Great Eagle Holdings Limited · HKEX:41
Great Eagle — H1 2016 Earnings Presentation
45 slides from Great Eagle's earnings presentation, 2016
Slide 1: Great Eagle Holdings Investor Presentation
Great Eagle Holdings Investor Presentation Q3 2016 1
Slide 2: Highlights of 2016 Interim Results
Great Eagle Holdings Limited Financials Highlights of 2016 Interim Results 1. During the first half of 2016, the Group has successfully completed the acquisition of a prime hotel site in Roppongi, Tokyo. Furthermore, as the asset manager of the U.S. Fund, we have disposed of the U.S. Fund’s office t
Slide 3: 2016 Interim Results
Great Eagle Holdings Limited Financials 2016 Interim Results 1H 2016 1H 2015 Change HK$'000 HK$'000 HK$'000 % Gross Revenue 350,325 350,325 Rental Income - HK 95,677 96,173 (496) -0.5% - Overseas 10,718 8,038 2,680 33.3% - Building mgt fee 12,603 11,955 648 5.4% Hotel Income - -Overseas Overseas 1,6
Slide 4: 2016 Interim Results
Great Eagle Holdings Limited Financials 2016 Interim Results 1H 2016 1H 2015 Change HK$'000 HK$'000 HK$'000 % Net Operating Income Net Rental Income - HK 84,010 77,717 6,293 8.1% - Overseas 3,211 7,830 (4,619) -59.0% Hotel Income - Overseas 205,860 169,255 36,605 21.6% - Others 30,002 28,685 1,317 4
Slide 5: 2016 Interim Results
Great Eagle Holdings Limited Financials 2016 Interim Results 1H 2016 1H 2015 Change HK$'000 HK$'000 HK$'000 % Net finance costs Finance cost (67,455) (93,149) 25,694 -27.6% Interest income 31,185 137,709 (106,524) -77.4% (36,270) 44,560 (80,830) -181.4% Share of results of associates 48 (3,731) 3,77
Slide 6: 2016 Interim Results – Income from Champion breakdown
Great Eagle Holdings Limited Financials 2016 Interim Results – Income from Champion breakdown 1H 2016 1H 2015 Change HK$'000 HK$'000 HK$'000 % Dividend received 398,412 339,940 58,472 17.2% Asset management income 119,331 105,361 13,970 13.3% Agency commission income & 53,967 34,887 19,080 54.7% Pro
Slide 7: Analysis on change on core income
Great Eagle Holdings Limited Financials Analysis on change on core income 1H 2016 $'000 Change in profit from core business after tax (50,653) Arise from: Increase in dividend and management income from Champion REIT 91,522 Increase in hotels division EBITDA 37,922 Increase in dividend income from L
Slide 8: Discount to NAV
Great Eagle Holdings Limited Discount to NAV Financials NAV based on statutory accounting principles (June 2016) NAV based on net assets of Champion REIT and LHI (June 2016) % of % of HK$m HK$/shr Total HK$m HK$/shr Total Investment properties 5,937 8.8 11% Investment properties 5,937 8.8 9% Apprais
Slide 9: Financial position
Great Eagle Holdings Limited Financials Financial position (A) Base on statutory financial positions Book Carrying Net Cash Loan to Net interest Interest (HK$ Million) Value (Debt) Net Equity Value Gearing EBITDA expense Cover Hong Kong/ PRC Assets 55,077 (10,717) 44,360 19.5% 24.2% 1,342 269 5.0 Ov
Slide 10: Valuation – Investment properties
Great Eagle Holdings Limited Valuation – Investment properties Financials Hong Kong investment properties Valuation Cap rate Change from GFA (Sqft) HK$/psf end of Dec 2015 Great Eagle Centre Office 193,271 19,113 3.8% 4.1% Retail 55,944 9,331 4.8% -0.4% 3rd floor 20,959 9,399 3.7% Carparks (nos/unit
Slide 11: Development projects
