Great Eagle Holdings Limited · HKEX:41
Great Eagle — H1 2019 Earnings Presentation
30 slides from Great Eagle's earnings presentation, 2019
Slide 1: Investor Presentation Q3 2019
此文件只提供英文版本 Great Eagle Holdings Investor Presentation Q3 2019 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 2019 Interim Results
Great Eagle Holdings Limited Financials Highlights of 2019 Interim Results The Group has successfully launched ONTOLO, our 723‐units luxury residential development project in Pak Shek Kok, Hong Kong. The launch, which took place at a time of large‐scale protests across Hong Kong, managed to receiv
Slide 4: 2019 Interim Results
Great Eagle Holdings Limited Financials 2019 Interim Results 1H 2019 1H 2018 Change HK$'000 HK$'000 HK$'000 % Gross Revenue 350,325 350,325 Rental Income ‐ HK 98,980 101,368 (2,388) ‐2.4% ‐ Building mgt fee 12,994 12,952 42 0.3% Hotel Income ‐ Overseas 1,937,142 1,972,912 (35,770) ‐1.8% ‐ Others 86,
Slide 5: 2019 Interim Results
Great Eagle Holdings Limited Financials 2019 Interim Results 1H 2019 1H 2018 Change HK$'000 HK$'000 HK$'000 % Net Operating Income Net Rental Income ‐ HK 87,076 90,142 (3,066) ‐3.4% Hotel Income ‐ Overseas 251,725 308,003 (56,278) ‐18.3% ‐ Others 52,698 49,851 2,847 5.7% Income from Champion REIT* ‐
Slide 6: 2019 Interim Results
Great Eagle Holdings Limited Financials 2019 Interim Results 1H 2019 1H 2018 Change HK$'000 HK$'000 HK$'000 % Net finance costs Finance cost (86,478) (86,575) 97 ‐4.3% Interest income 81,289 60,109 21,180 ‐9.3% (5,189) (26,466) 21,277 ‐80.4% Share of results of associates 449 362 87 n.m. Share of re
Slide 7: 2019 Interim Results – Breakdown of Income from Champion REIT
Great Eagle Holdings Limited Financials 2019 Interim Results – Breakdown of Income from Champion REIT 1H 2019 1H 2018 Change HK$'000 HK$'000 HK$'000 % Dividend received 516,942 480,787 36,155 7.5% Asset management income 151,514 141,211 10,303 7.3% Agency commission income & 69,114 48,877 20,237 41.
Slide 8: 2019 Interim Results – Distribution from LHI
Great Eagle Holdings Limited Financials 2019 Interim Results – Distribution from LHI 1H 2019 1H 2018 Change Distribution Per Share Stapled Unit declared in HK$ 0.087 0.090 ‐3.3% Share Stapled Units held by Great Eagle in 000 1,339,751 1,311,471 2.2% Shareholdings in LHIL 66.10% 62.48% 5.8% Dividend
Slide 9: Analysis on change on core income
Great Eagle Holdings Limited Financials Analysis on change on core income 1H 2019 $'000 Change in profit from core business after tax (86,336) Arise from: Increase in administration and other expenses (include HK$40.9mn (65,521) in fixed asset written off at The Langham, Boston) Decrease in other in
Slide 10: Discount to NAV
Great Eagle Holdings Limited Discount to NAV Financials NAV based on statutory accounting principles (June 2019) NAV based on net assets of Champion REIT, LHI and US Fund % of % of HK$m HK$/shr Total HK$m HK$/shr Total Investment properties 7,672 11.0 11% Investment properties 7,672 11.0 9% Appraise
Slide 11: Financial position
Great Eagle Holdings Limited Financials Financial position (A) Base on statutory financial positions Book Carrying Net Cash Loan to Net interest Interest (HK$ Million) Value (Debt) Net Equity Value Gearing EBITDA expense Cover Hong Kong/ PRC Assets 72,469 (10,398) 62,071 14.3% 16.8% 1,593 324 4.9 Ov
Slide 12: Valuation – Investment properties
Great Eagle Holdings Limited Valuation – Investment properties Financials As at the end of June 2019 Hong Kong investment properties Valuation Change from GFA (Sqft) HK$/psf Cap rate end of Dec 2018 Great Eagle Centre Office 193,271 26,776 2.9% 0.2% Retail 55,944 10,099 4.5% 0.5% 3rd floor 20,959 13
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 2019 Operational Statistics
Great Eagle Holdings Limited Hotels Division Hotel portfolio – 1H 2019 Operational Statistics Occupancy Average Room Rate RevPar 1H 2019 1H 2018 Change 1H 2019 1H 2018 Change 1H 2019 1H 2018 Change Owned by subsidiary LHI Hong Kong The Langham, Hong Kong 90.0% 90.6% -0.6% $2,169 $2,270 -4.5% $1,952
Slide 16: Hotel portfolio – 1H 2019 Room and F&B revenue growth
