
6.3
(1)	Refer to Glossary on page 167 for definitions.

Swire Properties Annual Report    2017	
57
Debt in Joint Venture and Associated Companies
In accordance with Hong Kong Financial Reporting Standards, the net debt of Swire Properties reported in the consolidated 
statement of financial position does not include the net debt of its joint venture and associated companies. These companies 
had the following net debt positions at the end of 2017 and 2016:
Net Debt of  
Joint Venture and  
Associated Companies
Portion of Net Debt 
Attributable to
the Group
Debt Guaranteed by
the Group
2017
HK$M
2016
HK$M
2017
HK$M
2016
HK$M
2017
HK$M
2016
HK$M
Hong Kong Entities
4,189
3,826
1,903
1,841
1,005
975
Mainland China Entities
12,686
11,506
6,343
5,753
–
–
U.S.A. and other Entities
459
555
364
416
478
484
Total
17,334
15,887
8,610
8,010
1,483
1,459
If the attributable portion of the net debt in joint venture and associated companies were to be added to the Group’s net debt, 
gearing would rise to 16.9%.
Attributable Net Debt
The chart below illustrates, by entity, the Group’s attributable net debt (in HK$ million):
Swire Properties (Finance)
11,057
H.K. 
Entities
(332)
H.K. 
JV/Asso
1,903
Swire Properties
(127)
Swire Properties MTN 
Financing
17,582
Singapore  
Entities
366
Mainland China 
Entities
809
U.S.A. 
Entities
5,992
Mainland China  
JV/Asso
6,343
U.S.A. and other 
JV/Asso
364
Attributable  
Net Debt of Joint 
Venture and 
Associated  
Companies 
(“JV/Asso”)
8,610
Consolidated  
Net Debt
35,347

Corporate  
Governance & 
Sustainability

Taikoo Place
Hong Kong

60	
Swire Properties Annual Report    2017
Governance Culture
Swire Properties is committed to ensuring that its affairs are 
conducted in accordance with high ethical standards. This 
reflects its belief that, in the achievement of its long-term 
objectives, it is imperative to act with probity, transparency 
and accountability. By so acting, Swire Properties believes 
that shareholder wealth will be maximised in the long term 
and that its employees, those with whom it does business 
and the communities in which it operates will all benefit.
Corporate governance is the process by which the Board 
instructs management of the Group to conduct its affairs 
with a view to ensuring that its objectives are met. The Board 
is committed to maintaining and developing robust 
corporate governance practices that are intended to ensure:
•	 satisfactory and sustainable returns to shareholders
•	 that the interests of those who deal with the Company are 
safeguarded
•	 that overall business risk is understood and managed 
appropriately
•	 the delivery of high-quality products and services to the 
satisfaction of customers and
•	 that high standards of ethics are maintained
Corporate Governance Statement
The Corporate Governance Code (the “CG Code”) as 
published by The Stock Exchange of Hong Kong Limited sets 
out the principles of good corporate governance and 
provides two levels of recommendation:
•	 code provisions, with which issuers are expected to  
comply, but with which they may choose not to comply, 
provided they give considered reasons for non-compliance
•	 recommended best practices, with which issuers are 
encouraged to comply, but which are provided for  
guidance only
The Company supports the principles-based approach of the 
CG Code and the flexibility this provides for the adoption of 
corporate policies and procedures which recognise the 
individuality of companies. Swire Properties has adopted its 
own corporate governance code which is available on its 
website www.swireproperties.com. Corporate governance 
does not stand still; it evolves with each business and 
operating environment. The Company is always ready to  
learn and adopt best practices.
The Company complied with all the code provisions set out in 
the CG Code contained in Appendix 14 to the Rules Governing 
the Listing of Securities on The Stock Exchange of Hong Kong 
Limited (the “Listing Rules”) throughout the year covered by 
the annual report with the following exceptions which it 
believes do not benefit shareholders:
•	 Sections A.5.1 to A.5.4 of the CG Code in respect of the 
establishment, terms of reference and resources of a 
nomination committee. The Board has considered the 
merits of establishing a nomination committee but has 
concluded that it is in the best interests of the Company  
and potential new appointees that the Board collectively 
reviews and approves the appointment of any new Director 
as this allows a more informed and balanced decision to be 
made by the Board as to suitability for the role.
Corporate 
Governance

Swire Properties Annual Report    2017	
61
The Board of Directors
Role of the Board
The Company is governed by a Board of Directors, which has 
responsibility for strategic leadership and control of the 
Group designed to maximise shareholder value, while taking 
due account of the interests of those with whom the Group 
does business and others.
Responsibility for achieving the Company’s objectives and 
running the business on a day-to-day basis is delegated to 
management. The Board exercises a number of reserved 
powers which include:
•	 maintaining and promoting the culture of the Company
•	 formulation of long-term strategy
•	 approving public announcements, including financial 
statements
•	 committing to major acquisitions, divestments and  
capital projects
•	 authorising significant changes to the capital structure and 
material borrowings
•	 any issue, or buy-back, of equity securities under the 
relevant general mandates
•	 approving treasury policy
•	 setting dividend policy
•	 approving appointments to the Board
•	 reviewing the board diversity policy with a view to the 
Board having a balance of skills, experience and diversity 
of perspectives appropriate to the Company’s businesses
•	 ensuring that appropriate management development and 
succession plans are in place
•	 setting the Group remuneration policy
•	 approving annual budgets and forecasts
•	 reviewing operational and financial performance
•	 reviewing the effectiveness of the Group’s risk 
management and internal control systems 
•	 ensuring the adequacy of the resources, staff qualifications 
and experience, training programmes and budget of the 
Company’s accounting, internal audit and financial 
reporting functions.
To assist it in fulfilling its duties, the Board has established 
two primary committees, the Audit Committee (see pages  
67 to 68) and the Remuneration Committee (see pages  
64 to 65).
Chairman and Chief Executive
The CG Code requires that the roles of Chairman and Chief 
Executive be separate and not performed by the same 
individual to ensure there is a clear division of responsibilities 
between the running of the Board and the executives who 
run the business.
J.R. Slosar, the Chairman, is responsible for:
•	 leadership of the Board
•	 setting its agenda and taking into account any matters 
proposed by other Directors for inclusion in the agenda
•	 facilitating effective contributions from and dialogue with 
all Directors and constructive relations between them
•	 ensuring that all Directors are properly briefed on issues 
arising at Board meetings and that they receive accurate, 
timely and clear information
•	 obtaining consensus amongst the Directors
•	 ensuring, through the Board, that good corporate 
governance practices and procedures are followed
G.M.C. Bradley, the Chief Executive, is responsible for 
implementing the policies and strategies set by the Board in 
order to ensure the successful day-to-day management of 
the Group’s business.
Throughout the year, there was a clear division of 
responsibilities between the Chairman and the Chief Executive.
Board Composition
The Board is structured with a view to ensuring it is of a high 
calibre and has a balance of key skills and knowledge so that 
it works effectively as a team and individuals or groups do 
not dominate decision-making.
The Board comprises the Chairman, two other Executive 
Directors and nine Non-Executive Directors. Their 
biographical details are set out in the section of this annual 
report headed Directors and Officers and are posted on the 
Company’s website.
G.M.C. Bradley, P. Healy, M.M.S. Low, F.N.Y. Lung and J.R. 
Slosar are directors and employees of the John Swire & Sons 
Limited (“Swire”) group. M.B. Swire is a shareholder, director 
and employee of Swire.
The Non-Executive Directors bring independent advice, 
judgement and, through constructive challenge, scrutiny of 
executives and review of performance and risks. The Audit 
and Remuneration Committees of the Board comprise only 
Non-Executive Directors.
The Board considers that five of the nine Non-Executive 
Directors are independent in character and judgement and 
fulfil the independence guidelines set out in Rule 3.13 of the 
Listing Rules. Confirmation has been received from all 
Independent Non-Executive Directors that they are 
independent as set out in Rule 3.13 of the Listing Rules.

62	
Swire Properties Annual Report    2017
Corporate Governance & Sustainability    Corporate Governance
The Independent Non-Executive Directors:
•	 provide open and objective challenge to management and 
other Board members
•	 raise intelligent questions and challenge constructively and 
with vigour
•	 bring outside knowledge of the businesses and markets in 
which the Group operates, providing informed insight and 
responses to management
The number of Independent Non-Executive Directors 
represents at least one-third of the Board of Directors.
Appointment and Re-election
Potential new Directors are identified and considered for 
appointment by the Board. A Director appointed by the Board 
is subject to election by shareholders at the first annual 
general meeting after his or her appointment, and all 
Executive and Non-Executive Directors are subject to  
re-election by shareholders every three years.
Potential new Board members are identified on the basis of 
skills and experience which, in the opinion of the Directors,  
will enable them to make a positive contribution to the 
performance of the Board.
Full details of changes in the Board during the year and to the 
date of this report are provided in the section of this annual 
report headed Directors’ Report.
Board Diversity
The Board has a board diversity policy, which is available on 
the Company’s website.
In order to achieve a diversity of perspectives among members 
of the Board, it is the policy of the Company to consider a 
number of factors when deciding on appointments to the 
Board and the continuation of those appointments. Such 
factors include gender, age, cultural and educational 
background, ethnicity, professional experience, skills, 
knowledge, length of service and the legitimate interests of 
the Company’s principal shareholders.
Responsibilities of Directors
On appointment, the Directors receive information about the 
Group including:
•	 the role of the Board and the matters reserved for its 
attention
•	 the role and terms of reference of Board Committees
•	 the Group’s corporate governance practices and procedures
•	 the powers delegated to management and
•	 the latest financial information
Directors update their skills, knowledge and familiarity with  
the Group through their participation at meetings of the Board 
and its committees and through regular meetings with 
management at the head office and in the divisions. Directors 
are regularly updated by the Company Secretary on their legal 
and other duties as Directors of a listed company.
Through the Company Secretary, Directors are able to obtain 
appropriate professional training and advice.
Each Director ensures that he/she can give sufficient time and 
attention to the affairs of the Group. All Directors disclose to  
the Board on their first appointment their interests as a  
Director or otherwise in other companies or organisations and 
such declarations of interests are updated regularly.
Details of Directors’ other appointments are shown in their 
biographies in the section of this annual report headed 
Directors and Officers.
Board Processes
All committees of the Board follow the same processes as the 
full Board.
The dates of the 2017 Board meetings were determined in  
2016 and any amendments to this schedule were notified to 
Directors at least 14 days before regular meetings. Suitable 
arrangements are in place to allow Directors to include items in 
the agenda for regular Board meetings.
The Board met five times in 2017. The attendance of individual 
Directors at meetings of the Board and its committees is set  
out in the table on page 63. Average attendance at Board 
meetings was 98%. All Directors attended Board meetings in 
person or through electronic means of communication during 
the year.
Agendas and accompanying Board papers are circulated with 
sufficient time to allow the Directors to prepare before meetings.
The Chairman takes the lead to ensure that the Board acts in 
the best interests of the Company, that there is effective 
communication with the shareholders and that their views are 
communicated to the Board as a whole.
Board decisions are made by vote at Board meetings and 
supplemented by the circulation of written resolutions  
between Board meetings.
Minutes of Board meetings are taken by the Company 
Secretary and, together with any supporting papers, are made 
available to all Directors. The minutes record the matters 
considered by the Board, the decisions reached, and any 
concerns raised or dissenting views expressed by Directors. 
Draft and final versions of the minutes are sent to all Directors 
for their comment and records respectively.

Swire Properties Annual Report    2017	
63
Board meetings are structured so as to encourage open 
discussion, frank debate and active participation by Directors 
in meetings.
A typical Board meeting would consist of:
•	 review of a report by the Chief Executive on the results 
since the last meeting and an explanation of changes in 
the business environment and their impact on budgets and 
the longer-term plan
•	 the raising of new initiatives and ideas
•	 the presentation of papers to support decisions requiring 
Board approval
•	 an update of legal and compliance matters for Directors’ 
consideration
•	 any declarations of interest
Meetings Attended/Held
Continuous 
Professional 
Development
Directors
Board
Audit 
Committee
Remuneration 
Committee
2017  
Annual  
General  
Meeting
Type of  
Training
(Note)
Executive Directors
J.R. Slosar – Chairman
5/5
√
A
G.M.C. Bradley
5/5
√
A
F.N.Y. Lung (appointed on 1st October 2017)
1/1
N/A
A
Non-Executive Directors
M. Cubbon (resigned on 30th September 2017)
4/4
2/2
√
A
P. Healy
5/5
√
A
R.S.K. Lim
5/5
√
A
M.M.S. Low (re-designated on 1st October 2017)
5/5
1/1
√
A
M.B. Swire
5/5
2/2
√
A
Independent Non-Executive Directors
S.E. Bradley
5/5
2/2
√
A
J.C.C. Chan (resigned on 16th March 2017)
2/2
1/1
N/A
A
L.K.L. Cheng (appointed on 17th March 2017)
3/3
2/2
√
A
P.K. Etchells (resigned on 16th May 2017)
2/2
1/1
√
A
S.T. Fung
5/5
√
A
S.C. Liu
5/5
2/2
√
A
M.Y. Wu (appointed on 15th May 2017)
2/3
2/2
√
A
Average attendance
98%
100%
100%
100%
Note:
A:	 All the Directors received training materials, including from the Company’s external legal advisor, about matters relevant to their duties as 
directors. They also kept abreast of matters relevant to their role as directors by such means as attendance at seminars and conferences 
and reading and viewing materials about financial, commercial, economic, legal, regulatory and business affairs.
The executive management provides the Board with 
such information and explanations as are necessary to 
enable Directors to make an informed assessment of the 
financial and other information put before the Board. 
Queries raised by Directors are answered fully and 
promptly.
When necessary, the Independent Non-Executive 
Directors meet privately to discuss matters which are 
their specific responsibility.
The Chairman meets at least annually with the Non-
Executive Directors without the Executive Directors 
being present.

64	
Swire Properties Annual Report    2017
Corporate Governance & Sustainability    Corporate Governance
Continuous Professional Development
All Directors named above have received the training 
referred to above and have been provided with “A Guide on 
Directors’ Duties” issued by the Companies Registry and 
“Guidelines for Directors” and “Guide for Independent Non-
Executive Directors” issued by the Hong Kong Institute of 
Directors. The Company makes available continuous 
professional development for all Directors at the expense of 
the Company so as to develop and refresh their knowledge 
and skills.
Directors’ and Officers’ Insurance
The Company has arranged appropriate insurance cover in 
respect of potential legal actions against its Directors  
and Officers.
Conflicts of Interest
If a Director has a material conflict of interest in relation to a 
transaction or proposal to be considered by the Board, the 
individual is required to declare such interest and abstains 
from voting. The matter is considered at a Board meeting 
and voted on by Directors who have no material interest in 
the transaction.
Delegation by the Board
Responsibility for delivering the Company’s strategies and 
objectives, as established by the Board, and responsibility for 
day-to-day management is delegated to the Chief Executive. 
The Chief Executive has been given clear guidelines and 
directions as to his powers and, in particular, the 
circumstances under which he should report back to, and 
obtain prior approval from, the Board before making 
commitments on behalf of the Company.
The Board monitors management’s performance against  
the achievement of financial and non-financial measures,  
the principal items monitored being:
•	 detailed monthly management accounts consisting of 
statements of profit or loss, financial position and cash 
flows compared to budget, together with forecasts
•	 internal and external audit reports
•	 feedback from external parties such as customers, others 
with whom the Group does business, trade associations 
and service providers.
Securities Transactions
The Company has adopted a code of conduct (the 
“Securities Code”) regarding securities transactions by 
Directors and officers on terms no less exacting than the 
required standard set out in the Model Code for Securities 
Transactions by Directors of Listed Issuers contained in 
Appendix 10 to the Listing Rules. These rules are available on 
the Company’s website.
A copy of the Securities Code has been sent to each Director 
of the Company and will be sent to each Director twice 
annually, immediately before the two financial period ends, 
with a reminder that the Director cannot deal in the 
securities and derivatives of the Company during the 
blackout period before the Group’s interim and annual results 
have been published, and that all their dealings must be 
conducted in accordance with the Securities Code.
Under the Securities Code, Directors and senior executives of 
the Company are required to notify the Chairman and 
receive a dated written acknowledgement before dealing in 
the securities and derivatives of the Company and, in the 
case of the Chairman himself, he must notify the Chairman of 
the Audit Committee and receive a dated written 
acknowledgement before any dealing.
On specific enquiries made, all the Directors of the Company 
have confirmed that they have complied with the required 
standard set out in the Securities Code.
Directors’ interests at 31st December 2017 in the shares of 
the Company and its associated corporations (within the 
meaning of Part XV of the Securities and Futures Ordinance) 
are set out in the section of this annual report headed 
Directors’ Report.
Remuneration Committee
Full details of Directors’ remuneration are provided in note 9 
to the financial statements.
The Remuneration Committee comprises three Non-
Executive Directors, S.C. Liu, S.E. Bradley and M.B. Swire. Two 
of the Committee Members are Independent Non-Executive 
Directors, one of whom, S.C. Liu, is Chairman. All the 
members served for the whole of 2017.

Swire Properties Annual Report    2017	
65
the Swire group to ensure that executives of high quality are 
seconded to and retained within the Swire Properties group.
In order to be able to attract and retain staff of suitable calibre, 
the Swire group provides a competitive remuneration package 
designed to be commensurate, overall, with those of its peer 
group. This typically comprises salary, housing, retirement 
benefits, leave passage and education allowances and, after 
three years’ service, a bonus related to the overall profit of 
the Swire Pacific group. Although the remuneration of these 
executives is not directly linked to the profits of the Company, 
it is considered that these arrangements have contributed 
considerably to the maintenance of a flexible, motivated and 
high-calibre management team within the Group.
The Remuneration Committee reviewed the structure and 
levels of remuneration paid to Executive Directors at its 
meeting in October 2017. At this meeting the Committee 
considered a report prepared for it by Mercer Limited, an 
independent firm of consultants, which confirmed that the 
remuneration of the Company’s Executive Directors,  
as disclosed in note 9 to the financial statements, was 
comparable with that paid to equivalent executives in peer 
group companies.
No Director takes part in any discussion about his or her own 
remuneration.
The following fee levels have been approved by the Board:
The Remuneration Committee reviews and approves the 
management’s remuneration proposals with reference to the 
Board’s corporate goals and objectives.
The Remuneration Committee exercises the powers of the 
Board to determine the remuneration packages of individual 
Executive Directors (including salaries, bonuses, benefits in 
kind and the terms on which they participate in any 
provident fund or other retirement benefit scheme), taking 
into consideration salaries paid by comparable companies, 
time commitments and responsibilities and employment 
conditions elsewhere in the group.
The terms of reference of the Remuneration Committee 
have been reviewed with reference to the CG Code and are 
posted on the Company’s website.
A Services Agreement exists between the Company and John 
Swire & Sons (H.K.) Limited, a wholly-owned subsidiary of 
John Swire & Sons Limited, which is the parent company of 
the Swire group. This agreement has been considered in 
detail and approved by the Independent Non-Executive 
Directors of the Company. Under the terms of the 
agreement, staff at various levels, including Executive 
Directors, are seconded to the Company. These staff report 
to and take instructions from the Board of the Company but 
remain employees of the Swire group. Given its substantial 
equity interest in the Company, it is in the best interests of 
Fee
2017 
HK$
2018
HK$
Director’s Fee
575,000
575,000
Fee for Audit Committee Chairman
260,000
268,000
Fee for Audit Committee Member
180,000
186,000
Fee for Remuneration Committee Chairman
80,000
83,000
Fee for Remuneration Committee Member
58,000
60,000

66	
Swire Properties Annual Report    2017
Corporate Governance & Sustainability    Corporate Governance
Accountability and Audit
Financial Reporting
The Board acknowledges its responsibility for:
•	 the proper stewardship of the Company’s affairs, to ensure 
the integrity of financial information
•	 preparing annual and interim financial statements and 
other related information that give a true and fair view of 
the Group’s affairs and of its results and cash flows for the 
relevant periods, in accordance with Hong Kong Financial 
Reporting Standards and the Hong Kong Companies 
Ordinance
•	 selecting appropriate accounting policies and ensuring 
that these are consistently applied
•	 making judgements and estimates that are prudent and 
reasonable; and
•	 ensuring that the application of the going concern 
assumption is appropriate
Risk Management and Internal Control
The Board acknowledges its responsibility to establish, 
maintain and review the effectiveness of the Group’s risk 
management and internal control systems. This 
responsibility is primarily fulfilled on its behalf by the Audit 
Committee as discussed on pages 67 to 68.
The foundation of strong risk management and internal 
control systems is dependent on the ethics and culture of 
the organisation, the quality and competence of its 
personnel, the direction provided by the Board, and the 
effectiveness of management.
Since profits are, in part, the reward for successful risk taking 
in business, the risk management and internal control 
systems are designed to manage rather than eliminate the 
risk of failure to achieve business objectives, and can only 
provide reasonable and not absolute assurance against 
material misstatement or loss.
The key components of the Group’s control structure are  
as follows:
Culture: The Board believes that good governance reflects 
the culture of an organisation. This is more significant than 
any written procedures.
The Company aims at all times to act ethically and with 
integrity, and to instil this behaviour in all its employees by 
example from the Board down. The Company has a Code of 
Conduct, which is posted on its internal intranet site.
The Company is committed to developing and maintaining 
high professional and ethical standards. These are reflected 
in the rigorous selection process and career development 
plans for all employees. The organisation prides itself on 
being a long-term employer which instils in individuals, as 
they progress through the Group, a thorough understanding 
of the Company’s ways of thinking and acting.
Channels of communication are clearly established, allowing 
employees a means of communicating their views upwards 
with a willingness on the part of more senior personnel to 
listen. Employees are aware that, whenever the unexpected 
occurs, attention should be given not only to the event itself, 
but also to determining the cause.
Through the Company’s Code of Conduct, employees are 
encouraged (and instructed as to how) to report control 
deficiencies or suspicions of impropriety to those who are in 
a position to take necessary action.
Risk assessment: The Board of Directors and the 
management each have a responsibility to identify and 
analyse the risks underlying the achievement of business 
objectives, and to determine how such risks should be 
managed and mitigated.
Management structure: The Group has a clear 
organisational structure that, to the extent required, 
delegates the day-to-day responsibility for the design, 
documentation and implementation of procedures and 
monitoring of risk. Individuals appreciate where they will be 
held accountable in this process.
A control self-assessment process requires management to 
assess, through the use of detailed questionnaires, the 
adequacy and effectiveness of risk management and internal 
controls over the reliability of financial reporting, the 
effectiveness and efficiency of operations and compliance 
with applicable laws and regulations. This process and its 
results are reviewed by internal auditors and form part of the 
Audit Committee’s annual assessment of control 
effectiveness.
Controls and review: The control environment comprises 
policies and procedures intended to ensure that relevant 
management directives are carried out and actions that may 
be needed to address risks are taken. These may include 
approvals and verifications, reviews, safeguarding of assets 
and segregation of duties. Control activities can be divided 
into operations, financial reporting and compliance, although

Swire Properties Annual Report    2017	
67
there may, on occasion, be some overlap between them.  
The typical control activities include:
•	 analytical reviews: for example, conducting reviews of 
actual performance versus budgets, forecasts, prior 
periods and competitors
•	 direct functional or activity management: reviews of 
performance reports, conducted by managers in charge of 
functions or activities
•	 information-processing: performing controls intended to 
check the authorisation of transactions and the accuracy 
and completeness of their reporting, for example, 
exception reports
•	 physical controls: ensuring equipment, inventories, 
securities and other assets are safeguarded and subjected 
to periodic checks
•	 performance indicators: carrying out analyses of different 
sets of data, operational and financial, examining the 
relationships between them, and taking corrective action 
where necessary
•	 segregation of duties: dividing and segregating duties 
among different people, with a view to strengthening 
checks and minimising the risk of errors and abuse
The Company has in place effective processes and systems 
for the identification, capture and reporting of operational, 
financial and compliance-related information in a form and 
time-frame intended to ensure that staff carry out their 
designated responsibilities.
Internal audit: Independent of management, the Internal 
Audit department reports directly to the Chairman and 
performs regular reviews of key risk areas and monitors 
compliance with Group accounting, financial and operational 
procedures. The role of Internal Audit is discussed further on 
pages 68 and 69.
Audit Committee
The Audit Committee, consisting of three Non-Executive 
Directors, M.Y. Wu, L.K.L. Cheng and M.M.S. Low, assists the 
Board in discharging its responsibilities for corporate 
governance and financial reporting. Two of the Committee 
members are Independent Non-Executive Directors, one of 
whom, M.Y. Wu, is Chairman. M.Y. Wu succeeded P.K. 
Etchells as Chairman of the Audit Committee with effect from 
the conclusion of the Company’s 2017 Annual General 
Meeting held on 16th May 2017. L.K.L. Cheng and M.M.S. 
Low succeeded J.C.C. Chan and M. Cubbon as members of 
the Audit Committee with effect from 17th March 2017 and 
1st October 2017 respectively.
The terms of reference of the Audit Committee follow the 
guidelines set out by the Hong Kong Institute of Certified 
Public Accountants and comply with the CG Code. They are 
available on the Company’s website.
The Audit Committee met three times in 2017. Regular 
attendees at the meetings are the Finance Director, the 
Head of Internal Audit of the Swire group and the external 
auditors. The Audit Committee meets at least twice a year 
with the external auditors, and at least once a year with  
the Head of Internal Audit, without the presence of 
management. Each meeting receives written reports  
from the external auditors and Internal Audit. The valuer 
(Cushman & Wakefield Limited) also attended two of  
the meetings.
The work of the Committee during 2017 included reviews of 
the following matters:
•	 the completeness, accuracy and integrity of formal 
announcements relating to the Group’s performance 
including the 2016 annual and 2017 interim reports and 
announcements, with recommendations to the Board  
for approval
•	 the Group’s compliance with regulatory and statutory 
requirements
•	 the Group’s risk management and internal control systems
•	 the Group’s risk management processes
•	 the approval of the 2018 annual Internal Audit programme 
and review of progress on the 2017 programme
•	 periodic reports from Internal Audit and progress in 
resolving any matters identified in them
•	 significant accounting and audit issues
•	 the Company’s policy regarding connected transactions 
and the nature of such transactions
•	 the relationship with the external auditors as discussed on 
page 69
•	 the Company’s compliance with the CG Code
In 2018, the Committee has reviewed, and recommended to 
the Board for approval, the 2017 financial statements.
Assessing the Effectiveness of Risk Management 
and Internal Control Systems
On behalf of the Board, the Audit Committee reviews 
annually the continued effectiveness of the Group’s risk 
management and internal control systems dealing with risk 
and financial accounting and reporting, the effectiveness 
and efficiency of operations, compliance with laws and 
regulations, and risk management functions.

68	
Swire Properties Annual Report    2017
Corporate Governance & Sustainability    Corporate Governance
This assessment considers:
•	 the scope and quality of management’s ongoing 
monitoring of risks and of the risk management and 
internal control systems, the work and effectiveness of 
Internal Audit and the assurances provided by the  
Finance Director
•	 the changes in the nature and extent of significant risks 
since the previous review and the Group’s ability to 
respond to changes in its business and the external 
environment
•	 the extent and frequency with which the results of 
monitoring are communicated, enabling the Committee to 
build up a cumulative assessment of the state of control in 
the Group and the effectiveness with which risk is being 
managed
•	 the incidence of any significant control failings or 
weaknesses that have been identified at any time during 
the period and the extent to which they have resulted in 
unforeseen outcomes or contingencies that have had, 
could have had, or may in the future have, a material 
impact on the Company’s financial performance  
or condition
•	 the effectiveness of the Company’s processes in relation to 
financial reporting and statutory and regulatory 
compliance
•	 areas of risk identified by management
•	 significant risks reported by Internal Audit
•	 work programmes proposed by both Internal Audit and the 
external auditors
•	 significant issues arising from internal and external  
audit reports
•	 the results of management’s control self assessment 
exercise
As a result of the above review, the Board confirms, and 
management has also confirmed to the Board, that the 
Group’s risk management and internal control systems are 
effective and adequate and have complied with the CG Code 
provisions on risk management and internal control 
throughout the year and up to the date of this annual report.
Company Secretary
The Company Secretary is an employee of the Company and 
is appointed by the Board. The Company Secretary is 
responsible for facilitating the Board’s processes and 
communications among Board members, with shareholders 
and with management. The Company Secretary undertakes 
at least 15 hours of relevant professional training annually to 
update his skills and knowledge.
Internal Audit Department
The Swire group has had an Internal Audit Department (“IA”) 
in place for 22 years. IA plays a critical role in monitoring the 
governance of the Group. The department is staffed by 25 
audit professionals and conducts audits of the Group and of 
other companies in the Swire group. The 25 professionals 
include a team based in Mainland China which reports to IA 
in Hong Kong.
IA reports directly to the Chairman of the Board and, without 
the need to consult with management, to the Chairman of 
the Audit Committee and via him to the Board. IA has 
unrestricted access to all areas of the Group’s business units, 
assets, records and personnel in the course of conducting  
its work.
The annual IA work plan and resources are reviewed and 
agreed with the Audit Committee.
Scope of Work
Business unit audits are designed to provide assurance that 
the risk management and internal control systems of the 
Company are implemented properly and operating 
effectively, and that the risks associated with the 
achievement of business objectives are being properly 
identified, monitored and managed.
The frequency of each audit is determined by IA using its 
own risk assessment methodology, which is based on the 
COSO (Committee of Sponsoring Organizations of the 
Treadway Commission) internal control framework, 
considering such factors as recognised risks, organisational 
change, overall materiality of each unit, previous IA results, 
external auditors’ comments, output from the work of the 
Swire Pacific Group Risk Management Committee and 
management’s views. Each business unit is typically audited 
at least once every three years. Acquired businesses would 
normally be audited within 12 months. 14 assignments were 
conducted for Swire Properties in 2017.
IA specifically assists the Audit Committee in carrying out the 
analysis and independent appraisal of the adequacy and 
effectiveness of the Group’s risk management and internal

Swire Properties Annual Report    2017	
69
control systems through its review of the process by which 
management has completed the annual Control Self 
Assessment, and the results of this assessment.
IA conducts ad-hoc projects and investigative work as may 
be required by management or the Audit Committee.
Audit Conclusion and Response
Copies of IA reports are sent to the Chairman of the Board, 
the Chief Executive, the Finance Director and the external 
auditors. The results of each review are also presented to the 
Audit Committee.
Management is called upon to present action plans in 
response to IA’s recommendations, including those aimed at 
resolving material internal control defects. These are agreed 
by IA, included in its reports and followed up with a view to 
ensuring that they are satisfactorily undertaken.
External Auditors
The Audit Committee acts as a point of contact, independent 
from management, with the external auditors (the 
“auditors”). The auditors have direct access to the Chairman 
of the Audit Committee, who meets with them periodically 
without management present.
The Audit Committee’s duties in relation to the auditors 
include:
•	 recommending to the Board, for approval by shareholders, 
the auditors’ appointment
•	 approval of the auditors’ terms of engagement
•	 consideration of the letters of representation to be 
provided to the auditors in respect of the interim and 
annual financial statements
•	 review of reports and other ad-hoc papers from  
the auditors
•	 annual appraisal of the quality and effectiveness of  
the auditors
•	 assessment of the auditors’ independence and objectivity, 
including the monitoring of non-audit services provided, 
with a view to ensuring that their independence and 
objectivity are not, and are not seen to be, compromised
•	 approval of audit and non-audit fees
Auditors’ Independence
Independence of the auditors is of critical importance to the 
Audit Committee, the Board and shareholders. The auditors 
write annually to the members of the Audit Committee 
confirming that they are independent accountants within 
the meaning of Section 290 of the Code of Ethics for 
Professional Accountants of the Hong Kong Institute of 
Certified Public Accountants and that they are not aware of 
any matters which may reasonably be thought to bear on 
their independence. The Audit Committee assesses the 
independence of the auditors by considering and discussing 
each such letter (and having regard to the fees payable to 
the auditors for audit and non-audit work and the nature of 
the non-audit work) at a meeting of the Audit Committee.
Provision of Non-audit Services
In deciding whether the auditors should provide non-audit 
services the following key principles are considered:
•	 the auditors should not audit their own firm’s work
•	 the auditors should not make management decisions
•	 the auditors’ independence should not be impaired
•	 quality of service
In addition, any services which may be considered to be in 
conflict with the role of the auditors must be submitted to 
the Audit Committee for approval prior to engagement, 
regardless of the amounts involved.
Fees paid to the auditors are disclosed in note 7 to the 
financial statements.
Inside Information
With respect to procedures and internal controls for the 
handling and dissemination of inside information,  
the Company:
•	 is required to disclose inside information as soon as 
reasonably practicable in accordance with the Securities 
and Futures Ordinance and the Listing Rules 
•	 conducts its affairs with close regard to the “Guidelines on 
Disclosure of Inside Information” issued by the Securities 
and Futures Commission
•	 has included in its Corporate Code of Conduct a strict 
prohibition on the unauthorised use of confidential or 
inside information
•	 ensures, through its own internal reporting processes and 
the consideration of their outcome by senior 
management, the appropriate handling and dissemination 
of inside information.

