Great Eagle Holdings Limited · HKEX:41
Great Eagle — H1 2021 Earnings Presentation
27 slides from Great Eagle's earnings presentation, 2021
Slide 1: Great Eagle Holdings Investor Presentation
Great Eagle Holdings Investor Presentation Q3 2021 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 2021 Interim Results
Great Eagle Holdings Limited Financials Highlights of 2021 Interim Results • In February 2021, the Group successfully acquired the development rights for a luxury residential project in Ho Man Tin, Hong Kong. The Group has assumed all project costs, including outstanding land premiums and loans draw
Slide 4: 2021 Interim Results - Gross Revenue
Great Eagle Holdings Limited Financials 2021 Interim Results 1H 2021 1H 2020 Change HK$'000 HK$'000 HK$'000 % Gross Revenue 350,325 350,325 Property sales 957,622 957,622 n.a. Rental Income - HK 64,635 83,308 (18,673) -22.4% - Building mgt fee 11,765 13,402 (1,637) -12.2% Hotel Income - Overseas - O
Slide 5: 2021 Interim Results - Net Operating Income
Great Eagle Holdings Limited Financials 2021 Interim Results 1H 2021 1H 2020 Change HK$'000 HK$'000 HK$'000 % Net Operating Income Property sales 424,277 424,277 n.a. Net Rental Income - HK 54,254 70,934 (16,680) -23.5% Hotel Income - Overseas (169,376) (220,152) 50,776 -23.1% - Others (101,222) (13
Slide 6: 2021 Interim Results - Net finance costs to profit
Great Eagle Holdings Limited Financials 2021 Interim Results 1H 2021 1H 2020 Change HK$'000 HK$'000 HK$'000 % Net finance costs Finance cost (77,013) (77,784) 771 -4.3% Interest income 46,729 100,208 (53,479) -9.3% (30,284) 22,424 (52,708) -235.1% Share of results of associates 3,598 4,338 (740) n.m
Slide 7: Breakdown of Income from Champion REIT
Great Eagle Holdings Limited Financials 2021 Interim Results – Breakdown of Income from Champion REIT 1H 2021 1H 2020 Change HK$'000 HK$'000 HK$'000 % Dividend received 478,525 482,075 (3,550) -0.7% Asset management income 141,573 143,320 (1,747) -1.2% Agency commission income & 44,046 48,114 (4,068
Slide 8: Analysis on change on core income
Great Eagle Holdings Limited Financials Analysis on change on core income 1H 2021 $'000 Change in profit from core business after tax 446,945 Arise from: Increase in income from property sales 424,277 Decrease in administrative and other expense 88,012 Decrease in hotels EBITDA loss 86,610 Decrease
Slide 9: Discount to NAV
Great Eagle Holdings Limited Discount to NAV Financials NAV based on statutory accounting principles (June 2021) NAV based on net assets of Champion REIT, LHI and US Fund % of % of HK$m HK$/shr Total HK$m HK$/shr Total Investment properties 6,794 9.3 11% Investment properties 6,794 9.3 10% Appraised
Slide 10: Financial position
Great Eagle Holdings Limited Financials Financial position (A) Base on statutory financial positions Book Carrying Net Cash Loan to Net interest Interest (HK$ Million) Value (Debt) Net Equity Value Gearing EBITDA expense Cover Hong Kong/ PRC Assets 65,056 (17,673) 47,383 27.2% 37.3% 1,505 331 4.5 Ov
Slide 11: Valuation – Investment properties
Great Eagle Holdings Limited Valuation – Investment properties Financials As at the end of June 2021 Hong Kong investment properties Valuation Change from GFA (Sqft) HK$/psf Cap rate end of Dec 2020 Great Eagle Centre Office 193,271 23,133 2.9% -1.6% Retail 55,944 8,598 4.5% -3.8% 3rd floor 20,959 1
Slide 12: Development Project ONTOLO, Pak Shek Kok
Great Eagle Holdings Limited Development Project Development Project ONTOLO, Pak Shek Kok The site, which is located in Pak Shek Kok, Tai Po and commands spectacularly unobstructed sea views over Tolo Harbour was acquired in May 2014. The development, with a total permissible gross floor area of 730
