Swire Pacific Ltd, the Hong Kong landlord with a stake in the city's largest airline, said yesterday that 2007 profit rose 16 percent after office and retail rents advanced. Net income rose to HK$26.3 billion (US$3.4 billion), or HK$17.26 a share, from HK$22.57 billion, or HK$14.74 a share, a year earlier, the company said in a statement to the Hong Hong Stock Exchange. Sales rose 13 percent to HK$21.55 billion.

Swire, the biggest commercial landlord in the east of Hong Kong Island, is benefiting as the city's four-year economic boom drives up office and retail rents. Profit from Cathay Pacific Airways Ltd, 40 percent owned by Swire, also gained 58 percent as the airline flew more passengers to the mainland and raised fares to cover fuel costs.

"Growth in the marine and beverage business is where the surprise came from," said Cusson Leung, a Hong Kong-based analyst at Credit Suisse Group. "The results from major profit drivers including Cathay Pacific and office rent are pretty much within expectations." Swire shares rose 1.7 percent to HK$92 at the noon trading break in Hong Kong, before earnings were announced.