70	
Swire Properties Annual Report    2017
Corporate Governance & Sustainability    Corporate Governance
Shareholders
Communication with Shareholders and Investors
The Board and senior management recognise their 
responsibility to represent the interests of all shareholders 
and to maximise shareholder value. Communication with 
shareholders and accountability to shareholders is a high 
priority of the Company.
The methods used to communicate with shareholders 
include the following:
•	 The Chief Executive and Finance Director make 
themselves available for meetings with major 
shareholders, investors and analysts over two-month 
periods immediately after the announcement of the 
interim and annual results and at certain other times 
during the year. In addition, they attended regular 
meetings with analysts and investors in Hong Kong, 
analyst briefings, investor group briefings, overseas 
roadshows and investor conferences during the year
•	 through the Company’s website. This includes electronic 
copies of financial reports, audio webcasts of analyst 
presentations given at the time of the interim and annual 
results announcements, slides of presentations given at 
investor conferences, latest news, public announcements 
and general information about the Group’s businesses
•	 through publication of interim and annual reports
•	 through the Annual General Meeting as discussed below
Shareholders may send their enquiries and concerns to the 
Board by post or email at ir@swireproperties.com. The 
relevant contact details are set out in the Financial 
Calendar and Information for Investors section of this 
Annual Report.
The Annual General Meeting
The Annual General Meeting is an important forum in which 
to engage with shareholders. The most recent Annual 
General Meeting was held on 16th May 2017. The meeting 
was open to all shareholders and to the press. The Directors 
who attended the meeting are shown in the table on  
page 63.
At the Annual General Meeting, separate resolutions  
were proposed for each issue and were voted on by poll. 
The procedures for conducting a poll were explained  
at the meeting prior to the polls being taken. The agenda 
items were:
•	 receiving the report of the Directors and the  
audited financial statements for the year ended  
31st December 2016
•	 electing/re-electing Directors
•	 re-appointing the auditors and authorising the  
Directors to set their remuneration
•	 a general mandate authorising the Directors to make 
on-market share buy-backs
•	 a general mandate authorising the Directors to allot  
and issue shares up to 20% of the number of shares  
then in issue, provided that the aggregate number of  
the shares so allotted wholly for cash would not exceed  
5% of the number of the shares then in issue
Minutes of the meeting together with voting results are 
available on the Company’s website.
Shareholder Engagement
Pursuant to Article 95 of the Company’s Articles of 
Association, if a shareholder wishes to propose a person 
other than a retiring Director for election as a Director at a 
general meeting, he or she should deposit a written notice of 
nomination at the registered office of the Company within 
the 7-day period commencing on and including the day after 
the despatch of the notice of the meeting. The procedures 
for nominating candidates to stand for election as Directors 
at general meetings are set out in the Corporate Governance 
Section of the Company’s website.
If they wish to propose a resolution relating to other matters 
to be considered at a general meeting, shareholders are 
requested to follow the requirements and procedures set out 
in the Corporate Governance Section of the Company’s 
website.
Shareholder(s) representing at least 5% of the total voting 
rights of all members may request the Board to convene a 
general meeting. The objects of the meeting must be stated 
in the related requisition deposited at the Company’s 
registered office. Detailed requirements and procedures are 
set out in the Corporate Governance Section of the 
Company’s website.
Other Information for Shareholders
Key shareholder dates for 2018 are set out in the section of 
this annual report headed Financial Calendar and 
Information for Investors and in the Financial Calendar on 
the Company’s website.
No amendment has been made to the Company’s Articles of 
Association during the year.

Swire Properties Annual Report    2017	
71
The Board is responsible for evaluating and determining the 
nature and extent of the risks it is willing to take in achieving 
the Company’s strategic objectives, and ensuring that the 
Company establishes and maintains appropriate and 
effective risk management and internal control systems.
The Board and management are responsible for identifying 
and analysing the risks underlying the achievement of 
business objectives, and for determining how such risks 
should be managed and mitigated. The Board oversees 
management in the design, implementation and monitoring 
of the risk management and internal control systems, and 
management provides confirmations to the Board on the 
effectiveness of these systems.
The management of risks is subject to audit by the IA,  
with support from specialist external consultants  
where necessary.
Further discussion of risk management is set out in the 
sections of the Corporate Governance Report headed 
“Accountability and Audit – Risk Management and Internal 
Control”, “Audit Committee – Assessing the Effectiveness of 
Risk Management and Internal Control Systems” and 
“Internal Audit Department – Scope of Work” on pages  
66 to 67, pages 67 to 68 and pages 68 to 69 respectively.
Executive Committee
The Executive Committee meets twice a month and is 
responsible for overseeing the day-to-day operations of the 
Company. It comprises two Executive Directors and nine 
members of senior management. The Chief Executive chairs 
the Executive Committee.
The Executive Committee provides oversight of all the risks 
to which the Group is subject and is responsible for the 
design, implementation and monitoring of the relevant risk 
management and internal control systems of the Group. 
Matters of significance that arise are reported as appropriate 
to the Board of Directors.
Financial Risk Management
The Group’s approach to financial risk management is 
discussed in note 2 to the financial statements.
Risk  
Management

72	
Swire Properties Annual Report    2017
Executive Directors
SLOSAR, John Robert, aged 61, has been Chairman and a 
Director of the Company since March 2014. He is also 
Chairman of John Swire & Sons (H.K.) Limited, Swire Pacific 
Limited, Cathay Pacific Airways Limited and Hong Kong 
Aircraft Engineering Company Limited and a Director of  
Air China Limited, The Hongkong and Shanghai Banking 
Corporation Limited and PureCircle Limited. He joined the 
Swire group in 1980 and has worked with the group in Hong 
Kong, the United States and Thailand.
BRADLEY, Guy Martin Coutts, aged 52, has been a Director 
of the Company since January 2008 and Chief Executive 
since January 2015. He is also a Director of John Swire & Sons 
(H.K.) Limited. He joined the Swire group in 1987 and has 
worked with the group in Hong Kong, Papua New Guinea, 
Japan, the United States, Vietnam, Mainland China, Taiwan 
and the Middle East. He is a chartered surveyor and a 
member of The Royal Institution of Chartered Surveyors and 
The Hong Kong Institute of Surveyors.
LUNG, Ngan Yee Fanny, aged 51, has been Finance Director 
of the Company since October 2017. She was previously 
Group Director Finance of Hong Kong Aircraft Engineering 
Company Limited. She joined the Swire group in 1992.
Non-Executive Directors
HEALY, Patrick, aged 52, has been a Director of the 
Company since January 2015. He is also a Director of John 
Swire & Sons (H.K.) Limited and Executive Director of the 
Beverages Division of Swire Pacific Limited. He joined the 
Swire group in 1988 and has worked with the group in  
Hong Kong, Germany and Mainland China.
LIM, Siang Keat Raymond, aged 58, has been a Director of 
the Company since July 2013. He is also Senior Adviser to 
John Swire & Sons (H.K.) Limited. He is Executive Chairman 
of APS Asset Management Pte Ltd and a Director of Hong 
Leong Finance Limited and Raffles Medical Group Ltd.  
He was a Member of the Singapore Parliament from 2001  
to 2015.
LOW, Mei Shuen Michelle, aged 57, has been a Director of 
the Company since September 2010. She is also Finance 
Director of Swire Pacific Limited and a Director of John Swire 
& Sons (H.K.) Limited and Cathay Pacific Airways Limited. 
She joined the Swire group in 1987.
SWIRE, Merlin Bingham, aged 44, has been a Director of the 
Company since January 2009. He is also Deputy Chairman 
and Chief Executive and a shareholder of John Swire & Sons 
Limited and a Director of Swire Pacific Limited, Cathay Pacific 
Airways Limited and Hong Kong Aircraft Engineering 
Company Limited. He joined the Swire group in 1997 and has 
worked with the group in Hong Kong, Australia, Mainland 
China and London.
Directors and 
Officers

Swire Properties Annual Report    2017	
73
Independent Non-Executive Directors
BRADLEY, Stephen Edward, aged 59, has been a Director of 
the Company since April 2010. He is Vice Chairman of RKR 
Capital Pte. Ltd. and a Director of Shanghai CFETS-NEX 
International Money Broking Co., Ltd. and Husky Energy Inc.
CHENG, Lily Ka Lai, aged 39, has been a Director of the 
Company since March 2017. She is an Independent Non-
Executive Director of Octopus Cards Limited as well as a 
Board Observer and Adviser to HotelBeds Group. She is an 
Executive Director of Hubel Labs Limited. She served in 
senior management roles at TripAdvisor, Inc. and Expedia, 
Inc. from 2008 to 2016.
FUNG, Spencer Theodore, aged 44, has been a Director of 
the Company since December 2012. He is an Executive 
Director and Group Chief Executive Officer of Li & Fung 
Limited. He is also a Member of the General Committee of 
The Hong Kong Exporters’ Association, a Director of the 
Young Presidents’ Organisation and a Member of the Board 
of Trustees at Northeastern University.
LIU, Sing Cheong, JP, aged 62, has been a Director of the 
Company since April 2010. He is Chairman of My Top Home 
(China) Holdings Limited and an Independent Non-Executive 
Director of Prada S.p.A.
WU, May Yihong, aged 50, has been a Director of the 
Company since May 2017. She is Chief Strategy Officer of 
Homeinns Hotel Group and an Independent Director of Noah 
Holdings Limited.
Company Secretary
FU, Yat Hung David, aged 54, has been Company Secretary 
since February 2010. He joined the Swire group in 1988. He is 
a member of the Takeovers and Mergers Panel and the 
Takeovers Appeal Committee of the Securities and Futures 
Commission of Hong Kong. He is also a member of the 
Standing Committee on Company Law Reform and President 
of The Hong Kong Institute of Chartered Secretaries.
Notes:
1.	 The Audit Committee comprises M.Y. Wu (committee chairman), 
L.K.L. Cheng and M.M.S. Low.
2.	 The Remuneration Committee comprises S.C. Liu (committee 
chairman), S.E. Bradley and M.B. Swire.
3.	 G.M.C. Bradley, P. Healy, M.M.S. Low, F.N.Y. Lung, J.R. Slosar and 
M.B. Swire are employees of the John Swire & Sons Limited group.

74	
Swire Properties Annual Report    2017
The Directors submit their report together with the audited 
financial statements for the year ended 31st December 
2017, which are set out on pages 90 to 155.
Principal Activities
The principal activities of Swire Properties Limited (the 
“Company”) and its subsidiaries (together, the “Group”) 
are: (i) property investment, that is the development, 
leasing and management of commercial, retail and some 
residential properties; (ii) property trading, that is the 
development and construction of properties, principally 
residential apartments, for sale; and (iii) investment in and 
operation of hotels.
The principal activities of the Company’s principal 
subsidiary, joint venture and associated companies are 
shown on pages 153 to 155. An analysis of the Group’s 
performance for the year by reportable business segment 
and geographical area is set out in note 8 to the financial 
statements.
Consolidated Financial Statements
The consolidated Financial Statements incorporate the 
financial statements of the Company and its subsidiaries 
(collectively referred to as the “Group”) together with the 
Group’s interests in joint venture and associated 
companies. Details of the joint venture and associated 
companies are provided in notes 19 and 20 to the financial 
statements.
Dividends
The Directors have declared a second interim dividend of 
HK$0.52 per share for the year ended 31st December 2017. 
Together with the first interim dividend of HK$0.25 per share 
paid on 11th October 2017, this makes a total dividend for 
the year of HK$0.77 (2016: HK$0.71) per share. This 
represents a total distribution for the year of HK$4,505 
million. The second interim dividend, which totals HK$3,042 
million (2016: HK$2,808 million), will be paid on 3rd May 
2018 to shareholders registered at the close of business on 
the record date, being Friday, 6th April 2018. Shares of the 
Company will be traded ex-dividend as from Tuesday,  
3rd April 2018.
Closure of Register of Members
The register of members will be closed on Friday, 6th April 
2018, during which day no transfer of shares will be effected. 
In order to qualify for entitlement to the second interim 
dividend, all transfer forms accompanied by the relevant 
share certificates must be lodged with the Company’s share 
registrars, Computershare Hong Kong Investor Services 
Limited, 17th Floor, Hopewell Centre, 183 Queen’s Road East, 
Hong Kong, for registration not later than 4:30 p.m. on 
Wednesday, 4th April 2018.
To facilitate the processing of proxy voting for the annual 
general meeting to be held on 8th May 2018, the register of 
members will be closed from 3rd May 2018 to 8th May 2018, 
both days inclusive, during which period no transfer of shares 
will be effected. In order to be entitled to attend and vote at 
Directors’  
Report

Swire Properties Annual Report    2017	
75
the annual general meeting, all transfer forms accompanied 
by the relevant share certificates must be lodged with the 
Company’s share registrars, Computershare Hong Kong 
Investor Services Limited, 17th Floor, Hopewell Centre,  
183 Queen’s Road East, Hong Kong, for registration not later 
than 4:30 p.m. on Wednesday, 2nd May 2018.
Business Review
A fair review of the Group’s business, a description of the 
principal risks and uncertainties facing the Group, particulars 
of important events affecting the Group that have occurred 
since the end of the financial year and an indication of the 
likely future development of the Group’s business (including, 
in each case to the extent necessary for an understanding of 
the development, performance or position of the Group’s 
business and key performance indicators) are provided in 
the sections of this annual report headed Chairman’s 
Statement, Key Business Strategies, Review of Operations, 
Financial Review and Financing and in the notes to the 
financial statements. To the extent necessary for an 
understanding of the development, performance or position 
of the Group’s business, a discussion of the Group’s 
environmental policies and performance and an account of 
the Group’s key relationships with its employees, customers 
and suppliers and others that have a significant impact on 
the Group and on which the Group’s success depends are 
provided in the section of this annual report headed 
Sustainable Development. To the extent necessary for an 
understanding of the development, performance or position 
of the Group’s business, a discussion of the Group’s 
compliance with the relevant laws and regulations that have 
a significant impact on the Group is provided in the sections 
of this annual report headed Sustainable Development, 
Corporate Governance and Directors’ Report.
Reserves
Movements in the reserves of the Group and the Company 
during the year are set out in notes 35 and 36 to the  
financial statements.
Share Capital
There was no purchase, sale or redemption by the Company, 
or any of its subsidiaries, of the Company’s shares during  
the year and the Group has not adopted any share  
option scheme.
At 31st December 2017, 5,850,000,000 shares were in issue 
(31st December 2016: 5,850,000,000 shares). Details of the 
movement of share capital are set out in note 34 to the 
financial statements.
Accounting Policies
The principal accounting policies of the Group are set out in 
the section of this annual report headed Principal  
Accounting Policies.
Auditors
PricewaterhouseCoopers retire and, being eligible, offer 
themselves for re-appointment. A resolution for the  
re-appointment of PricewaterhouseCoopers as auditors of 
the Company is to be proposed at the forthcoming Annual 
General Meeting.
Financial Review
A review of the consolidated results, financial position and 
cash flows is shown in the section of this annual report 
headed Financial Review. A ten-year financial summary of 
the results and of the assets and liabilities of the Group is 
shown in the section of this annual report headed Ten-Year 
Financial Summary.
Corporate Governance
The Company complied with all the code provisions set out in 
the Corporate Governance Code (“CG Code”) contained in 
Appendix 14 to the Listing Rules throughout the year 
covered by the annual report with the following exceptions 
which it believes do not benefit shareholders:
•	 Sections A.5.1 to A.5.4 of the CG Code in respect of the 
establishment, terms of reference and resources of a 
nomination committee. The Board has considered the 
merits of establishing a nomination committee but has 
concluded that it is in the best interests of the Company 
and potential new appointees that the Board collectively 
reviews and approves the appointment of any new Director 
as this allows a more informed and balanced decision to be 
made by the Board as to suitability for the role.
Details of the Company’s corporate governance practices  
are set out in the section of this annual report headed 
Corporate Governance.

76	
Swire Properties Annual Report    2017
Corporate Governance & Sustainability    Directors’ Report
Environmental, Social and Governance
The Company has complied or will comply with all the 
applicable provisions set out in the Environmental, Social and 
Governance Reporting Guide contained in Appendix 27 to 
the Listing Rules for the year covered by the annual report.
Donations
During the year, the Group made donations for charitable 
purposes of HK$18 million and donations towards various 
scholarships of HK$0.3  million.
Fixed Assets
For details of movements in fixed assets refer to notes 15 
and 16 to the financial statements.
The annual valuation of the Group’s investment property 
portfolio, whether completed or in the course of 
development, was carried out by professionally qualified 
valuers (94% by value having been valued by Cushman & 
Wakefield Limited and 3% by value having been valued by 
another independent valuer) on the basis of open market 
value at 31st December 2017. This valuation resulted in an 
increase of HK$25,463 million in the carrying value of the 
investment property portfolio.
A schedule of the principal properties of the Group and its 
joint venture and associated companies is given in the 
section of this annual report headed Schedule of Principal 
Group Properties.
Borrowings
For details of the Group’s borrowings refer to the section of 
this annual report headed Financing.
Interest
For details of the amount of interest capitalised by the Group 
refer to page 54.
Major Customers and Suppliers
During the year, less than 30% of the Group’s sales and less 
than 30% of the Group’s purchases were attributable to the 
Group’s five largest customers and suppliers respectively.
Directors
The Directors of the Company at the date of this report are 
listed in the section of this annual report headed Directors and 
Officers. L.K.L. Cheng, M.Y. Wu and F.N.Y. Lung were appointed 
as Directors of the Company with effect from 17th March 
2017, 15th May 2017 and 1st October 2017 respectively. J.C.C. 
Chan and M. Cubbon resigned as Directors of the Company 
with effect from 17th March 2017 and 1st October 2017 
respectively. P.K. Etchells resigned as a Director of the 
Company with effect from the conclusion of the Company’s 
2017 Annual General Meeting held on 16th May 2017. All the 
other Directors at the date of this report served throughout 
the calendar year 2017.
Independence Confirmation
The Company has received from all of its Independent Non-
Executive Directors (listed in the section of this annual report 
headed Directors and Officers) confirmation of their 
independence pursuant to Listing Rule 3.13 and considers all 
of them to be independent.
The Board considers that all of its Independent Non-Executive 
Directors are independent in character and judgement and 
fulfil the independence guidelines set out in Rule 3.13 of the 
Listing Rules.
Term of Appointment
Article 93 of the Company’s Articles of Association provides for 
all Directors to retire at the third annual general meeting 
following their election by ordinary resolution. In accordance 
therewith, P. Healy retires this year and, being eligible, offers 
himself for re-election. F.N.Y. Lung, having been appointed to 
the Board under Article 91 since the last annual general 
meeting, also retires this year and offers herself for election.
Each of the Directors has entered into a letter of appointment, 
which constitutes a service contract, with the Company for a 
term of up to three years until retirement under Article 91 or 
Article 93 of the Articles of Association of the Company, which 
will be renewed for a term of three years upon each election or 
re-election. No Director has a service contract with the 
Company which is not determinable by the employer within 
one year without payment of compensation (other than 
statutory compensation).
Fees and Emoluments
Full details of Directors’ fees and emoluments are set out in 
note 9 to the financial statements.
Directors’ fees paid to the Independent Non-Executive 
Directors during the year totalled HK$3.5 million. They  
received no other emoluments from the Group.

Swire Properties Annual Report    2017	
77
Directors’ Interests
At 31st December 2017, the register maintained under Section 352 of the Securities and Futures Ordinance (“SFO”) showed that 
Directors held the following interests in the shares of Swire Properties Limited and its associated corporations (within the 
meaning of Part XV of the SFO), John Swire & Sons Limited and Swire Pacific Limited:
Capacity
Percentage
of Voting
Shares (%)
Note
Beneficial Interest
Trust
Interest
Total No.
of Shares
Personal
Family
Swire Properties Limited
S.E. Bradley
700
–
–
700
0.00001
L.K.L. Cheng
1,000
–
–
1,000
0.00002
Total No.
of Shares
Percentage
of Issued
Share Capital
(comprised
in the class)
(%)
Note
Capacity
Beneficial Interest
Trust
Interest
Personal
Family
John Swire & Sons Limited
Ordinary Shares of £1
M.B. Swire
2,075,023
130,000
17,546,068
19,751,091
19.75
(1)
8% Cum. Preference Shares of £1
M.B. Swire
2,769,489
–
12,175,623
14,945,112
16.61
(1)
Total No.
of Shares
Percentage
of Voting
Shares
(comprised
in the class)
(%)
Note
Capacity
Beneficial Interest
Trust
Interest
Personal
Family
Swire Pacific Limited
‘A’ shares
S.E. Bradley
1,000
–
–
1,000
0.0001
L.K.L. Cheng
10,000
–
–
10,000
0.0011
Note:
(1)	M.B. Swire is a trustee and/or a potential beneficiary of trusts which held 6,222,732 ordinary shares and 1,963,221 preference shares in  
John Swire & Sons Limited included under “Trust interest” and does not have any beneficial interest in those shares.
Other than as stated above, no Director or Chief Executive of 
the Company had any interest or short position, whether 
beneficial or non-beneficial, in the shares or underlying shares 
and debentures of the Company or any of its associated 
corporations (within the meaning of Part XV of the SFO).
Neither during nor prior to the year under review has any  
right been granted to, or exercised by, any Director of the 
Company, or to or by the spouse or minor child of any 
Director, to subscribe for shares, warrants or debentures of 
the Company.
Other than as stated in this report, no transaction, 
arrangement or contract of significance to which the Group 
was a party and in which a Director or an entity connected 
with a Director is or was materially interested, either directly 
or indirectly, subsisted during or at the end of the year.
At no time during the year was the Company, or any of its 
associated corporations, a party to any arrangements to 
enable the Directors of the Company to acquire benefits by 
means of the acquisition of shares in or debentures of the 
Company or any other body corporate.

78	
Swire Properties Annual Report    2017
Corporate Governance & Sustainability    Directors’ Report
Directors’ Interests in Competing 
Businesses
None of the Directors or their respective close associates has 
any competing interests which need to be disclosed 
pursuant to Rule 8.10 of the Listing Rules.
Directors of Subsidiaries
The names of all directors who have served on the boards of 
the subsidiaries of the Company during the year ended 31st 
December 2017 or during the period from 1st January 2018 
to the date of this Report are available on the Company’s 
website www.swireproperties.com.
Permitted Indemnity
Subject to the Companies Ordinance (Cap. 622 of the Laws of 
Hong Kong), every Director is entitled under the Company’s 
Articles of Association to be indemnified out of the assets of 
the Company against all costs, charges, expenses, losses and 
liabilities which he or she may sustain or incur in or about the 
execution or discharge of his or her duties and/or the 
exercise of his or her powers and/or otherwise in relation to 
or in connection with his or her duties, powers or office. To 
the extent permitted by such Ordinance, the Company has 
taken out insurance against the liability and costs associated 
with defending any proceedings which may be brought 
against directors of companies in the Group.
Long position
Number of Shares
Percentage of Voting Shares (%)
Type of Interest (notes)
1. Swire Pacific Limited
4,796,765,835
82.00
Beneficial owner (1)
2. John Swire & Sons Limited
4,796,765,835
82.00
Attributable interest (2)
Notes:
At 31st December 2017:
(1)	Swire Pacific Limited was interested in 4,796,765,835 shares of the Company as beneficial owner;
(2)	John Swire & Sons Limited and its wholly owned subsidiary John Swire & Sons (H.K.) Limited were deemed to be interested in a total of 
4,796,765,835 shares of the Company, in which Swire Pacific Limited was interested, by virtue of the John Swire & Sons Limited group being 
interested in 55.06% of the equity of Swire Pacific Limited and controlling 63.88% of the voting rights attached to shares in Swire Pacific Limited.
Substantial Shareholders’ and Other Interests
The register of interests in shares and short positions maintained under Section 336 of the SFO shows that at 31st December 
2017 the Company had been notified of the following interests in the shares of the Company held by substantial shareholders 
and other persons:
Public Float
Listing Rule 8.08(1) of the Listing Rules requires that at least 
25% of an issuer’s total number of issued shares must at all 
times be held by the public. The Company has been granted 
by The Stock Exchange of Hong Kong Limited (the “Stock 
Exchange”) a waiver from strict compliance with Listing Rule 
8.08(1) so as to allow a lower public float percentage of 10% 
(or such higher percentage as was held by the public upon 
completion of the listing of the shares of the Company on 
the Stock Exchange). On such completion on 18th January 
2012, the public float percentage was approximately 10.28%. 
From information that is publicly available to the Company 
and within the knowledge of its Directors at the date of this 
report, at least 10.28% of the Company’s total number of 
issued shares are held by the public.
Continuing Connected Transactions
During the year ended 31st December 2017, the Group had 
the following continuing connected transactions, details of 
which are set out below:
(a)	Services Agreement
There is an agreement for services (“Services 
Agreement”), in respect of which John Swire & Sons 
(H.K.) Limited (“JSSHK”), a wholly-owned subsidiary of 
John Swire & Sons Limited (“Swire”), provided to the 
Company and its subsidiaries advice and expertise of the 
directors and senior officers of the Swire group, full or 
part time services of members of the staff of the Swire 
group, other administrative and similar services and such 
other services as may be agreed from time to time, and 
procured for the Company and its subsidiary, joint

Swire Properties Annual Report    2017	
79
venture and associated companies the use of relevant 
trademarks owned by Swire. No fee is payable in 
consideration of such procuration obligation or such use. 
The procuration obligation would fall away if the Services 
Agreement were terminated or not renewed.
In return for these services, JSSHK receives annual 
service fees calculated as 2.5% of the Company’s 
consolidated profit before taxation and non-controlling 
interests after certain adjustments. The fees for each 
year are payable in cash in arrear in two instalments,  
an interim payment by the end of October and a final 
payment by the end of April of the following year, 
adjusted to take account of the interim payment. The 
Company also reimburses the Swire group at cost for all 
the expenses incurred in the provision of the services.
The Services Agreement, which was entered into 
between JSSHK and the Company on 1st December 
2004, took effect from 1st January 2005, was renewed 
on 1st October 2007, was amended and restated with 
effect from 1st January 2010, and was renewed again on 
1st October 2010, 14th November 2013 and 1st October 
2016. The current term of the Services Agreement is 
from 1st January 2017 to 31st December 2019 and it is 
renewable for successive periods of three years 
thereafter unless either party to it gives to the other 
notice of termination of not less than three months 
expiring on any 31st December.
Particulars of the fees paid and the expenses reimbursed 
for the year ended 31st December 2017 are given in 
note 41 to the financial statements.
(b)	Tenancy Framework Agreement
The Company, JSSHK and Swire Pacific entered into a 
tenancy framework agreement (“Tenancy Framework 
Agreement”) on 14th August 2014 to govern existing 
and future tenancy agreements between members of 
the Group, members of the JSSHK group and members 
of the Swire Pacific group. Pursuant to the Tenancy 
Framework Agreement, members of the Group, 
members of the JSSHK group and members of the Swire 
Pacific group enter into tenancy agreements from time 
to time on normal commercial terms based on prevailing 
market rentals. The Tenancy Framework Agreement 
took effect from 1st January 2014 and was renewed on 
1st October 2015. The current term of the Tenancy 
Framework Agreement is from 1st January 2016 to  
31st December 2018 and it is renewable for successive 
periods of three years thereafter unless any party to it 
gives to the other parties notice of termination of not 
less than three months expiring on any 31st December.
For the year ended 31st December 2017, the aggregate 
rentals payable to the Group under the tenancies  
subject to the Tenancy Framework Agreement totalled  
HK$215 million.
At 31st December 2017, the Swire group was interested in 
55.06% of the equity of Swire Pacific and controlled 63.88%  
of the voting rights attached to shares in Swire Pacific and 
Swire Pacific owned 82.00% of the Company’s total number  
of issued shares. JSSHK, as a wholly-owned subsidiary of  
Swire, and Swire Pacific are therefore connected persons of 
the Company under the Listing Rules. The transactions under 
the Services Agreement and the Tenancy Framework 
Agreement are continuing connected transactions in respect 
of which announcements dated 19th August 2016 and  
20th August 2015 respectively were published.
As directors and/or employees of (or in one case as an adviser 
to) the Swire group, G.M.C. Bradley, P. Healy, R.S.K. Lim, M.M.S. 
Low, F.N.Y. Lung, J.R. Slosar and M.B. Swire are interested in the 
Services Agreement and the Tenancy Framework Agreement. 
Before he ceased to be a director of the Company, M. Cubbon 
was so interested as a director and an employee of the Swire 
group. M.B. Swire is so interested as a shareholder of Swire.
The Independent Non-Executive Directors of the Company, 
who are not interested in any connected transactions with  
the Group, have reviewed and confirmed that the continuing 
connected transactions as set out above have been entered 
into by the Group in the ordinary and usual course of  
business of the Group, on normal commercial terms or better, 
and according to the agreements governing them on terms 
that are fair and reasonable and in the interests of the 
shareholders of the Company as a whole.
The auditors of the Company have also reviewed these 
transactions and confirmed to the Board that nothing has 
come to their attention that causes them to believe that they 
have not been approved by the Board of the Company; that 
they were not, in all material respects, in accordance with the 
pricing policies of the Group if the transactions involve the 
provision of goods or services by the Group; that they were  
not entered into, in all material respects, in accordance with 
the relevant agreements governing the transactions; and that 
the relevant annual caps have been exceeded.
On behalf of the Board
John Slosar
Chairman
Hong Kong, 15th March 2018

80	
Swire Properties Annual Report    2017
Sustainable 
Development
We believe that long-term value creation depends on the sustainable 
development of our business and the communities in which we operate.
In 2017, Swire Properties continued with its sustainable development 2030 strategy (“SD 2030 Strategy”). 
The strategy incorporates specific commitments. Working closely with all relevant parties, the strategy is 
designed to build sustainable development (“SD”) capability in all of our business activities. Our SD 2030 
Strategy is built on five strategic pillars:
Places  |  People  |  Partners  |  Performance (Environment)  |  Performance (Economic)
In 2016, we established a sustainable development 
management structure. The Chief Executive became the 
chairman of our sustainable development steering committee 
(“SD Steering Committee”). Through its chairman, the SD 
Steering Committee reports to the Board of Directors of the 
Company on significant sustainable development matters.  
It is responsible for reviewing Swire Properties’ sustainable 
development strategy and ensuring that Swire Properties’ 
operations and practices are carried out in line with such 
strategy. Working groups and a sub-committee were 
established to focus on different areas of SD and to recommend 
targets and initiatives to the SD Steering Committee.
Places
Places are at the heart of, and central to, the achievement  
of our SD 2030 Strategy.
Our objective:  Through effective placemaking and long-term 
placekeeping, to continue to transform the places in which we 
invest so as to create value, whilst retaining their character, 
supporting communities and enhancing people’s lives.
Making Swire Places
In April 2017, we held a staff engagement event in Hong 
Kong called “Making Swire Places”. Colleagues formed 
teams to design their ideal place to live, stay and work. 
There were similar employee engagement events at Taikoo 
Li Sanlitun in Beijing and TaiKoo Hui in Guangzhou later in 
the year. More than 400 colleagues participated in these 
engagements.
In May 2017, we opened “The Loop”, a sustainable 
development exhibition and recycling centre at Taikoo 
Place. The centre has a food waste composter and an 
urban farming area. It aims to increase environmental 
awareness and to encourage sustainable practices.
Communities and Local Economy
During our art month (in March 2017) we worked with Art 
Basel for the fifth year, hosted a VIP Lounge designed by 
Hugh Dutton at the Hong Kong Convention and Exhibition 
Centre and a multimedia art installation (BIT.FALL) by 
German artist Julius Popp at Pacific Place.

