Swire Pacific has reported a 240 percent jump in net earnings for 2009 to HK$19.9 billion, thanks to gains in property revaluation and improving performance from subsidiary Cathay Pacific Airways. The conglomerate will pay a final dividend of HK$2.2 per A-share and HK$0.44 per B-share.

Swire said it will continue to participate in the city's real estate market, despite plans to spin off its property unit for a separate listing. The company, however, declined to comment on the details of the separate listing of Swire Properties, as the application is currently being reviewed by the Hong Kong stock exchange.

Christopher Pratt, chairman of Swire Pacific, said yesterday that the company "is not going to step out of the property business", as Swire Properties will continue to be a subsidiary of the company, even if the separate listing proceeds.

Underlying profit in Swire's property division rose 8 percent to HK$3.97 billion in 2009. Gross rental income also grew by 9 percent to HK$7.44 billion.

Martin Cubbon, chief executive officer of Swire Properties, said demand for office space in Hong Kong weakened in the first half of 2009, but recovered in the second half as the economy improved.

He said the company now rents Pacific Place in Admiralty at HK$80 per square foot and Taikoo Place in Quarry Bay at around HK$30 per square foot.

"These are obviously the all-time highs in the market place. But it is certainly a good rebound from where we were 15 months ago," Cubbon told reporters yesterday. He added that occupancy rate of Swire's malls in Hong Kong was almost 100 percent throughout 2009.

Swire's aviation division showed the most significant improvement in 2009. The division reported HK$1.82 billion in net earnings, compared to a HK$2.92 billion net loss in a year earlier. Cathay Pacific, 42 percent owned by Swire, returned to the black in 2009 with a reported HK$4.69 billion in net earnings.

(HK Edition 03/12/2010 page2)