Great Eagle Holdings Limited · HKEX:41
Great Eagle — H1 2015 Earnings Presentation
43 slides from Great Eagle's earnings presentation, 2015
Slide 1: Great Eagle Holdings Investor Presentation 3Q15
Great Eagle Holdings Investor Presentation 3Q15 1
Slide 2: Highlights of 1H 2015 Results
Great Eagle Holdings Limited Financials Highlights of 1H 2015 Results 1. The Group has continued to make positive progress with its strategy to expand its asset base and thus far into 2015, the Group has acquired two development projects in San Francisco, U.S. for a total of US$68.0 million, and has
Slide 3: 1H 2015 Results
Great Eagle Holdings Limited Financials 1H 2015 Results 1H 2015 1H 2014 Change HK$'000 HK$'000 HK$'000 % Gross Revenue 350,325 350,325 Rental Income - HK 96,173 95,588 585 0.6% - Overseas 8,038 109,128 (101,090) -92.6% - Building mgt fee inc 11,955 12,416 (461) -3.7% Hotel Income - -Overseas Oversea
Slide 4: 1H 2015 Results
Great Eagle Holdings Limited Financials 1H 2015 Results 1H 2015 1H 2014 Change HK$'000 HK$'000 HK$'000 % Net Operating Income Net Rental Income - HK 77,717 76,813 904 1.2% - Overseas 7,830 57,502 (49,672) -86.4% Hotel Income - Overseas 169,255 139,799 29,456 21.1% - Others 28,685 63,078 (34,393) -54
Slide 5: 1H 2015 Results
Great Eagle Holdings Limited Financials 1H 2015 Results 1H 2015 1H 2014 Change HK$'000 HK$'000 HK$'000 % Net finance costs Finance cost (93,149) (81,495) (11,654) 14.3% Interest income 137,709 171,412 (33,703) -19.7% 44,560 89,917 (45,357) -50.4% Share of results of associates (3,731) 10,427 (14,158
Slide 6: 1H 2015 Results – Income from Champion breakdown
Great Eagle Holdings Limited Financials 1H 2015 Results – Income from Champion breakdown 1H 2015 1H 2014 Change HK$'000 HK$'000 HK$'000 % Dividend received 339,940 363,188 (23,248) -6.4% Asset management income 105,361 110,486 (5,125) -4.6% Agency commission income & 34,887 47,331 (12,444) -26.3% Pr
Slide 7: Analysis on change on core income
Great Eagle Holdings Limited Financials Analysis on change on core income 1H 2015 $'000 Change in profit from core business after tax (127,355) Arise from: Decrease in net rental income (48,768) Decrease in net interest income (45,357) Decrease in dividend and management income from Champion REIT (4
Slide 8: Discount to NAV
Great Eagle Holdings Limited Discount to NAV Financials NAV based on statutory accounting principles (June 2015) NAV based on net assets of Champion REIT and LHI (June 2015) % of % of HK$m HK$/shr Total HK$m HK$/shr Total Investment properties 5,408 8.1 11% Investment properties 5,408 8.1 9% Apprais
Slide 9: Financial position
Great Eagle Holdings Limited Financials Financial position (A) Base on statutory financial positions Book Carrying Net Cash Loan to Net interest Interest (HK$ Million) Value (Debt) Net Equity Value Gearing EBITDA expense Cover Hong Kong/ PRC Assets 59,183 (17,530) 41,653 29.6% 42.1% 1,212 172 7.0 Ov
Slide 10: Valuation – Investment properties
Great Eagle Holdings Limited Valuation – Investment properties Financials As at the end of June 2015 Hong Kong investment properties Valuation Change from GFA (Sqft) HK$/psf end of Dec 2014 Great Eagle Centre Office 193,271 16,386 5.6% Retail 55,944 9,349 5.5% 3rd floor 20,959 8,063 4.4% Carparks (n
Slide 11: Development projects
Great Eagle Holdings Limited Development project Development projects Dalian Mixed-use Development Project A more aggressive pricing strategy for lower floors was launched in March 2015 to accelerate sales and generate better cash flow. By the end of June 2015 over 150 units had been sold at approxi
Slide 12: Langham Hotels International
Langham Hotels International Great Eagle 12 Holdings Limited
Slide 13: Hotel portfolio – 1H 2015 Operational Statistics
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – 1H 2015 Operational Statistics Occupancy Average Room Rate RevPar YTD-Jun 2015 YTD-Jun 2014 Change YTD-Jun 2015 YTD-Jun 2014 Change YTD-Jun 2015 YTD-Jun 2014 Change Owned by subsidiary LHI The Langham, Hong Kong 81.8% 88.0%
Slide 14: Hotel portfolio – 1H 2015 Operational statistics
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – 1H 2015 Operational statistics Room revenue growth F&B revenue growth YTD-June 2015 YTD-June 2015 The Langham, London -10% 6% The Langham, Boston 12% 10% The Langham. Chicago 41% 20% The Langham Place, Fifth Avenue -2% -5% T