Swire Properties Annual Report    2017	
81
Held “A Mindful Miami” mass meditation 
in Brickell City Centre
Miami
Opened “The Loop” sustainable 
development exhibition centre in  
Taikoo Place
Hong Kong
equal opportunities employer and aim to provide an 
environment at work that is respectful, challenging, 
rewarding and safe. We have policies covering training and 
development, labour practices, human rights and workplace 
health and safety.
In 2017, we provided around 75,000 hours of training and 
development on leadership and management, health and 
safety and employee wellness.
Health and Safety
In 2017, our lost time injury rate decreased by 20.6% but our 
lost day rate increased by 33.7% compared to 2016. The 
increase reflected a higher incidence of long term injuries.
Our 2016 sustainable development report won the Bronze 
Award at the Occupational Safety & Health Annual Report 
Award. Two of our employees won Merit awards at the  
9th Outstanding Occupational Safety and Health Employee 
Award Scheme organised by the Hong Kong Occupational 
Safety and Health Council.
Volunteering
In 2017, 2,290 of our community ambassadors participated 
in 74 activities, contributing more than 6,750 hours of service 
in Hong Kong and Mainland China. In March 2017, Swire 
Properties and the China Children and Teenagers’ Fund 
completed construction of a community centre in Pengzhou, 
Sichuan. Doing this accords with our wish to promote rural 
sustainable development and to support earthquake-
affected residents. Our Chengdu colleagues took part in the 
first volunteer activity at the centre.
In April 2017, Brickell City Centre held the ‘A Mindful Miami’ 
mass meditation in honour of Earth Day. More than 1,500 
people participated.
In June 2017, the new ArtisTree opened at Taikoo Place. Over 
1,000 people attended four productions.
In October 2017, we co-organised the Beijing Music Festival 
(BMF) at Taikoo Li Sanlitun. This was the BMF’s  
20th anniversary.
In April, November and December 2017, we joined with social 
enterprise Honestly Green, celebrity chefs and local organic 
farmers to promote food sustainability at the Tong Chong 
Street Market.
In November and December 2017, Swire Properties held its 
fifth annual White Christmas Street Fair at the Starstreet 
Precinct and on Tong Chong Street, in order to raise funds for 
Operation Santa Claus. More than 80,000 visitors attended.
People
The contributions of our employees are critical to  
our success.
Our objective:  To create an environment where our 
employees will be healthier, happier and more productive.  
To invest in our employees and to provide rewarding career 
paths so as to develop a diverse and industry-leading team.
Employees – Talent
Swire Properties employs over 5,000 people in Hong Kong, 
Mainland China and the U.S.A. Attracting and developing 
talented employees is central to our success. We are an

82	
Swire Properties Annual Report    2017
Corporate Governance & Sustainability    Sustainable Development
Won awards from the Outstanding 
Occupational Safety and Health  
Employee Award Scheme
Hong Kong
Partners
Our business partners play a critical part in the success of  
our SD 2030 Strategy.
Our objective:  To continue to develop long-term, mutually 
beneficial relationships with our business partners and other  
key parties so as to improve our environmental, social and 
economic performance.
Suppliers
We include our suppliers in our approach to sustainable 
development. We address ethical conduct, labour standards, 
human rights, product responsibility and environmental 
impact. We address sustainability and manage risk in our 
supply chain through our supplier monitoring and evaluation 
system and our supplier code of conduct.
We monitor our green purchasing with a green procurement 
tracking system. In 2017, 12 types of building materials, building 
services equipment and office supplies were monitored. Over 
HK$388 million worth of green products was procured.
Tenants
We aim to work closely with our commercial tenants to 
integrate sustainability practices into their operations. We 
offer office tenants in Hong Kong, Taikoo Li Sanlitun and 
INDIGO in Beijing, TaiKoo Hui in Guangzhou and Sino-Ocean 
Taikoo Li Chengdu free energy audits to help them identify 
energy saving opportunities. At 31st December 2017, our 
energy audits had covered more than five million square feet 
of tenanted area.
At 31st December 2017, tenants occupying approximately 
53% of the office space in TaiKoo Hui, Guangzhou had signed 
sustainability memoranda with Swire Properties.
Over 70 of our Hong Kong retail tenants have joined the 
Green Shop Alliance, which is intended to embed 
sustainability in their daily operations.
Performance (Environment)
As a leading property developer, we are committed to 
building and managing our developments sustainably.
Our objective:  To continue to design, construct and manage 
high quality developments that contribute positively to the 
communities in which we operate and the environment.
Climate Change
We recognise that climate change poses risks to and 
opportunities for our business. We aim to reduce carbon 
emissions from our buildings and operations. In December 
2017, we started to assess climate risks for our portfolios, 
with a view to protecting them from the impact of climate 
change and to building climate resilience into our business.
Energy
In 2017, our energy intensity* decreased by 2% compared to 
2016 in our Hong Kong and Mainland China portfolios.  
The reduction was mainly due to monitoring-based 
commissioning of heating, ventilation and air conditioning 
systems, introducing electrically-commutated motor plug 
Promoted sustainable foods at  
Tong Chong Street Market
Hong Kong

Swire Properties Annual Report    2017	
83
Completed construction of a community 
centre in Pengzhou, Sichuan
Mainland China
Won awards at the World Sustainable 
Built Environment Conference 2017
Hong Kong
fans, retrofitting air conditioning systems and using more 
energy efficient lighting.
We intend to reduce our energy consumption* in our Hong 
Kong property portfolio by 64 million kWh per year by 2020, 
as compared to the baseline year of 2008. We intend to 
reduce the energy consumption* in our Mainland China 
portfolio by 23 million kWh per year by 2020 from its amount 
in the first complete calendar year for which electricity 
consumption data was collected.
Waste
We aim to reduce waste as much as we can. To help our 
tenants to prepare for municipal solid waste charging, we 
piloted a waste programme with more than 130 Cityplaza 
tenants and at EAST, Hong Kong. There was an 18%  
reduction in waste and a 15% increase in recycling rate.
Green Building
In 2017, One Taikoo Place achieved a BEAM Plus New Buildings 
Version 1.2 Provisional Platinum rating. Lincoln House in Taikoo 
Place, One and Two Pacific Place and The Mall at Pacific Place 
obtained final Platinum ratings under the BEAM Plus Existing 
Buildings Version 2.0 Comprehensive Scheme.
The TaiKoo Hui mall and office towers in Guangzhou achieved 
LEED Final Platinum certification under the LEED for Existing 
Buildings: Operations and Maintenance rating system.
Swire Properties was a platinum sponsor of the World 
Sustainable Built Environment Conference 2017. We received 
two awards, “Organization with the most BEAM Plus FINAL 
PLATINUM Projects” and “Highest Score for Residential 
Projects of BEAM Plus New Buildings”, the latter for the 
AREZZO development.
Performance (Economic)
We believe that long-term value creation depends on the 
sustainable development of our business.
Our objective:  To deliver sustainable economic 
performance coupled with good corporate governance and 
high ethical standards.
Details of our financial performance in 2017 are set out in the 
rest of this report.
Swire Properties is included in the DJSI World, the GRESB,  
the FTSE4Good Index, the Hang Seng Corporate Sustainability 
Index and the MSCI World ESG Leaders Index. The Company 
is the only developer and multinational corporation from 
Hong Kong and Mainland China in the DJSI World.
In January 2018, Swire Properties issued its first green bond, 
raising US$500 million for 10 years at a coupon rate of 3.5%. 
Proceeds from the bond will be used to finance or refinance 
green projects.
Further details of our sustainable development performance, 
including details of our SD 2030 Strategy, will be in our 
Sustainable Development Report 2017.
*	Energy intensity/consumption refers to electricity consumption 
intensity/electricity consumption for the provision of shared 
services for and in the common parts of our buildings.

Financial 
Contents
AUDITOR’S REPORT AND 
ACCOUNTS
86	
Independent Auditor’s Report
90	
Consolidated Statement of 
Profit or Loss
91	
Consolidated Statement of 
Other Comprehensive Income
92	
Consolidated Statement of 
Financial Position
93	
Consolidated Statement of 
Cash Flows
94	
Consolidated Statement of 
Changes in Equity
95	
Notes to the Financial 
Statements
150	
Principal Accounting Policies
153	
Principal Subsidiary,  
Joint Venture and Associated 
Companies
SUPPLEMENTARY INFORMATION
156	
Schedule of Principal  
Group Properties
167	
Glossary 
168	
Financial Calendar and 
Information for Investors

The Middle House
Shanghai

86	
Swire Properties Annual Report    2017
Independent Auditor’s Report
To the shareholders of Swire Properties Limited
(incorporated in Hong Kong with limited liability)
Opinion
What we have audited
The consolidated financial statements of Swire Properties Limited (“the Group financial statements”) and its subsidiaries (“the Group”) 
set out on pages 90 to 155, which comprise:
•	 The consolidated statement of financial position as at 31st December 2017;
•	 The consolidated statement of profit or loss for the year then ended;
•	 The consolidated statement of other comprehensive income for the year then ended;
•	 The consolidated statement of cash flows for the year then ended;
•	 The consolidated statement of changes in equity for the year then ended; and 
•	 The notes to the financial statements, which include a summary of significant accounting policies.
Our opinion
In our opinion, the Group financial statements give a true and fair view of the consolidated financial position of the Group as at  
31st December 2017, and of its consolidated financial performance and its consolidated cash flows for the year then ended in 
accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified Public 
Accountants (“HKICPA”) and have been properly prepared in compliance with the Hong Kong Companies Ordinance.
Basis for Opinion
We conducted our audit in accordance with Hong Kong Standards on Auditing (“HKSAs”) issued by the HKICPA. Our responsibilities 
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Group Financial Statements section of 
our report. 
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the HKICPA’s Code of Ethics for Professional Accountants (“the Code”), and we 
have fulfilled our other ethical responsibilities in accordance with the Code.
Key Audit Matters 
Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Group financial 
statements as at and for the year ended 31st December 2017. These matters were addressed in the context of our audit of the Group 
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Swire Properties Annual Report    2017	
87
Key Audit Matter
Revenue recognised from property trading
Refer to note 4 in the Group financial statements
The Group recognised revenue from property trading of 
HK$5,833 million for the year ended 31st December 2017. 
Revenue from property trading is recognised when effective 
control of ownership is transferred to the buyers, which is 
dependent on the contractual arrangements for the sale and 
the laws in the relevant jurisdiction and may require 
management judgement.
How our audit addressed the Key Audit Matter
Our procedures in relation to property trading included 
selecting a sample of transactions and: 
•	 Obtaining evidence regarding the transfer of effective 
control of ownership (including, where relevant, 
completion certificates, occupation permits, and 
assignments);
•	 Reading the signed sales and purchase agreements to 
identify contractual arrangements;
•	 Reconciling the monetary amounts to the signed sales  
and purchase agreements; and
•	 Agreeing payments to the bank statements.
We found that the amount and timing of the revenue 
recognised was supported by the available evidence.
Key Audit Matter
Valuation of investment properties
Refer to note 16 in the Group financial statements
Management has estimated the fair value of the Group’s 
investment properties to be HK$267,531 million at 31st 
December 2017, with a revaluation gain for the year ended 
31st December 2017 recorded in the consolidated statement 
of profit or loss of HK$25,463 million. External valuations were 
obtained in respect of 97% of the portfolio in order to support 
management’s estimates. The valuations are dependent on 
certain key assumptions that require significant 
management judgement, including capitalisation rates and 
fair market rents. The valuations of investment properties 
under development are also dependent upon the estimated 
costs to complete and expected developer’s profit margin.
How our audit addressed the Key Audit Matter
Our procedures in relation to management’s valuation of 
investment properties included:
•	 Evaluation of the external property valuers’ competence, 
capabilities and objectivity;
•	 Assessing the methodologies used and the 
appropriateness of the key assumptions based on our 
knowledge of the property industry and using our in-house 
valuation experts; and
•	 Checking the accuracy of the rental data provided by the 
Group to the external property valuers by agreeing them 
on a sample basis to the Group’s records.
We found the key assumptions were supported by the 
available evidence. We found the disclosures in note 16 to  
be appropriate.

88	
Swire Properties Annual Report    2017
Independent Auditor’s Report
Other Information in the Annual Report
The directors are responsible for the Other Information. The Other Information comprises all the information in the Swire Properties 
2017 annual report other than the Group financial statements and our auditor’s report thereon (“the Other Information”).
Our opinion on the Group financial statements does not cover the Other Information and we do not express any form of assurance 
conclusion thereon.
In connection with our audit of the Group financial statements, our responsibility is to read the Other Information and, in doing so, 
consider whether the Other Information is materially inconsistent with the Group financial statements or our knowledge obtained in the 
audit or otherwise appears to be materially misstated. 
If, based on the work we have performed, we conclude that there is a material misstatement of the Other Information, we are required 
to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Group Financial Statements
The directors are responsible for the preparation of Group financial statements that give a true and fair view in accordance with HKFRSs 
issued by the HKICPA and the Hong Kong Companies Ordinance, and for such internal control as the directors determine is necessary 
to enable the preparation of Group financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the Group financial statements, the directors are responsible for assessing the Group’s ability to continue as a going 
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the 
directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
The Audit Committee assists the directors in discharging their responsibilities for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Group Financial Statements
Our objectives are to obtain reasonable assurance about whether the Group financial statements as a whole are free from material 
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. We report our opinion solely to 
you, as a body, in accordance with section 405 of the Hong Kong Companies Ordinance and for no other purpose. We do not assume 
responsibility towards or accept liability to any other person for the contents of this report. Reasonable assurance is a high level of 
assurance, but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it 
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could 
reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
As part of an audit in accordance with HKSAs, we exercise professional judgement and maintain professional scepticism throughout the 
audit. We also:
•	 Identify and assess the risks of material misstatement of the Group financial statements, whether due to fraud or error; design and 
perform audit procedures responsive to those risks; and, obtain audit evidence that is sufficient and appropriate to provide a basis for 
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud 
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•	 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the 
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
•	 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures 
made by the directors.

Swire Properties Annual Report    2017	
89
•	 Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence 
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability 
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s 
report to the related disclosures in the Group financial statements or, if such disclosures are inadequate, to modify our opinion. Our 
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions 
may cause the Group to cease to continue as a going concern.
•	 Evaluate the overall presentation, structure and content of the Group financial statements, including the disclosures, and whether 
the Group financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
•	 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group 
to express an opinion on the Group financial statements. We are responsible for the direction, supervision and performance of the 
Group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant 
audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding 
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our 
independence, and where applicable, related safeguards.
From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of 
the Group financial statements of the current period and are therefore the key audit matters. We describe these matters in our 
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we 
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably 
be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Sean William Tuckfield.
PricewaterhouseCoopers
Certified Public Accountants
Hong Kong, 15th March 2018

90	
Swire Properties Annual Report    2017
Consolidated Statement of Profit or Loss
For the year ended 31st December 2017
Note
2017
HK$M
2016
HK$M 
Revenue
4
18,558
16,792
Cost of sales
5
(7,569)
(6,486)
Gross profit
10,989
10,306
Administrative and selling expenses
(1,369)
(1,294)
Other operating expenses
(227)
(213)
Other net gains
6
74
103
Change in fair value of investment properties
25,463
8,418
Operating profit
34,930
17,320
Finance charges
(983)
(1,216)
Finance income
83
97
Net finance charges
10
(900)
(1,119)
Share of profits less losses of joint venture companies
1,646
1,280
Share of profits less losses of associated companies
146
139
Profit before taxation
35,822
17,620
Taxation
11
(1,807)
(2,411)
Profit for the year
34,015
15,209
Profit for the year attributable to:
 
The Company’s shareholders
35
33,957
15,050
 
Non-controlling interests
37
58
159
34,015
15,209
HK$
HK$
Earnings per share from profit attributable to the Company’s shareholders  
 
(basic and diluted)
14
5.80
2.57
The notes on pages 95 to 149 and the principal accounting policies on pages 150 to 152 form part of these financial statements.

Swire Properties Annual Report    2017	
91
Consolidated Statement of Other Comprehensive Income
For the year ended 31st December 2017
2017
HK$M
2016
HK$M
Profit for the year
34,015
15,209
Other comprehensive income
Items that will not be reclassified to profit or loss
Revaluation of properties previously occupied by the Group
 
– gains recognised during the year
128
–
 
– deferred tax charge
(2)
–
Defined benefit plans
 
– remeasurement (losses)/gains recognised during the year
(6)
50
 
– deferred tax credit/(charge)
1
(8)
121
42
Items that can be reclassified subsequently to profit or loss
Cash flow hedges
 
– (losses)/gains recognised during the year
(294)
300
 
– losses/(gains) transferred to net finance charges
2
(5)
 
– deferred tax credit/(charge)
48
(49)
Share of other comprehensive income/(losses) of joint venture and associated companies
645
(591)
Net translation differences on foreign operations
1,839
(1,494)
2,240
(1,839)
Other comprehensive income/(losses) for the year, net of tax
2,361
(1,797)
Total comprehensive income for the year
36,376
13,412
Total comprehensive income attributable to:
 
The Company’s shareholders
36,283
13,276
 
Non-controlling interests
93
136
36,376
13,412
The notes on pages 95 to 149 and the principal accounting policies on pages 150 to 152 form part of these financial statements.

92	
Swire Properties Annual Report    2017
Consolidated Statement of Financial Position
At 31st December 2017
Note
2017
HK$M
2016
HK$M 
ASSETS AND LIABILITIES
Non-current assets
 
Property, plant and equipment
15
8,371
8,471
 
Investment properties
16
267,531
235,368
 
Intangible assets
17
178
154
 
Properties held for development
18
1,342
1,279
 
Joint venture companies
19
23,026
19,985
 
Associated companies
20
374
361
 
Derivative financial instruments
30
51
219
 
Deferred tax assets
31
85
73
 
Other non-current assets
32
–
5,479
300,958
271,389
Current assets
 
Properties under development and for sale
22
2,300
5,669
 
Stocks and work in progress
23
80
79
 
Trade and other receivables
24
2,996
2,881
 
Other current assets
32
6,262
–
 
Amount due from immediate holding company – Swire Pacific Limited
25
5
9
 
Cash and cash equivalents
26
1,708
1,681
13,351
10,319
Current liabilities
 
Trade and other payables
27
7,820
7,845
 
Tax payable
638
279
 
Bank overdrafts and short-term loans
28
499
500
 
Long-term loans and bonds due within one year
28
2,662
4,670
 
Loans due to a fellow subsidiary company – Swire Finance Limited
29
5,176
2,329
16,795
15,623
Net current liabilities
(3,444)
(5,304)
Total assets less current liabilities
297,514
266,085
Non-current liabilities
 
Long-term loans and bonds
28
28,718
24,384
 
Loans due to a fellow subsidiary company – Swire Finance Limited
29
–
5,175
 
Other payables
27
716
1,323
 
Derivative financial instruments
30
34
–
 
Deferred tax liabilities
31
8,523
7,840
 
Retirement benefit liabilities
33
145
138
38,136
38,860
NET ASSETS
259,378
227,225
EQUITY
 
Share capital
34
10,449
10,449
 
Reserves
35
246,932
214,920
Equity attributable to the Company’s shareholders
257,381
225,369
Non-controlling interests
37
1,997
1,856
TOTAL EQUITY
259,378
227,225
John R. Slosar
May Y. Wu
Directors
Hong Kong, 15th March 2018
The notes on pages 95 to 149 and the principal accounting policies on pages 150 to 152 form part of these financial statements.

Swire Properties Annual Report    2017	
93
Consolidated Statement of Cash Flows 
For the year ended 31st December 2017
Note
2017
HK$M
2016
HK$M
Operating activities
 
Cash generated from operations
42(a)
13,680
10,767
 
Interest paid
(1,213)
(1,324)
 
Interest received
84
96
 
Tax paid
(1,044)
(1,413)
11,507
8,126
 
Dividends received from joint venture and associated companies and  
 
 
available-for-sale assets
249
499
 
Net cash from operating activities
11,756
8,625
Investing activities
 
Purchase of property, plant and equipment
42(b)
(217)
(349)
 
Additions to investment properties
(5,179)
(5,883)
 
Additions to other current assets/other non-current assets
(623)
(254)
 
Purchase of intangible assets
(21)
(17)
 
Proceeds from disposals of property, plant and equipment
–
1
 
Proceeds from disposals of investment properties
40
55
 
Proceeds from disposal of a subsidiary company
2
–
 
Equity and loans to joint venture companies
(989)
(246)
 
Repayment of loans by joint venture companies
124
174
 
Decrease in deposits maturing after three months
–
26
 
Initial leasing costs incurred
(24)
(134)
 
Net cash used in investing activities
(6,887)
(6,627)
Net cash inflow before financing
4,869
1,998
Financing activities
 
Loans drawn and refinanced
6,475
5,470
 
Bonds issued
2,090
5,078
 
Repayment of loans and bonds
(6,676)
(6,358)
1,889
4,190
 
Capital contribution from a non-controlling interest
–
90
 
Repayment of loans to a fellow subsidiary company
(2,329)
(4,658)
 
Dividends paid to the Company’s shareholders
35
(4,271)
(4,154)
 
Dividends paid to non-controlling interests
37
(193)
(72)
 
Net cash used in financing activities
(4,904)
(4,604)
Decrease in cash and cash equivalents
(35)
(2,606)
 
Cash and cash equivalents at 1st January
1,681
4,358
 
Currency adjustment
62
(71)
Cash and cash equivalents at end of the year
1,708
1,681
Represented by:
Bank balances and short-term deposits maturing within three months
26
1,708
1,681
The notes on pages 95 to 149 and the principal accounting policies on pages 150 to 152 form part of these financial statements.

94	
Swire Properties Annual Report    2017
Consolidated Statement of Changes in Equity
For the year ended 31st December 2017
Attributable to the Company’s shareholders
Non-
controlling 
interests 
HK$M
Total 
equity 
HK$M
Note
Share 
capital 
HK$M
Revenue 
reserve 
HK$M
Other 
reserves 
HK$M
Total 
HK$M
At 1st January 2017
10,449
215,318
(398)
225,369
1,856
227,225
Profit for the year
–
33,957
–
33,957
58
34,015
Other comprehensive income
–
(5)
2,331
2,326
35
2,361
Total comprehensive income for the year
35, 37
–
33,952
2,331
36,283
93
36,376
Transfer
–
3
(3)
–
–
–
Dividends paid
–
(4,271)
–
(4,271)
(193)
(4,464)
Capital contribution from a  
 
non-controlling interest accrued
–
–
–
–
241
241
At 31st December 2017
10,449
245,002
1,930
257,381
1,997
259,378
Attributable to the Company’s shareholders
Non-
controlling 
interests 
HK$M
Total 
equity 
HK$M
Note
Share 
capital 
HK$M
Revenue 
reserve 
HK$M
Other 
reserves 
HK$M
Total 
HK$M
At 1st January 2016
10,449
204,380
1,418
216,247
1,702
217,949
Profit for the year
–
15,050
–
15,050
159
15,209
Other comprehensive income
–
42
(1,816)
(1,774)
(23)
(1,797)
Total comprehensive income for the year
35, 37
–
15,092
(1,816)
13,276
136
13,412
Dividends paid
–
(4,154)
–
(4,154)
(72)
(4,226)
Capital contribution from a  
 
non-controlling interest
–
–
–
–
90
90
At 31st December 2016
10,449
215,318
(398)
225,369
1,856
227,225
The notes on pages 95 to 149 and the principal accounting policies on pages 150 to 152 form part of these financial statements.

Swire Properties Annual Report    2017	
95
Notes to the Financial Statements
General Information
The Company is a limited liability company incorporated in Hong Kong and its shares are listed on The Stock Exchange of Hong Kong 
Limited. The principal activity of the Company is that of a holding company. The principal activities of its major subsidiary, joint venture 
and associated companies are shown on pages 153 to 155.
1.	 Changes in Accounting Policies and Disclosures
(a)	 The following amendments to standards were required to be adopted by the Group effective from 1st January 2017:
	
HKAS 7 (Amendment)	
Disclosure Initiative
	
HKAS 12 (Amendment)	
Recognition of Deferred Tax Assets for Unrealised Losses
	
The adoption of these amendments has had no significant impact on the Group’s financial statements.
(b) 	 The Group has not early adopted the following relevant new and revised standards and new interpretations that have been issued 
but are effective for annual periods beginning after 1st January 2018 and have not been applied in preparing these consolidated 
financial statements:
HKFRSs (Amendment)	
Annual Improvements to HKFRSs 2014-2016 Cycle1
HKFRS 9	
Financial Instruments1
Amendments to HKFRS 9 	
Prepayment Features with Negative Compensation2
HKFRS 15	
Revenue from Contracts with Customers1
HKFRS 16	
Leases2
HKAS 40 (Amendment)	
Transfers of Investment Property1
HK(IFRIC) 22	
Foreign Currency Transactions and Advance Consideration1
HK(IFRIC) 23	
Uncertainty over Income Tax Treatments2
1	 To be applied by the Group from 1st January 2018
2	 To be applied by the Group from 1st January 2019
None of these new and revised standards is expected to have a significant effect on the Group’s financial statements, except the 
following set out below:
HKFRS 15
HKFRS 15 deals with revenue recognition and establishes principles for reporting information to users of financial statements 
about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. 
Revenue is recognised when a customer obtains control of a good or service and thus has the ability to direct the use and obtain 
the benefits from the good or service. The new standard replaces HKAS 18 and HKAS 11 and related interpretations and provides  
a comprehensive revenue recognition model that can be applied to a wide range of transactions and industries. The model uses  
a five-step analysis of transactions to determine whether, how much and when revenue is recognised. The Group will use the 
modified retrospective approach by adjusting opening retained earnings when it adopts HKFRS 15 effective 1st January 2018 
without restatement of prior periods. Management has assessed the impact of the new standard on the Group’s financial 
statements and has concluded that adoption is not expected to have a significant impact on the recognition of the Group’s main 
revenue streams. Rental income from lease agreements is specifically excluded from the scope of the new standard. The nature of 
the Group’s current trading property sales in its primary markets in Hong Kong and the U.S.A., terms of the contracts and the 
associated laws, means that revenue from these sales will continue to be recognised at the point in time of transfer of effective 
ownership. The transfer of control in future property sales may occur over time or at a point in time, and this will be assessed on a 
case by case and territory by territory basis. As a result, the impact of adopting HKFRS 15 on the Group’s opening retained earnings 
will not be significant.