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 – 1H 2021 Operational Statistics
Great Eagle Holdings Limited Hotels Division Hotel portfolio – 1H 2021 Operational Statistics YTD Occupancy YTD Average Room Rate YTD RevPar 1H 2021 1H 2020 Change 1H 2021 1H 2020 Change 1H 2021 1H 2020 Change Owned by subsidiary LHI Hong Kong The Langham, Hong Kong 20.6% 14.4% 6.3% $1,137 $1,490 -2
Slide 16: Hotel portfolio – Room and F&B revenue growth
Great Eagle Holdings Limited Langham Hospitality Group Hotel portfolio – 1H 2021 Room and F&B revenue growth (in local currency) Room revenue growth F&B revenue growth 1H 2021 1H 2021 The Langham, London -80% -67% The Langham, Huntington Pasadena 0% -69% The Langham. Chicago 21% -41% The Langham, Fi
Slide 17: Hotel portfolio – Profit contribution
Great Eagle Holdings Limited Hotels Division Hotel portfolio – Profit contribution in HK$ 1H 2021 1H 2020 Change Contribution to Owned Hotels in mn in mn hotel loss Europe UK (The Langham, London) -22.5 -15.9 41.0% 13% North America U.S. (The Langham in Boston, Chicago, New York, -161.9 -170.8 -5.3%
Slide 18: Hotel pipeline
Great Eagle Holdings Limited Langham Hospitality Group Hotel pipeline 2021 Rooms Status The Langham, Jakarta 224 Agreement 2022 Rooms Status The Langham Gold Coast 169 Agreement Cordis International Cruise Terminal, Baoshan, Shanghai 274 Agreement 2023 and after Rooms Status Cordis, Yuhu Lake, Chong
Slide 19: Investment properties
Investment properties Great Eagle 19 Holdings Limited
Slide 20: 1H 2021 - Rental income breakdown
Great Eagle Holdings Limited Investment properties 1H 2021 - Rental income breakdown Gross rental income Growth Net rental income Growth 1H 2021 1H 2020 (%) 1H 2021 1H 2020 (%) (in HK$ mn) Hong Kong Investment Properties Great Eagle Centre 49.3 61.6 (19.9) 46.3 58.5 (20.9) Eaton Residence Apartments
Slide 21: U.S. Fund
Great Eagle Holdings Limited U.S. Fund U.S. Fund While the financials of the U.S. Fund are consolidated into the Group’s financial statements under statutory accounting principles, the Group’s core profit is based on distribution received from the U.S. Fund, as well as our share of asset management
Slide 22: Development projects
Great Eagle Holdings Limited Development projects Development projects Ho Man Tin residential development project This recently acquired project, which comprised of a gross floor area of approximately 742,000 sq. ft., involves the development of 990 apartments above Ho Man Tin MTR station under a
Slide 23: Outlook for the Group's results
Great Eagle Holdings Limited Outlook Outlook for the Group’s results • For our global hotel business, the Group continues to navigate through these difficult times and is focused on implementing strict cost controls, as well as the appropriate scaling of our operations to cope with rapidly changing
Slide 24: 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 2021 1H 2021 1H 2020 HK$'000 HK$'000 HK$'000 Gross Revenue 350,325 350,325 Property sales 957,622 957,622 Rental Income - HK 64,635 64,635 - 83,308
Slide 25: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2021 1H 2021 1H 2020 HK$'000 HK$'000 HK$'000 Net Operating Income Operating income from property sales 424,277 424,277 - Net Rental Income - HK 54,
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 1H 2021 1H 2021 1H 2020 HK$'000 HK$'000 HK$'000 Operating profit before Dep. and Amortisation 1,507,585 926,454 439,412 Depreciation and amortisation
Slide 27: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2021 1H 2021 1H 2020 HK$'000 HK$'000 HK$'000 Net finance costs Finance cost (367,073) (77,013) - (77,784) - Exclude interest expense of CREIT, LHI