Great Eagle Holdings Limited · HKEX:41
Great Eagle — FY2019 Earnings Presentation
28 slides from Great Eagle's earnings presentation, 2020
Slide 1: Great Eagle Holdings Investor Presentation Q1 2020
Great Eagle Holdings Investor Presentation Q1 2020 1
Slide 2: Background
Great Eagle Holdings Limited Background A Leading Property and Hotel Company with Prime Assets in Global Gateway Cities Long operating and listing history ‐ Founded in 1963 and listed since 1972 ‐ 40+ years track record property development Strong asset base with irreplaceable trophy properties ‐ La
Slide 3: Highlights of 2019 Final Results
Great Eagle Holdings Limited Financials Highlights of 2019 Final Results In response to a challenging operating environment in 2019, especially in the second half, we remain focused on implementing our cautious stance on acquisition of land in Hong Kong, and continued execution of our existing dev
Slide 4: 2019 Final Results
Great Eagle Holdings Limited Financials 2019 Final Results 2019 2018 Change HK$'000 HK$'000 HK$'000 % Gross Revenue 350,325 350,325 Rental Income 218,632 230,841 (12,209) ‐5.3% Hotel Income ‐ Overseas 4,108,518 4,214,631 (106,113) ‐2.5% ‐ Others 141,400 178,387 (36,987) ‐20.7% Income from Champion R
Slide 5: 2019 Final Results
Great Eagle Holdings Limited Financials 2019 Final Results 2019 2018 Change HK$'000 HK$'000 HK$'000 % Net Operating Income Net Rental Income 168,204 182,285 (14,081) ‐7.7% Hotel Income ‐ Overseas 753,721 731,901 21,821 3.0% ‐ Others 26,096 122,404 (96,308) ‐78.7% Income from Champion REIT* ‐ Asset m
Slide 6: 2019 Final Results
Great Eagle Holdings Limited Financials 2019 Final Results 2019 2018 Change HK$'000 HK$'000 HK$'000 % Net finance costs Finance cost (167,884) (174,879) 6,995 ‐4.0% Interest income 177,767 131,999 45,768 34.7% 9,883 (42,880) 52,763 ‐123.0% Share of results of associates 1,191 773 418 54.1% Share of
Slide 7: 2019 Final Results – Breakdown of Income from Champion REIT
Great Eagle Holdings Limited Financials 2019 Final Results – Breakdown of Income from Champion REIT 2019 2018 Change HK$'000 HK$'000 HK$'000 % Asset management income 297,677 288,639 9,038 3.1% Dividend received 1,036,439 1,008,892 27,547 2.7% Agency commission income & 126,701 108,174 18,527 17.1%
Slide 8: 2019 Final Results – Distribution from LHI
Great Eagle Holdings Limited Financials 2019 Final Results – Distribution from LHI 2019 2018 Change Distribution Per Share Stapled Unit declared in HK$ 0.121 0.195 ‐37.9% Share Stapled Units held by Great Eagle in 000 1,354,942 1,327,704 2.1% Dividend received in HK'000s 163,831 258,398 ‐36.6% 8
Slide 9: Analysis on change on core income
Great Eagle Holdings Limited Financials Analysis on change on core income 2019 $'000 Change in profit from core business after tax (264,437) Arise from: Increase in administration and other expenses (151,002) (including pre‐sale expenses for ONTOLO, FF&E write off relating to The Langham Boston) Dec
Slide 10: Discount to NAV
Great Eagle Holdings Limited Discount to NAV Financials NAV based on statutory accounting principles (Dec 2019) NAV based on net assets of Champion REIT, LHI and US Fund % of % of HK$m HK$/shr Total HK$m HK$/shr Total Investment properties 7,447 10.5 11% Investment properties 7,447 10.5 10% Appraise
Slide 11: Financial position
Great Eagle Holdings Limited Financials Financial position (A) Base on statutory financial positions Book Carrying Net Cash Loan to Net interest Interest (HK$ Million) Value (Debt) Net Equity Value Gearing EBITDA expense Cover Hong Kong/ PRC Assets 68,367 (9,945) 58,422 14.5% 17.0% 2,871 670 4.3 Ove
Slide 12: Valuation – Investment properties
Great Eagle Holdings Limited Valuation – Investment properties Financials As at the end of Dec 2019 Hong Kong investment properties Valuation Change from GFA (Sqft) HK$/psf Cap rate end of June 2019 Great Eagle Centre Office 193,271 25,958 2.9% ‐2.8% Retail 55,944 9,813 4.5% ‐2.3% 3rd floor 20,959 1
Slide 13: Langham Hospitality Group
Langham Hospitality Group Great Eagle 13 Holdings Limited
Slide 14: Hotels Division