96	
Swire Properties Annual Report    2017
Notes to the Financial Statements
1. 	 Changes in Accounting Policies and Disclosures (continued)
HKFRS 9
The complete version of HKFRS 9 replaces HKAS 39. HKFRS 9 retains the mixed measurement model and establishes three primary 
measurement categories for financial assets: amortised cost, fair value through other comprehensive income and fair value 
through profit or loss. The basis of classification depends on the entity’s business model and the contractual cash flow 
characteristics of the financial asset. Financial assets containing prepayment features with negative compensation can be 
measured at amortised cost or at fair value through other comprehensive income if the cash flow represents solely payments of 
principal and interest. Non-substantial modifications or exchange of financial liabilities that do not result in derecognition are 
required to be recognised in profit or loss. The incurred loss impairment model used in HKAS 39 has been replaced by an expected 
credit loss model, with the result that a loss event will no longer need to occur before an impairment allowance is recognised. There 
are no changes to classification and measurement of financial liabilities except for the recognition of changes relating to an 
entity’s own credit risk, which are recognised in other comprehensive income for liabilities designated at fair value through profit or 
loss. The Group will adopt the classification and measurements aspects of HKFRS 9 from 1st January 2018, without restatement of 
prior periods with any effects of implementation recognised as an adjustment to opening retained earnings. Hedge accounting 
under HKFRS 9 requires an economic relationship between the hedged item and hedging instrument and for the hedged ratio to 
be the same as the one used by an entity’s management for risk management purposes. This replaces the hedge effectiveness 
test under the current standard. The Group will adopt the hedge accounting aspects of HKFRS 9 prospectively from 1st January 
2018. Management has assessed the impact of adopting the new standard on the Group’s financial statements and has concluded 
that neither the new requirements related to the classification and measurement nor the requirements related to impairment will 
have a material impact to the financial statements although may impact disclosures.
HKFRS 16
HKFRS 16 replaces HKAS 17 and related interpretations and introduces a comprehensive model for the identification of lease 
arrangements and accounting treatments for both lessors and lessees. The distinction between operating and finance leases is 
removed for lessee accounting, and is replaced by a model where a right-of-use asset and a corresponding liability have to be 
recognised on the balance sheet for all leases by lessees. HKFRS 16 also amends the definition of investment property under  
HKAS 40 to include property held by a lessee as a right-of-use asset to earn rentals or for capital appreciation or both, and the 
Group will be required to apply the fair value method under HKAS 40 for such right-of-use assets. The standard does not 
significantly change the accounting of lessors. Application of HKFRS 16 will result in the Group’s recognition of right-of-use assets 
and corresponding liabilities in respect of the Group’s operating lease arrangements. These assets and liabilities are currently not 
required to be recognised but certain relevant information is disclosed as commitments in note 40. In the Group’s statement of 
profit or loss, operating lease rentals will be replaced with depreciation and interest expenses. The Group has yet to finalise the 
assessment of the full impact of the new standard.
The amendment to HKAS 40 clarifies that a property is transferred to, or from, investment property when the property meets, or 
ceases to meet, the definition of investment property and there is evidence of the change in use. The amendment is not expected 
to have a significant impact on the Group’s financial statements.

Swire Properties Annual Report    2017	
97
2.	 Financial Risk Management
Financial risk factors
The Group is exposed to financial risks attributable to interest rates, currency, credit and liquidity. Management manages and monitors 
these exposures to ensure appropriate measures are implemented in a timely and effective manner. The Group’s overall risk 
management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the 
Group’s financial performance.
(i) 	  Interest rate exposure
The Group’s interest rate risk arises mainly from borrowings from banks and a fellow subsidiary company, and issuance of bonds. 
Borrowings at variable rates expose the Group to cash flow interest rate risk. Borrowings at fixed rates expose the Group to fair 
value interest rate risk. The Group earns interest income on cash deposits and some loans due from joint venture companies.
The Group has entered into cross-currency swap contracts in relation to US dollar medium-term notes. The Group has entered into 
interest rate swaps to manage its long-term interest rate exposure.
The impact on the Group’s statement of profit or loss and other comprehensive income of a 100 basis-points increase or decrease 
in market interest rates from the rates applicable at 31st December, with all other variables held constant, would have been:
100 basis-points 
increase in  
interest rates 
HK$M
100 basis-points 
decrease in  
interest rates 
HK$M
At 31st December 2017
Impact on statement of profit or loss: (loss)/gain
(112)
112
Impact on other comprehensive income: gain/(loss)
38
(38)
At 31st December 2016
Impact on statement of profit or loss: (loss)/gain
(121)
113
Impact on other comprehensive income: (loss)/gain
(38)
42
This analysis is based on a hypothetical situation, as in practice market interest rates rarely change in isolation, and should not be 
considered a projection of likely future profits or losses. The analysis assumes the following:
–	 Changes in market interest rates affect the interest income or expense of floating rate financial instruments
–	 Changes in market interest rates only affect interest income or expense in relation to fixed rate financial instruments if these are 
recognised at fair value
–	 Changes in market interest rates affect the fair value of derivative financial instruments
–	 All other variable financial assets and liabilities are held constant

98	
Swire Properties Annual Report    2017
Notes to the Financial Statements
2.	 Financial Risk Management (continued)
(ii)	 Currency exposure
The Group operates internationally and the foreign currency denomination of commercial transactions, assets and liabilities, and 
net investments in foreign operations are mainly in US dollars and Renminbi.
The Group is not subject to any significant foreign currency risk as the revenue, expenses and borrowings of the Group’s foreign 
operating subsidiaries are denominated in the functional currencies of those operations. However, the Group is exposed to 
insignificant foreign exchange risk on US dollar medium-term notes and the Group managed this exposure by hedging through 
cross-currency swap contracts entered by the Group.
Foreign currency funding and deposit exposure are monitored on a continuous basis. Exposure arising from the Group’s 
investments in operating subsidiaries with net assets denominated in foreign currencies is reduced, where practical, by providing 
funding in the same currency.
The impact on the Group’s statement of profit or loss and other comprehensive income of a strengthening or weakening in the 
Hong Kong dollar against the US dollar from the year-end rate of 7.8157 (2016: 7.7557), with all other variables held constant, 
would have been:
Strengthening in  
HK$ to lower  
peg limit (7.75)  
HK$M
Weakening in  
HK$ to upper  
peg limit (7.85)  
HK$M
At 31st December 2017
Impact on statement of profit or loss
–
–
Impact on other comprehensive income: (loss)/gain
(5)
7
At 31st December 2016
Impact on statement of profit or loss: gain
–
1
Impact on other comprehensive income: (loss)/gain
(1)
15
The analysis is based on a hypothetical situation, as in practice market exchange rates rarely change in isolation, and should not be 
considered a projection of likely future profits or losses. The analysis assumes the following:
–	 All foreign currency cash flow hedges are expected to be highly effective
–	 Currency risk does not arise from financial assets or liabilities denominated in the functional currencies of the Company and its 
subsidiary companies
(iii)	 Credit exposure
The Group’s credit risk is mainly attributable to trade debtors, deposits with financial institutions, receivables from joint venture 
companies and associated companies. The exposure to these credit risks is closely monitored on a continuous basis by reference 
to established credit policies. For financial institutions, only independently rated parties with investment grade credit ratings are 
accepted. Tenants are assessed and rated based on their credit quality, taking into account their financial position, past experience 
and other factors. The Group does not grant credit terms to its customers, except to corporate customers in the hotel division 
where commercial trade credit terms are given. The Group also holds non-interest bearing rental deposits as security against trade 
debtors. In addition, the Group and the Company monitor the exposure to credit risk in respect of the financial assistance provided 
to subsidiaries, joint venture companies and associated companies through exercising control or significant influence over their 
financial and operating policy decisions and reviewing their financial positions on a regular basis.

Swire Properties Annual Report    2017	
99
2.	 Financial Risk Management (continued)
(iv)	 Liquidity exposure
The Group takes liquidity risk into consideration when deciding its sources of funds and their respective tenors. Cash flow 
forecasting is performed in the operating entities of the Group and aggregated by the head office. The head office monitors rolling 
forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining 
sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits 
or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt 
financing plans, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable, external regulatory 
or legal requirements.
The tables below analyse the contractual undiscounted cash flows of the Group’s financial liabilities by relevant maturity groupings 
based on the remaining period from the year-end date to the earliest contractual maturity date.
At 31st December 2017
Note
Carrying 
amount 
HK$M
Total 
contractual 
undiscounted 
cash flow 
HK$M
Within  
1 year or  
on demand 
HK$M
More than 
1 year but 
less than
2 years
HK$M
More than
2 years but
less than
5 years
HK$M
More than
5 years
HK$M
Trade creditors
27
542
542
542
–
–
–
Rental deposits from tenants
27
2,616
2,616
669
576
1,004
367
Other current payables
27
3,356
3,356
3,356
–
–
–
Put option in respect of a non-controlling interest
27
716
813
–
–
813
–
Deposit from the sale of a subsidiary company
27
1,306
1,306
1,306
–
–
–
Borrowings (including interest obligations)
28
31,879
36,236
5,639
3,033
17,480
10,084
Loans due to a fellow subsidiary company 
 
(including interest obligations)
29
5,176
5,272
5,272
–
–
–
Financial guarantee contracts
39
–
1,668
663
975
30
–
45,591
51,809
17,447
4,584
19,327
10,451
At 31st December 2016
Note
Carrying 
amount 
HK$M
Total 
contractual 
undiscounted 
cash flow 
HK$M
Within  
1 year or 
on demand 
HK$M
More than  
1 year but  
less than
2 years
HK$M
More than
2 years but
less than
5 years
HK$M
More than
5 years
HK$M
Trade creditors
27
565
565
565
–
–
–
Rental deposits from tenants
27
2,494
2,494
731
526
894
343
Other current payables
27
4,786
4,786
4,786
–
–
–
Put option in respect of a non-controlling interest
27
670
789
–
–
789
–
Deposit from the sale of a subsidiary company
27
653
653
–
653
–
–
Borrowings (including interest obligations)
28
29,554
33,484
5,924
3,113
12,563
11,884
Loans due to a fellow subsidiary company  
 
(including interest obligations)
29
7,504
7,979
2,696
5,283
–
–
Financial guarantee contracts
39
–
1,634
1,634
–
–
–
46,226
52,384
16,336
9,575
14,246
12,227

100	 Swire Properties Annual Report    2017
Notes to the Financial Statements
3.	 Critical Accounting Estimates and Judgements
Estimates and judgements used in preparing the financial statements are continually evaluated and are based on historical experience 
and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group 
makes estimates and assumptions concerning the future. The resulting accounting estimates will, inevitably, seldom be equal to the 
related actual results. The estimates and assumptions that have a significant effect on the carrying amounts of assets and liabilities are 
discussed in the relevant notes as follows:
Carrying value of property, plant and equipment (note 15)
Fair value of investment properties (note 16)
Retirement benefit (note 33)
4.	 Revenue
Accounting Policy
Provided the collectability of the related receivable is reasonably assured, revenue is recognised as follows:
Rental income is recognised on a straight-line basis over the shortest of (i) the remaining lease term, (ii) the period to the next rent 
review date and (iii) the period from the commencement date of the lease to the first break option date (if any), exclusive of any 
turnover rent (if applicable) and other charges and reimbursements (if any). Where the lease includes a rent-free period, the rental 
income foregone is allocated evenly over the lease term. Turnover rent is recognised when the lessee’s revenue transaction is 
recognised.
Sales of properties are recognised when effective control of ownership of the properties is transferred to the buyers.
Sales of services, including services provided by hotel operations and estate management, are recognised when the services are 
rendered.
Revenue represents sales by the Company and its subsidiary companies to external customers and comprises:
2017
HK$M
2016
HK$M
Gross rental income from investment properties
11,252
10,773
Property trading
5,833
4,760
Hotels
1,345
1,130
Rendering of other services
128
129
18,558
16,792
5.	 Cost of Sales
2017
HK$M
2016
HK$M
Direct rental outgoings in respect of investment properties that
 
– generated rental income
2,090
1,879
 
– did not generate rental income
177
249
2,267
2,128
Property trading
4,080
3,236
Hotels
1,184
1,091
Rendering of other services
38
31
7,569
6,486

Swire Properties Annual Report    2017	
101
6.	 Other Net Gains
2017
HK$M
2016
HK$M
Profit on disposal of investment properties
9
76
Profit on disposal of a subsidiary company
2
–
Loss on disposal of property, plant and equipment
(1)
(4)
Net foreign exchange gains/(losses)
32
(8)
Recognition of income on forfeited deposits on trading properties
2
5
Others
30
34
74
103
7.	 Expenses by Nature
Expenses included in cost of sales, administrative and selling expenses, and other operating expenses are analysed as follows:
2017
HK$M
2016
HK$M
Depreciation of property, plant and equipment (note 15)
348
300
Amortisation of
 
– intangible assets (note 17)
27
14
 
– initial leasing costs in respect of investment properties
51
60
Staff costs
1,795
1,687
Operating lease rentals
 
– properties
52
52
 
– plant and equipment
7
6
Auditors’ remuneration
 
– audit services
12
11
 
– tax services
3
4
 
– other services
3
1
8.	 Segment Information
The Group is organised on a divisional basis: Property investment, Property trading and Hotels. The reportable segments that make up 
each of the three divisions are classified according to the nature of business.
Accounting Policy
Segment information is reported in a manner consistent with the Group’s internal financial reporting provided to the executive 
directors for making strategic decisions. A reportable segment comprises either one or more operating segments which can be 
aggregated together because they share similar economic characteristics or single operating segments which are disclosable 
separately because they cannot be aggregated or because they exceed certain quantitative thresholds.

102	 Swire Properties Annual Report    2017
Notes to the Financial Statements
8.	 Segment Information (continued)
(a)	 Information about reportable segments
Analysis of Consolidated Statement of Profit or Loss
External 
revenue
HK$M
Inter-
segment 
revenue
HK$M
Operating 
profit/(loss) 
after 
depreciation 
and 
amortisation
HK$M
Finance 
charges
HK$M
Finance 
income
HK$M
Share of 
profits less 
losses of 
joint 
venture 
companies
HK$M
Share of 
profits less 
losses of 
associated 
companies
HK$M
Profit/(Loss) 
before 
taxation
HK$M
Taxation
HK$M
Profit/(Loss) 
for the year
HK$M
Profit/(Loss) 
attributable 
to the 
Company’s 
shareholders
HK$M
Depreciation 
and 
amortisation 
charged to 
operating 
profit
HK$M
Year ended  
 
31st December 2017
 
Property investment
11,380
34
8,172
(908)
82
500
–
7,846
(1,170)
6,676
6,671
(167)
 
Property trading
5,833
–
1,397
(36)
1
(11)
–
1,351
(240)
1,111
1,111
–
 
Hotels
1,345
5
(102)
(39)
–
(44)
146
(39)
(5)
(44)
(43)
(259)
 
Change in fair value of  
 
 
investment properties
–
–
25,463
–
–
1,201
–
26,664
(392)
26,272
26,218
–
 
Inter-segment elimination
–
(39)
–
–
–
–
–
–
–
–
–
–
18,558
–
34,930
(983)
83
1,646
146
35,822
(1,807)
34,015
33,957
(426)
Year ended  
 
31st December 2016
 
Property investment
10,902
38
7,752
(1,158)
94
339
–
7,027
(1,087)
5,940
5,938
(158)
 
Property trading
4,760
–
1,332
(22)
3
(6)
–
1,307
(70)
1,237
1,199
–
 
Hotels
1,130
3
(182)
(36)
–
(35)
139
(114)
(5)
(119)
(117)
(216)
 
Change in fair value of  
 
 
investment properties
–
–
8,418
–
–
982
–
9,400
(1,249)
8,151
8,030
–
 
Inter-segment elimination
–
(41)
–
–
–
–
–
–
–
–
–
–
16,792
–
17,320
(1,216)
97
1,280
139
17,620
(2,411)
15,209
15,050
(374)
Note: 
Sales between business segments are accounted for at competitive prices charged to unaffiliated customers for similar goods and services.
Analysis of total assets of the Group
Segment 
assets 
 HK$M 
Joint
venture
companies
 HK$M 
Associated 
companies 
 HK$M 
Bank 
deposits 
and cash 
 HK$M 
Total 
assets 
 HK$M 
Additions to 
non-current 
assets  
HK$M
At 31st December 2017
 
Property investment
278,862
21,119
–
1,440
301,421
4,946
 
Property trading
3,976
670
–
103
4,749
53
 
Hotels
6,363
1,237
374
165
8,139
86
289,201
23,026
374
1,708
314,309
5,085
At 31st December 2016
 
Property investment
245,670
18,476
–
1,399
265,545
6,469
 
Property trading
7,656
493
–
161
8,310
34
 
Hotels
6,355
1,016
361
121
7,853
253
259,681
19,985
361
1,681
281,708
6,756
Note:
Additions to non-current assets exclude joint venture and associated companies, available-for-sale assets, financial instruments, deferred tax 
assets and retirement benefit assets.

Swire Properties Annual Report    2017	
103
8.	 Segment Information (continued)
(a)	 Information about reportable segments (continued)
Analysis of total liabilities and non-controlling interests of the Group
Segment 
liabilities 
 HK$M 
Current and 
deferred tax 
liabilities 
 HK$M 
Gross 
borrowings 
HK$M 
Total 
liabilities 
 HK$M 
Non- 
controlling 
interests 
 HK$M 
At 31st December 2017
 
Property investment
8,101
8,835
33,812
50,748
1,890
 
Property trading
378
326
2,110
2,814
82
 
Hotels
236
–
1,133
1,369
25
8,715
9,161
37,055
54,931
1,997
At 31st December 2016
 
Property investment
7,584
8,096
31,573
47,253
1,569
 
Property trading
1,510
23
4,452
5,985
265
 
Hotels
212
–
1,033
1,245
22
9,306
8,119
37,058
54,483
1,856
(b)	 Information about geographical areas
The activities of the Group are principally based in Hong Kong, Mainland China and the U.S.A.
An analysis of revenue and non-current assets of the Group by principal markets is outlined below:
Revenue
Non-current assets
2017
HK$M
2016
HK$M
2017
HK$M
2016
HK$M
Hong Kong
14,947
10,514
235,350
213,639
Mainland China
2,627
2,383
31,323
27,248
U.S.A.
984
3,895
9,656
8,908
Others
–
–
1,093
956
18,558
16,792
277,422
250,751
Note:
The above non-current assets exclude joint venture and associated companies, available-for-sale assets, financial instruments, deferred tax assets 
and retirement benefit assets.

104	 Swire Properties Annual Report    2017
Notes to the Financial Statements
9.	 Directors’ and Executive Officers’ Emoluments
(a) 	 The total emoluments of Directors of the Company disclosed pursuant to section 383 (1) of the Hong Kong Companies Ordinance 
and the Companies (Disclosure of Information about Benefits of Directors) Regulation are as follows:
Cash
Non cash
 Salary 
HK$’000 
Fee  
 HK$’000 
 Discretionary  
 bonus  
 (note (i))  
 HK$’000 
 Allowances  
 and benefits  
 HK$’000 
 Retirement  
 schemes  
 contributions  
 HK$’000 
 Discretionary  
 bonus paid  
 to retirement  
schemes
 HK$’000 
 Housing  
 and other  
 benefits 
(note (ii))  
 HK$’000 
 Total  
 2017 
 HK$’000 
 Total  
 2016 
 HK$’000 
For the year ended  
 
31st December 2017
Executive Directors
J.R. Slosar (Chairman)
878
–
–
14
258
–
713
1,863
845
G.M.C. Bradley
4,489
–
2,818
615
1,322
1,152
2,718
13,114
13,722
F.N.Y. Lung (note (iv))
689
–
–
–
119
–
16
824
–
D.C.Y. Ho (note (v))
–
–
253
–
–
–
–
253
3,063
G.J. Ongley (note (vi))
–
–
1,459
–
1
–
–
1,460
5,338
Non-Executive Directors
M. Cubbon (note (vii))
–
–
–
–
–
–
–
–
–
M.M.S. Low (note (iii))
1,981
–
3,446
1,499
717
–
–
7,643
9,986
P. Healy
–
–
–
–
–
–
–
–
–
R.S.K. Lim
–
575
–
–
–
–
–
575
575
M.B. Swire
–
–
–
–
–
–
–
–
–
Independent  
 
Non-Executive  
 
Directors
S.E. Bradley
–
633
–
–
–
–
–
633
633
J.C.C. Chan (note (viii))
–
155
–
–
–
–
–
155
755
L.K.L. Cheng (note (ix))
–
600
–
–
–
–
–
600
–
P.K. Etchells (note (x))
–
311
–
–
–
–
–
311
835
S.T. Fung
–
575
–
–
–
–
–
575
575
S.C. Liu
–
655
–
–
–
–
–
655
655
M.Y. Wu (note (xi))
–
528
–
–
–
–
–
528
–
Total 2017
8,037
4,032
7,976
2,128
2,417
1,152
3,447
29,189
N/A
Total 2016
10,091
4,028
12,152
3,957
2,123
1,405
3,226
N/A
36,982
Notes:
(i)		
The bonuses disclosed above are related to services as executive directors for the previous year.
(ii)	 Other benefits include medical and insurance benefits and overseas tax subsidies.
(iii)	 M.M.S. Low was Finance Director until 30th September 2017 and was re-designated as a non-executive director from 1st October 2017.  
Her emoluments as an executive director (in respect of the period before her redesignation) were HK$7,643,000.
(iv)	 F.N.Y. Lung was appointed as Finance Director on 1st October 2017.
(v)	 D.C.Y. Ho resigned as an executive director on 14th April 2016 with 2016 final bonus payment made in 2017.
(vi)	 G.J. Ongley retired as an executive director on 10th May 2016 with 2016 final bonus payment made in 2017.
(vii)	 M. Cubbon resigned as a non-executive director on 30th September 2017.
(viii)	J.C.C. Chan resigned as an independent non-executive director on 16th March 2017.
(ix)	 L.K.L. Cheng was appointed as an independent non-executive director on 17th March 2017.
(x)	 P.K. Etchells resigned as an independent non-executive director on 16th May 2017.
(xi)	 M.Y. Wu was appointed as an independent non-executive director on 15th May 2017.

Swire Properties Annual Report    2017	
105
9.	 Directors’ and Executive Officers’ Emoluments (continued)
(b)	 Five highest paid individuals
The five individuals whose emoluments were the highest in the Group for the years ended 31st December 2017 and 2016 are  
as follows:
Year ended 31st December
2017
2016
Number of individuals:
 
Executive directors (note (i))
2
2
 
Executive officers (note (ii))
3
3
5
5
Notes:
(i) Details of the emoluments paid to these directors were included in the disclosure as set out in note 9(a) above.
(ii) Details of emoluments paid to the above executive officers are as follows:
Year ended 31st December
2017
HK$’000
2016
HK$’000
Cash:
 
Salary
7,579
7,441
 
Discretionary bonus
3,786
3,101
 
Allowance and benefits
2,207
2,299
Non-cash:
 
Retirement scheme contributions
1,489
1,483
 
Bonus paid into retirement scheme
688
255
 
Housing and other benefits
6,962
4,836
22,711
19,415
Note: 
The bonuses disclosed above are related to services for the previous year.
The number of the above executive officers whose emoluments fell within the following bands:
Year ended 31st December
2017
2016
HK$7,500,001 – HK$9,000,000
1
–
HK$7,000,001 – HK$7,500,000
1
–
HK$6,500,001 – HK$7,000,000
1
2
HK$6,000,001 – HK$6,500,000
–
1
3
3

106	 Swire Properties Annual Report    2017
Notes to the Financial Statements
10.	Net Finance Charges
Accounting Policy
Interest costs incurred are charged to the statement of profit or loss except for those interest charges attributable to the 
acquisition, construction or production of qualifying assets (i.e. assets that necessarily take a substantial period of time to get 
ready for their intended use or sale) which are capitalised as part of the cost of those assets. Capitalisation of such borrowing costs 
ceases when the assets are substantially ready for their intended use or sale.
Interest income is recognised on a time-proportion basis using the effective interest method.
Refer to the table with heading “Audited Financial Information” on pages 53 to 55 for details of the Group’s net finance charges.
11.	Taxation
Accounting Policy
The tax expense comprises current and deferred tax. Tax is recognised in the statement of profit or loss, except to the extent that it 
relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other 
comprehensive income or directly in equity.
The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period 
in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically 
evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation.  
It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
2017
2016
HK$M
HK$M
HK$M
HK$M
Current taxation:
 
Hong Kong profits tax
1,104
843
 
Overseas taxation
271
240
 
Under-provisions in prior years
25
72
1,400
1,155
Deferred taxation: (note 31)
 
Changes in fair value of investment properties
460
902
 
Origination and reversal of temporary differences
215
354
 
Effect of change in tax rate in the U.S.A.
(268)
–
407
1,256
1,807
2,411
Hong Kong profits tax is calculated at 16.5% (2016: 16.5%) on the estimated assessable profits for the year. Overseas tax is calculated 
at tax rates applicable in jurisdictions in which the Group is assessable for tax.

Swire Properties Annual Report    2017	
107
11.	Taxation (continued)
The tax charge on the Group’s profit before taxation differs from the theoretical amount that would arise using the Hong Kong profits 
tax rate of the Company as follows:
2017
HK$M
2016
HK$M
Profit before taxation
35,822
17,620
Calculated at a tax rate of 16.5% (2016: 16.5%)
5,911
2,907
Results of joint venture and associated companies reported net of tax
(296)
(234)
Effect of different tax rates in other countries
252
592
Effect of change in tax rate in the U.S.A.
(268)
–
Fair value gains on investment properties
(3,859)
(904)
Income not subject to tax
(91)
(24)
Expenses not deductible for tax purposes
103
88
Unused tax losses not recognised
140
40
Utilisation of previously unrecognised tax losses
(20)
(59)
Recognition of previously unrecognised tax losses
(14)
(67)
Reversal of temporary differences
(78)
–
Withholding tax
2
–
Under-provisions in prior years
25
72
Tax charge
1,807
2,411
The Group’s share of joint venture and associated companies’ tax charges of HK$219 million (2016: HK$223 million) and HK$29 million 
(2016: HK$29 million) respectively is included in the share of profits less losses of joint venture and associated companies shown in the 
consolidated statement of profit or loss.
12.	Profit Attributable to the Company’s Shareholders
Of the profit attributable to the Company’s shareholders, HK$7,733 million (2016: HK$7,407 million) is dealt with in the financial 
statements of the Company.

108	 Swire Properties Annual Report    2017
Notes to the Financial Statements
13.	Dividends
Accounting Policy
Dividend distributions to the Company’s shareholders are recognised as a liability in the Group’s financial statements in the period 
in which the dividends are approved by the Company’s shareholders or directors, where appropriate.
2017
HK$M
2016
HK$M
First interim dividend paid on 11th October 2017 of HK$0.25 per share (2016: HK$0.23)
1,463
1,346
Second interim dividend declared on 15th March 2018 of HK$0.52 per share (2016: HK$0.48)
3,042
2,808
4,505
4,154
The second interim dividend is not accounted for in 2017 because it had not been declared at the year end date. The actual amount will 
be accounted for as an appropriation of the revenue reserve in the year ending 31st December 2018.
The Directors have declared a second interim dividend of HK$0.52 (2016: HK$0.48) per share which, together with the first interim 
dividend of HK$0.25 per share paid in October 2017, amounts to full year dividends of HK$0.77 (2016: HK$0.71) per share. The second 
interim dividend, which totals HK$3,042 million (2016: HK$2,808 million), will be paid on Thursday, 3rd May 2018 to shareholders 
registered at the close of business on the record date, being Friday, 6th April 2018. Shares of the Company will be traded ex-dividend 
from Tuesday, 3rd April 2018.
The register of members will be closed on Friday, 6th April 2018, during which day no transfer of shares will be effected. In order to 
qualify for entitlement to the second interim dividend, all transfer forms accompanied by the relevant share certificates must be lodged 
with the Company’s share registrars, Computershare Hong Kong Investor Services Limited, 17th Floor, Hopewell Centre, 183 Queen’s 
Road East, Hong Kong, for registration not later than 4:30 p.m. on Wednesday, 4th April 2018.
To facilitate the processing of proxy voting for the annual general meeting to be held on 8th May 2018, the register of members will be 
closed from 3rd May 2018 to 8th May 2018, both days inclusive, during which period no transfer of shares will be effected. In order to be 
entitled to attend and vote at the annual general meeting, all transfer forms accompanied by the relevant share certificates must be 
lodged with the Company’s share registrars, Computershare Hong Kong Investor Services Limited, 17th Floor, Hopewell Centre,  
183 Queen’s Road East, Hong Kong, for registration not later than 4:30 p.m. on Wednesday, 2nd May 2018.
14.	Earnings Per Share (Basic and Diluted) 
Earnings per share are calculated by dividing the profit attributable to the Company’s shareholders of HK$33,957 million (2016: 
HK$15,050 million) by the weighted average number of 5,850,000,000 ordinary shares in issue during 2017 (2016: 5,850,000,000 
ordinary shares).

Swire Properties Annual Report    2017	
109
15.	Property, Plant and Equipment
Accounting Policy
Property, plant and equipment is carried at cost less accumulated depreciation and impairment. Cost includes expenditure that is 
directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as 
a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the 
Group and the cost of the item can be measured reliably. All other repairs and maintenance are expensed in the statement of profit 
or loss during the financial period in which they are incurred.
Leasehold land can be classified as held under finance lease and recorded as property, plant and equipment if the lessee is 
exposed to substantially all the risks and rewards of ownership of that piece of land.
With the exception of freehold land, all other property, plant and equipment are depreciated at rates sufficient to write off their 
original costs to estimated residual values using the straight-line method over their anticipated useful lives in the following manner:
Leasehold land	
Over the lease term
Buildings	
2% to 5% per annum
Plant and equipment	
10% to 33 1/3% per annum
The assets’ expected useful lives and residual values are regularly reviewed and adjusted, if appropriate, at each period-end date to 
take into account operational experience and changing circumstances.
On the transfer of owner occupied property to investment property, increases in the carrying amount arising on revaluation of land 
and buildings are credited to other comprehensive income and shown as property revaluation reserve in shareholders’ equity. 
Decreases that offset previous increases of the same asset are charged in other comprehensive income and debited against 
property revaluation reserve directly in equity; all other decreases are charged to the statement of profit or loss.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amounts and are recognised within 
‘Other net gains/(losses)’ in the statement of profit or loss. When revalued assets are sold, the amounts included in the property 
revaluation reserve are transferred to revenue reserve.
Critical Accounting Estimates and Judgements
At each period-end date or whenever a change in circumstances occurs, both internal and external sources of information are 
considered to assess whether there is an indication that assets are impaired. If such an indication exists, the recoverable amount of 
the asset is estimated using fair value less costs of disposal or value in use calculations as appropriate. If the carrying amount of an 
asset exceeds its recoverable amount, an impairment loss is recognised to reduce the asset to its recoverable amount. Such 
impairment loss is recognised in the statement of profit or loss.