Great Eagle Holdings Limited Development project Development projects Dalian Mixed-use Development Project Up to the end of June 2016, 220 apartments have been pre-sold and will be handed to buyers starting from 3Q 2016. Accumulated sales proceeds reached approx. RMB500 million with an average price
Slide 12: Langham Hotels International
Langham Hotels International Great Eagle 12 Holdings Limited
Slide 13: Hotel portfolio – 1H 2016 Revenue and EBITDA
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – 1H 2016 Revenue and EBITDA Hotel Revenue Growth EBITDA Growth 1H 2016 1H 2015 1H 2016 1H 2015 (in HK$ mn) Overseas Hotels Europe 202.7 236.0 -14.1% 25.6 35.9 -28.7% North America 910.2 861.8 5.6% 78.7 37.6 109.3% Australia/N
Slide 14: Hotel portfolio – 1H 2016 Operational Statistics
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – 1H 2016 Operational Statistics Occupancy Average Room Rate RevPar Jun-16 Jun-15 Change Jun-16 Jun-15 Change Jun-16 Jun-15 Change Owned by subsidiary LHI Hong Kong The Langham, Hong Kong 84.2% 81.8% 2.4ppt $2,078 $2,204 -5.7%
Slide 15: Hotel portfolio – Room and F&B revenue growth
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – 1H 2016 Room and F&B revenue growth (in LC) Room revenue growth F&B revenue growth YTD-June 2016 YTD-June 2016 The Langham, London -14% 0% The Langham, Boston 1% -1% The Langham. Chicago 5% 11% The Langham Place, Fifth Avenu
Slide 16: Hotel portfolio – Profit contribution
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – Profit contribution 1H 2016 1H 2015 Change in HK$ Owned Hotels in 'mn in 'mn 1H 2016 Contribution to in LC in LC in 'mn hotel profits Europe £2.3 £3.0 -24.5% 25.6 12% UK (The Langham, London) North America U.S. (The Langham,
Slide 17: Hotel portfolio – Currency impact
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – Currency impact Jun-16 Jun-15 yoy change Variance in profit contribution (in HK$ mn) GBP 11.1362 11.8125 -5.7% (1.6) CAD 5.8436 6.2841 -7.0% (2.6) AUD 5.6989 6.0677 -6.1% (1.8) USD 7.7676 7.7541 0.2% 0.1 NZD 5.2614 5.7504 -8
Slide 18: The Langham, Hong Kong
Great Eagle Holdings Limited Langham Hotels International 1H 2015 1H 2016 Change The Langham, Hong Kong Rooms Available 472 498 26 RevPAR $1,802 $1,749 -2.9% Room Rate $2,204 $2,078 -5.7% Occupancy Rate 81.8% 84.2% 2.4 ppt The Langham, Hong Kong managed to increase its share of arrivals from the Mai
Slide 19: Cordis, Hong Kong
Great Eagle Holdings Limited Langham Hotels International Cordis, Hong Kong (Rebranded from 1H 2015 1H 2016 Change Langham Place in August 2015) Rooms Available 619 650 31 RevPAR $1,522 $1,374 -9.7% At the hotel, business was negatively Room Rate $1,725 $1,610 -6.7% impacted during the Chinese New Y
Slide 20: Eaton, Hong Kong
Great Eagle Holdings Limited Langham Hotels International Eaton, Hong Kong 1H 2015 1H 2016 Change The hotel faced severe room rate competition from other hotels Rooms Available 465 465 0 which relied heavily on arrivals RevPAR $946 $888 -6.1% from China. Room Rate $1,097 $963 -12.2% While there was
Slide 21: The Langham, London
Great Eagle Holdings Limited Langham Hotels International The Langham, London 1H 2015 1H 2016 Change Rooms Available 344 266 -78 Disruptions from the ongoing renovation at the hotel has resulted in a lower room RevPAR £202 £224 10.9% revenue for the first half of 2016. Room Rate £261 £274 5.0% The r
Slide 22: The Langham, Melbourne
Great Eagle Holdings Limited Langham Hotels International The Langham, Melbourne 1H 2015 1H 2016 Change As compared with the first half of last year, Rooms Available 388 388 0 when there were several high profile events RevPAR $263 $259 -1.5% in the city, demand for hotel rooms Room Rate $304 $299 -