Great Eagle Holdings Limited Langham Hospitality Group Hotel portfolio – 1H 2019 Room and F&B revenue growth (in local currency) Room revenue growth F&B revenue growth YTD-June 2019 YTD-June 2019 The Langham, London 4% 6% The Langham, Boston (closed from April 2019 for renovations) -68% -62% The Lan
Slide 17: Hotel portfolio – Profit contribution
Great Eagle Holdings Limited Hotels Division Hotel portfolio – Profit contribution 1H 2019 1H 2018 Change in HK$ Owned Hotels in 'mn in 'mn 1H 2019 Contribution to in LC in LC in 'mn hotel profits Europe £5.6 £4.6 21.3% 56.4 22% UK (The Langham, London) North America U.S. (The Langham, Boston, Chica
Slide 18: Hotel portfolio – Currency impact
Great Eagle Holdings Limited Hotels Division Hotel portfolio – Currency impact Jun-19 Jun-18 yoy change Variance in profit contribution (in HK$ mn) GBP 10.1472 10.7796 -5.9% (4.3) CAD 5.8805 6.1363 -4.2% (4.0) AUD 5.5378 6.0450 -8.4% (3.5) USD 7.8433 7.8378 0.1% (0.0) NZD 5.2708 5.6056 -6.0% (2.0) R
Slide 19: Managed Hotels
Great Eagle Holdings Limited Langham Hospitality Group – Managed Hotels Managed Hotels 2010 Rooms Cordis, Beijing Capital AirportCordis, Beijing Capital Airport 372 2012 Rooms The Langham, Shenzhen 352 2013 Rooms Langham Place Guangzhou 500 2014 Rooms Langham Place Ningbo 143 Langham Place, Xiamen 3
Slide 20: Hotel pipeline
Great Eagle Holdings Limited Langham Hospitality Group Hotel pipeline 2019 Rooms Status Cordis, Hangzhou 184 Agreement 2020 Rooms Status Cordis, Shanghai East Bund 161 Agreement The Langham, Jakarta 225 Agreement The Langham, Changsha 296 Agreement 2021 Rooms Status Cordis, Yuhu Lake, Chongqing 202
Slide 21: Investment properties
Investment properties Great Eagle 21 Holdings Limited
Slide 22: 1H 2019 - Rental income breakdown
Great Eagle Holdings Limited Investment properties 1H 2019 - Rental income breakdown Gross rental income Growth Net rental income Growth 1H 2019 1H 2018 (%) 1H 2019 1H 2018 (%) (in HK$ mn) Hong Kong Investment Properties Great Eagle Centre 69.2 71.0 (2.6) 67.6 69.6 (3.0) Eaton Residence Apartments 2
Slide 23: 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 project was completed in December 2017 and was highly acclaimed by Wallpaper Magazine as an embodiment of Californian modernism. Out of 100 units, 90 units were sold and d
Slide 24: Development projects I
Great Eagle Holdings Limited Development projects 24 Development projects I Dalian Mixed-use Development Project The Group successfully entered into a sale agreement with a third party in July 2019 in respect of all the remaining unsold units of Phase I together with the site for Phase II of the p
Slide 25: Development projects II
Great Eagle Holdings Limited Development projects 25 Development projects II Cordis, Auckland expansion project In order to maximise the plot ratio of the site for the Cordis, Auckland, the Group applied for the construction of an additional 244 rooms on the site, which was subsequently approved b
Slide 26: Outlook for the Group's results
Great Eagle Holdings Limited Outlook Outlook for the Group’s results For LHI, the lag effect of the recent protests will affect our hotel’s businesses at least over the second half of 2019. In fact, all three hotels have witnessed substantially lower RevPARs in July and August of 2019. Furthermore,
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 2019 1H 2019 1H 2018 HK$'000 HK$'000 HK$'000 Gross Revenue 350,325 350,325 Rental Income ‐ HK 98,980 98,980 ‐ 101,368 ‐ Building mgt fee inc 12,994
Slide 28: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2019 1H 2019 1H 2018 HK$'000 HK$'000 HK$'000 Net Operating Income Net Rental Income ‐ HK 87,076 87,076 ‐ 90,142 Hotel Income ‐ Overseas 251,725 251
Slide 29: 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 2019 1H 2019 1H 2018 HK$'000 HK$'000 HK$'000 Operating profit before Dep. and Amortisation 2,042,681 1,317,985 1,290,716 Depreciation and amortisat
Slide 30: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2019 1H 2019 1H 2018 HK$'000 HK$'000 HK$'000 Net finance costs Finance cost (432,777) (86,478) ‐ (86,575) ‐ Exclude interest expense of CREIT, LHI