Great Eagle Holdings Limited · HKEX:41

Great Eagle — FY2014 Earnings Presentation

47 slides from Great Eagle's earnings presentation, 2015

  1. Slide 1: Great Eagle Holdings Investor Presentation 1Q15

    Great Eagle Holdings Investor Presentation 1Q15 1

  2. Slide 2: Highlights of 2014 Results

    Great Eagle Holdings Limited Financials Highlights of 2014 Results 1. 2014 marked another fruitful year for the Group, as we closed on several acquisitions and expanded our management fee income business. 2. In addition to the acquisition of a hotel in Washington, D.C., we had increased our hotel in

  3. Slide 3: 2014 Final Results

    Great Eagle Holdings Limited Financials 2014 Final Results 2014 2013 Change HK$'000 HK$'000 HK$'000 % Gross Revenue 350,325 350,325 Rental Income - HK 192,057 190,400 1,657 0.9% - Overseas 199,795 121,342 78,453 64.7% - Building mgt fee 25,108 22,712 2,396 10.5% Hotel Income - HK - 656,275 (656,275)

  4. Slide 4: 2014 Final Results

    Great Eagle Holdings Limited Financials 2014 Final Results 2014 2013 Change HK$'000 HK$'000 HK$'000 % Net Operating Income Net Rental Income - HK 162,244 158,049 4,195 2.7% - Overseas 100,593 51,564 49,029 95.1% Hotel Income - HK - 254,800 (254,800) n.a. - Overseas 380,705 313,259 67,446 21.5% - Oth

  5. Slide 5: 2014 Final Results

    Great Eagle Holdings Limited Financials 2014 Final Results 2014 2013 Change HK$'000 HK$'000 HK$'000 % Net finance costs Finance cost (166,307) (125,716) (40,591) 32.3% Interest income 291,288 132,201 159,087 120.3% 124,981 6,485 118,496 1827.2% Share of results of associates 9,513 11,087 (1,574) -14

  6. Slide 6: 2014 Final Results – Income from Champion breakdown

    Great Eagle Holdings Limited Financials 2014 Final Results – Income from Champion breakdown Income from Champion REIT 2014 2013 Change HK$'000 HK$'000 HK$'000 % Asset management income 216,045 231,289 (15,244) -6.6% (HK$21.6m in acquisition fee included in 2013) Dividend received 717,192 716,904 288

  7. Slide 7: Analysis on change on core income

    Great Eagle Holdings Limited Financials Analysis on change on core income 2014 $'000 Change in profit from core business after tax + HK$ mn 239,288 Arise from: Increase in other income, including gain in securities investment of HK$134 million 171,659 Increase in interest income 159,087 Dividend inc

  8. Slide 8: Discount to NAV

    Great Eagle Holdings Limited Discount to NAV Financials NAV based on statutory accounting principles (Dec 2014) NAV based on net assets of Champion REIT and LHI (Dec 2014) % of % of HK$m HK$/psf HK$/shr Total HK$m HK$/psf HK$/shr Total Investment properties 6,742 7,054 10.3 14% Investment properties

  9. 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 57,815 (16,099) 41,716 27.8% 38.6% 2,705 218 12.4 O

  10. Slide 10: Valuation – Investment properties

    Great Eagle Holdings Limited Valuation – Investment properties Financials As at the end of Dec 2014 Hong Kong investment properties Valuation Change from GFA (Sqft) HK$/psf end of June 2014 Great Eagle Centre Office 193,271 15,517 1.4% Retail 55,944 8,861 0.1% 3rd floor 20,959 7,720 1.4% Carparks (n

  11. Slide 11: Development project

    Great Eagle Holdings Limited Development project Development project Dalian Mixed-use Development Project Location: Donggang Area, Renmin Road East, ZhongShan District, Dalian, PRC Site: 28,600 sq.m. G.F.A.: Hotel 50,000 s.m. Res 236,000 s.m. Total 286,000 s.m. Status: Presale on parts of apartments