110	 Swire Properties Annual Report    2017
Notes to the Financial Statements
15.	Property, Plant and Equipment (continued)
Leasehold
land held 
for own use  
HK$M
Land and
buildings
HK$M
Plant and
equipment 
HK$M
Total
HK$M
Cost:
At 1st January 2017
3,547
5,517
1,497
10,561
Translation differences
–
151
37
188
Additions
–
69
142
211
Disposals
–
–
(51)
(51)
Net transfers from other assets
–
–
3
3
Revaluation surplus
124
4
–
128
Net transfers to investment properties
(183)
(45)
(1)
(229)
At 31st December 2017
3,488
5,696
1,627
10,811
Accumulated depreciation and impairment:
At 1st January 2017
153
835
1,102
2,090
Translation differences
–
37
26
63
Charge for the year (note 7)
26
176
146
348
Disposals
–
–
(50)
(50)
Transfers to investment properties
(1)
(10)
–
(11)
At 31st December 2017
178
1,038
1,224
2,440
Net book value:
At 31st December 2017
3,310
4,658
403
8,371
At 31st December 2017 and 2016, none of the Group’s property, plant and equipment was pledged as security for the Group’s  
long-term loans.
Properties occupied by the Group (together with the associated leasehold land) were transferred to investment properties following 
the end of occupation by the Group. The valuation increase from carrying amount to fair value in respect of such transfers during the 
year ended 31st December 2017 was HK$128 million (2016: Nil).
Refer to the table with heading “Audited Financial Information” on page 54 for details of the Group’s capitalised interest rates and the 
amount of interest capitalised.

Swire Properties Annual Report    2017	
111
15.	Property, Plant and Equipment (continued)
Leasehold
land held 
for own use  
HK$M
Land and
buildings
HK$M
Plant and
equipment 
HK$M
Total
HK$M
Cost:
At 1st January 2016
3,154
5,361
1,421
9,936
Translation differences
–
(130)
(31)
(161)
Additions
–
192
156
348
Disposals
–
(2)
(43)
(45)
Transfer to other assets
–
–
(7)
(7)
Net transfers from investment properties
393
96
1
490
At 31st December 2016
3,547
5,517
1,497
10,561
Accumulated depreciation and impairment:
At 1st January 2016
130
729
1,025
1,884
Translation differences
–
(32)
(22)
(54)
Charge for the year (note 7)
23
139
138
300
Disposals
–
–
(39)
(39)
Transfers to investment properties
–
(1)
–
(1)
At 31st December 2016
153
835
1,102
2,090
Net book value:
At 31st December 2016
3,394
4,682
395
8,471

112	 Swire Properties Annual Report    2017
Notes to the Financial Statements
16.	Investment Properties
Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Group, is classified as 
investment property.
Accounting Policy
Investment property comprises freehold land, leasehold land and buildings. Land held under an operating lease and classified as 
investment property is accounted for as if it was a finance lease. Any premium paid for a lease is treated as part of the minimum 
lease payments and is included in the cost of the asset, but is excluded from the liability.
Investment properties (including those under development) are carried at fair value and are valued twice a year. The majority of 
investment properties are valued by independent valuers. The valuations are performed in accordance with the HKIS Valuation 
Standards 2017 published by The Hong Kong Institute of Surveyors and are on the basis of market value, relate to individual 
properties, and separate values are not attributed to land and buildings. These values represent their fair values in accordance with 
HKFRS 13. Land and buildings that are being developed for future use as investment properties and investment properties that are 
being redeveloped for continuing use as investment properties are measured at fair value and included as investment properties 
under development. Changes in fair values are recognised in the consolidated statement of profit or loss.
Subsequent expenditure is charged to an investment property’s carrying amount only when it is probable that future economic 
benefits associated with that expenditure will flow to the Group and the cost can be measured reliably. All other repair and 
maintenance costs in respect of an investment property are expensed in the consolidated statement of profit or loss during the 
financial period in which they are incurred.
If an investment property becomes owner-occupied, it is reclassified as property, plant and equipment, and its fair value at the 
date of reclassification becomes its deemed cost for accounting purposes.
Expenditure incurred in leasing the Group’s investment property during development is deferred and amortised on a straight-line 
basis to the consolidated statement of profit or loss upon occupation of the property over a period not exceeding the term of  
the lease.
Critical Accounting Estimates and Judgements
Cushman & Wakefield Limited, an independent property valuer, was engaged to carry out a valuation of the major portion of the 
Group’s investment property portfolio at 31st December 2017. This valuation was carried out in accordance with the HKIS 
Valuation Standards 2017 published by The Hong Kong Institute of Surveyors, which define market value as “the estimated 
amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s 
length transaction, after proper marketing and where the parties each acted knowledgeably, prudently and without compulsion”. 
The assumptions are principally in respect of market rents and yields.
Management has reviewed the independent property valuation and compared it with its own assumptions, with reference to 
comparable sales transaction data where such information is available, and has concluded that the independent property 
valuation of the Group’s investment property portfolio is reasonable.

Swire Properties Annual Report    2017	
113
16.	Investment Properties (continued)
Completed
HK$M
Under
Development
HK$M
Total
HK$M
At 1st January 2017
205,605
29,496
235,101
Translation differences
2,028
89
2,117
Additions
1,311
3,438
4,749
Cost written back
(2)
(1)
(3)
Disposals
(8)
(7)
(15)
Transfer to properties under development and for sale
–
(338)
(338)
Net transfers from property, plant and equipment
25
193
218
Net fair value gains
22,336
3,127
25,463
231,295
35,997
267,292
Add: Initial leasing costs
239
–
239
At 31st December 2017
231,534
35,997
267,531
At 1st January 2016
199,380
29,069
228,449
Translation differences
(1,691)
(20)
(1,711)
Additions
438
5,649
6,087
Cost written back
(141)
(1)
(142)
Disposals
(6)
–
(6)
Transfer to properties held for development
–
(303)
(303)
Transfer to other non-current assets
–
(5,200)
(5,200)
Net transfers between categories
2,234
(2,234)
–
Net transfers to property, plant and equipment
(228)
(263)
(491)
Net fair value gains
5,619
2,799
8,418
205,605
29,496
235,101
Add: Initial leasing costs
267
–
267
At 31st December 2016
205,872
29,496
235,368
Geographical Analysis of Investment Properties
2017
HK$M
2016
HK$M
Held in Hong Kong:
On medium-term leases (10 to 50 years)
33,224
29,282
On long-term leases (over 50 years)
196,740
173,375
229,964
202,657
Held in Mainland China:
On medium-term leases (10 to 50 years)
29,468
25,390
Held in U.S.A. and elsewhere:
Freehold
7,860
7,054
267,292
235,101
Refer to the table with heading “Audited Financial Information” on page 54 for details of the Group’s capitalised interest rates and the 
amount of interest capitalised.

114	 Swire Properties Annual Report    2017
Notes to the Financial Statements
16.	Investment Properties (continued)
Valuation processes and techniques underlying management’s estimate of fair value
The Group’s investment properties were valued at their fair values at 31st December 2017. 94% by value were valued by Cushman & 
Wakefield Limited and 3% by value were valued by another independent valuer, in each case on the basis of market value. The 
independent professionally qualified valuers hold recognised relevant professional qualifications in the jurisdictions in which they 
valued the Group’s investment properties and have recent experience in the locations and types of investment properties valued. 
The remaining properties were valued by management. The current use of the investment properties equates to the highest and 
best use.
The valuation of the Group’s completed investment property portfolio is derived by capitalising the rental income derived from 
existing tenancies with due provision for reversionary income potential and by making reference to recent comparable sales 
transactions available in the relevant property market.
The valuation of the Group’s investment properties under development is derived by making reference to market capitalisation 
rates and recent comparable sales transactions in the relevant property market (on the assumption that the property had already 
been completed at the valuation date). It also takes into account the construction cost already incurred as well as the estimated 
cost to be incurred to complete the project plus the developer’s estimated profit and margin for risk.
The fair values of the Group’s investment properties are sensitive to changes in both observable and unobservable inputs. If 
capitalisation rates increase, the fair values decrease. If fair market rents increase, the fair values increase. If estimated costs to 
complete or the developer’s estimated profit and margin for risk increase, the fair values decrease. The opposite is true for 
decreases in these inputs.
There are inter-relationships between observable and unobservable inputs. Expected vacancy rates may have an impact on yields, 
with higher vacancy rates resulting in higher yields. For investment properties under development, increases in construction costs 
that enhance the properties’ features may result in an increase in future rental values. An increase in the future rental income may 
be linked with higher costs.
The Group reviews the valuations performed by the independent valuers for financial reporting purposes. Discussions of valuation 
processes and results are held between management and the independent valuers at least once every half year, in line with the 
Group’s half year reporting dates.

Swire Properties Annual Report    2017	
115
16.	Investment Properties (continued)
Fair value hierarchy
The Group’s investment properties are measured at fair value and categorised within the fair value hierarchy as follows:
Completed
Under Development
Hong Kong 
HK$M
Mainland  
China 
HK$M
U.S.A. 
HK$M
Total 
HK$M
Hong Kong 
HK$M
Others 
HK$M
Total 
HK$M
2017 
Total 
HK$M
Fair value hierarchy
Level 2
3,442
196
–
3,638
12,217
–
12,217
15,855
Level 3
191,618
29,272
6,767
227,657
22,687
1,093
23,780
251,437
Total
195,060
29,468
6,767
231,295
34,904
1,093
35,997
267,292
Add: initial leasing costs
239
At 31st December 2017
267,531
Completed
Under Development
Hong Kong 
HK$M
Mainland  
China 
HK$M
U.S.A. 
HK$M
Total 
HK$M
Hong Kong 
HK$M
Others 
HK$M
Total 
HK$M
2016 
Total
HK$M
Fair value hierarchy
Level 2
3,127
173
–
3,300
13,144
–
13,144
16,444
Level 3
170,990
25,217
6,098
202,305
15,396
956
16,352
218,657
Total
174,117
25,390
6,098
205,605
28,540
956
29,496
235,101
Add: initial leasing costs
267
At 31st December 2016
235,368
Notes:
The levels in the hierarchy represent the following:
Level 2 – Investment properties measured at fair value using inputs other than quoted prices but where those inputs are based on observable market data.
Level 3 – Investment properties measured at fair value using inputs not based on observable market data.
The above investment properties principally comprise completed commercial and residential properties in Hong Kong and Mainland 
China and commercial and residential properties under development in Hong Kong. The Group has other investment property projects, 
principally comprising a mixed-use development at the first phase of Brickell City Centre in Miami which was completed in 2016. 
Because of the unique nature of the Group’s investment properties, most of them are valued by reference to a Level 3 fair  
value measurement.

116	 Swire Properties Annual Report    2017
Notes to the Financial Statements
16.	Investment Properties (continued)
Fair value hierarchy (continued)
The change in Level 3 fair value of investment properties during the year is as follows:
Completed
Under Development
Hong Kong 
HK$M
Mainland  
China 
HK$M
U.S.A. 
HK$M
Total 
HK$M
Hong Kong 
HK$M
Others 
HK$M
Total 
HK$M
2017 
Total 
HK$M
Fair value – Level 3:
At 1st January 2017
170,990
25,217
6,098
202,305
15,396
956
16,352
218,657
Translation differences
–
1,966
46
2,012
–
89
89
2,101
Additions
479
40
791
1,310
2,658
109
2,767
4,077
Cost written back
–
(1)
–
(1)
–
–
–
(1)
Net transfers from property,  
 
plant and equipment
–
16
–
16
197
–
197
213
Transfer from Level 2
–
–
–
–
1,380
–
1,380
1,380
Transfer to properties under  
 
development and for sale
–
–
–
–
(338)
–
(338)
(338)
Fair value gains/(losses)
20,149
2,034
(168)
22,015
3,394
(61)
3,333
25,348
At 31st December 2017
191,618
29,272
6,767
227,657
22,687
1,093
23,780
251,437
Completed
Under Development
Hong Kong 
HK$M
Mainland  
China 
HK$M
U.S.A. 
HK$M
Total 
HK$M
Hong Kong 
HK$M
Others 
HK$M
Total 
HK$M
2016 
Total
HK$M
Fair value – Level 3:
At 1st January 2016
171,088
25,010
–
196,098
11,761
5,611
17,372
213,470
Translation differences
–
(1,677)
(1)
(1,678)
–
(20)
(20)
(1,698)
Additions
304
59
73
436
2,120
810
2,930
3,366
Cost written back
(9)
(116)
–
(125)
–
–
–
(125)
Transfer to properties held  
 
for development
–
–
–
–
–
(303)
(303)
(303)
Transfer to other non-current assets
–
–
–
–
(5,200)
–
(5,200)
(5,200)
Transfer between categories
(3,713)
–
5,947
2,234
3,713
(5,947)
(2,234)
–
Net transfers to property,  
 
plant and equipment
(136)
(1)
(91)
(228)
–
–
–
(228)
Fair value gains
3,456
1,942
170
5,568
3,002
805
3,807
9,375
At 31st December 2016
170,990
25,217
6,098
202,305
15,396
956
16,352
218,657

Swire Properties Annual Report    2017	
117
16.	Investment Properties (continued)
Information about Level 3 fair value measurements using significant unobservable inputs
Fair value
HK$M 
Valuation technique 
Market rent per month1  
HK$ per sq. ft. (lettable)
Capitalisation rate 
At 31st December 2017
Completed
 
Hong Kong
191,618
Income capitalisation
Less than 10 – Low 500’s
2.50% – 4.88%3
 
Mainland China
29,272
Income capitalisation
Less than 10 – Low 200’s
6.50% – 7.00%
 
U.S.A.
6,242
Income capitalisation
Low 10’s – Low 100’s
4.75% – 5.50%
 
U.S.A.
525
Sales comparison
–
–
Sub-total
227,657
Under development
 
Hong Kong
22,687
Residual2
High 50’s – Mid 60’s
3.88%
 
Others
1,093
Residual2
–
–
Sub-total
23,780
Total (Level 3)
251,437
At 31st December 2016
Completed
 
Hong Kong
170,717
Income capitalisation
Less than 10 – Low 500’s
2.50% – 4.88%
 
Hong Kong
273
Residual2
Low 50’s
2.00%
 
Mainland China
25,217
Income capitalisation
Less than 10 – High 100’s
6.50% – 7.00%
 
U.S.A.
5,547
Income capitalisation
Low 10’s – Low 100’s
4.75% – 5.50%
 
U.S.A.
551
Sales comparison
–
–
Sub-total
202,305
Under development
 
Hong Kong
15,396
Residual2
High 50’s – Low 60’s
4.13%
 
Others
956
Sales comparison
–
–
Sub-total
16,352
Total (Level 3)
218,657
1	 Market rent is determined in accordance with the definition of that term in the HKIS Valuation Standards 2017 of The Hong Kong Institute of 
Surveyors, which is “the estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a 
willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, 
prudently, and without compulsion”. It is in effect the rental income (exclusive of usual outgoings) which a property would be expected to earn if it 
were vacant and available to let. It is not necessarily the same as the rent which a tenant is actually committed to pay.
2	 In using the residual method to make fair value measurements of investment properties, two additional unobservable inputs have been used. These 
are the estimated costs to complete the development and the developer’s estimated profit and margin for risk.
3	 Within the disclosed capitalisation rates, there was a reduction of 25 basis points in the capitalisation rate applicable to office portfolio investment 
properties in Hong Kong.

118	 Swire Properties Annual Report    2017
Notes to the Financial Statements
17.	Intangible Assets
Accounting Policy
Computer software
Computer software licences acquired are capitalised on the basis of the costs incurred to acquire and bring to use the specific 
software. These costs are amortised over their estimated useful lives (three to five years).
Costs associated with maintaining computer software programmes are recognised as an expense as incurred. Costs that are 
directly associated with the development of identifiable and unique software products controlled by the Group, and that will 
probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets. Direct costs include 
the software development employee costs and an appropriate portion of relevant overheads.
Computer software costs recognised as assets are amortised over their estimated useful lives (three to five years).
Computer 
Software 
HK$M
Others 
HK$M
Total
HK$M
Cost:
At 1st January 2017
114
124
238
Additions
19
32
51
At 31st December 2017
133
156
289
Accumulated amortisation:
At 1st January 2017
81
3
84
Amortisation for the year (note 7)
13
14
27
At 31st December 2017
94
17
111
Net book value:
At 31st December 2017
39
139
178
Computer 
Software 
HK$M
Others 
HK$M
Total
HK$M
Cost:
At 1st January 2016
98
99
197
Additions
16
25
41
At 31st December 2016
114
124
238
Accumulated amortisation:
At 1st January 2016
70
–
70
Amortisation for the year (note 7)
11
3
14
At 31st December 2016
81
3
84
Net book value:
At 31st December 2016
33
121
154
Amortisation of HK$27 million (2016: HK$14 million) is included in cost of sales and administrative expenses in the consolidated 
statement of profit or loss.

Swire Properties Annual Report    2017	
119
18.	Properties Held for Development
Accounting Policy
Properties held for development comprise freehold land at cost, less provisions for possible losses. Properties held for development 
are not expected to be sold or developed within the Group’s normal operating cycle and are classified as non-current assets.
2017
HK$M
2016
HK$M
Properties held for development
 
Freehold land
1,126
1,119
 
Development cost
216
160
1,342
1,279
19.	Joint Venture Companies
Accounting Policy
Joint venture companies are those companies held for the long-term, over which the Group is in a position to exercise joint control 
with other venturers in accordance with contractual arrangements, and has rights to the net assets of those companies. The use of 
the equity method by the Group to account for the investment in joint venture companies is disclosed in the “Basis of 
Consolidation” of the Principal Accounting Policies on pages 150 to 152.
2017
HK$M
2016
HK$M
Share of net assets, unlisted
8,651
6,351
Loans due from joint venture companies less provisions
 
– Interest-free
12,997
12,376
 
– Interest-bearing at 1.7% to 7.5% (2016: 1.7% to 7.5%)
1,378
1,258
23,026
19,985
The loans due from joint venture companies are unsecured and have no fixed terms of repayment.

120	 Swire Properties Annual Report    2017
Notes to the Financial Statements
19.	Joint Venture Companies (continued)
The Group’s share of assets and liabilities and results of joint venture companies is summarised below:
2017
HK$M
2016
HK$M
Non-current assets
34,759
30,395
Current assets
2,392
1,732
Current liabilities
(4,643)
(4,062)
Non-current liabilities
(23,857)
(21,714)
Net assets
8,651
6,351
Revenue
2,013
1,556
Change in fair value of investment properties
1,383
1,192
Expenses
(1,531)
(1,245)
Profit before taxation
1,865
1,503
Taxation
(219)
(223)
Profit for the year
1,646
1,280
Other comprehensive gains/(losses) for the year
645
(591)
Total comprehensive income for the year
2,291
689
Capital commitments and contingencies in respect of joint venture companies are disclosed in notes 38 and 39.
The principal joint venture companies of Swire Properties Limited are shown on pages 153 to 155. There are no joint venture companies 
that are considered individually material to the Group.

Swire Properties Annual Report    2017	
121
20.	 Associated Companies
Accounting Policy
Associated companies are those companies over which the Group has significant influence, but not control or joint control, over 
their management including participation in the financial and operating policy decisions, generally accompanying a shareholding 
of between 20% and 50% of the voting rights. The use of the equity method by the Group to account for the investment in 
associated companies is disclosed in the “Basis of Consolidation” of the Principal Accounting Policies on pages 150 to 152.
2017
HK$M
2016
HK$M
Share of net assets, unlisted
374
361
The Group’s share of the assets and liabilities and results of associated companies is summarised below:
2017
HK$M
2016
HK$M
Non-current assets
552
551
Current assets
267
279
Current liabilities
(110)
(86)
Non-current liabilities
(335)
(383)
Net assets
374
361
Revenue
598
586
Profit and total comprehensive income for the year
146
139
The principal associated companies of Swire Properties Limited are shown on pages 153 to 155. There are no associated companies 
that are considered individually material to the Group.

122	 Swire Properties Annual Report    2017
Notes to the Financial Statements
21.	Financial Instruments by Category
Accounting Policy
Classification
The Group classifies its financial instruments in the following categories: at fair value through profit or loss, derivatives used for 
hedging, available-for-sale, loans and receivables and amortised cost. The classification depends on the purpose of the financial 
instrument. The Group determines the classification of its financial instruments at initial recognition.
(a)	 At fair value through profit or loss
	
A financial instrument is classified within this category if the intention is to settle it in the short-term or if it is designated as at 
fair value through profit or loss by management. Derivatives are included within this category unless they are designated as 
hedges. Put options in respect of non-controlling interests in subsidiary companies included in trade and other payables are 
measured at fair value through profit or loss. Assets in this category are classified as current if they are either held for trading or 
are expected to be realised within 12 months of the period-end date.
(b)	 Derivatives used for hedging
	
Derivative instruments are classified within this category if they qualify for hedge accounting.
(c)	 Available-for-sale
	
Available-for-sale assets are non-derivative investments and other assets that are either designated in this category or not 
classified in any of the other categories. Available-for-sale assets are included in non-current assets unless management 
intends to dispose of the asset within 12 months of the period-end date.
(d)	 Loans and receivables
	
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active 
market. They arise when the Group provides money, goods or services directly to a debtor with no intention of trading the 
receivable. They are included in current assets, except for maturities greater than 12 months after the period-end date where 
these are classified as non-current assets.
(e)	 Amortised cost
	
The amortised cost category comprises instruments that are non-derivative financial liabilities with fixed or determinable 
payments and fixed maturities. They are included in non-current liabilities, except for maturities less than 12 months after the 
period-end date where these are classified as current liabilities.
Recognition and measurement
Purchases and sales of financial instruments are recognised on their trade-date, being the date on which the Group contracts with  
the purchaser or seller. Financial instruments are initially recognised at fair value. Transaction costs are included for all financial 
instruments not carried at fair value through profit or loss. Financial instruments are derecognised when the rights to receive or 
obligations to pay cash have expired or have been transferred and the Group has transferred substantially all the relevant risks  
and rewards.
Financial instruments classified as at fair value through profit or loss are subsequently carried at fair value. Realised and unrealised 
gains and losses arising from changes in fair value are included in the statement of profit or loss in the period in which they arise. 
Derivatives are subsequently carried at fair value. The accounting for realised and unrealised gains and losses arising from changes in 
the fair value of derivatives is set out in note 30.
Financial assets classified as available-for-sale are subsequently carried at fair value. Unrealised gains and losses arising from changes 
in fair value are recognised in other comprehensive income. Dividends on available-for-sale equity instruments are recognised in the 
consolidated statement of profit or loss as part of other income when the Group’s right to receive payments is established. When 
available-for-sale assets are sold or impaired, the accumulated fair value adjustments are included in the statement of profit or loss as 
gains and losses from investments.
Financial instruments classified as loans and receivables and amortised cost are subsequently measured using the effective  
interest method.
The Group assesses at each period-end date whether there is objective evidence that a financial asset is impaired. A financial asset is 
impaired and impairment losses are recognised only if there is objective evidence of impairment as a result of one or more events that 
occur after the initial recognition of the asset and that event has an impact on the estimated future cash flows of the financial asset 
that can be reliably measured.

Swire Properties Annual Report    2017	
123
21.	Financial Instruments by Category (continued)
At fair value
through  
profit 
or loss
 HK$M 
Derivatives
used for
hedging 
 HK$M
Loans and
receivables
 HK$M 
Amortised
cost
HK$M 
Total 
carrying 
amount
 HK$M 
Fair 
value 
 HK$M 
Assets as per consolidated statement of  
 
financial position
At 31st December 2017
Amount due from immediate holding company
–
–
5
–
5
5
Trade and other receivables excluding  
 
prepayments (note 24)
–
–
2,745
–
2,745
2,745
Cash and cash equivalents (note 26)
–
–
1,708
–
1,708
1,708
Derivative financial assets (note 30)
–
51
–
–
51
51
Total
–
51
4,458
–
4,509
4,509
At 31st December 2016
Amount due from immediate holding company
–
–
9
–
9
9
Trade and other receivables excluding prepayments  
 
(note 24)
–
–
2,572
–
2,572
2,572
Cash and cash equivalents (note 26)
–
–
1,681
–
1,681
1,681
Derivative financial assets (note 30)
–
219
–
–
219
219
Total
–
219
4,262
–
4,481
4,481
Liabilities as per consolidated statement of  
 
financial position
At 31st December 2017
Trade and other payables excluding non-financial  
 
liabilities (note 27)
716
–
–
7,804
8,520
8,520
Bank overdrafts and short-term loans (note 28)
–
–
–
499
499
499
Long-term loans and bonds (note 28)
–
–
–
31,380
31,380
31,731
Loans due to a fellow subsidiary company  
 
(note 29)
–
–
–
5,176
5,176
5,176
Derivative financial liabilities (note 30)
–
34
–
–
34
34
Total
716
34
–
44,859
45,609
45,960
At 31st December 2016
Trade and other payables excluding non-financial 
 
liabilities (note 27)
670
–
–
8,482
9,152
9,152
Bank overdrafts and short-term loans (note 28)
–
–
–
500
500
500
Long-term loans and bonds (note 28)
–
–
–
29,054
29,054
29,280
Loans due to a fellow subsidiary company  
 
(note 29)
–
–
–
7,504
7,504
7,504
Total
670
–
–
45,540
46,210
46,436

124	 Swire Properties Annual Report    2017
Notes to the Financial Statements
21.	Financial Instruments by Category (continued)
The fair values of financial instruments traded in active markets are based on quoted market prices at the year-end date. The quoted 
market prices used for financial assets held by the Group are the current bid prices.
The fair values of financial instruments that are not traded in active markets are determined by using valuation techniques such as 
estimated discounted cash flows, which use assumptions that are based on market conditions existing at each year-end date.
The book values of trade and other receivables, trade and other payables and provisions approximate their fair values.
The fair value of current borrowings equals their carrying value, as the impact of discounting is not significant. The fair value of  
non-current borrowings is not equal to their carrying value but is based on cash flows discounted using assumptions sourced from the 
relevant financial institutions or quotes from market markers or alternative market participants supported by observable inputs,  
such as interest rates. Non-current borrowings would be categorised within Level 2 of the fair value hierarchy if they were accounted  
for at fair value.
Financial instruments that are measured at fair value are included in the following fair value hierarchy:
Level 2
HK$M
Level 3 
HK$M
Total 
carrying 
amount 
HK$M
Assets as per consolidated statement of financial position
At 31st December 2017
Derivatives used for hedging (note 30)
51
–
51
At 31st December 2016
Derivatives used for hedging (note 30)
219
–
219
Liabilities as per consolidated statement of financial position
At 31st December 2017
Derivatives used for hedging (note 30)
34
–
34
Put option in respect of a non-controlling interest (note 27)
–
716
716
34
716
750
At 31st December 2016
Put option in respect of a non-controlling interest (note 27)
–
670
670
Notes:
The levels in the hierarchy represent the following:
Level 2 – Financial instruments measured at fair value using inputs other than quoted prices but where those inputs are based on observable market data.
Level 3 – Financial instruments measured at fair value using inputs not based on observable market data.

Swire Properties Annual Report    2017	
125
21.	Financial Instruments by Category (continued)
The fair value of derivatives used for hedging in Level 2 has been determined based on quotes from market makers or alternative 
market participants supported by observable inputs. The most significant observable inputs are market interest rates, exchange rates 
and yields.
There were no transfers of financial instruments between Level 2 and Level 3 fair value hierarchy classifications and there were no 
transfers into or out of Level 3 fair value hierarchy classifications. The Group’s policy is to recognise any transfer into and out of fair 
value hierarchy levels at the date of the event or change in circumstances that caused the transfer.
There has been no change in the valuation techniques for Level 2 and Level 3 fair value hierarchy classifications.
The Group’s finance department performs the valuations of financial instruments required for reporting purposes, including Level 3 fair 
values. The valuations are reviewed and approved by the Finance Director.
The following table presents the changes in Level 3 financial instruments for the year ended 31st December 2017:
2017
HK$M
2016
HK$M
(a) Put options in respect of non-controlling interests in subsidiary companies
At 1st January
670
509
Translation differences
5
–
Addition during the year
35
47
Change in fair value recognised as net finance charges
6
114
At 31st December
716
670
Total losses for the year included in profit or loss in respect of financial instruments  
 
held at 31st December
6
114
2017
HK$M
2016
HK$M
(b) Available-for-sale assets
At 1st January
–
6
Addition during the year
–
–
Decrease/disposal during the year
–
(6)
At 31st December
–
–
The fair value of the put option in respect of a non-controlling interest in a subsidiary company and unlisted investments classified 
within Level 3 are determined using discounted cash flow valuations. The significant unobservable inputs used are expected future 
growth rates and discount rates.
The fair value estimate of the put option in respect of a non-controlling interest in the retail portion of Brickell City Centre is classified 
within Level 3 because it is based on a number of unobservable inputs, including the expected fair value of the investment property at 
the expected exercise date, the expected exercise date itself and the discount rate used. The expected exercise date is in 2019 and the 
discount rate used is 6.3%.
The investment property’s fair value at the expected exercise date is, itself, subject to a number of unobservable inputs which are 
similar to the inputs for the Group’s other already completed investment properties, including the expected fair market rent and the 
expected capitalisation rate. If the investment property’s expected fair value at the exercise date is higher, the fair value of the put 
option would also be higher at 31st December 2017. If the expected exercise date is later or if the discount rate is higher, then the fair 
value of the put option would be lower. The opposite is true for an earlier exercise date or a lower discount rate.

126	 Swire Properties Annual Report    2017
Notes to the Financial Statements
22.	Properties under Development and for Sale
Accounting Policy
Properties under development and for sale comprise freehold and leasehold land at cost, construction costs and interest costs 
capitalised, less provisions for possible losses. Properties under development are active construction projects which are expected 
to be sold within the Group’s normal operating cycle and are classified as current assets. Properties for sale are available for 
immediate sale and are classified as current assets.
2017
HK$M
2016
HK$M
Properties for sale
 
Properties under development
 
– development costs
17
–
 
– leasehold land
338
–
 
Completed properties
 
– development costs
1,658
3,760
 
– freehold land
120
130
 
– leasehold land
167
1,779
2,300
5,669
Refer to the table with heading “Audited Financial Information” on page 54 for details of the Group’s capitalised interest rates and the 
amount of interest capitalised.