Slide 23: The Langham, Sydney
Great Eagle Holdings Limited Langham Hotels International 1H 2015 1H 2016 Change The Langham, Sydney Rooms Available 89 81 -8 RevPAR $224 $289 29.0% Room Rate $404 $436 7.9% Occupancy Rate 55.4% 66.3% 10.9 ppt Since the hotel reopened in December 2014 after it was closed for a major renovation, busi
Slide 24: The Langham, Auckland
Great Eagle Holdings Limited Langham Hotels International The Langham, Auckland 1H 2015 1H 2016 Change Given a strong hotel market in Rooms Available 409 409 0 Auckland, the hotel benefitted from an increase in demand from travellers RevPAR $161 $185 14.9% of both retail and corporate segments. Room
Slide 25: Langham Place Fifth Avenue, New York
Great Eagle Holdings Limited Langham Hotels International 1H 2015 1H 2016 Change Langham Place Fifth Avenue, Rooms Available 214 214 0 New York RevPAR $377 $317 -15.9% Room Rate $506 $497 -1.8% Occupancy Rate 74.5% 63.7% -10.8 ppt In addition to the challenging operating conditions in New York, the
Slide 26: The Langham, Chicago
Great Eagle Holdings Limited Langham Hotels International The Langham, Chicago 1H 2015 1H 2016 Change After receiving multiple prestigious Rooms Available 316 316 0 accolades in the lodging industry RevPAR $216 $226 4.6% stemming from its luxurious Room Rate $332 $355 6.9% product and services, the
Slide 27: The Langham, Boston
Great Eagle Holdings Limited Langham Hotels International The Langham, Boston 1H 2015 1H 2016 Change Rooms Available 318 318 0 Given the steady demand in the city in the RevPAR $212 $214 0.9% first half of 2016, the hotel strategically Room Rate $258 $278 7.8% targeted at high yielding retail leisur
Slide 28: The Langham, Huntington Hotel & Spa, Pasadena
Great Eagle Holdings Limited Langham Hotels International The Langham, Huntington Hotel & Spa, 1H 2015 1H 2016 Change Pasadena Rooms Available 380 380 0 RevPAR $192 $208 8.3% The hotel witnessed a strong return in Room Rate $256 $279 9.0% demand from high yielding corporate group business during the
Slide 29: Chelsea Hotel, Toronto
Great Eagle Holdings Limited Langham Hotels International Chelsea Hotel, Toronto 1H 2015 1H 2016 Change The hotel benefitted from strong Rooms Available 1,590 1,590 0 demand as there were several large citywide events in the first RevPAR $80 $99 23.8% half of 2016. Room Rate $132 $141 6.8% This allo
Slide 30: The Langham, Xintiandi
Great Eagle Holdings Limited Langham Hotels International The Langham, Xintiandi 1H 2015 1H 2016 Change Rooms Available 357 357 0 While demand from the group RevPAR $1,233 $1,237 0.3% segment was slow during the first half of 2016, the hotel focused on Room Rate $1,776 $1,768 -0.5% demand from the r
Slide 31: Managed hotel owned by third parties
Great Eagle Holdings Limited Langham Hotels International Managed hotel owned by third parties 31
Slide 32: Managed hotels in China
Great Eagle Holdings Limited Langham Hotels International The Langham, Langham Place, Guangzhou Shenzhen Guangzhou, China Guangzhou, China With 500 rooms With 352 rooms Opened in 2013 Opened in October 2012 Langham Place, Langham Place, Ningbo Culture Plaza Beijing Capital Airport With 143 rooms Wit
Slide 33: Managed hotels in China
Great Eagle Holdings Limited Langham Hotels International Langham Place, Xiamen The Langham, Haikou Xiamen, China Hainan, China With 327 rooms With 249 rooms Opened in 2014 Opened in June 2016 Langham Place, Haining Zhejiang, China With 263 rooms Opened in July 2015 33