  12. Slide 12: Langham Hotels International

    Langham Hotels International Great Eagle 12 Holdings Limited

  13. Slide 13: Hotel portfolio – 2014 Operational Statistics

    Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – 2014 Operational Statistics Occupancy Average Room Rate RevPar (local currency) (local currency) YTD-Dec 2014 YTD-Dec 2013 Change YTD-Dec 2014 YTD-Dec 2013 Change YTD-Dec 2014 YTD-Dec 2013 Change Owned by subsidiary LHI The

  14. Slide 14: Hotel portfolio – 2014 Operational statistics

    Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – 2014 Operational statistics Room revenue growth F&B revenue growth YTD-Dec 2014 YTD-Dec 2014 The Langham, London -7% 4% The Langham, Boston 15% 3% The Langham, Melbourne 6% 6% The Langham, Auckland 6% 11% The Langham, Huntin

  15. Slide 15: Hotel portfolio – Profit contribution

    Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – Profit contribution in Local Currency in HK$ 2014 2013 Change 2014 Contribution to Owned Hotels in mn in mn in mn hotel profits Hong Kong - $254.8 n.a. - - (The Langham, Hong Kong, Langham Place, Hong Kong and Eaton, Hong Ko

  16. Slide 16: Hotel portfolio – Currency impact

    Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – Currency impact 2014 2013 yoy change Variance in profit contribution (in HK$ mn) GBP 12.7777 12.1350 5.3% 6.3 CAD 7.0251 7.5321 -6.7% (4.1) AUD 6.9981 7.5008 -6.7% (5.6) USD 7.7546 7.7572 0.0% (0.0) NZD 6.4397 6.3589 1.3% 0.

  17. Slide 17: The Langham, Hong Kong

    Great Eagle Holdings Limited Langham Hotels International The Langham, Hong Kong 2013 2014 Change Rooms Available 495 465 - 30 RevPAR $2,013 $2,040 1.4% Room Rate $2,266 $2,295 1.3% Occupancy Rate 88.9% 88.9% 0.1 ppt  The Langham, Hong Kong posted a 7.3% year- on-year growth in guest arrivals from

  18. Slide 18: Langham Place Hotel Hong Kong

    Great Eagle Holdings Limited Langham Hotels International 2013 2014 Change Langham Place Hotel Hong Kong Rooms Available 652 650 -2 RevPAR $1,707 $1,706 0.0% Room Rate $1,883 $1,871 -0.6% Occupancy Rate 90.7% 91.2% 0.5 ppt  The Hotel enjoyed decent growth in demand for its rooms from guests of Main

  19. Slide 19: Eaton, Hong Kong

    Great Eagle Holdings Limited Langham Hotels International Eaton, Hong Kong 2013 2014 Change  Amongst the three Hong Kong Rooms Available 452 465 + 13 hotels, this hotel delivered the RevPAR $1,149 $1,166 1.5% smallest year-on-year decline in RevPAR in the fourth quarter of Room Rate $1,208 $1,213 0

  20. Slide 20: The Langham, London

    Great Eagle Holdings Limited Langham Hotels International 2013 2014 Change The Langham, London Rooms Available 380 366 - 14  There were less businesses deriving from RevPAR £224 £216 -3.8% the higher yielding travellers, given the Room Rate £278 £266 -4.3% renovation of the suites undergoing in 201

  21. Slide 21: The Langham, Melbourne

    Great Eagle Holdings Limited Langham Hotels International 2013 2014 Change The Langham, Melbourne Rooms Available 377 388 + 11  Performance at The Langham, Melbourne RevPAR $238 $246 3.3% was supported by improved demand from Room Rate $277 $285 2.8% the retail and group segments. Occupancy Rate 85

  22. Slide 22: The Langham, Sydney

    Great Eagle Holdings Limited Langham Hotels International 2013 2014 Change The Langham, Sydney Rooms Available 96 58 - 38 RevPAR $241 $250 3.6% Room Rate $291 $303 4.3% Occupancy Rate 82.9% 82.3% -0.6 ppt  The Langham, Sydney benefitted from buoyant market conditions, and delivered an increase in a

