Great Eagle Holdings Limited · HKEX:41
Great Eagle — FY2018 Earnings Presentation
30 slides from Great Eagle's earnings presentation, 2019
Slide 1: Investor Presentation Q1 2019
Great Eagle Holdings Investor Presentation Q1 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 2018 Final Results
Great Eagle Holdings Limited Financials Highlights of 2018 Final Results Despite a challenging year that was full of economic and political uncertainties, the Group’s business has been resilient, as reflected by a 7.7% growth in the Group’s core revenue in 2018. The soft opening of the Group’s first
Slide 4: 2018 Final Results
Great Eagle Holdings Limited Financials 2018 Final Results 2018 2017 Change HK$'000 HK$'000 HK$'000 % Gross Revenue 350,325 350,325 Rental Income 230,841 227,584 3,257 1.4% Hotel Income - Overseas 4,214,631 3,793,211 421,420 11.1% - Others 178,387 164,466 13,921 8.5% Income from Champion REIT* 1,405
Slide 5: 2018 Final Results
Great Eagle Holdings Limited Financials 2018 Final Results 2018 2017 Change HK$'000 HK$'000 HK$'000 % Net Operating Income Net Rental Income 182,285 172,941 9,344 5.4% Hotel Income - Overseas 731,901 621,994 109,907 17.7% - Others 122,404 104,667 17,737 16.9% Income from Champion REIT* - Asset manag
Slide 6: 2018 Final Results
Great Eagle Holdings Limited Financials 2018 Final Results 2018 2017 Change HK$'000 HK$'000 HK$'000 % Net finance costs Finance cost (174,879) (139,425) (35,454) 25.4% Interest income 131,999 70,513 61,486 87.2% (42,880) (68,912) 26,032 -37.8% Share of results of associates 773 570 203 35.6% Share o
Slide 7: 2018 Final Results – Breakdown of Income from Champion REIT
Great Eagle Holdings Limited Financials 2018 Final Results – Breakdown of Income from Champion REIT 2018 2017 Change HK$'000 HK$'000 HK$'000 % Asset management income 288,639 259,958 28,681 11.0% Dividend received 1,008,892 927,973 80,919 8.7% Agency commission income & 108,174 99,573 8,601 8.6% Pro
Slide 8: 2018 Final Results – Distribution from LHI
Great Eagle Holdings Limited Financials 2018 Final Results – Distribution from LHI 2018 2017 Change Distribution Per Share Stapled Unit declared in HK$ 0.195 0.216 -9.7% Share Stapled Units held by Great Eagle in 000 1,327,704 1,300,811 2.1% Share Stapled Units entitled to distribution 1,327,704 1,2
Slide 9: Analysis on change on core income
Great Eagle Holdings Limited Financials Analysis on change on core income 2018 $'000 Change in profit from core business after tax 95,383 Arise from: Increase in hotels division EBITDA 127,643 Increase in dividend and management income from Champion REIT 118,201 Absence of impairment on an avilable
Slide 10: Discount to NAV
Great Eagle Holdings Limited Discount to NAV Financials NAV based on statutory accounting principles (Dec 2018) NAV based on net assets of Champion REIT, LHI and US Fund % of % of HK$m HK$/shr Total HK$m HK$/shr Total Investment properties 7,621 10.9 11% Investment properties 7,621 10.9 10% Appraise
Slide 11: Financial position
Great Eagle Holdings Limited Financials Financial position (A) Base on statutory financial positions Book Carrying Net Cash Loan to Net interest Interest (HK$ Million) Value (Debt) Net Equity Value Gearing EBITDA expense Cover Hong Kong/ PRC Assets 70,272 (10,098) 60,174 14.4% 16.8% 3,380 600 5.6 Ov
Slide 12: Valuation – Investment properties
Great Eagle Holdings Limited Valuation – Investment properties Financials As at the end of Dec 2018 Hong Kong investment properties Valuation Change from GFA (Sqft) HK$/psf Cap rate end of June 2018 Great Eagle Centre Office 193,271 26,719 2.9% 2.4% Retail 55,944 10,046 4.5% 1.1% 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 – 2018 Operational Statistics
Great Eagle Holdings Limited Hotels Division Hotel portfolio – 2018 Operational Statistics YTD Occupancy YTD Average Room Rate YTD RevPar 2018 2017 Change 2018 2017 Change 2018 2017 Change Owned by subsidiary LHI Hong Kong The Langham, Hong Kong 91.2% 88.8% 2.4% $2,336 $2,135 9.4% $2,130 $1,895 12.4
