UBS has issued a research report maintaining a "Buy" rating on SWIREPROPERTIES (01972) with a target price of HK$29.6. The bank's analysis is based on the company's Q1 2026 operational report, which highlighted: 1) a further acceleration in sales growth for its mainland China retail property portfolio; 2) robust growth in tenant sales at both Pacific Place and Citygate Outlets; and 3) an expectation that negative rental reversion for Pacific Place office space will narrow in the second half of 2026.

UBS anticipates SWIREPROPERTIES' share price will react positively, driven by these strong Q1 operational figures. In mainland China, the company's recent tenant mix optimization is already generating significant sales momentum. However, its Hong Kong office portfolio has not yet shown a meaningful recovery. Occupancy rates at Pacific Place and Taikoo Place remained largely stable quarter-on-quarter at 96% and 89%, respectively. The rental reversion rates for both properties also held steady at approximately -14%.

During Q1 2026, SWIREPROPERTIES secured four new tenants at Pacific Place from the financial, legal, and IT sectors. Simultaneously, Taikoo Place added six new tenants from the financial, retail, and IT sectors. With spot leasing rents stabilizing, management forecasts that the negative rental growth at Pacific Place will narrow in the latter half of 2026.