  23. Slide 23: The Langham, Auckland

    Great Eagle Holdings Limited Langham Hotels International 2013 2014 Change The Langham, Auckland  As the demand for rooms from the Rooms Available 410 409 -1 corporate and group segment RevPAR $135 $143 6.1% remained weak throughout 2014, the hotel strategically targeted demand in Room Rate $177 $1

  24. Slide 24: Langham Place Fifth Avenue, New York

    Great Eagle Holdings Limited Langham Hotels International Langham Place Fifth Avenue, 25 Sep to 2014 Change 31 Dec 2013 New York Rooms Available 214 214 - RevPAR $511 $400 -21.6% Room Rate $627 $538 -14.2% Occupancy Rate 81.4% 74.5% -6.9 ppt  RevPAR comparison with 2013 was not meaningful as the ac

  25. Slide 25: The Langham, Chicago

    Great Eagle Holdings Limited Langham Hotels International The Langham, Chicago From 10 July to 2014 Change 31 December 2013  While the ramp up phase of The Rooms Available 239 315 + 76 Langham, Chicago was met with extreme weather conditions in the RevPAR $136 $196 44.0% first quarter of 2014, perf

  26. Slide 26: The Langham, Boston

    Great Eagle Holdings Limited Langham Hotels International 2013 2014 Change The Langham, Boston Rooms Available 318 318 -  Room revenue was supported by increased RevPAR $182 $210 15.5% citywide conventions held from the third Room Rate $242 $256 5.8% quarter of 2014. Occupancy Rate 75.1% 82.0% 6.8

  27. Slide 27: The Langham Huntington Hotel & Spa, Pasadena

    Great Eagle Holdings Limited Langham Hotels International 2013 2014 Change The Langham, Huntington Hotel & Spa, Rooms Available 380 380 - Pasadena RevPAR $170 $194 13.6% Room Rate $228 $251 10.3%  Given stronger market sentiments, The Langham Huntington, Pasadena hotel Occupancy Rate 74.8% 77.0% 2.

  28. Slide 28: Eaton Chelsea, Toronto

    Great Eagle Holdings Limited Langham Hotels International Eaton Chelsea, Toronto (Rebranded from Delta Chelsea in July 2013) 2013 2014 Change  As the restoration works on the Rooms Available 1,590 1,590 - room’s balconies had impacted RevPAR $85 $93 9.5% business of the hotel in the first half of t

  29. Slide 29: The Langham, Xintiandi

    Great Eagle Holdings Limited Langham Hotels International The Langham, Xintiandi (wholly owned from 11 December 2014) 2013 2014 Change Rooms Available 356 356 -  Despite tough market conditions, The Langham Xintiandi managed RevPAR $997 $1,156 16.0% to grow its occupancy by 10.5 Room Rate $1,696 $1

  30. Slide 30: Hotel in Washington D.C.

    Great Eagle Holdings Limited Langham Hotels International From 15 July to Hotel in Washington D.C. 15 December 2014 Change Rooms Available 265 n.a.  In July 2014, the Group completed RevPAR $92 n.a. the acquisition of a 265-key hotel in Washington, D.C., USA for Room Rate $182 n.a. US$72 million. O

  31. Slide 31: Managed hotel owned by third parties

    Great Eagle Holdings Limited Langham Hotels International Managed hotel owned by third parties 31

  32. Slide 32: Eaton Luxe, Nanqiao, Shanghai; Langham Place, Beijing Capital Airport

    Great Eagle Holdings Limited Langham Hotels International Eaton Luxe, Nanqiao, Shanghai With 204 rooms Opened in April 2010 Langham Place, Beijing Capital Airport With 372 rooms Opened in August 2010 32

  33. Slide 33: The Langham, Shenzhen; Eaton Smart; Eaton Luxe Xinqiao

    Great Eagle Holdings Limited Langham Hotels International The Langham, Shenzhen Guangzhou, China With 352 rooms Opened in October 2012 Eaton Smart Eaton Luxe, Xinqiao, Shanghai New Delhi International Airport With 214 rooms With 93 rooms Opened in November 2012 Opened in June 2011 33

