Great Eagle Holdings Limited · HKEX:41
Great Eagle — H1 2020 Earnings Presentation
23 slides from Great Eagle's earnings presentation, 2020
Slide 1: Great Eagle Holdings Investor Presentation
Great Eagle Holdings Investor Presentation Q3 2020 1
Slide 2: Highlights of 2020 Interim Results
Great Eagle Holdings Limited Financials Highlights of 2020 Interim Results • The Group’s core profit fell 89.2% year-on-year to HK$88.8 million in the first half of 2020, as the COVID-19 pandemic took a toll across our businesses. Our hotel business was especially hard hit and has recorded its worst
Slide 3: 2020 Interim Results
Great Eagle Holdings Limited Financials 2020 Interim Results 1H 2020 1H 2019 Change HK$'000 HK$'000 HK$'000 % Gross Revenue 350,325 350,325 Rental Income - HK 83,308 98,980 (15,672) -15.8% - Building mgt fee 13,402 12,994 408 3.1% Hotel Income - Overseas - Overseas 705,191 1,937,142 (1,231,951) -63.
Slide 4: 2020 Interim Results
Great Eagle Holdings Limited Financials 2020 Interim Results 1H 2020 1H 2019 Change HK$'000 HK$'000 HK$'000 % Net Operating Income Net Rental Income - HK 70,934 87,076 (16,142) -18.5% Hotel Income - Overseas (220,152) 251,725 (471,877) -187.5% - Others (137,056) 52,698 (189,754) -360.1% Income from
Slide 5: 2020 Interim Results
Great Eagle Holdings Limited Financials 2020 Interim Results 1H 2020 1H 2019 Change HK$'000 HK$'000 HK$'000 % Net finance costs Finance cost (77,784) (86,478) 8,694 -4.3% Interest income 100,208 81,289 18,919 -9.3% 22,424 (5,189) 27,613 -532.1% Share of results of associates 4,338 449 3,889 n.m. Sha
Slide 6: 2020 Interim Results – Breakdown of Income from Champion REIT
Great Eagle Holdings Limited Financials 2020 Interim Results – Breakdown of Income from Champion REIT 1H 2020 1H 2019 Change HK$'000 HK$'000 HK$'000 % Dividend received 482,075 516,942 (34,867) -6.7% Asset management income 143,320 151,514 (8,194) -5.4% Agency commission income & 48,114 69,114 (21,0
Slide 7: Analysis on change on core income
Great Eagle Holdings Limited Financials Analysis on change on core income 1H 2020 $'000 Change in profit from core business after tax (731,712) Arise from: Decrease in hotels EBITDA (661,631) Decrease in distribution income from LHI (116,558) Decrease in dividend and management income from Champion
Slide 8: Discount to NAV
Great Eagle Holdings Limited Discount to NAV Financials NAV based on statutory accounting principles (June 2020) NAV based on net assets of Champion REIT, LHI and US Fund % of % of HK$m HK$/shr Total HK$m HK$/shr Total Investment properties 7,098 9.9 12% Investment properties 7,098 9.9 11% Appraised
Slide 9: Financial position
Great Eagle Holdings Limited Financials Financial position (A) Base on statutory financial positions Book Carrying Net Cash Loan to Net interest Interest (HK$ Million) Value (Debt) Net Equity Value Gearing EBITDA expense Cover Hong Kong/ PRC Assets 59,548 (8,162) 51,386 13.7% 15.9% 1,027 284 3.6 Ove
Slide 10: Valuation – Investment properties
Great Eagle Holdings Limited Valuation – Investment properties Financials As at the end of June 2020 Hong Kong investment properties Valuation Change from GFA (Sqft) HK$/psf Cap rate end of Dec 2019 Great Eagle Centre Office 193,271 24,629 2.9% -5.1% Retail 55,944 9,295 4.5% -5.3% 3rd floor 20,959 1
Slide 11: Langham Hospitality Group
Langham Hospitality Group Great Eagle 11 Holdings Limited
Slide 12: 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 13: Hotel portfolio – 1H 2020 Operational Statistics
Great Eagle Holdings Limited Hotels Division Hotel portfolio – 1H 2020 Operational Statistics YTD Occupancy YTD Average Room Rate YTD RevPar 1H 2020 1H 2019 Change 1H 2020 1H 2019 Change 1H 2020 1H 2019 Change Owned by subsidiary LHI Hong Kong The Langham, Hong Kong 14.4% 90.0% -75.6% $1,490 $2,169
Slide 14: Hotel portfolio – 1H 2020 Room and F&B revenue growth
Great Eagle Holdings Limited Langham Hospitality Group Hotel portfolio – 1H 2020 Room and F&B revenue growth (in local currency) Room revenue growth F&B revenue growth 1H 2020 1H 2020 The Langham, London -63% -61% The Langham, Boston (closed since April 2019 for renovations) N.A. N.A. The Langham, H
Slide 15: Hotel portfolio – Profit contribution
Great Eagle Holdings Limited Hotels Division Hotel portfolio – Profit contribution 1H 2020 1H 2019 Change in HK$ Owned Hotels in 'mn in 'mn 1H 2020 Contribution to in LC in LC in 'mn hotel loss Europe (£1.6) £5.6 -128.8% -15.9 7% UK (The Langham, London) North America U.S. (The Langham, Boston, Chic
Slide 16: Investment properties
Investment properties Great Eagle 16 Holdings Limited
Slide 17: 1H 2020 - Rental income breakdown
Great Eagle Holdings Limited Investment properties 1H 2020 - Rental income breakdown Gross rental income Growth Net rental income Growth 1H 2020 1H 2019 (%) 1H 2020 1H 2019 (%) (in HK$ mn) Hong Kong Investment Properties Great Eagle Centre 61.6 69.2 (11.0) 58.5 67.6 (13.5) Eaton Residence Apartments
Slide 18: 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, 96 were sold and handed to buyers by the end of June 2020.
Slide 19: Outlook for the Group’s results
Great Eagle Holdings Limited Outlook Outlook for the Group’s results • In the second half of 2020, we will continue selling the remaining units at ONTOLO in Pak Shek Kok. As transactions in the primary market remain steady thus far, we expect a continued stable sales momentum of ONTOLO in the remain
Slide 20: 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 2020 1H 2020 1H 2019 HK$'000 HK$'000 HK$'000 Gross Revenue 350,325 350,325 Rental Income - HK 83,308 83,308 - 98,980 - Building mgt fee inc 13,402
Slide 21: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2020 1H 2020 1H 2019 HK$'000 HK$'000 HK$'000 Net Operating Income Net Rental Income - HK 70,934 70,934 - 87,076 Hotel Income - Overseas (220,152) (
Slide 22: 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 2020 1H 2020 1H 2019 HK$'000 HK$'000 HK$'000 Operating profit before Dep. and Amortisation 1,053,906 439,412 1,317,985 Depreciation and amortisatio
Slide 23: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2020 1H 2020 1H 2019 HK$'000 HK$'000 HK$'000 Net finance costs Finance cost (403,188) (77,784) - (86,478) - Exclude interest expense of CREIT, LHI