Slide 15: Hotel portfolio – Profit contribution
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – Profit contribution 1H 2015 1H 2014 Change in HK$ Owned Hotels in 'mn in 'mn 1H 2015 Contribution to in LC in LC in 'mn hotel profits Europe £3.0 £4.3 -30.2% 35.9 21% UK (The Langham, London) North America U.S. (The Langham,
Slide 16: Hotel portfolio – Currency impact
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – Currency impact Jun-15 Jun-14 yoy change Variance in profit contribution (in HK$ mn) GBP 11.8125 12.9460 -8.8% (3.4) CAD 6.2841 7.0748 -11.2% (1.3) AUD 6.0677 7.0935 -14.5% (4.3) USD 7.7541 7.7559 0.0% (0.0) NZD 5.7504 6.584
Slide 17: The Langham, Hong Kong
Great Eagle Holdings Limited Langham Hotels International The Langham, Hong Kong 1H 2014 1H 2015 Change Rooms Available 485 472 -13 RevPAR $2,017 $1,802 -10.7% Room Rate $2,291 $2,204 -3.8% Occupancy Rate 88.0% 81.8% -6.2 ppt For The Langham, Hong Kong, arrivals from Mainland China managed to sustai
Slide 18: Langham Place Hotel Hong Kong
Great Eagle Holdings Limited Langham Hotels International 1H 2014 1H 2015 Change Langham Place Hotel Hong Kong Rooms Available 650 619 -31 RevPAR $1,731 $1,522 -12.1% Room Rate $1,871 $1,725 -7.8% Occupancy Rate 92.5% 88.2% -4.3 ppt The hotel also saw an increase in arrivals from Mainland China, whi
Slide 19: Eaton, Hong Kong
Great Eagle Holdings Limited Langham Hotels International Eaton, Hong Kong 1H 2014 1H 2015 Change Eaton, Hong Kong, faced severe Rooms Available 465 465 0 impact from weaker overnight RevPAR $1,127 $946 -16.1% tourist visitations from Mainland China, and the hotel witnessed a Room Rate $1,178 $1,097
Slide 20: The Langham, London
Great Eagle Holdings Limited Langham Hotels International 1H 2014 1H 2015 Change The Langham, London Rooms Available 380 344 -36 Disruptions from the ongoing renovation at RevPAR £204 £202 -1.0% the hotel resulted in an overall lower Room Rate £260 £261 0.4% occupancy, which has dropped on a reduced
Slide 21: The Langham, Melbourne
Great Eagle Holdings Limited Langham Hotels International The Langham, Melbourne 1H 2014 1H 2015 Change Rooms Available 388 388 With several high profile events in the city, RevPAR $242 $263 8.7% the increase in demand for hotel rooms allowed the hotel to hike room rates over Room Rate $282 $304 7.8
Slide 22: The Langham, Sydney
Great Eagle Holdings Limited Langham Hotels International 1H 2014 1H 2015 Change The Langham, Sydney Rooms Available 96 89 -7 RevPAR $252 $224 -11.1% Room Rate $297 $404 36.0% Occupancy Rate 84.7% 55.4% -29.3 ppt Although The Langham, Sydney reopened since December last year after it was closed for
Slide 23: The Langham, Auckland
Great Eagle Holdings Limited Langham Hotels International The Langham, Auckland 1H 2014 1H 2015 Change The hotel managed to raise room Rooms Available 409 409 - rates as there were major events RevPAR $141 $161 14.2% hosted in the city during the first half period, resulted in a 9.1% year-on- Room R
Slide 24: Langham Place Fifth Avenue, New York
Great Eagle Holdings Limited Langham Hotels International Langham Place Fifth Avenue, 1H 2014 1H 2015 Change New York Rooms Available 214 214 0 RevPAR $383 $377 -1.6% Room Rate $487 $506 3.9% Occupancy Rate 78.8% 74.5% -4.3 ppt Operating environment for the hotel became more challenging as there was
Slide 25: The Langham, Chicago
Great Eagle Holdings Limited Langham Hotels International The Langham, Chicago 1H 2014 1H 2015 Change With a low base for comparison in Rooms Available 313 316 3 the first half of 2014, the improvement in the first half of RevPAR $155 $216 39.4% 2015 was very much across the Room Rate $301 $332 10.3
Slide 26: The Langham, Boston
Great Eagle Holdings Limited Langham Hotels International 1H 2014 1H 2015 Change The Langham, Boston Rooms Available 318 318 0 RevPAR $188 $212 12.8% Given the increased number of conventions held in the city in the first half of 2015, The Room Rate $243 $258 6.2% Langham, Boston strategically raise
Slide 27: The Langham, Huntington Hotel & Spa, Pasadena
Great Eagle Holdings Limited Langham Hotels International The Langham, Huntington Hotel & Spa, 1H 2014 1H 2015 Change Pasadena Rooms Available 380 380 0 RevPAR $191 $192 0.5% The Langham Huntington, Pasadena saw a Room Rate $242 $256 5.8% drop in corporate group business in the first half of 2015, b
Slide 28: Chelsea, Toronto
