Here's how Swire Properties is likely to be hit by recent policy measures

Earnings forecast for FY14 slashed by 6%.

According to Nomura, with Swire’s rental portfolio performing in line with its expectations, it has left its rental forecasts largely unchanged. 

However, it is on the HK residential side that Nomura makes bigger adjustments for sales timing.

Given the impact from recent policy measures and its cautious view on affordability, Nomura spreads out the sales progress of the remaining units at The Azura, The Argenta, Dunbar Place and Mount Parker Residences, resulting in a 1%/6% cut to its FY13F/FY14F earnings forecast.

Here's more:

Swire Properties reported FY12 underlying net profit of HKD6,932mn, up 59% y-y. While this was 4% below our estimate, it was 2.4% ahead of consensus forecasts.

Full-year DPS came in at HKD0.60, 9% above our estimate and consensus. Given that the earnings variance is largely attributed to booking assumptions on The Azura and that Swire’s key rental operations actually came in in line with our forecasts, we would classify the overall results as in line.