Swire Properties Annual Report    2017	
127
23.	Stocks and Work in Progress
Accounting Policy
Stocks and work in progress are stated at the lower of cost and net realisable value. Cost represents average unit cost and net 
realisable value is determined on the basis of anticipated sales proceeds less estimated selling expenses. The costs of finished 
goods and work in progress comprise direct material and labour costs and an appropriate proportion of production overhead 
expenses less provisions for foreseeable losses.
2017
HK$M
2016
HK$M
Stores and spare parts
66
67
Work in progress
14
12
80
79
24.	Trade and Other Receivables
Accounting Policy
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective 
interest method, less provision for impairment. A provision for impairment of trade and other receivables is established when there 
is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. Trade 
and other receivables in the statement of financial position are stated net of such provisions.
Objective evidence of impairment may include indications that a debtor or a group of debtors are experiencing significant financial 
difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial 
reorganisation, and where observable data indicate that there is a measurable decrease in the estimated future cash flows, such as 
changes in arrears or economic conditions that correlate with defaults.
2017
HK$M
2016
HK$M
Trade debtors
370
471
Prepayments and accrued income
254
309
Other receivables
2,372
2,101
2,996
2,881
The analysis of the age of trade debtors at year-end (based on the invoice date) is as follows:
2017
HK$M
2016
HK$M
Under three months
368
465
Between three and six months
2
4
Over six months
–
2
370
471

128	 Swire Properties Annual Report    2017
Notes to the Financial Statements
24.	Trade and Other Receivables (continued)
Other receivables include receivables for rent free periods of HK$915 million (2016: HK$858 million), which are amortised over lease 
terms. Their carrying values approximate their fair values as the impact of discounting is not significant.
There is no concentration of credit risk with respect to trade and other receivables, as the Group has a large number of customers.
The Group does not grant any credit terms to its customers, except to corporate customers in the hotel division where commercial 
trade credit terms are given. The Group also holds non-interest bearing rental deposits as security against trade debtors. At 31st 
December 2017, trade debtors of HK$214 million (2016: HK$145 million) were past due but not impaired. The majority of the amount 
past due but not impaired is under three months. These relate to a number of independent customers for whom there is no recent 
history of default. The other classes within trade and other receivables do not contain impaired assets.
The maximum exposure to credit risk at 31st December 2017 and 31st December 2016 is the carrying value of trade debtors  
and other receivables disclosed above. The value of rental deposits from tenants at 31st December 2017 was HK$2,616 million  
(2016: HK$2,494 million).
25.	Amount Due from Immediate Holding Company – Swire Pacific Limited
The amount due from immediate holding company is unsecured, interest free and repayable within one year.
26.	Cash and Cash Equivalents
Accounting Policy
In the consolidated statement of cash flows, cash and cash equivalents comprise cash in hand, amounts repayable on demand 
from banks and financial institutions and short-term highly liquid investments which were within three months of maturity when 
acquired, less bank overdrafts. In the consolidated statement of financial position, cash and cash equivalents exclude bank 
overdrafts which are shown within borrowings in current liabilities.
2017
HK$M
2016
HK$M
Short-term deposits maturing within three months
122
91
Bank balances
1,586
1,590
1,708
1,681
The effective interest rates on short-term deposits of the Group ranged from 0.6% to 1.8% (2016: 0.4% to 0.7%); these deposits have 
maturities from 2 to 78 days (2016: 13 to 32 days).
The maximum exposure to credit risk in respect of bank balances and short-term deposits at 31st December 2017 and 31st December 
2016 is the carrying value of the bank balances and short-term deposits disclosed above.

Swire Properties Annual Report    2017	
129
27.	Trade and Other Payables
Accounting Policy
Trade and other payables (except put options in respect of non-controlling interests in subsidiary companies) are recognised 
initially at fair value and subsequently measured at amortised cost using the effective interest method. Put options in respect of 
non-controlling interests in subsidiary companies are measured at the fair value of the expected redemption amounts, and are 
designated at fair value through profit or loss.
2017
HK$M
2016
HK$M
Trade and other payables – current:
 
Trade creditors
542
565
 
Rental deposits from tenants
2,616
2,494
 
Deposit received on the sale of a subsidiary company
1,306
–
 
Other current payables
 
 
Accrued capital expenditure
539
1,190
 
 
Deposits received on the sale of trading properties
25
806
 
 
Amounts due to intermediate holding company
90
112
 
 
Amounts due to a fellow subsidiary company
51
75
 
 
Amounts due to an associated company
31
50
 
 
Interest-bearing advances from fellow subsidiary companies at 3.3% (2016: 3.3% to 4.1%)
72
100
 
 
Interest-bearing advances from joint venture and related companies at 2.8% (2016: 2.8%)
240
223
 
 
Advances from a non-controlling interest
34
34
 
 
Others
2,274
2,196
3,356
4,786
7,820
7,845
Other payables – non-current:
 
Put option in respect of a non-controlling interest
716
670
 
Deposit received on the sale of a subsidiary company
–
653
716
1,323
In relation to other current payables, apart from certain amounts due to fellow subsidiary companies, and joint venture and  
related companies, which are interest-bearing as specified above, the balances are interest free, unsecured and have no fixed term  
of repayment.
The analysis of the age of trade creditors at year-end is as follows:
2017
HK$M
2016
HK$M
Under three months
542
565

130	 Swire Properties Annual Report    2017
Notes to the Financial Statements
28.	Borrowings
Accounting Policy
Borrowings are recognised initially at fair value and subsequently measured at amortised cost. Transaction costs incurred are 
included for those not held at fair value through profit or loss. Transaction costs are incremental costs that are directly attributable 
to the initiation of the borrowings, including fees and commissions paid to agents, advisers, brokers and dealers, levies by 
regulatory agencies and securities exchanges, and transfer taxes and duties. Borrowings are subsequently stated at amortised 
cost, with any difference between the proceeds (net of transaction costs) and the redemption value recognised in the statement 
of profit or loss over the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at 
least 12 months after the period-end date.
For disclosure purposes, the fair value of borrowings stated at amortised cost is estimated by discounting the future contractual 
cash flows at the current market interest rate that is available to the Group for similar financial instruments.
Refer to the tables with the headings “Audited Financial Information” on pages 50 to 53 for details of the Group’s borrowings.
2017
HK$M
2016
HK$M
Bank overdrafts and short-term loans – unsecured
499
500
Long-term bank loans – unsecured:
 
Repayable within one year
2,662
4,170
 
Repayable between one and two years
1,933
2,423
 
Repayable between two and five years
9,203
6,561
13,798
13,154
Other borrowings – unsecured:
 
Repayable within one year
–
500
 
Repayable between one and two years
299
–
 
Repayable between two and five years
8,094
4,460
 
Repayable after five years
9,189
10,940
17,582
15,900
Amount due within one year included under current liabilities
(2,662)
(4,670)
28,718
24,384
(a)	 The effective interest rates per annum (before cross-currency swaps) at 31st December were as follows:
2017
2016
HK$ 
%
US$ 
%
RMB 
%
SGD 
%
HK$ 
%
US$ 
%
RMB 
%
SGD 
%
Uncommitted bank  
 
loans and overdrafts
–
–
4.1-4.4
1.8
–
–
3.8
1.5
Long-term loans  
 
and bonds
1.3-3.6
2.0-4.4
4.3-4.4
1.8-2.0
1.2-3.6
1.2-4.4
4.3-4.4
1.4
Bank loans and other borrowings are repayable on various dates up to 2027 (2016: up to 2026).

Swire Properties Annual Report    2017	
131
28.	Borrowings (continued)
(b)	 The carrying amounts of these long-term bank loans and other borrowings (before cross-currency swaps) are denominated in the 
following currencies:
2017
HK$M
2016
HK$M
Hong Kong dollars
11,772
8,995
United States dollars
17,905
17,590
Renminbi
1,406
2,262
Singapore dollars
297
207
31,380
29,054
29.	Loans Due to a Fellow Subsidiary Company – Swire Finance Limited
The loans due to a fellow subsidiary company are unsecured, repayable on various dates in 2018 and bear interest at a rate of 5.0% per 
annum at 31st December 2017 (2016: 5.8% per annum).
2017
HK$M
2016
HK$M
Repayable within one year
5,176
2,329
Repayable between one and two years
–
5,175
5,176
7,504
Loans due within one year included under current liabilities
(5,176)
(2,329)
–
5,175
30.	Derivative Financial Instruments 
Accounting Policy
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured 
to their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a 
hedging instrument and, if this is the case, the nature of the item being hedged.
The Group documents at the inception of the transactions the relationship between hedging instruments and hedged items, as 
well as its risk management objective and strategy for undertaking hedge transactions. The Group also documents its assessment, 
both at hedge inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly 
effective in offsetting cash flows of hedged items.
All of the Group’s derivatives relate to cash flow hedges. The effective portions of changes in the fair value of derivatives that are 
designated and qualify as cash flow hedges are recognised in other comprehensive income. The gains or losses relating to 
ineffective portions are recognised immediately in the statement of profit or loss.
Amounts accumulated in equity are transferred to the statement of profit or loss in the periods when the hedged items will affect 
profit or loss. The gains or losses relating to effective portions of interest rate and cross-currency swaps hedging foreign currency 
borrowings are recognised in the statement of profit or loss within finance costs. The gains or losses relating to ineffective portions 
of interest rate and cross-currency swaps are recognised in the statement of profit or loss within other net gains.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative 
gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately 
recognised in the statement of profit or loss. When a forecast transaction is no longer expected to occur, the cumulative gain or 
loss that was reported in equity is immediately transferred to the statement of profit or loss.

132	 Swire Properties Annual Report    2017
Notes to the Financial Statements
30.	Derivative Financial Instruments (continued)
2017
2016
Assets
HK$M
Liabilities
HK$M
Assets
HK$M
Liabilities
HK$M
Interest rate and cross-currency swaps – cash flow hedges  
 
– due after one year
51
34
219
–
The interest rate swaps hedge the long-term interest rate exposure. The cross-currency swaps hedge the foreign currency risk relating 
to US dollar note issues. Gains and losses recognised in other comprehensive income on interest rate and cross-currency swaps at 31st 
December 2017 are expected to affect the statement of profit or loss in the years to redemption of the notes and expiry of loans (up to 
and including 2026). For the year ended 31st December 2017 and 31st December 2016, all cash flow hedges were 100% effective.
The notional principal amounts of the outstanding derivative financial instruments are as follows:
2017
HK$M
2016
HK$M
Cross-currency swaps
11,724
11,634
Interest rate swaps
1,563
–
31.	Deferred Taxation
Accounting Policy
Deferred taxation is provided in full, using the liability method, on temporary differences arising between the tax bases of assets 
and liabilities and their carrying amounts in the financial statements. However, if the deferred tax arises from initial recognition of 
an asset or liability in a transaction other than a business combination that, at the time of the recognition, has no impact on taxable 
nor accounting profit or loss, it is not recognised. Tax rates enacted or substantially enacted by the period-end date are used to 
determine deferred taxation. 
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the 
temporary differences can be utilised.
Deferred taxation is provided on temporary differences arising on investments in subsidiary, joint venture and associated 
companies, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that 
the temporary difference will not reverse in the foreseeable future.
Deferred tax relating to investment properties in Hong Kong and the U.S.A. is calculated having regard to the presumption that the 
value of these properties is capable of being recovered entirely through sale. This presumption is rebutted in relation to investment 
properties in Mainland China, because the business model applicable to them is to consume substantially all the economic 
benefits embodied in them over time rather than through sale. Accordingly, deferred tax relating to investment properties in 
Mainland China is determined on the basis of recovery through use.
The movement on the net deferred tax liabilities account is as follows:
2017
HK$M
2016
HK$M
At 1st January
7,767
6,697
Translation differences
311
(243)
Charged to statement of profit or loss (note 11)
407
1,256
(Credited)/Charged to other comprehensive income
(47)
57
At 31st December
8,438
7,767

Swire Properties Annual Report    2017	
133
31.	Deferred Taxation (continued)
Deferred tax assets are recognised in respect of tax losses carried forward to the extent that realisation of the related tax benefits 
through future taxable profits is probable. These were recognised as these entities are expected to generate sufficient taxable profits in 
the future. The Group has unrecognised tax losses of HK$2,303 million (2016: HK$1,827 million) to carry forward against future taxable 
income. These amounts are analysed as follows:
Unrecognised tax losses
2017
HK$M
2016
HK$M
No expiry date
1,291
1,069
Expiring within 1 year
160
54
Expiring between 1 – 5 years
151
487
Expiring between 5 – 10 years
–
–
Expiring between 10 – 20 years
701
217
2,303
1,827
The movement in deferred tax assets and liabilities (prior to offsetting balances within the same taxation jurisdiction) during the year 
was as follows:
Deferred tax liabilities
Accelerated tax 
depreciation
Valuation of 
Investment 
Properties
Others
Total
2017
HK$M
2016
HK$M
2017
HK$M
2016
HK$M
2017
HK$M
2016
HK$M
2017
HK$M
2016
HK$M
At 1st January
3,537
3,154
4,033
3,341
515
448
8,085
6,943
Translation differences
33
(33)
278
(210)
6
(6)
317
(249)
Charged to statement of profit  
 
or loss
163
416
224
902
1
37
388
1,355
(Credited)/Charged to other  
 
comprehensive income
–
–
–
–
(35)
36
(35)
36
At 31st December
3,733
3,537
4,535
4,033
487
515
8,755
8,085

134	 Swire Properties Annual Report    2017
Notes to the Financial Statements
31.	Deferred Taxation (continued)
Deferred tax assets
Tax losses
Others
Total
2017
HK$M
2016
HK$M
2017
HK$M
2016
HK$M
2017
HK$M
2016
HK$M
At 1st January
160
110
158
136
318
246
Exchange difference
4
(5)
2
(1)
6
(6)
(Charged)/Credited to statement of profit or loss
(8)
55
(11)
44
(19)
99
Credited/(Charged) to other comprehensive income
–
–
12
(21)
12
(21)
At 31st December
156
160
161
158
317
318
Deferred tax assets and liabilities are netted off when the taxes relate to the same taxation authority and where offsetting is legally 
enforceable. The following amounts, determined after appropriate offsetting, are shown separately on the statement of financial 
position:
2017
HK$M
2016
HK$M
Deferred tax assets:
 
– to be recovered after more than 12 months
(85)
(73)
 
– to be recovered within 12 months
–
–
(85)
(73)
Deferred tax liabilities:
 
– to be settled after more than 12 months
8,523
7,840
 
– to be settled within 12 months
–
–
8,523
7,840
8,438
7,767
32.	Other Current Assets/Other Non-current Assets
Other current assets comprise a property in Kowloon Bay, Hong Kong. In October 2016, Swire Properties conditionally agreed to sell  
its 100% interest in the company which owns this property development. The consideration for the sale is HK$6,528 million, subject  
to adjustment. The property was transferred to other non-current assets at fair value in the financial statements on signing the 
agreement in 2016 and was reclassified to other current assets in the 2017 financial statements. The carrying value of the property at  
31st December 2017 represents its fair value at the date of transfer plus the development costs incurred subsequently. Completion of 
the sale is conditional upon the relevant certificate of compliance being obtained on or before 31st December 2018.

Swire Properties Annual Report    2017	
135
33.	Retirement Benefits
The Group operates a number of defined benefit and defined contribution retirement benefit schemes for its employees, the assets of 
which are held in separate trustee-administered funds.
A defined benefit scheme is a retirement plan that defines the benefit that an employee will receive on retirement, usually dependent 
on one or more factors such as age, years of service and compensation. The Group has an obligation to provide participating employees 
with these benefits.
A defined contribution scheme is a retirement plan under which the Group pays fixed contributions into a separate entity. The Group 
has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the 
benefits relating to employee service in the current and prior periods.
Accounting Policy
For defined benefit schemes, retirement benefit costs are assessed using the projected unit credit method. Under this method, the 
cost of providing retirement benefits is charged to the statement of profit or loss so as to spread the regular cost over the service 
lives of employees.
The asset or liability recognised on the statement of financial position is the present value of the cost of providing these benefits 
(the defined benefit obligation) less the fair value of the plan assets at the end of the reporting period. The defined benefit 
obligation is calculated annually by independent actuaries and is determined by discounting the estimated future cash outflows 
using interest rates of high quality corporate bonds. The plan assets are valued on a bid price basis.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions on obligation are charged or 
credited to equity in other comprehensive income in the period in which they arise. Past-service costs are recognised immediately 
in the statement of profit or loss. Any differences between the implicit and actual return on plan assets are charged as 
remeasurements to other comprehensive income.
For defined contribution schemes, the Group’s contributions are charged to the statement of profit or loss in the periods to which 
the contributions relate.
Critical Accounting Estimates and Judgements 
The present value of defined benefit assets and liabilities depend on a number of factors that are determined using a number of 
actuarial assumptions. The assumptions used in determining the net cost (income) for retirement benefits assets and liabilities 
include the discount rate. Any changes in these assumptions will have an impact on the carrying amount of retirement benefit 
assets and liabilities. The details of the discount rate and other assumptions used, including applicable sensitivities, are included in 
this note.
The majority of the Group’s schemes are final salary guaranteed lump sum defined benefit plans.

136	 Swire Properties Annual Report    2017
Notes to the Financial Statements
33.	Retirement Benefits (continued)
Most new employees are offered the choice of joining the defined benefit retirement schemes or the mandatory provident fund 
("MPF") scheme. Where staff elect to join the MPF scheme, both the Company and the staff are required to contribute 5% of the 
employees’ relevant monthly income (capped at HK$30,000). Staff may elect to contribute more than the minimum by way of 
voluntary contributions. Employees engaged outside Hong Kong are covered by appropriate local arrangements.
Contributions by the Group to the defined benefit retirement schemes are made in accordance with the funding rates recommended 
by independent qualified actuaries to ensure that the plans will be able to meet their liabilities as they become due. The funding rates 
are subject to annual review and are determined by taking into consideration the difference between the market values of the plans’ 
assets and the present value of accrued past service liabilities, on an ongoing basis, as computed by reference to actuarial valuations. 
The principal schemes in Hong Kong are valued by qualified actuaries for funding purposes under the provisions of Hong Kong’s 
Occupational Retirement Schemes Ordinance. The latest actuarial valuations indicate that the funding level for the year was 98% 
(2016: 105%) of the accrued liabilities on an ongoing basis. The Group expects to make contributions of HK$81 million to its defined 
benefit schemes in 2018.
Total retirement benefit costs recognised in the consolidated statement of profit or loss for the year ended 31st December 2017 
amounted to HK$97 million (2016: HK$94 million), including HK$18 million (2016: HK$17 million) in respect of defined contribution 
schemes.
The defined benefit scheme is valued using the projected unit credit method in accordance with HKAS 19. For the years ended  
31st December 2017 and 2016, disclosures are based on valuations prepared by Mercer (Hong Kong) Limited at 31st December 2015, 
which were updated to reflect the position at 31st December 2017 and 2016 by Cannon Trustees Limited, the main administration 
manager of the Group's defined benefit schemes.
(a) 	 The amounts recognised in the statement of financial position are as follows:
2017
HK$M
2016
HK$M
Present value of funded obligations
1,086
907
Fair value of plan assets
(941)
(769)
Net retirement benefit liabilities
145
138
Represented by:
Retirement benefit liabilities
145
138

Swire Properties Annual Report    2017	
137
33.	Retirement Benefits (continued)
(b)	 Changes in the present value of the defined benefit obligations are as follows:
2017
HK$M
2016
HK$M
At 1st January
907
867
Current service cost
76
72
Interest cost
33
28
Remeasurements from changes in:
 
– demographic assumptions
–
–
 
– financial assumptions
98
(45)
Experience losses
27
16
Transfer
(2)
8
Benefits paid
(53)
(39)
At 31st December
1,086
907
The weighted average duration of the defined benefit obligations is 11.61 years (2016: 11.59 years).
(c)	 Changes in the fair value of plan assets are as follows:
2017
HK$M
2016
HK$M
At 1st January
769
690
Interest income
30
23
Remeasurements of plan assets
119
21
Contributions by employers
78
66
Transfer
(2)
8
Benefits paid
(53)
(39)
At 31st December
941
769
There were no plan amendments, curtailments and settlements during the year.
(d)	 Net expenses recognised in the consolidated statement of profit or loss are as follows:
2017
HK$M
2016
HK$M
Current service cost
76
72
Net interest cost
3
5
79
77
The above net expenses were included in cost of sales and administrative expenses in the consolidated statement of profit or loss.
The actual return on defined benefit plan assets was a gain of HK$149 million (2016: HK$44 million gain).

138	 Swire Properties Annual Report    2017
Notes to the Financial Statements
33.	Retirement Benefits (continued)
(e)	 The plan assets are invested in the Swire Group Unitised Trust (“the Trust”). The Trust has three sub-funds in which the assets may 
be invested in accordance with separate and distinct investment policies and objectives. The Trust and sub-funds are overseen by 
an investment committee, which meets four times a year.
The make-up of the Trust is the result of the asset allocation of each plan. The asset allocation of each plan targets a mix of equities 
and bonds.
The management of the assets within the sub-funds is delegated by the investment committee to a number of reputable 
investment managers. The plan assets comprise:
Defined benefit plans
2017
HK$M
2016
HK$M
Equities
 
Asia Pacific
175
128
 
Europe
91
72
 
North America
174
149
 
Emerging markets
179
151
Bonds
 
Global
305
228
 
Emerging markets
16
10
Cash
1
31
941
769
At 31st December 2017, the prices of 96% of equities and 54% of bonds were quoted on active markets (2016: 96% and 45% 
respectively). The remainder of the prices were not quoted on active markets.
The most significant risk facing the defined benefit schemes of the Group is market risk. This risk embodies the potential for losses 
and gains and includes price risk, interest rate risk and currency risk as well as factors specific to an individual investment or its 
issuer or risk specific to a certain market. Market risk is managed principally through diversification of investments by the 
appointed investment managers. Investment managers enter into agreements that stipulate the performance objective of the 
investments, which is referenced to a recognised benchmark. The investment committee monitors the overall market risk position 
on a quarterly basis.

Swire Properties Annual Report    2017	
139
33.	Retirement Benefits (continued)
(f)	 The significant actuarial assumptions used are as follows:
2017
2016
Discount rate
2.84%
3.64%
Expected rate of future salary increases
4.00%
4.00%
The sensitivity of the defined benefit obligations to changes in actuarial assumptions is:
2017  
Increase/(Decrease)  
in defined benefit obligation
2016  
Increase/(Decrease)  
in defined benefit obligation
Change in 
assumption
Increase in 
assumption 
HK$M
Decrease in 
assumption 
HK$M
Change in 
assumption
Increase in 
assumption 
HK$M
Decrease in 
assumption 
HK$M
Discount rate
0.5%
(62)
67
0.5%
(51)
54
Expected rate of future  
 
salary increases
0.5%
66
(61)
0.5%
53
(51)
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, 
this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the 
defined benefit obligations to significant actuarial assumptions the same method has been applied as when calculating the 
retirement benefit liability recognised within the statement of financial position.
34.	Share Capital
Ordinary shares 
HK$M
Issued and fully paid:
At 1st January 2017 and 31st December 2017
5,850,000,000
10,449
At 1st January 2016 and 31st December 2016
5,850,000,000
10,449
There was no purchase, sale or redemption by the Company of its shares during the years ended 31st December 2017 and  
31st December 2016.

140	 Swire Properties Annual Report    2017
Notes to the Financial Statements
35.	Reserves
Revenue 
reserve 
HK$M
Merger 
reserve 
HK$M
Property 
revaluation 
reserve 
HK$M
Cash flow 
hedge 
reserve 
HK$M
Translation 
reserve 
HK$M
Total  
HK$M
At 1st January 2017
215,318
(1,108)
1,689
181
(1,160)
214,920
Profit for the year
33,957
–
–
–
–
33,957
Other comprehensive income
 
Revaluation of properties previously occupied  
 
by the Group
 
 
– gains recognised during the year
–
–
128
–
–
128
 
 
– deferred tax charge
–
–
(2)
–
–
(2)
 
Defined benefit plans
 
 
– remeasurement losses recognised during the year
(6)
–
–
–
–
(6)
 
 
– deferred tax credit
1
–
–
–
–
1
 
Cash flow hedges
 
 
– losses recognised during the year
–
–
–
(294)
–
(294)
 
 
– losses transferred to net finance charges
–
–
–
2
–
2
 
 
– deferred tax credit
–
–
–
48
–
48
 
Share of other comprehensive income of joint venture  
 
 
and associated companies
–
–
–
1
644
645
 
Net translation differences on foreign operations
–
–
–
–
1,804
1,804
Total comprehensive income/(losses) for the year
33,952
–
126
(243)
2,448
36,283
Transfer
3
–
(3)
–
–
–
2016 second interim dividend (note 13)
(2,808)
–
–
–
–
(2,808)
2017 first interim dividend (note 13)
(1,463)
–
–
–
–
(1,463)
At 31st December 2017
245,002
(1,108)
1,812
(62)
1,288
246,932

Swire Properties Annual Report    2017	
141
35.	Reserves (continued)
Revenue 
reserve 
HK$M
Merger 
reserve 
HK$M
Property 
revaluation 
reserve 
HK$M
Cash flow 
hedge 
reserve 
HK$M
Translation 
reserve 
HK$M
Total  
HK$M
At 1st January 2016
204,380
(1,108)
1,689
(66)
903
205,798
Profit for the year
15,050
–
–
–
–
15,050
Other comprehensive income
 
Defined benefit plans
 
 
– remeasurement gains recognised during the year
50
–
–
–
–
50
 
 
– deferred tax charge
(8)
–
–
–
–
(8)
 
Cash flow hedges
 
 
– gains recognised during the year
–
–
–
300
–
300
 
 
– gains transferred to net finance charges
–
–
–
(5)
–
(5)
 
 
– deferred tax charge
–
–
–
(49)
–
(49)
 
Share of other comprehensive income/(losses) of  
 
 
joint venture and associated companies
–
–
–
1
(592)
(591)
 
Net translation differences on foreign operations
–
–
–
–
(1,471)
(1,471)
Total comprehensive income/(losses) for the year
15,092
–
–
247
(2,063)
13,276
2015 second interim dividend
(2,808)
–
–
–
–
(2,808)
2016 first interim dividend (note 13)
(1,346)
–
–
–
–
(1,346)
At 31st December 2016
215,318
(1,108)
1,689
181
(1,160)
214,920
(a)	 The Group revenue reserve includes retained revenue reserves from joint venture companies amounting to HK$5,855 million 
(2016: HK$4,324 million) and retained revenue reserves from associated companies amounting to HK$279 million (2016: HK$267 
million).
(b)	 The Group revenue reserve has not yet deducted the second interim dividend for the year of HK$3,042 million declared after the 
year end date (2016: HK$2,808 million) (note 13).
(c)	 The Group adopted merger accounting in accordance with Accounting Guideline 5, Merger Accounting for Common Control 
Combinations (issued by the HKICPA) to account for the acquisition of all the shares of Swire Properties US Inc and Swire 
Properties One LLC in January 2010. These companies were wholly-owned subsidiaries of the immediate holding company of  
Swire Properties Limited.

142	 Swire Properties Annual Report    2017
Notes to the Financial Statements
36.	Company Statement of Financial Position and Reserves
(a)	 Company Statement of Financial Position
At 31st December 2017
Note
2017
HK$M
2016
HK$M 
ASSETS AND LIABILITIES
Non-current assets
 
Property, plant and equipment
50
41
 
Intangible assets
40
33
 
Subsidiary companies
62,726
55,019
 
Joint venture companies
1,718
2,588
 
Associated companies
3
3
 
Deferred tax assets
16
17
64,553
57,701
Current assets
 
Trade and other receivables
225
254
 
Cash and cash equivalents
127
214
352
468
Current liabilities
 
Trade and other payables
9,235
5,963
 
Taxation payable
11
12
9,246
5,975
Net current liabilities
(8,894)
(5,507)
Total assets less current liabilities
55,659
52,194
Non-current liabilities
 
Retirement benefit liabilities
128
118
NET ASSETS
55,531
52,076
EQUITY
Equity attributable to the Company’s shareholders
 
Share capital
34
10,449
10,449
 
Reserves
36(b)
45,082
41,627
TOTAL EQUITY
55,531
52,076
John R. Slosar
May Y. Wu
Directors
Hong Kong, 15th March 2018

Swire Properties Annual Report    2017	
143
36.	Company Statement of Financial Position and Reserves (continued)
(b)	 The movement of the Company reserves during the year are as follows:
Revenue
reserve
 HK$M 
Company
At 1st January 2017
41,627
Profit for the year (note 12)
7,733
Other comprehensive income
Defined benefit plans
 
– remeasurement losses recognised during the year
(9)
 
– deferred tax credit
2
Total comprehensive income for the year
7,726
2016 second interim dividend (note 13)
(2,808)
2017 first interim dividend (note 13)
(1,463)
At 31st December 2017
45,082
Company
At 1st January 2016
38,338
Profit for the year (note 12)
7,407
Other comprehensive income
Defined benefit plans
 
– remeasurement gains recognised during the year
43
 
– deferred tax charge
(7)
Total comprehensive income for the year
7,443
2015 second interim dividend
(2,808)
2016 first interim dividend (note 13)
(1,346)
At 31st December 2016
41,627
(i)	 Distributable reserves of the Company at 31st December 2017 amounted to HK$45,082 million (2016: HK$41,627 million).
(ii)	 The Company revenue reserve has not yet deducted the second interim dividend for the year of HK$3,042 million declared after 
the year end date (2016: HK$2,808 million) (note 13).

144	 Swire Properties Annual Report    2017
Notes to the Financial Statements
37.	Non-controlling Interests
2017
HK$M
2016
HK$M 
At 1st January
1,856
1,702
Share of profits less losses for the year
58
159
Share of translation differences on foreign operations
35
(23)
Share of total comprehensive income
93
136
Dividends paid and payable
(193)
(72)
Capital contribution from a non-controlling interest accrued
241
90
At 31st December
1,997
1,856
38.	Capital Commitments
2017
HK$M
2016
HK$M 
Outstanding capital commitments at the year-end in respect of:
Property, plant and equipment
 
Contracted for
–
3
 
Authorised by Directors but not contracted for
5
103
Investment properties
 
Contracted for
3,961
5,577
 
Authorised by Directors but not contracted for
8,807
10,152
12,773
15,835
The Group’s share of capital commitments of joint venture companies at the year-end*
 
Contracted for
776
1,540
 
Authorised by Directors but not contracted for
651
953
1,427
2,493
* of which the Group is committed to funding HK$341 million (2016: HK$814 million).
At 31st December 2017, the Group had unprovided contractual obligations for future repairs and maintenance on investment 
properties of HK$190 million (2016: HK$219 million).