Great Eagle Holdings Limited Langham Hotels International Chelsea, Toronto (Rebranded from Eaton Chelsea in January 2015) 1H 2014 1H 2015 Change Given that almost half of the Rooms Available 1,590 1,590 0 rooms of the hotel were RevPAR $83 $80 -3.6% undergoing soft renovation during $126 $132 4.8% R
Slide 29: The Langham, Xintiandi
Great Eagle Holdings Limited Langham Hotels International The Langham, Xintiandi 1H 2014 1H 2015 Change (wholly owned from 11 December 2014) Rooms Available 356 357 1 Compared with a tough operating RevPAR $1,092 $1,233 12.9% environment in Shanghai’s hotel market last year, such Room Rate $1,664 $1
Slide 30: Managed hotel owned by third parties
Great Eagle Holdings Limited Langham Hotels International Managed hotel owned by third parties 30
Slide 31: Managed hotels in China and India
Great Eagle Holdings Limited Langham Hotels International The Langham, Shenzhen Langham Place, Beijing Capital Airport Guangzhou, China With 372 rooms With 352 rooms Opened in August 2010 Opened in October 2012 Eaton Smart New Delhi International Airport With 93 rooms Opened in June 2011 31
Slide 32: Managed hotels in China
Great Eagle Holdings Limited Langham Hotels International Langham Place, Langham Place, Xiamen Ningbo Culture Plaza Xiamen, China With 143 rooms With 327 rooms Opened in 2014 Opened in 2014 Langham Place, Guangzhou Guangzhou, China With 500 rooms Opened in 2013 32
Slide 33: Hotel pipeline
Great Eagle Holdings Limited Langham Hotels International Hotel pipeline 2015 Rooms Status The Langham Dubai, Palm Jumeirah 323 Agreement The Langham, Haikou 244 Agreement Cordis Qingdao 538 Agreement 2016 Rooms Status The Langham Hefei 339 Agreement The Langham Chongqing 154 Agreement Langham Place
Slide 34: Investment properties
Investment properties Great Eagle 34 Holdings Limited
Slide 35: Rental income breakdown
Great Eagle Holdings Limited Investment properties 2014 Final Results - Rental income breakdown Gross rental income Growth Net rental income Growth 1H 2015 1H 2014 (%) 1H 2015 1H 2014 (%) (in HK$ mn) Hong Kong Investment Properties Great Eagle Centre 71.4 69.8 2.2 62.6 59.8 4.7 Eaton House 23.4 24.7
Slide 36: Great Eagle Centre
Great Eagle Holdings Limited Investment properties Great Eagle Centre There was a pick-up in office leasing activities and occupancy for the office portion rose by 2.3 percentage points to 97.5% as of June 2015. However, as spot rents at Great Eagle Centre were already at a high level and stood at o
Slide 37: Eaton Serviced Apartments
Great Eagle Holdings Limited Investment properties Eaton Serviced Apartments Overall occupancy for the three serviced apartments dropped from 76.8% in the first half of 2014 to 70.4% in the first half of 2015. The decline was primarily due to a drop in occupancy at the serviced apartment at the Vill
Slide 38: US Real Estate Fund
Great Eagle Holdings Limited US Real Estate Fund US Real Estate Fund As at the end of June 2015, total net asset value of the fund stood at US$453 million, which comprised of net asset value of the three transferred properties amounted to US$252 million, cost incurred thus far for a residential deve
Slide 39: Investment in Champion REIT & Langham Hospitality Investments
Great Eagle Holdings Limited Investment in Champion REIT Investment in the Champion REIT (2778.HK) & Langham Hospitality Investments (1270.HK) Note that our core profit is based on dividend from Champion REIT and LHI in respective of the same financial period. Outlook for Champion REIT: Champion REI
Slide 40: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2015 1H 2015 1H 2014 HK$'000 HK$'000 HK$'000 Gross Revenue 350,325 350,325 Rental Income - HK 96,173 96,173 - 95,588 - Overseas 8,038 8,038 - 109,1
Slide 41: 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 2015 1H 2015 1H 2014 HK$'000 HK$'000 HK$'000 Net Operating Income Net Rental Income - HK 77,717 77,717 - 76,813 - Overseas 56,687 7,830 - 57,502 -
Slide 42: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2015 1H 2015 1H 2014 HK$'000 HK$'000 HK$'000 Operating profit before Dep. and Amortisation 1,596,044 995,743 1,101,456 Depreciation and amortisatio
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 2015 1H 2015 1H 2014 HK$'000 HK$'000 HK$'000 Net finance costs Finance cost (354,325) (93,149) - (81,495) - Exclude interest expense of CREIT, LHI