  34. Slide 34: Langham Place Guangzhou; Ningbo; Xiamen

    Great Eagle Holdings Limited Langham Hotels International Langham Place, Guangzhou Langham Place, Guangzhou, China Ningbo Culture Plaza With 500 rooms With 143 rooms Opened in 2013 Opened in 2014 Langham Place, Xiamen Xiamen, China With 327 rooms Opened in 2014 34

  35. Slide 35: Hotel pipeline

    Great Eagle Holdings Limited Langham Hotels International Hotel pipeline 2015 Rooms Status Eaton Luxe, Qingdao 538 Agreement Langham Place, Haining 263 Agreement 2016 Rooms Status Langham Place, Changsha 300 Agreement The Langham Dubai, Palm Jumerirah 323 Agreement Langham Place, Datong 327 Agreemen

  36. Slide 36: Investment properties

    Investment properties Great Eagle 36 Holdings Limited

  37. Slide 37: 2014 Final Results - Rental income breakdown

    Great Eagle Holdings Limited Investment properties 2014 Final Results - Rental income breakdown Gross rental income Growth Net rental income Growth 2014 2013 (%) 2014 2013 (%) (in HK$ mn) Hong Kong Investment Properties Great Eagle Centre 140.5 143.0 (1.7) 128.8 128.2 0.5 Eaton House 49.2 45.1 9.1 3

  38. Slide 38: Great Eagle Centre

    Great Eagle Holdings Limited Investment properties Great Eagle Centre  Excluding owner-occupied space, office space leased to third parties, from which rental income is booked, actually dropped as of December 2014 as compared with that a year ago.  Despite less office space was leased to third par

  39. Slide 39: Eaton Serviced Apartments

    Great Eagle Holdings Limited Investment properties Eaton Serviced Apartments Growth in gross rental income for the Eaton Serviced Apartments in 2014 was driven by income growth at the Wanchai Gap Road property, as part of the rooms that had been converted to operate as guesthouse rooms yielded bette

  40. Slide 40: US Investment properties

    Great Eagle Holdings Limited Investment properties US Investment properties As recovery in the office leasing market in California progresses, spot rents at 353 Sacramento, 123 Mission Street and 500 Ygnacio have all rose to levels above their average passing rents. Although spot rents at 2700 Ygnac

  41. Slide 41: US Real Estate Fund

    Great Eagle Holdings Limited US Real Estate Fund US Real Estate Fund Given the Group has an equity stake in the fund and acts as its asset manager, the financials of the fund have been consolidated into the Group’s financial statements under statutory accounting principles. Furthermore, asset manage

  42. Slide 42: Investment in Champion REIT & Langham Hospitality Investments

    Great Eagle Holdings Limited Investment in Champion REIT Investment in the Champion REIT (2778.HK) & Langham Hospitality Investments (1270.HK) Note that our core profit is based on dividend from Champion REIT and LHI in respective of the same financial period. Outlook for Champion REIT’s properties:

  43. Slide 43: Reconciliation to core earnings from reported

    Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported 2014 2013 HK$ 000 HK$ 000 Profit for the period before consolidating results of CREIT and LHI 739,711 980,343 i) Fair value changes on investment properties (223,903) (288,720) - Ignored in core e

  44. 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 2014 2014 2013 HK$'000 HK$'000 HK$'000 Gross Revenue 350,325 350,325 Rental Income - HK 192,057 192,057 - 190,400 - Overseas 222,383 199,795 - 121,342

  45. 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 2014 2014 2013 HK$'000 HK$'000 HK$'000 Net Operating Income Net Rental Income - HK 162,244 162,244 - 158,049 - Overseas 109,783 100,593 - 51,564 - Cor

  46. Slide 46: 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 2014 2014 2013 HK$'000 HK$'000 HK$'000 Operating profit before Dep. and Amortisation 3,488,358 2,306,605 2,249,260 Depreciation and amortisation (487,

  47. Slide 47: 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 2014 2014 2013 HK$'000 HK$'000 HK$'000 Net finance costs Finance cost (623,404) (166,307) - (125,716) - Exclude interest expense relating to CREIT and

Great Eagle Holdings — FY2014 Earnings Presentation on 6ix