Swire Properties Annual Report    2017	
145
39.	Provisions and Contingencies
Accounting Policy
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is more likely 
than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. 
Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by 
considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one 
item included in the same class of obligations may be small.
Contingent liabilities are possible obligations that arise from past events and the existence of which will only be confirmed by the 
occurrence or non-occurrence of one or more future events not wholly within the control of the Group. Where it is not probable 
that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a 
contingent liability, unless the probability of an outflow of economic benefits is remote.
Financial guarantees are initially recognised in the financial statements at fair value on the date the guarantee was given. 
Subsequent to initial recognition, the liabilities under such guarantees are measured at the higher of the initial measurement, less 
amortisation calculated to recognise in the statement of profit or loss the fee income earned on a straight-line basis over the life of 
the guarantee, and the best estimate of the expenditure required to settle any financial obligation arising at the period-end date. 
Any increase in the liability relating to guarantees is taken to the statement of profit or loss.
2017
HK$M
2016
HK$M 
Guarantees provided in respect of bank loans and other liabilities of  
 
joint venture companies
1,483
1,459
Bank guarantees given in lieu of utility deposits and others
185
175
1,668
1,634
The directors have assessed the fair value of the above guarantees and do not consider them to be material. They have therefore not 
been recognised in the Group’s statement of financial position.

146	 Swire Properties Annual Report    2017
Notes to the Financial Statements
40.	Operating Lease Arrangements
Accounting Policy
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating 
leases. Receipts or payments made under operating leases (net of any incentives paid to lessees or received from the lessors) are 
recognised as income or expense in the statement of profit or loss on a straight-line basis over the period of the lease.
The Group acts as both lessor and lessee under operating leases. Details of the Group’s commitments under non-cancellable operating 
leases are set out as follows:
(a)	 Lessor
The Group leases out investment properties under operating leases. The leases for investment properties typically run for periods 
of three to six years. The turnover-related rental income received during the year amounted to HK$389 million (2016: HK$286 
million).
At 31st December, the future aggregate minimum lease receipts under non-cancellable operating leases receivable by the Group 
were as follows:
2017
HK$M
2016
HK$M 
Investment properties:
 
Not later than one year
8,633
8,020
 
Later than one year but not later than five years
18,503
15,406
 
Later than five years
5,987
4,516
33,123
27,942
Assets held for deployment on operating leases at 31st December were as follows:
2017
HK$M
2016
HK$M 
Investment properties at fair value
231,295
205,605

Swire Properties Annual Report    2017	
147
40.	Operating Lease Arrangements (continued)
(b)	 Lessee
The Group leases land and buildings, and equipment under operating leases. These leases typically run for an initial period of one 
to fifteen years with some leases having an option to renew them after that date, at which time all terms are renegotiated.
At 31st December, the future aggregate minimum lease payments under non-cancellable operating leases payable by the Group 
were as follows:
2017
HK$M
2016
HK$M 
Land and buildings:
 
Not later than one year
75
41
 
Later than one year but not later than five years
238
64
 
Later than five years
507
4
820
109
Equipment:
 
Not later than one year
4
4
 
Later than one year but not later than five years
4
7
8
11
41.	Related Party Transactions
Accounting Policy
Related parties are individuals and companies, including subsidiary, fellow subsidiary, joint venture and associated companies and key 
management (including close members of their families), where the individual, company or Group has the ability, directly or 
indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions.
There is an agreement for services (“Services Agreement”), in respect of which John Swire & Sons (H.K.) Limited (“JSSHK”), an 
intermediate holding company, provides services to the Company and its subsidiary companies and under which costs are reimbursed 
and fees payable. In return for these services, JSSHK receives annual fees calculated as 2.5% of the Group’s relevant consolidated 
profits before taxation and non-controlling interests after certain adjustments. The current Services Agreement commenced on  
1st January 2017 for a period of three years, expiring on 31st December 2019. For the year ended 31st December 2017, service fees 
payable amounted to HK$227 million (2016: HK$213 million). Expenses of HK$59 million (2016: HK$57 million) were reimbursed at 
cost; in addition, HK$63 million (2016: HK$69 million) in respect of shared administrative services was reimbursed.

148	 Swire Properties Annual Report    2017
Notes to the Financial Statements
41.	Related Party Transactions (continued)
Under a tenancy framework agreement (the “Tenancy Framework Agreement”) between JSSHK, Swire Pacific Limited and the 
Company dated 14th August 2014, members of the Group enter into tenancy agreements with members of the JSSHK group and 
members of the Swire Pacific group from time to time on normal commercial terms based on prevailing market rentals. The Tenancy 
Framework Agreement was renewed on 1st October 2015 for a term of three years from 1st January 2016 to 31st December 2018. For 
the year ended 31st December 2017, the aggregate rentals payable to the Group by members of the JSSHK group and members of the 
Swire Pacific group under the tenancies subject to the Tenancy Framework Agreement amounted to HK$100 million (2016: HK$105 
million) and HK$115 million (2016: HK$98 million) respectively.
The above transactions under the Services Agreement and the Tenancy Framework Agreement are continuing connected transactions, 
in respect of which the Company has complied with the disclosure requirements of Chapter 14A of the Listing Rules.
In addition, the following is a summary of significant transactions between the Group and related parties (including transactions under 
the Tenancy Framework Agreement), which were carried out in the normal course of the Group’s business, in addition to those 
transactions disclosed elsewhere in the financial statements.
Joint venture  
companies
Fellow  
subsidiary companies
Immediate  
holding company
Intermediate  
holding company
Other related parties
Notes
2017
HK$M
2016
HK$M
2017
HK$M
2016
HK$M
2017
HK$M
2016
HK$M
2017
HK$M
2016
HK$M
2017
HK$M
2016
HK$M
Purchases of services
(a)
–
–
17
22
–
–
–
–
–
–
Rendering of services
(a)
–
–
1
5
–
2
2
1
–
–
Rental revenue 
(b)
–
–
102
99
13
12
100
92
6
9
Revenue from hotels
–
–
1
1
–
–
2
1
1
1
Interest income
(c)
69
69
–
–
–
–
–
–
–
–
Interest charges
(c)
–
–
328
507
–
–
–
–
6
7
Notes:
(a) 	 Purchases of goods and rendering of services from and to related parties were conducted in the normal course of business at prices and on terms 
no less favourable to the Group than those charged by/to and contracted with other suppliers/customers of the Group.
(b) 	 The Group has, in the normal course of its business, entered into lease agreements with related parties to lease premises for varying periods up to 
six years. The leases were entered into on normal commercial terms.
(c) 	 Loans advanced to joint venture and associated companies at 31st December 2017 are disclosed in notes 19 and 20 respectively. Advances from 
fellow subsidiary, joint venture, associated and related companies are disclosed in note 27. There are a number of loan agreements between the 
Group and the Swire Pacific group, details of which are disclosed on pages 49 to 57. The loans due to Swire Finance Limited, a fellow subsidiary 
company, are disclosed in note 29.
Amount due from the immediate holding company at 31st December 2017 are disclosed in note 25. These balances arise in the normal 
course of business, are non-interest-bearing and repayable within one year. Remuneration of key management, which includes 
executive and non-executive directors and executive officers, is disclosed in note 9.

Swire Properties Annual Report    2017	
149
42.	Notes to the Consolidated Statement of Cash Flows
(a)	 Reconciliation of operating profit to cash generated from operations
2017
HK$M
2016
HK$M 
Operating profit
34,930
17,320
Change in fair value of investment properties
(25,463)
(8,418)
Depreciation
348
300
Amortisation of initial leasing costs on investment properties
51
60
Amortisation of intangible assets
27
14
Profit on disposal of a subsidiary company
(2)
–
Profit on disposal of investment properties
(9)
(76)
Loss on disposal of property, plant and equipment
1
4
Dividend income from available-for-sale assets
–
(14)
Other items
130
(116)
Operating profit before working capital changes 
10,013
9,074
Decrease in amount due from immediate holding company
4
11
Decrease in properties under development and for sale
3,644
2,052
Increase in stocks and work in progress
(1)
(7)
Decrease/(Increase) in trade and other receivables
111
(7)
Decrease in trade and other payables
(92)
(367)
Increase in retirement benefit liabilities
1
11
Cash generated from operations
13,680
10,767
(b)	 Purchase of property, plant and equipment
2017
HK$M
2016
HK$M 
Land and buildings
75
195
Plant and equipment
142
154
Total
217
349
The above figures do not include interest capitalised on property, plant and equipment.
Refer to the tables with the headings “Audited Financial Information” on page 50 for details of the changes in financing during  
the year.
43.	Immediate and Ultimate Holding Company
The immediate holding company is Swire Pacific Limited, a company incorporated and listed in Hong Kong.
The ultimate holding company is John Swire & Sons Limited, a company incorporated in England and Wales.

150	 Swire Properties Annual Report    2017
Apart from the accounting policies presented within the corresponding notes to the financial statements, the other principal 
accounting policies applied in the preparation of these consolidated financial statements are set out below:
1.	 Basis of Preparation
The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRS”) 
issued by the Hong Kong Institute of Certified Public Accountants. The consolidated financial statements include “Audited Financial 
Information” in the Financing section on pages 49 to 57. The consolidated financial statements have been prepared under the historical 
cost convention as modified in relation to the revaluation of certain investment properties, put options in respect of non-controlling 
interests, available-for-sale assets, defined benefits and derivative financial instruments, each of which are carried at fair value.
2.	 Basis of Consolidation
The consolidated financial statements incorporate the financial statements of Swire Properties Limited, its subsidiary companies 
(together referred to as the “Group”) and the Group’s interests in joint venture and associated companies.
The Group uses the acquisition method of accounting to account for business combinations. The consideration transferred for the 
acquisition of a subsidiary company represents the fair values of the assets transferred, the liabilities incurred and the equity interests 
issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent 
consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and 
contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. On an 
acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquired subsidiary either at fair value or at 
the non-controlling interest’s proportionate share of the acquired subsidiary’s net assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquired subsidiary and the acquisition-
date fair value of any previous equity interest in the acquired subsidiary over the fair value of the Group’s share of the identifiable net 
assets acquired is recorded as goodwill. If this is less than the fair value of the net assets of the acquired subsidiary, in the case of a 
bargain purchase, the difference is recognised directly in the statement of profit or loss.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation. 
Unrealised losses are also eliminated unless the transaction provides evidence of impairment of the asset transferred. Accounting 
policies of subsidiary companies have been changed where necessary to ensure consistency with the policies adopted by the Group.
The Group treats transactions with non-controlling interests as transactions with equity owners of the Group. For purchases from 
non-controlling interests, the difference between any consideration paid and the relevant share acquired of the carrying value of net 
assets of the subsidiary company is recorded in equity. Gains or losses on disposals to non-controlling interests where control is not lost 
are also recorded in equity.
When the Group ceases to have control, any retained interest in the entity is remeasured to its fair value, with the change in carrying 
amount recognised in the statement of profit or loss. The fair value is the initial carrying amount for the purposes of subsequently 
accounting for the retained interest as an associated company, joint venture company or financial asset. In addition, any amounts 
previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed 
of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified 
to the statement of profit or loss.
Where the Group enters into a contract that contains an obligation (for example a written put option exercisable by the contract 
counterparty) to acquire shares in a partly-owned subsidiary company from the owner of the non-controlling interest, which is not part 
of a business combination, the Group records a financial liability in respect of the present value of the redemption amount reclassified 
from equity. Changes to the value of the financial liability are recognised in the statement of profit or loss within net finance charges.
In the Group’s consolidated statement of financial position, its investments in joint venture and associated companies are accounted 
for using the equity method of accounting and are initially recognised at cost. The excess of the cost of investment in joint venture and 
associated companies over the fair value of the Group’s share of the identifiable net assets acquired at the date of acquisition 
represents goodwill. The Group’s investments in joint venture and associated companies include goodwill identified on acquisitions, net 
of any accumulated impairment loss.
Principal Accounting Policies

Swire Properties Annual Report    2017	
151
2.	 Basis of Consolidation (continued)
The Group’s share of its joint venture and associated companies’ post-acquisition profits or losses is recognised in the consolidated 
statement of profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in the 
consolidated statement of comprehensive income. The cumulative post-acquisition movements are adjusted against the carrying 
amount of the investment. When the Group’s share of losses equals or exceeds its interest in the joint venture or associated company, 
including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or made 
payments on behalf of the joint venture or associated company.
The Group assesses at the end of each reporting period whether there is any objective evidence that its interests in joint venture and 
associated companies are impaired. Such objective evidence includes whether there has been any significant adverse changes in the 
technological, market, economic or legal environment in which the joint venture and associated companies operate or whether there 
has been a significant or prolonged decline in value below their cost. If there is an indication that an interest in a joint venture or 
associated company is impaired, the Group assesses whether the entire carrying amount of the investment (including goodwill) is 
recoverable. An impairment loss is recognised in profit or loss in respect of the amount by which the carrying amount is higher than the 
higher of the investment’s fair value less costs of disposal or value in use. Any reversal of such impairment loss in subsequent periods is 
credited to profit or loss.
The Group recognises the disposal of an interest in a joint venture company when it ceases to have joint control and the risks and 
rewards of ownership have passed to the acquirer.
If the ownership interest in an associated company is reduced but significant influence is retained, only a proportionate share of the 
amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate.
Unrealised gains on transactions between the Group and its joint venture and associated companies are eliminated to the extent of the 
Group’s interest in these companies. Unrealised losses on assets transferred between the Group and its joint venture and associated 
companies are also eliminated unless the transactions provide evidence of impairment of the assets transferred. Accounting policies of 
joint venture and associated companies have been changed where necessary to ensure consistency with the policies adopted by  
the Group.
Dilution gains and losses arising in respect of investments in associated companies are recognised in the consolidated statement of 
profit or loss.
3. 	 Subsidiary Companies
Subsidiary companies are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or 
has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the 
entity. Subsidiary companies are consolidated from the date on which control is transferred to the Group. They are deconsolidated 
from the date that control ceases.
In the Company’s statement of financial position, investments in subsidiary companies are stated at cost less provision for any 
impairment losses. Income from subsidiary companies is recognised by the Company in the statement of profit or loss on the basis of 
dividends received and receivable. Long-term loans to subsidiary companies are considered to be quasi-equity in nature where there is 
no defined repayment terms and no expectation of repayment.
4. 	 Joint Venture and Associated Companies
In the Company’s statement of financial position, its investments in joint venture and associated companies are stated at cost less 
provision for any impairment losses. Income from joint venture and associated companies is recognised by the Company in the 
statement of profit or loss on the basis of dividends received and receivable. Long-term loans to joint venture and associated 
companies are considered to be quasi-equity in nature where there are no defined repayment terms and no expectation of repayment.

152	 Swire Properties Annual Report    2017
Principal Accounting Policies
5.	 Foreign Currency Translation
(a)	 Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary 
economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are 
presented in Hong Kong dollars, which is the Company’s functional and the Group’s presentation currency.
(b)	 Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the 
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at 
year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of 
profit or loss, except when deferred in other comprehensive income as qualifying cash flow hedges or qualifying net investment 
hedges.
When a gain or loss on a non-monetary item is recognised directly in other comprehensive income, any associated translation 
difference is also recognised directly in other comprehensive income. When a gain or loss on a non-monetary item is recognised in 
the statement of profit or loss, any associated translation difference is also recognised in the statement of profit or loss.
(c)	 Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that 
have a functional currency different from the presentation currency are translated into the presentation currency as follows:
(i) 	 Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that 
statement of financial position;
(ii) 	Income and expenses for each statement of profit or loss are translated at average exchange rates (unless this average is not a 
reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and 
expenses are translated at the dates of the transactions); and
(iii)	All resulting exchange differences are recognized in other comprehensive income and accumulated in a separate component  
in equity.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations, are taken to other 
comprehensive income. When a foreign operation is partially disposed of or sold, exchange differences that were recorded in 
equity are recognised in the consolidated statement of profit or loss as part of the gain or loss on disposal.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign 
entity and translated at the closing rate.

Swire Properties Annual Report    2017	
153
Principal Subsidiary, Joint Venture and 
Associated Companies
Showing proportion of capital owned at 31st December 2017
Attributable 
to the Group 
%
Owned 
directly  
%
Owned  
by 
subsidiaries 
%
Issued and fully paid up 
shares/Registered capital
Principal activities
Subsidiary companies:
Incorporated in Hong Kong with limited liability  
 
and operating in Hong Kong:
Cathay Limited 
100
100
–
807 shares (HK$8,070)
Property investment 
Citiluck Development Limited 
100
–
100
1,000 shares (HK$1,000)
Property investment 
Cityplaza Holdings Limited 
100
100
–
100 shares (HK$1,000)
Property investment 
Coventry Estates Limited 
100
–
100
4 shares (HK$40)
Property investment 
Keen Well Holdings Limited 
80
–
100
1 share (HK$1)
Property trading 
One Island East Limited 
100
100
–
2 shares (HK$2)
Property investment 
One Queen’s Road East Limited 
100
100
–
2 shares (HK$2)
Property investment 
Oriental Landscapes Limited 
100
100
–
60,000 shares (HK$600,000)
Landscaping services 
Pacific Place Holdings Limited 
100
100
–
2 shares (HK$2)
Property investment 
Redhill Properties Limited 
100
100
–
250,000 shares (HK$7,300,000)
Property investment 
Super Gear Investment Limited
100
100
–
2 shares (HK$2)
Property investment
Swire Properties (Finance) Limited 
100
100
–
1,000,000 shares  
 
(HK$1,000,000)
Financial services 
Swire Properties Management Limited 
100
100
–
2 shares (HK$20)
Property management 
Swire Properties MTN Financing Limited
100
100
–
1 share (HK$1)
Financial services
Swire Properties Real Estate Agency Limited
100
100
–
2 shares (HK$20)
Real estate agency 
Taikoo Place Holdings Limited 
100
100
–
2 shares (HK$2)
Property investment 
Incorporated in Mainland China with limited  
 
liability and operating in Mainland China:
(Sino-foreign joint venture) 
TaiKoo Hui (Guangzhou) Development  
 
Company Limited (b)
97
–
97
Registered capital of  
 
RMB3,050,000,000
Property investment
(Wholly foreign owned enterprises) 
Beijing Sanlitun Hotel Management  
 
Company Limited (b)
100
–
100
Registered capital of  
 
RMB800,000,000
Hotel investment 
Beijing Sanlitun North Property Management  
 
Company Limited (b)
100
–
100
Registered capital of  
 
RMB2,784,000,000
Property investment 
Beijing Sanlitun South Property Management  
 
Company Limited (b)
100
–
100
Registered capital of  
 
RMB1,598,000,000
Property investment 
Sunshine Melody (Guangzhou) Properties  
 
Management Limited
100
–
100
Registered capital of  
 
RMB295,000,000
Property investment 
Swire Properties (China) Investment  
 
Company Limited (b)
100
–
100
Registered capital of  
 
US$30,000,000
Holding company
(Domestic company) 
Beijing Tianlian Real Estate Company Limited (b)(d)
100
–
100
Registered capital of  
 
RMB865,000,000
Holding company
Notes:
(a)	 This table lists the principal subsidiary, joint venture and associated companies of the Group including those which, in the opinion of the Directors, 
materially contribute to the net income of the Group or hold a material portion of the assets or liabilities of the Group. To give full details of these 
companies would, in the opinion of the Directors, result in particulars of excessive length.
(b)	 Translated name.
(c)	 Group interest held through joint venture and associated companies.
(d)	 Companies the accounts of which are not audited by Pricewaterhousecoopers. These companies accounted for approximately 1.1% of attributable 
net assets at 31st December 2017.

154	 Swire Properties Annual Report    2017
Principal Subsidiary, Joint Venture and Associated Companies
Showing proportion of capital owned at 31st December 2017
Attributable 
to the Group 
%
Owned 
directly  
%
Owned  
by 
subsidiaries 
%
Issued and fully paid up 
shares/Registered capital
Principal activities
Subsidiary companies (continued):
Incorporated in the United States with limited  
 
liability and operating in the United States:
700 Brickell City Centre LLC
100
–
100
Limited Liability Company
Property trading
Brickell City Centre Plaza LLC
100
–
100
Limited Liability Company
Property investment
Brickell City Centre Project LLC
100
–
100
Limited Liability Company
Property trading and  
 
investment
Brickell City Centre Retail LLC
60.25
–
85.25
Limited Liability Company
Property investment
FTL/AD LTD 
75
–
75
Florida Partnership 
Property trading 
Swire Jadeco LLC
100
–
100
Limited Liability Company
Property trading
Swire Pacific Holdings Asia LLC
100
–
100
Limited Liability Company 
Property trading 
Swire Properties Inc 
100
–
100
1,000 shares of US$0.01 each 
Holding company 
Swire Properties One LLC
100
–
100
Limited Liability Company 
Property trading and  
 
investment 
Swire Properties US Inc
100
–
100
1,000 shares of US$0.01 each
Holding company 
Swire Realty LLC
100
–
100
Limited Liability Company 
Real estate agency 
Incorporated in the British Virgin Islands with  
 
limited liability and operating in Hong Kong:
Bao Wei Enterprises Limited
100
100
–
1 share of US$1 
Property trading
Boom View Holdings Limited
100
100
–
2 shares of US$1 each
Property investment 
Endeavour Technology Limited
87.5
–
87.5
1,000 shares of US$1 each 
Holding company 
Excel Free Ltd.
100
100
–
1 share of US$1 
Property trading
Novel Ray Limited
100
100
–
1 share of US$1
Property investment
Peragore Limited
80
–
80
1,000 shares of US$1 each
Holding company 
Sino Flagship Investments Limited
100
100
–
1 share of US$1
Property investment
Star Wing International Limited
100
100
–
1 share of US$1
Property investment
Swire and Island Communication  
 
Developments Limited 
60
60
–
100 shares of HK$10 each and  
 
1 non-voting dividend share  
 
of HK$10
Property investment 
Swire Properties China Holdings Limited 
100
100
–
1 share of US$1
Holding company 
Wonder Cruise Group Limited
100
100
–
1 share of US$1
Property trading
Joint venture companies:
Incorporated in Hong Kong with limited  
 
liability and operating in Hong Kong:
Hareton Limited 
50
–
50
100 shares (HK$1,000)
Property investment 
Pacific Grace Limited
50
–
(c)
2 shares (HK$2)
Property investment
Richly Leader Limited 
50
–
50
1,000,000,000 shares  
 
(HK$700,000,000)
Property investment 
Incorporated in the United States with limited  
 
liability and operating in the United States:
Swire Brickell Key Hotel, Ltd.
75
–
75
Florida Partnership
Hotel investment

Swire Properties Annual Report    2017	
155
Attributable 
to the Group 
%
Owned 
directly  
%
Owned  
by 
subsidiaries 
%
Issued and fully paid up 
shares/Registered capital
Principal activities
Joint venture companies (continued):
Incorporated in the British Virgin Islands  
 
with limited liability:
Dazhongli Properties Limited  
 
(operating in Mainland China)
50
–
50
1,000 shares of US$1 each
Holding company 
Great City China Holdings Limited  
 
(operating in Mainland China) 
50
–
50
100 shares of US$1 each
Holding company
Island Land Development Limited  
 
(operating in Hong Kong) 
50
50
–
100 shares of HK$10 each
Property investment 
Newfoundworld Investment Holdings Limited  
 
(operating in Hong Kong)
20
–
20
5 shares of US$1 each
Holding company 
Incorporated in Mainland China with limited  
 
liability and operating in Mainland China:
(Domestic company) 
Beijing Linlian Real Estate Company Limited (b)
50
–
50
Registered capital of  
 
RMB400,000,000
Property investment 
(Wholly foreign owned enterprises)
Chengdu Qianhao Real Estate Company Limited
50
–
(c)
Registered capital of  
 
US$329,000,000
Property investment 
Guan Feng (Shanghai) Real Estate Development  
 
Company Limited (b)
50
–
(c)
Registered capital of  
 
US$1,136,530,000
Property investment 
Associated companies:
Incorporated in Hong Kong with limited liability  
 
and operating in Hong Kong:
Greenroll Limited (d)
20
20
–
45,441,000 shares  
 
(HK$454,410,000)
Hotel investment 
Queensway Hotel Limited (d)
20
–
(c)
100,000 shares  
 
(HK$1,000,000)
Hotel investment 
Shangri-La International Hotels  
 
(Pacific Place) Limited
20
20
–
10,005,000 shares  
 
(HK$10,005,000)
Hotel investment

156	 Swire Properties Annual Report    2017
Schedule of Principal Group Properties 
At 31st December 2017
Gross floor areas in square feet
Hong Kong
Mainland China
U.S.A.
Totals
Held through 
subsidiaries
Held through 
other 
companies
Held through 
subsidiaries
Held through 
other 
companies
Held through 
subsidiaries
Held through 
other 
companies
Held through 
subsidiaries
Held through 
subsidiaries 
and other 
companies
Completed properties for investment
Retail
2,323,135 
99,696 
2,859,885
1,638,559 
496,508
–
5,679,528
7,417,783 
Office
7,865,170 
687,130 
1,731,766
1,211,762 
263,384
–
9,860,320
11,759,212 
Residential/serviced apartment
593,543 
–
51,517
63,790 
109,000
–
754,060
817,850 
Hotels
358,371 
384,796 
753,647
293,240 
218,000
258,750 
1,330,018
2,266,804 
11,140,219 
1,171,622 
5,396,815
3,207,351 
1,086,892
258,750 
17,623,926
22,261,649 
Property developments  
 
for investment
Retail
4,292
68,514 
–
–
–
–
4,292
72,806 
Office
2,020,000
191,250 
–
–
–
–
2,020,000
2,211,250 
Residential/serviced apartment
–
–
–
74,544
–
–
–
74,544 
Hotels
–
26,302
–
194,856
–
–
–
221,158 
Under planning
–
–
–
–
1,444,000*
–
1,444,000
1,444,000 
2,024,292
286,066
–
269,400 
1,444,000
–
3,468,292
4,023,758 
Completed properties for sale
Retail
–
–
–
–
–
–
–
–
Residential
26,264
–
–
–
327,923
–
354,187
354,187
Office
–
–
–
296,570
–
–
–
296,570 
26,264
–
–
296,570
327,923
–
354,187
650,757
Property developments for sale
Office
–
–
–
–
–
–
–
–
Residential
29,928
–
–
–
1,073,000
–
1,102,928
1,102,928
Under planning
–
–
–
–
825,000
–
825,000
825,000
29,928
–
–
–
1,898,000
–
1,927,928
1,927,928
13,220,703
1,457,688 
5,396,815
3,773,321 
4,756,815
258,750 
23,374,333
28,864,092
* One Brickell City Centre is currently under planning. The site is included under “Land held for development” in the financial statements.
Notes:
1.	 All properties held through subsidiary companies are wholly-owned except for Island Place (60% owned), TaiKoo Hui, Guangzhou (97% owned), 
Brickell City Centre (Retail: 60.25% owned), River Court and Fort Lauderdale (100% owned; 75% defined profits). The above summary table includes 
the floor areas of these five properties in 100%.
2.	 “Other companies” comprise joint venture or associated companies. The floor areas of properties held through such companies are shown on an 
attributable basis.
3.	 Gross floor areas in Hong Kong and Mainland China exclude carparking spaces; there are about 10,300 completed carparking spaces in Hong Kong 
and Mainland China, which are held by subsidiaries and other companies for investment.
4.	 When a Hong Kong property is held under a renewable lease, the expiry date of the renewal period is shown.
5.	 All properties in the U.S.A. are freehold.
6	 Gross floor areas for all properties in the U.S.A. represent saleable/leasable areas for completed and nearly completed properties, which exclude 
carparking spaces; there are about 1,976 completed carparking spaces held by subsidiaries and other companies for investment.
7.	 For the development of an office building in Kowloon Bay, Hong Kong, a sale and purchase agreement for the sale of the company owning the 
property under development was signed in October 2016. The occupation permit was issued in December 2017. Completion of the sale is conditional 
upon the relevant certificate of compliance being obtained on or before 31st December 2018. The property was transferred to “Other non-current 
assets” in the financial statements on the date of agreement and was reclassified to "Other current assets" in the 2017 financial statements. 
Accordingly, it is not included in the summary above.

Swire Properties Annual Report    2017	
157
Completed properties for 
investment in Hong Kong
Lot number	
Leasehold 
expiry
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Year of 
completion
Remarks
Office
1.	 Pacific Place, 
	
88 Queensway, 
	
Central
One Pacific Place
IL 8571 (part)
2135
115,066 
(part)
863,266
–
1988
Two Pacific Place
IL 8582 & Ext. (part)
2047
203,223 
(part)
695,510
–
1990
2.	 Three Pacific Place,
	
One Queen’s  
Road East
IL 47A sA RP
IL 47A sB RP
IL 47A sC RP
IL 47B sC RP
IL 47A RP
IL 47C sA ss1 RP
IL 47C sA RP
IL 47B sA RP
IL 47B sB RP
IL 47B RP
IL 47A sB ss2
IL 47A sD
IL 47B sD
IL 47C RP 
IL 47D RP
IL 47D sA RP
IL 47 sA ss1
IL 47 sA RP
IL 47 sB ss1 & RP
IL 47 sC ss1 & ss2 sA & ss2 RP &  
 
ss3 sA & ss3 RP & ss4 & ss5 &  
 
ss6 sA & ss6 RP & ss7 RP & RP
IL 47 sP
IL 47 RP
IL 47 sC ss5 Ext.
IL 47 sC ss1 Ext.
2050-2852
40,236
627,657
111
2004/07
Linked to The Mall at  
Pacific Place and  
Admiralty MTR station.
3.	 Cityplaza One, 
Taikoo Shing
QBML 2 & Ext. sR RP (part)
QBML 2 & Ext. sR ss1 sA (part)
QBML 2 & Ext. sQ RP (part)
QBML 2 & Ext. sQ ss7 sA (part)
QBML 2 & Ext. sQ ss7 RP (part)
QBML 2 & Ext. sQ ss2 sB (part)
QBML 2 & Ext. sQ ss2 sA ss1 (part)
QBML 2 & Ext. sQ ss2 sA RP (part)
QBML 2 & Ext. sJ RP (part)
2899
146,184 
(part)
628,785
–
1997
Above part of Cityplaza 
shopping centre.
4.	 Cityplaza Three, 
Taikoo Shing
QBML 2 & Ext. sK ss18 (part)
2899
33,734  
(part)
226,060
10
1992
Linked by a footbridge to 
Cityplaza shopping centre.
5.	 Cityplaza Four, 
Taikoo Shing
QBML 2 & Ext. sK RP (part)
2899
41,864
543,576
–
1991
Linked by a footbridge to 
Cityplaza shopping centre.
6.	 Devon House, 
Taikoo Place
QBML 1 sE ss2 (part)
QBML 1 sF ss1 (part)
QBML 1 sF RP (part)
ML 703 sN (part)
2881
70,414  
(part)
803,452
311
1993
Linked to Dorset House  
and Cambridge House.
7.	 Dorset House, 
Taikoo Place
QBML 1 sQ (part)
QBML 1 sR ss1 (part)
QBML 1 sR RP (part)
QBML 1 sS (part)
QBML 1 sT ss1 (part)
QBML 1 sT ss2 (part)
QBML 1 sT RP (part)
QBML 1 sU (part)
QBML 1 sW (part)
QBML 1 RP (part)
2881
238,582 
(part)
609,540
215
1994
Linked to Devon House.

