Swire Properties

-4.0%

1. Changing Economic Conditions: Swire Properties’ success is heavily dependent on the strength of the global economy, and changes in the economic landscape can have a dramatic effect on its sales and profits.

2. Regulatory Risk: Regulatory policies can significantly affect the profitability of properties in Swire Properties’ portfolio. For example, regulations governing the development of land, and environmental protection can impact the returns that the company can expect from its properties.

3. Competition: The property industry is highly competitive, and Swire Properties faces competition from both local and international players. This can create downward pressure on prices, affecting margins and profitability.

4. Market Volatility: Changing market conditions and fluctuations in property prices, rents, and occupancies of its portfolio can cause losses and affect profitability.

5. Currency Risk: Swire Properties’ geography of operations and investment portfolio introduces significant foreign exchange risk. Changes in foreign exchange rates can lead to losses on its investments and operations, if not managed properly.

6. Interest Rate Risk: Interest rate movements can significantly affect the cost of funds and consequently the profitability of property operations in its portfolio.