Slide 34: Hotel pipeline
Great Eagle Holdings Limited Langham Hotels International Hotel pipeline 2016 Rooms Status Cordis Qingdao 538 Agreement 2017 Rooms Status Langham Place, Changsha 300 Agreement Cordis Shanghai East Bund 155 Agreement Cordis Hongqiao 400 Owned hotel Eaton Washington 260 Owned hotel The Langham Chongqi
Slide 35: Investment properties
Investment properties Great Eagle 35 Holdings Limited
Slide 36: 1H 2016 Results - Rental income breakdown
Great Eagle Holdings Limited Investment properties 1H 2016 Results - Rental income breakdown Gross rental income Growth Net rental income Growth 1H 2016 1H 2015 1H 2016 1H 2015 (in HK$ mn) Hong Kong Investment Properties Great Eagle Centre 69.8 71.4 -2.2% 68.1 62.6 8.9% Eaton serviced apartments 24.
Slide 37: Great Eagle Centre
Great Eagle Holdings Limited Investment properties Great Eagle Centre In the first half of 2016, there was a modest improvement in both occupancy and average passing rent of the office space at the Great Eagle Centre. As spot rents at the Great Eagle Centre remained at a high level during the first
Slide 38: Eaton Serviced Apartments
Great Eagle Holdings Limited Investment properties Eaton Serviced Apartments • Overall occupancy of the three serviced apartments rose from 70.4% in the first half of 2015 to 75.3% in the first half of 2016. • The increase was driven primarily by an increase in occupancy of the serviced apartment at
Slide 39: U.S. Real Estate Fund
Great Eagle Holdings Limited U.S. Real Estate Fund US Real Estate Fund In 2016, as the asset manager of the U.S. Fund, we had disposed of the Fund’s three office towers in San Francisco. Total disposal gain, including distribution and asset management fee from the Fund, attributable to the Group and
Slide 40: Estimated impact from disposal of properties by the U.S. Fund
Great Eagle Holdings Limited U.S. Real Estate Fund Estimated impact on Great Eagle from disposal of properties by the U.S. Fund For illustration purpose only ( in US$ mn) Impact on Great Eagle's core profit 353 Sacramento Street 123 Mission Street 500 Ygnacio Total 1) Realised profits upon injection
Slide 41: Outlook for the Group’s results in the 2H 2016
Great Eagle Holdings Limited Investment in Champion REIT Outlook for the Group’s results in the 2H 2016 Upon completion of the disposal of office properties in San Francisco under the U.S. Fund in the second half of the year, the Group’s results for the second half of 2016 will also be lifted by a g
Slide 42: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2016 1H 2016 1H 2015 HK$'000 HK$'000 HK$'000 Gross Revenue 350,325 350,325 Rental Income - HK 95,677 95,677 - 96,173 - Overseas 10,718 10,718 - 8,0
Slide 43: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2016 1H 2016 1H 2015 HK$'000 HK$'000 HK$'000 Net Operating Income Net Rental Income - HK 84,010 84,010 - 77,717 - Overseas 104,976 3,211 - 7,830 -
Slide 44: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2016 1H 2016 1H 2015 HK$'000 HK$'000 HK$'000 Operating profit before Dep. and Amortisation 1,825,151 1,142,241 995,743 Depreciation and amortisatio
Slide 45: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2016 1H 2016 1H 2015 HK$'000 HK$'000 HK$'000 Net finance costs Finance cost (367,462) (67,455) - (93,149) - Exclude interest expense of CREIT, LHI