Citi has issued a research report reiterating a "Buy" rating on Swire Properties (01972) with a target price of HK$23.8. The company reported a 27% year-on-year increase in underlying profit for 2025, reaching HK$8.62 billion, which included HK$2.36 billion in gains from asset disposals. Recurring underlying profit declined by 3% to HK$6.26 billion, aligning with the bank's expectations. This result was supported by resilient retail rental income from China and savings in net finance costs, attributable to a 50-basis-point reduction in borrowing costs, which helped offset weaker office rental income. Operating cash flow amounted to HK$10 billion, marking a 54% increase compared to the previous year. Net cash inflow before financing stood at HK$10.7 billion, a significant improvement from the net outflow of HK$2.5 billion recorded in 2024. The full-year dividend per share was HK$1.15, representing a 4.5% increase year-on-year, consistent with the company's target of mid-single-digit dividend growth. The payout ratio was 77% of underlying profit, down from 95% in 2024, while the dividend yield reached 4.8%.