158	 Swire Properties Annual Report    2017
Schedule of Principal Group Properties
At 31st December 2017
Completed properties for 
investment in Hong Kong
Lot number	
Leasehold 
expiry
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Year of 
completion
Remarks
Office (continued)
8.	 Lincoln House, 
Taikoo Place
QBML 1 sQ (part)
QBML 1 sR ss1 (part)
QBML 1 sR RP (part)
QBML 1 sS (part)
QBML 1 sT ss1 (part)
QBML 1 sT ss2 (part)
QBML 1 sT RP (part)
QBML 1 sU (part)
QBML 1 sW (part)
QBML 1 RP (part)
2881
238,582 
(part)
333,529
164
1998
Linked to PCCW Tower.
9.	 Oxford House, 
Taikoo Place
QBML 1 sC ss4
QBML 1 sC ss7 (part)
QBML 2 & Ext. sD
2881/2899
33,434
501,253
182
1999
10.	Cambridge House, 
Taikoo Place
QBML 1 sE ss2 (part)
QBML 1 sF ss1 (part)
QBML 1 sF RP (part)
ML 703 sN (part)
2881
70,414 
(part)
268,795
–
2003
Linked to Devon House.
11.	One Island East, 
Taikoo Place
QBML 1 sC ss5
QBML 1 sC ss6
QBML 2 & Ext. sF
QBML 2 & Ext. sG
QBML 2 & Ext. sH ss6 sB RP
QBML 2 & Ext. sH RP
QBML 2 & Ext. RP
QBIL 15 sD
2881/2899
109,929
1,537,011
–
2008
12.	Generali Tower, 
Wanchai
IL 5250
IL 7948
IL 7950
2089/ 
2103/2113
4,612
81,346
–
2013 
(Refurbishment)
With ground floor retail.
13.	28 Hennessy Road, 
Wanchai
ML 23
IL 2244 RP
IL 2245 RP
2843
9,622
145,390
–
2012
Total held through subsidiaries
7,865,170
993
14.	PCCW Tower, 
Taikoo Place
QBML 1 sQ (part)
QBML 1 sR ss1 (part)
QBML 1 sR RP (part)
QBML 1 sS (part)
QBML 1 sT ss1 (part)
QBML 1 sT ss2 (part)
QBML 1 sT RP (part)
QBML 1 sU (part)
QBML 1 sW (part)
QBML 1 RP (part)
2881
238,582 
(part)
620,148
217
1994
Linked to Dorset House. 
Floor area shown 
represents the whole 
development, in which the 
Group owns a 50% interest.
15.	Berkshire House, 
Taikoo Place
IL 8854
2047
25,926
388,838
84
1998
Floor area shown 
represents the whole 
development, in which the 
Group owns a 50% interest.
16.	625 King’s Road, 
North Point
IL 7550
2108
20,000
301,065
84
1998
Floor area shown 
represents the whole 
development, in which the 
Group owns a 50% interest.
17.	Citygate, 
Tung Chung, 
Lantau
TCTL 2 (part)
2047
358,557 
(part)
160,522
63
1999/ 
2000
Above Citygate shopping 
centre. Floor area shown 
represents the whole of 
the office area of the 
development, in which the 
Group owns a 20% interest. 
Citygate also comprises a 
hotel, details of which are 
given in the Hotel Category 
below.
Total held through joint venture companies
1,470,573
448
–  of which attributable to the Group
687,130

Swire Properties Annual Report    2017	
159
Completed properties for 
investment in Hong Kong
Lot number	
Leasehold 
expiry
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Year of 
completion
Remarks
Retail
1. 	 Pacific Place, 
88 Queensway, 
Central
The Mall at  
Pacific Place
IL 8571 (part) 
IL 8582 & Ext. (part)
2135/2047
318,289  
(part)
711,182
430
1988/90
Shopping centre with 
restaurants and a cinema. 
Access to Admiralty MTR 
station. Pacific Place also 
comprises serviced 
apartments and hotels, 
details of which are given 
in the Residential and 
Hotel categories below.
2.	 Cityplaza, 
Taikoo Shing
QBML 2 & Ext. sK ss5 
QBML 2 & Ext. sR RP (part)
QBML 2 & Ext. sR ss1 sA (part)
QBML 2 & Ext. sQ RP (part)
QBML 2 & Ext. sQ ss7 sA (part)
QBML 2 & Ext. sQ ss7 RP (part)
QBML 2 & Ext. sQ ss2 sB (part)
QBML 2 & Ext. sQ ss2 sA ss1  
 
(part)
QBML 2 & Ext. sQ ss2 sA RP (part)
QBML 2 & Ext. sJ RP (part)
2899
334,475 
(part)
1,105,227
834
1983/87/ 
97/2000
Shopping centre with 
restaurants, ice-skating 
rink, cinema and access to 
Tai Koo MTR station.
3.	 Commercial areas  
in Stages I - X of  
Taikoo Shing
SML 1 sA ss1, SML 1 sA RP
SML 1 sB, SML 2 sC RP
SML 2 sC ss2
SML 2 sD, SML 2 RP
QBML 2 & Ext. sJ ss1
QBML 2 & Ext. sJ ss3
QBML 2 & Ext. sL
QBML 2 & Ext. sN
QBML 2 & Ext. sQ ss4 & ss5
QBML 2 & Ext. sQ ss2 sC
QBML 2 & Ext. sS ss1
QBML 2 & Ext. sH ss1
QBML 2 & Ext. sH ss3 sA 
QBML 2 & Ext. sK ss3 sA
QBML 2 & Ext. sU ss1
QBML 2 & Ext. sK ss3 RP
QBML 2 & Ext. sK ss4 sA & RP
QBML 2 & Ext. sT ss1 & RP
QBML 2 & Ext. sU RP
QBML 2 & Ext. sK ss9 & ss10 &  
 
ss11 & ss13 & ss16 (part)
2081/ 
2889/2899
–
331,079
3,826
1977-85
Neighbourhood shops, 
schools and carparking 
spaces.
4.	 Island Place  
500 King’s Road,  
North Point
IL 8849 (part)
2047
106,498 
(part)
150,223
288
1996
Floor area shown 
represents the whole 
shopping centre podium, 
in which the Group owns a 
60% interest.
5.	 StarCrest,  
9 Star Street, 
Wanchai
IL 8853 (part)
2047
40,871  
(part)
13,112
83
1999
Floor area shown 
represents the whole of 
the retail podium.
6.	 Taikoo Place 
Apartments, 
23 Tong Chong Street, 
Taikoo Place
ML 703 sI (part)
2881
8,664 
(part)
12,312
–
2014
Floor area shown 
represents the whole of a 
3-storey retail podium 
(excluding serviced suites 
above).
Total held through subsidiaries
2,323,135
5,461

160	 Swire Properties Annual Report    2017
Schedule of Principal Group Properties
At 31st December 2017
Completed properties for 
investment in Hong Kong
Lot number	
Leasehold 
expiry
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Year of 
completion
Remarks
Retail (continued)
7.	 Tung Chung  
Crescent, 
Tung Chung, 
Lantau
TCTL 1 (part)
2047
331,658 
(part)
36,053
75
1998/ 
1999
Floor area shown 
represents the retail space, 
in which the Group owns a 
20% interest.
8.	 Citygate, 
Tung Chung 
Lantau
TCTL 2 (part)
2047
358,557 
(part)
462,428
1,093
1999/ 
2000
Floor area shown 
represents the whole  
of the retail area of the 
development, in which the 
Group owns a 20% interest. 
Approximately 120,000 
square feet of the 
shopping centre is 
currently under major 
renovation.
Total held through joint venture companies
498,481
1,168
–  of which attributable to the Group
99,696
Residential
1.	 Pacific Place 
Apartments, 
88 Queensway
IL 8582 & Ext. (part)
2047
203,223 
(part)
443,075
–
1990
270 serviced suites within 
the Conrad Hong Kong 
Hotel tower.
2.	 Taikoo Place 
Apartments, 
23 Tong Chong Street, 
Taikoo Place
ML 703 sI (part)
2881
8,664  
(part)
62,756
–
2014
111 serviced suites above 
a 3-storey retail podium. 
Floor area shown excludes 
retail portion.
3.	 STAR STUDIOS I & II 
8-10 & 18 Wing Fung 
Street
IL 47 sF (part)
IL 47 sG (part)
IL 47 sH (part)
IL 47 sI (part)
IL 8464 (part)
2056/2852
6,775  
(part)
47,076
–
2016  
(Refurbishment)
120 apartments above 
ground floor shops. Floor 
area shown excludes retail 
area (5,197 square feet).
4.	 Rocky Bank  
6 Deep Water Bay 
Road
RBL 613 RP
2099
28,197
14,768
–
1981
Six semi-detached houses.
5.	 House B,  
36 Island Road,  
Deep Water Bay
RBL 507 & Ext. (part)
2097
20,733  
(part)
2,644
–
1980
One detached house.
6.	 Eredine, 38 Mount 
Kellett Road
RBL 587 & Ext. (part)
2038
51,430  
(part)
23,224
7
1965
Seven apartment units.
Total held through subsidiaries
593,543
7
Hotel
1.	 EAST, Hong Kong, 
Taikoo Shing
QBML 2 & Ext. sR RP (part)
QBML 2 & Ext. sR ss1 sA (part)
QBML 2 & Ext. sQ RP (part)
QBML 2 & Ext. sQ ss7 sA (part)
QBML 2 & Ext. sQ ss7 RP (part)
QBML 2 & Ext. sQ ss2 sB (part)
QBML 2 & Ext. sQ ss2 sA ss1  
 
(part)
QBML 2 & Ext. sQ ss2 sA RP  
 
(part)
QBML 2 & Ext. sJ RP (part)
2899
146,184 
(part)
199,633
–
2009
345-room hotel.
2.	 The Upper House, 
Pacific Place
IL 8571 (part)
2135
115,066 
(part)
158,738
–
2009  
(Refurbishment)
117-room hotel above the 
JW Marriott Hotel.
Total held through subsidiaries
358,371
–

Swire Properties Annual Report    2017	
161
Completed properties for 
investment in Mainland China Address
Leasehold 
expiry
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Year of 
completion
Remarks
Retail
1.	 Taikoo Li Sanlitun 
(Taikoo Li Sanlitun 
South)
19 Sanlitun Road, 
Chaoyang District, Beijing
2044 
(2054 for 
Carpark)
566,332 
(part)
776,909
451
2007
Shopping centre with 
restaurants and cinema. 
2.	 Taikoo Li Sanlitun 
(Taikoo Li Sanlitun 
North)
11 Sanlitun Road, 
Chaoyang District, Beijing
2044  
(2054 for 
Carpark)
566,332 
(part)
519,399
410
2007
Shopping centre with 
restaurants.
3.	 Hui Fang
75 Tianhe East Road, 
Tianhe District, Guangzhou
2044
174,377 
(part)
90,847
100
2008
Shopping centre with 
restaurants and carparking 
spaces.
4.	 TaiKoo Hui
381-389 Tianhe Road  
(odd numbers), Tianhe District, 
Guangzhou
2051
526,941 
(part)
1,472,730
718
2011
Shopping centre with 
restaurants. Floor area 
shown represents the 
retail portion, in which the 
Group owns a 97% interest.
Total held through subsidiaries
2,859,885
1,679
5.	 INDIGO
18 Jiuxianqiao Road, 
Chaoyang District, Beijing
2044  
(2054 for 
Carpark)
631,072 
(part)
939,493
615
2012
Shopping centre with 
restaurants and cinema. 
Floor area shown 
represents the retail 
portion, in which the Group 
owns a 50% interest.
6.	 Sino-Ocean Taikoo Li 
Chengdu
Daci Temple Area, 
9 Dongda Street, 
Jinjiang District, Chengdu
2051
814,604 
(part)
1,235,090
1,056
2014
Shopping centre with 
restaurants and cinema. 
Floor area shown 
represents the retail 
portion, in which the Group 
owns a 50% interest.
7.	 HKRI Taikoo Hui
South of West Nanjing Road  
and east of Shimenyi Road, 
Jingan District, Shanghai
2049
676,091 
(part)
1,102,535
240
2016
Floor area shown 
represents the retail 
portion, in which the Group 
owns a 50% interest.
Total held through joint venture companies 
3,277,118
1,911
–  of which attributable to the Group
1,638,559
Completed properties for 
investment in Hong Kong
Lot number	
Leasehold 
expiry
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Year of 
completion
Remarks
Hotel (continued)
3.	 JW Marriott Hotel, 
Pacific Place
IL 8571 (part)
2135
115,066 
(part)
525,904
–
1988
602-room hotel, in which 
the Group owns a 20% 
interest.
4.	 Conrad Hong Kong 
Hotel, Pacific Place
IL 8582 & Ext. (part)
2047
203,223 
(part)
555,590
–
1990
513-room hotel, in which 
the Group owns a 20% 
interest.
5.	 Island Shangri-La 
Hotel, Pacific Place
IL 8582 & Ext. (part)
2047
203,223 
(part)
605,728
–
1991
565-room hotel, in which 
the Group owns a 20% 
interest.
Total held through associated companies
1,687,222
–
–  of which attributable to the Group
337,444
6.	 Novotel Citygate 
Hong Kong Hotel, 
Citygate
TCTL 2 (part)
2047
358,557 
(part)
236,758
7
2005
440-room hotel, in which 
the Group owns a 20% 
interest.
Total held through joint venture companies
236,758
7
–  of which attributable to the Group
47,352

162	 Swire Properties Annual Report    2017
Schedule of Principal Group Properties
At 31st December 2017
Completed properties for 
investment in Mainland China Address
Leasehold 
expiry
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Year of 
completion
Remarks
Office
1.	 TaiKoo Hui
North of Tianhe 
Road and west of 
Tianhe East Road, 
Tianhe District, 
Guangzhou
2051
526,941 
(part)
1,731,766
–
2011
Floor area shown represents the office 
portion, in which the Group owns a 
97% interest.
Total held through subsidiaries
1,731,766
–
2.	 INDIGO
20 Jiuxianqiao 
Road, Chaoyang 
District, Beijing
2054
631,072 
(part)
595,464
390
2011
Floor area shown represents the office 
portion, in which the Group owns a 
50% interest.
3.	 HKRI Taikoo Hui
South of West 
Nanjing Road and 
east of Shimenyi 
Road, Jingan 
District, Shanghai
2059
676,091 
(part)
1,828,060
798
2016
Floor area shown represents the office 
portion, in which the Group owns a 
50% interest.
Total held through joint venture companies
2,423,524
1,188
–  of which attributable to the Group
1,211,762
Hotel
1.	 The Opposite House
11 Sanlitun Road, 
Chaoyang District, 
Beijing
2044  
(2054 for 
Carpark)
566,332 
(part)
169,463
32
2007
99-room hotel.
2.	 Mandarin Oriental,  
Guangzhou
North of Tianhe 
Road and west of 
Tianhe East Road, 
Tianhe District, 
Guangzhou
2051
526,941 
(part)
Hotel: 
584,184
Serviced 
apartment: 
51,517
635,701
– 
–
2012
263-room hotel and 24 serviced 
apartments, in which the Group owns 
a 97% interest.
Total held through subsidiaries
805,164
32
3.	 EAST, Beijing
22 Jiuxianqiao 
Road, Chaoyang 
District, Beijing
2044  
(2054 for 
Office and 
Carpark)
631,072 
(part)
358,269
240
2012
369-room hotel, in which the Group 
owns a 50% interest.
4.	 The Temple House
Daci Temple Area,  
9 Dongda Street, 
Jinjiang District, 
Chengdu
2051
814,604 
(part)
Hotel: 
228,210
Serviced 
apartment: 
127,579
355,789
– 
–
2015
100-room hotel and 42 serviced 
apartments, in which the Group owns 
a 50% interest.
Total held through joint venture companies
714,058
240
–  of which attributable to the Group
357,029
Completed properties for 
investment in the United States
Address
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Year of 
completion
Remarks
Retail
1.	 Brickell City Centre Retail 701 S Miami Avenue  
Miami, Florida
380,670 
(part)
496,508
1,137
2016
Floor area shown represents the 
whole shopping centre, in which 
the Group owns a 60.25% 
interest.
Total held through subsidiaries
496,508
1,137

Swire Properties Annual Report    2017	
163
Completed properties for 
investment in the United States
Address
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Year of 
completion
Remarks
Office
1.	 Two Brickell City Centre 
78 SW 7th Street  
Miami, Florida
380,670 
(part)
128,842
145
2016
2.	 Three Brickell City Centre 98 Southeast Seventh Street  
Miami, Florida
380,670 
(part)
134,542
144
2016
Total held through subsidiaries
263,384
289
Serviced apartments
1.	 EAST, Residences
788 Brickell Plaza  
Miami, Florida
380,670 
(part)
109,000
20
2016
89 serviced suites within the 
EAST, Miami Hotel tower.
Total held through subsidiaries
109,000
20
Hotel
1.	 Mandarin Oriental,  
Miami
South Brickell Key,  
Miami, Florida
120,233
345,000
600
2000
326-room luxury hotel in central 
Miami, in which the Group owns 
a 75% interest.
Total held through joint venture company
345,000
600
–  of which attributable to the Group
258,750
 
2.	 EAST, Miami
788 Brickell Plaza  
Miami, Florida
380,670 
(part)
218,000
80
2016
263-room hotel.
Total held through subsidiaries
218,000
80
Property developments for 
investment in Hong Kong
Lot number
Leasehold 
expiry
Site area in 
square feet
Gross floor 
area in 
square feet
Number of  
car parks
Stage of  
completion
Expected 
completion 
date
Remarks
Office
1.	 One Taikoo Place, 
Taikoo Place
QBML 1 sQ (part)
QBML 1 sR ss1 (part)
QBML 1 sR RP (part)
QBML 1 sS (part)
QBML 1 sT ss1 (part)
QBML 1 sT ss2 (part)
QBML 1 sT RP (part)
QBML 1 sU (part)
QBML 1 sW (part)
QBML 1 RP (part)
2881
238,582 
(part)
1,020,000
82
Facade and 
finishing  
works are  
in progress
2018
The building was topped out 
in January 2018. Floor area 
shown is an approximation.
2.	 Two Taikoo Place, 
Taikoo Place
QBML 1 sQ (part)
QBML 1 sR ss1 (part)
QBML 1 sR RP (part)
QBML 1 sS (part)
QBML 1 sT ss1 (part)
QBML 1 sT ss2 (part)
QBML 1 sT RP (part)
QBML 1 sU (part)
QBML 1 sW (part)
QBML 1 RP (part)
2881
238,582 
(part)
1,000,000
351
Demolition of 
Warwick House  
has been 
completed, and 
demolition of 
Cornwall House  
and foundation 
works for Two 
Taikoo Place are in 
progress
2021/ 
2022
Floor area shown is an 
approximation.
Total held through subsidiaries
2,020,000
433
3.	 South  
Island Place
AIL 461
2064
25,500
382,499
137
Superstructure  
in progress
2018
Proposed scheme is under 
development. Floor area 
shown represents the total 
gross floor area permitted for 
the whole development, in 
which the Group owns a 50% 
interest.
Total held through joint venture companies
382,499
137
–  of which attributable to the Group
191,250

164	 Swire Properties Annual Report    2017
Schedule of Principal Group Properties
At 31st December 2017
Property developments for 
investment in Hong Kong
Lot number
Leasehold 
expiry
Site area in 
square feet
Gross floor 
area in  
square feet
Number of  
car parks
Stage of 
completion
Expected 
completion 
date
Remarks
Retail
1.	 21-31 Wing Fung 
Street
IL 526 sA ss1 sC
IL 526 sA ss1 sB RP
IL 526 sA ss1 sB ss1
IL 526 sA ss2
IL 526 sA ss3
IL 526 sA RP
2856
3,612 
(part)
4,292
–
Redevelopment  
under planning
2021
Residential block over retail 
podium is proposed. Floor area 
shown represents the retail 
portion of the development. 
The area shown is subject to 
change.
Total held through subsidiaries
4,292
–
 
2.	 Tung Chung Town  
Lot No. 11,  
Tung Chung, Lantau
TCTL 11 (part)
2063
107,919 
(part)
342,569
122
Superstructure 
in progress
2018
Proposed scheme is under 
development. Floor area shown 
represents the retail portion of 
the development, in which the 
Group owns a 20% interest, and 
excludes the area of a public 
transport terminus. The area is 
an approximation and is 
subject to change. A public 
transport terminus of 
approximately 65,000 square 
feet is to be built and handed 
over to the Government upon 
completion.
Total held through joint venture companies
342,569
122
 
–  of which attributable to the Group
68,514
Residential
1.	 Po Wah Building,  
1-11 Landale Street 
and 2-12 Anton  
Street
IL 2242
IL 2244 sA
IL 2244 sB
IL 2244 sC
IL 2245 sA
IL 2245 sB
IL 2245 sC
IL 2245 sD
IL 2245 sE
IL 2245 sF
2843
14,433
To be 
determined
To be 
determined
Redevelopment  
under planning
N/A
Total held through subsidiaries
–
–
 
Hotel
1.	 Tung Chung Town 
Lot No. 11,  
Tung Chung, Lantau
TCTL 11 (part)
2063
107,919 
(part)
131,510
5
Superstructure 
in progress
2018
Proposed scheme is under 
development. Floor area shown 
represents the hotel portion of 
the development, in which the 
Group owns a 20% interest, and 
excludes the area of a public 
transport terminus. The area is 
an approximation and is 
subject to change.
Total held through joint venture companies
131,510
5
 
–  of which attributable to the Group
26,302

Swire Properties Annual Report    2017	
165
Property developments for 
investment in Mainland China Address
Leasehold 
expiry
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Stage of 
completion
Expected 
completion  
date
Remarks
1.	 HKRI Taikoo Hui
South of West Nanjing 
Road and east of 
Shimenyi Road, Jingan 
District, Shanghai
2049
676,091 
(part)
Hotel:
389,711
Serviced 
apartment:
149,088
Hotel: 
117
Serviced 
apartment: 
45
Interior 
decoration 
works in 
progress
2018
The construction works 
were completed in January 
2018. Floor areas shown 
represent the hotel and 
serviced apartment 
portion, in which the Group 
owns a 50% interest.
Total held through joint venture companies
538,799
162
–  of which attributable to the Group
269,400
Property developments for 
investment in the United States
Site area in square feet
Gross floor area  
in square feet
Number of  
car parks
Expected 
completion date
Remarks
1.	 One Brickell City Centre, 
Miami, Florida
123,347
Under planning 
1,444,000
To be 
determined
To be 
determined
One Brickell City Centre is being 
planned as a future mixed-use 
development comprised of retail, 
Grade A office space, condominiums 
and a hotel. Located at the corner of 
Brickell Avenue and SW 8th Street, 
One Brickell City Centre (comprising 
approximately 1.4 million square 
feet) is planned as an 80-storey 
luxury high rise tower.
Total held through subsidiaries
1,444,000
–
Completed properties  
for sale in Hong Kong
Lot number
Leasehold 
expiry
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Year of 
completion
Remarks
Residential
1.	 WHITESANDS,  
160 South Lantau 
Road, Cheung Sha
Lot 724 and
Lot 726 in DD332
2062
161,029
26,264
11
2015
The development 
comprises 28 detached 
houses and 28 carparking 
spaces. At 31st Dec 2017, 
17 units and 17 carparking 
spaces had been sold. Floor 
area shown represents the 
remaining 11 units and  
11 carparking spaces.
Total held through subsidiaries
26,264
11
Completed properties  
for sale in Mainland China
Address
Leasehold 
expiry
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Year of 
completion
Remarks
Office
1.	 Pinnacle One
Daci Temple Area,  
9 Dongda Street,  
Jinjiang District,  
Chengdu
2051
702,243 
(part)
593,139
447
2014
Floor area shown represents 
the unsold office portion 
(including portion which  
is subject to the outcome  
of court proceedings),  
in which the Group owns  
a 50% interest.
Total held through joint venture companies
593,139
447
–  of which attributable to the Group
296,570

166	 Swire Properties Annual Report    2017
Schedule of Principal Group Properties
At 31st December 2017
Completed properties for sale  
in the United States
Address
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Year of 
completion
Remarks
Residential
1.	 ASIA
900 Brickell Key, Miami, Florida
173,531
5,359
4
2008
36-storey residential 
condominium tower 
comprising 123 units with 
5-storey parking garage.  
At 31st December 2017,  
sales of 122 units had  
been closed.
2.	 Reach, Brickell City Centre, 
Miami, Florida
68 SE 6th Street Miami, Florida
380,670 
(part)
51,053
50
2016
43-storey residential 
condominium tower 
comprising 390 units.  
At 31st December 2017,  
363 units had been sold.
3.	 Rise, Brickell City Centre, 
Miami, Florida
1 SW 8 Street, Miami, Florida
380,670 
(part)
271,511
288
2016
43-storey residential 
condominium tower 
comprising 390 units.  
At 31st December 2017,  
207 units had been sold.
Total held through subsidiaries
327,923
342
Property developments for sale  
in the United States
Site area in square feet
Gross floor area  
in square feet
Number of  
car parks
Expected 
completion date
Remarks
1.	 South Brickell Key,  
Miami, Florida
105,372
Residential:  
550,000
395
–
Development site in central 
Miami acquired in January 1997 
along with Mandarin Oriental site. 
Plans for condominium tower 
currently on hold.
2.	 Development Site,  
Fort Lauderdale, Florida
203,941
Under planning: 
825,000
1,050
–
Development site in Fort 
Lauderdale acquired in October 
2006, in which the Group owns 
100%, with 75% defined profits.
3.	 North Squared,  
Miami, Florida
380,670  
(part)
Residential: 
523,000
544
–
The development on the North 
Squared site is currently on hold.
Total held through subsidiaries
1,898,000
1,989
Property developments  
for sale in Hong Kong
Lot No
Leasehold 
expiry
Site area in 
square feet
Gross floor area  
in square feet
Number of  
car parks
Expected 
completion date
Remarks
1.	 21-31 Wing Fung Street 
IL 526 sA ss1 sC
IL 526 sA ss1 sB RP
IL 526 sA ss1 sB ss1
IL 526 sA ss2
IL 526 sA ss3
IL 526 sA RP
2856
3,612 
(part)
Residential: 
29,928
–
2021
Residential block over 
retail podium is proposed. 
Floor area shown 
represents the residential 
portion of the 
development. The area 
shown is subject to 
change.
Total held through subsidiaries
29,928
–

Swire Properties Annual Report    2017	
167
Glossary
Terms
Attributable gross rental income  Gross rental income less 
amount shared by non-controlling interests plus the Group’s 
share of gross rental income of joint venture and associated 
companies.
Equity attributable to the Company’s shareholders   
Equity before non-controlling interests.
Gross borrowings  Total of loans, bonds, overdrafts and 
perpetual capital securities.
Net assets employed  Total equity plus net debt.
Net debt  Gross borrowings net of bank deposits and  
bank balances.
Underlying profit  Reported profit adjusted principally for the 
impact of changes in the fair value of investment properties and 
deferred tax on investment properties.
Ratios 
Earnings per share
=
Profit attributable to  
the Company’s shareholders
Weighted average number of shares 
in issue during the year
Return on average 
equity attributable to 
the Company’s 
shareholders
=
 
Profit attributable to 
the Company’s shareholders
Average equity during the year 
attributable to the Company’s 
shareholders
Equity attributable to 
the Company’s 
shareholders 
per share
=
 
Equity before 
non-controlling interest
Number of shares in issue  
at the end of the year
Gearing ratio
=
Net debt
Total equity
Interest cover
=
Operating profit
Net finance charges
Cash interest cover
=
 
Operating profit
Total of net finance charges and 
capitalised interest
Dividend cover
=
Profit attributable to  
the Company’s shareholders
Dividends paid and proposed

168	 Swire Properties Annual Report    2017
Financial Calendar and Information for Investors
Registered Office
Swire Properties Limited 
33rd Floor, One Pacific Place
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Hong Kong
Registrars
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Hong Kong
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The Bank of New York Mellon
BNY Mellon Shareowner Services
P.O. Box 505000
Louisville, KY 40233-5000
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Tel:	
Calls within U.S.A. – toll free:
	
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International callers:
	
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Financial Calendar 2018
Shares trade ex-dividend	
3rd April
Share register closed for 2017 second interim dividend entitlement	
6th April
Annual Report available to shareholders	
6th April
Payment of 2017 second interim dividend	
3rd May
Share register closed for attending and voting at Annual General Meeting	
3rd – 8th May
Annual General Meeting	
8th May
Interim results announcement	
August 2018
2018 first interim dividend payable	
October 2018
Stock Code
Hong Kong Stock Exchange	
1972
ADR	
SWROY
Auditors
PricewaterhouseCoopers
Investor Relations
E-mail: ir@swireproperties.com
Public Affairs
E-mail:	
pad@swireproperties.com
Tel:	
(852) 2844-3888
Fax:	
(852) 2918-9960
Website:	www.swireproperties.com
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to receive your comments on our public announcements and 
disclosures via e-mail to ir@swireproperties.com.

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