Great Eagle Holdings Limited Hotels Division The Langham, London The Langham, Boston The Langham, Melbourne The Langham, Sydney Cordis, Auckland Cordis, Hongqiao The Langham, Pasadena The Langham, Xintiandi Chelsea Hotel, Toronto The Langham, New York The Langham, Chicago Eaton, Washington D.C. Nort
Slide 15: Hotel portfolio – 2019 Operational Statistics
Great Eagle Holdings Limited Hotels Division Hotel portfolio – 2019 Operational Statistics YTD Occupancy YTD Average Room Rate YTD RevPar 2019 2018 Change 2019 2018 Change 2019 2018 Change Owned by subsidiary LHI Hong Kong The Langham, Hong Kong 75.3% 91.2% -15.9% $1,955 $2,336 -16.3% $1,472 $2,130
Slide 16: Hotel portfolio – 2019 Room and F&B revenue growth
Great Eagle Holdings Limited Langham Hospitality Group Hotel portfolio – 2019 Room and F&B revenue growth (in local currency) Room revenue growth F&B revenue growth 2019 2019 The Langham, London 7% 6% The Langham, Boston (closed from April 2019 for renovations) -85% -82% The Langham, Huntington Pasa
Slide 17: Hotel portfolio – Profit contribution
Great Eagle Holdings Limited Hotels Division Hotel portfolio – Profit contribution in HK$ 2019 2018 Change Contribution to Owned Hotels in mn in mn hotel profits Europe UK (The Langham, London) 178.9 156.7 14.2% 24% North America U.S. (The Langham in Boston, Chicago, New York, 304.1 290.0 4.9% 40% P
Slide 18: Hotel portfolio – Currency impact
Great Eagle Holdings Limited Hotels Division Hotel portfolio – Currency impact 2019 2018 yoy change Variance in profit contribution (in HK$ mn) GBP 10.0023 10.4564 -4.3% (8.1) CAD 5.9062 6.0493 -2.4% (4.5) AUD 5.4456 5.8577 -7.0% (4.8) USD 7.8355 7.8378 0.0% (0.0) NZD 5.1634 5.4223 -4.8% (2.5) RMB 1
Slide 19: Hotel pipeline
Great Eagle Holdings Limited Langham Hospitality Group Hotel pipeline Hotels under Pure Hotel Management Contracts Year opened The Langham, Shenzhen 352 2012 Cordis, Beijing Capital Airport 372 2010 Langham Place Guangzhou 500 2013 Langham Place, Ningbo Culture Plaza, Ningbo 143 2014 Langham Place,
Slide 20: Investment properties
Investment properties Great Eagle 20 Holdings Limited
Slide 21: 2019 - Rental income breakdown
Great Eagle Holdings Limited Investment properties 2019 - Rental income breakdown Gross rental income Growth Net rental income Growth 2019 2018 (%) 2019 2018 (%) (in HK$ mn) Hong Kong Investment Properties Great Eagle Centre 135.3 142.4 (5.0) 131.2 139.8 (6.1) Eaton Residence Apartments 51.3 57.0 (1
Slide 22: U.S. Fund
Great Eagle Holdings Limited U.S. Fund U.S. Fund The Austin, San Francisco Construction work was completed by December 2017. The property was highly acclaimed by Wallpaper Magazine as an embodiment of Californian modernism. Out of 100 units, 91 were sold and handed to buyers by the end of 2019. The
Slide 23: Development projects
Great Eagle Holdings Limited Development projects Development projects 23 Dalian Mixed-use Development Project The Group successfully sold all the remaining unsold units of Phase I together with the site for Phase II of the project in July 2019. Gain on sale attributable to the Group will be booke
Slide 24: Outlook for the Group's results
Great Eagle Holdings Limited Outlook Outlook for the Group’s results • In 2020, we will continue selling the remaining units at ONTOLO in Pak Shek Kok, but we expect the pace of sales will be significantly slower than last year. • For LHI, a dramatic slowdown in travel to Hong Kong will severely aff
Slide 25: 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 2019 2019 2018 HK$'000 HK$'000 HK$'000 Gross Revenue 350,325 350,325 Rental Income ‐ HK 218,632 218,632 ‐ 230,841 ‐ Gross Revenue from U.S. Fund 47,04
Slide 26: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 2019 2019 2018 HK$'000 HK$'000 HK$'000 Net Operating Income Net Rental Income ‐ HK 168,204 168,204 ‐ 182,285 ‐ Net operating income from U.S. Fund (43
Slide 27: 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 2019 2019 2018 HK$'000 HK$'000 HK$'000 Operating profit before Dep. and Amortisation 4,041,876 2,710,575 2,845,035 Depreciation and amortisation (768,
Slide 28: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 2019 2019 2018 HK$'000 HK$'000 HK$'000 Net finance costs Finance cost (884,425) (167,884) ‐ (174,879) ‐ Exclude interest expense of CREIT, LHI and US