Great Eagle Holdings Limited · HKEX:41
Great Eagle — 1H 2014 Earnings Presentation
34 slides from Great Eagle's earnings presentation, 2014
Slide 1: Great Eagle Holdings Investor Presentation 3Q14
Great Eagle Holdings Investor Presentation 3Q14 1
Slide 2: Highlights of 1H 2014 Performance
Great Eagle Holdings Limited Financials Highlights of 1H 2014 Performance Acquisitions and other business expansion 1. In May 2014, the Group announced that it has re-entered Hong Kong’s luxury residential development market with the winning of the tender of a prime site in Pak Shek Kok, Tai Po. 2.
Slide 3: 2014 Interim Results
Great Eagle Holdings Limited Financials 2014 Interim Results 1H 2014 1H 2013 Change HK$'000 HK$'000 HK$'000 % Gross Revenue 350,325 350,325 Rental Income - HK 95,588 90,066 5,522 6.1% - Overseas 109,128 54,201 54,927 101.3% - Building mgt fee inc 12,416 11,199 1,217 10.9% Hotel Income - HK - 656,275
Slide 4: 2014 Interim Results
Great Eagle Holdings Limited Financials 2014 Interim Results 1H 2014 1H 2013 Change HK$'000 HK$'000 HK$'000 % Net Operating Income Net Rental Income - HK 76,813 67,919 8,894 13.1% - Overseas 57,502 24,503 32,999 134.7% Hotel Income - HK - 254,752 n.a. n.a. - Overseas 139,799 166,215 (26,416) -15.9%
Slide 5: 2014 Interim Results
Great Eagle Holdings Limited Financials 2014 Interim Results 1H 2014 1H 2013 Change HK$'000 HK$'000 HK$'000 % Net finance costs Finance cost (81,495) (60,838) (20,657) 34.0% Interest income 171,412 16,469 154,943 940.8% 89,917 (44,369) 134,286 -302.7% Share of results of associates 10,427 11,081 (65
Slide 6: 2014 Interim Results – Income from Champion breakdown
Great Eagle Holdings Limited Financials 2014 Interim Results – Income from Champion breakdown Income from Champion REIT 1H 2014 1H 2013 Change HK$'000 HK$'000 HK$'000 % Dividend received 363,188 331,700 31,488 9.5% Asset management income 110,486 103,020 7,466 7.2% Agency commission income & 47,331
Slide 7: Analysis on change on core income 1H 2014
Great Eagle Holdings Limited Financials Analysis on change on core income 1H 2014 $'000 Change in profit from core business after tax + HK$ mn 185,248 Arise from: Increase in net interest income 134,286 Dividend income from LHI 127,180 Increase in Income from Champion REIT 48,320 Increase in Other i
Slide 8: Discount to NAV
Great Eagle Holdings Limited Discount to NAV Financials NAV based on statutory accounting principles (June 2014) NAV based on net assets of Champion REIT and LHI (June 2014) % of % of HK$m HK$/psf HK$/shr Total HK$m HK$/psf HK$/shr Total Investment properties 7,992 6,380 12.2 18% Investment properti
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 55,373 (13,839) 41,534 25.0% 33.3% 1,334 101 13.2 O
Slide 10: Valuation – Investment properties
Great Eagle Holdings Limited Valuation – Investment properties Financials As at the end of June 2014 Hong Kong investment properties Valuation Change from GFA (Sqft) HK$/psf end of Dec 2013 Great Eagle Centre Office 193,271 15,310 0.2% Retail 55,944 8,853 0.0% 3rd floor 20,959 7,615 0.2% Carparks (n
Slide 11: Development project
Development project Great Eagle 11 Holdings Limited
Slide 12: Dalian Mixed-use Development Project
Great Eagle Holdings Limited 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 Phase 1 the apartments started in Septe
Slide 13: Hong Kong Luxury Residential Development Project
Great Eagle Holdings Limited Development project Hong Kong Luxury Residential Development Project Location: Fo Yin Road, Pak Shek Kok, Tai Po, New Territories (TPTL No. 214) Site: 208,820 sq. ft. G.F.A.: Residential 730,870 sq.ft. Status: Land premium of HK$2.412 bn (AV of HK$3,300 psf) has been pai
Slide 14: Langham Hotels International
Langham Hotels International Great Eagle 14 Holdings Limited
Slide 15: Hotel portfolio – 1H 2014 Operational Statistics
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – 1H 2014 Operational Statistics Occupancy Average Room Rate RevPar (local currency) (local currency) YTD-June 2014 YTD-June 2013 Change YTD-June 2014 YTD-June 2013 Change YTD-June 2014 YTD-June 2013 Change Wholly-owned Hotels
Slide 16: Hotel portfolio – Currency impact
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – Currency impact Jun-14 Jun-13 yoy change Variance in profit contribution (in HK$ mn) GBP 12.9460 11.9811 8.1% 4.1 CAD 7.0748 7.6403 -7.4% (1.1) AUD 7.0935 7.8728 -9.9% (5.0) USD 7.7559 7.7594 0.0% (0.0) NZD 6.5847 6.4224 2.5
Slide 17: Hotel portfolio – EBITDA contribution
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – EBITDA contribution 1H 2014 1H 2013 Change Owned Hotels in HK$'mn in HK$'mn Hong Kong - $254.8 n.a. (The Langham, Hong Kong, Langham Place, Hong Kong and Eaton, Hong Kong from Jan 01 - May 29, 2013) Europe $55.4 $61.0 -9.3%
Slide 18: Managed hotel owned by third parties
Great Eagle Holdings Limited Langham Hotels International Managed hotel owned by third parties 18
Slide 19: Eaton Luxe Nanqiao; Langham Place Beijing Capital Airport
Great Eagle Holdings Limited Langham Hotels International Eaton Luxe, Nanqiao, Shanghai With 204 rooms Opened in April 2010 Langham Place, Beijing Capital Airport With 372 rooms Opened in August 2010 19
Slide 20: Eaton Smart New Delhi; 88 Xintiandi
Great Eagle Holdings Limited Langham Hotels International Eaton Smart New Delhi International Airport With 93 rooms Opened in June 2011 88 Xintiandi, Shanghai With 53 rooms Opened in September 2011 20
Slide 21: The Langham, Shenzhen; Eaton Luxe Xinqiao
Great Eagle Holdings Limited Langham Hotels International The Langham, Shenzhen Guangzhou, China With 352 rooms Opened in October 2012 Eaton Luxe, Xinqiao, Shanghai With 214 rooms Opened in November 2012 21
Slide 22: Langham Place, Guangzhou; Langham Place, Ningbo
Great Eagle Holdings Limited Langham Hotels International Langham Place, Guangzhou Guangzhou, China With 500 rooms Opened in 2013 Langham Place, Ningbo Culture Plaza With 143 rooms Opened in 2014 22
Slide 23: Langham Place, Xiamen
Great Eagle Holdings Limited Langham Hotels International Langham Place, Xiamen Xiamen, China With 327 rooms Opened in 2014 23
Slide 24: Hotel pipeline
Great Eagle Holdings Limited Langham Hotels International Hotel pipeline 2014 Rooms Status Langham Place, Haining 266 Agreement 2015 Rooms Status Langham Place, Datong 327 Agreement Langham Place, Qingdao 194 Agreement Eaton Luxe, Qingdao 538 Agreement The Langham Dubai, Palm Jumerirah 323 Agreement
Slide 25: Investment properties
Investment properties Great Eagle 25 Holdings Limited
Slide 26: 1H 2014 - Rental income breakdown
Great Eagle Holdings Limited Investment properties 1H 2014 - Rental income breakdown Gross rental income Growth Net rental income Growth 1H 2014 1H 2013 (%) 1H 2014 1H 2013 (%) (in HK$ mn) Hong Kong Investment Properties Great Eagle Centre 69.8 69.6 0.3 59.8 56.7 5.3 Eaton House 24.7 19.4 27.1 16.3
Slide 27: Great Eagle Centre
Great Eagle Holdings Limited Investment properties Great Eagle Centre Office leasing activities had been slow for the Great Eagle Centre during the first six months of 2014. The slow activities were in part due to limited office sizes available at the Great Eagle Centre, where units available are
Slide 28: US Investment properties
Great Eagle Holdings Limited Investment properties US Investment properties As mentioned at the beginning of the Management Discussion and Analysis, the Group is in the process of setting up a U.S. real estate fund. The Group will be the key asset manager of the fund, and will receive asset manageme
Slide 29: 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. For Champion REIT, rental growth at Lan
Slide 30: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported 1H 2014 1H 2013 HK$ 000 HK$ 000 Profit for the period before consolidating results of CREIT and LHI 313,150 370,405 Fair value changes on investment properties (245,946) (96,504) - Ignored in core
Slide 31: 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 2014 1H 2014 1H 2013 HK$'000 HK$'000 HK$'000 Gross Revenue 350,325 350,325 Rental Income - HK 95,588 95,588 - 90,066 - Overseas 109,128 109,128 - 5
Slide 32: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2014 1H 2014 1H 2013 HK$'000 HK$'000 HK$'000 Net Operating Income Net Rental Income - HK 76,813 76,813 - 67,919 - Overseas 57,502 57,502 - 24,503 H
Slide 33: 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 2014 1H 2014 1H 2013 HK$'000 HK$'000 HK$'000 Operating profit before Dep. and Amortisation 1,703,587 1,101,456 1,091,993 Depreciation and amortisat
Slide 34: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2014 1H 2014 1H 2013 HK$'000 HK$'000 HK$'000 Net finance costs Finance cost (302,709) (81,495) - (60,838) - Exclude interest expense relating to CR