Slide 16: Hotel portfolio – 2018 Room and F&B revenue growth
Great Eagle Holdings Limited Langham Hospitality Group Hotel portfolio – 2018 Room and F&B revenue growth (in local currency) Room revenue growth F&B revenue growth YTD-Dec 2018 YTD-Dec 2018 The Langham, London 16% 10% The Langham, Boston 0% -5% The Langham, Huntington Pasadena 1% 0% The Langham. Ch
Slide 17: Hotel portfolio – Profit contribution
Great Eagle Holdings Limited Hotels Division Hotel portfolio – Profit contribution in HK$ 2018 2017 Change Contribution to Owned Hotels in mn in mn hotel profits Europe UK (The Langham, London) 156.7 120.1 30.5% 21% North America U.S. (The Langham in Boston, Chicago, New York, 290.0 297.9 -2.7% 40%
Slide 18: Hotel portfolio – Currency impact
Great Eagle Holdings Limited Hotels Division Hotel portfolio – Currency impact 2018 2017 yoy change Variance in profit contribution (in HK$ mn) GBP 10.4564 10.0442 4.1% 6.2 CAD 6.0493 6.0181 0.5% 1.0 AUD 5.8577 5.9836 -2.1% (1.7) USD 7.8378 7.7929 0.6% 0.5 NZD 5.4223 5.5410 -2.1% (1.2) RMB 1.1855 1.
Slide 19: Langham Hotels International: Managed hotels owned by third parties
Great Eagle Holdings Limited Langham Hotels International Managed hotel owned by third parties 19
Slide 20: Langham Hospitality Group
Great Eagle Holdings Limited Langham Hospitality Group The Langham, Langham Place, Guangzhou Shenzhen Guangzhou, China Guangzhou, China With 500 rooms With 352 rooms Opened in 2013 Opened in October 2012 Langham Place, Cordis, Ningbo Culture Plaza Beijing Capital Airport With 143 rooms With 372 room
Slide 21: Langham Hospitality Group
Great Eagle Holdings Limited Langham Hospitality Group The Langham, Haikou Langham Place, Xiamen Hainan, China Xiamen, China With 249 rooms With 327 rooms Opened in June 2016 Opened in 2014 Langham Place, Haining The Langham, Hefei Zhejiang, China Anhui, China With 263 rooms With 339 rooms Opened in
Slide 22: Hotel pipeline
Great Eagle Holdings Limited Langham Hospitality Group Hotel pipeline 2019 Rooms Status The Langham, Adelaide 146 Agreement Cordis, Hangzhou 184 Agreement Cordis, Ningbo, Dongqian Lake 162 Agreement The Langham, Changsha 296 Agreement The Langham, Jakarta 225 Agreement 2020 and after Rooms Status Th
Slide 23: Investment properties
Investment properties Great Eagle 23 Holdings Limited
Slide 24: 2018 - Rental income breakdown
Great Eagle Holdings Limited Investment properties 2018 - Rental income breakdown Gross rental income Growth Net rental income Growth 2018 2017 (%) 2018 2017 (%) (in HK$ mn) Hong Kong Investment Properties Great Eagle Centre 142.4 139.1 2.4 139.8 136.2 2.6 Eaton Residence Apartments 57.0 53.7 6.1 37
Slide 25: 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, 87 were sold and handed to buyers by the end of 2018. The
Slide 26: Development projects
Great Eagle Holdings Limited Development projects 26 Development projects Dalian Mixed-use Development Project During 2018, 86 apartments were sold at an average selling price of approximately RMB18,000 per sq. m., on an accumulated basis, a total of 481 apartments were sold as at the end of Decembe
Slide 27: Outlook for the Group's results
Great Eagle Holdings Limited Outlook Outlook for the Group’s results In 2019, we target to launch our residential development project, ONTOLO in Pak Shek Kok. Notwithstanding that the project enjoys breathtaking view over the Tolo Harbour, and that the latest state of the art technologies including
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 2018 2018 2017 HK$'000 HK$'000 HK$'000 Gross Revenue 350,325 350,325 Rental Income - HK 230,841 230,841 - 227,584 - Gross Revenue from U.S. Fund 664,3
Slide 29: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 2018 2018 2017 HK$'000 HK$'000 HK$'000 Operating profit before Dep. and Amortisation 4,163,923 2,845,035 2,672,847 Depreciation and amortisation (712,
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 2018 2018 2017 HK$'000 HK$'000 HK$'000 Net finance costs Finance cost (821,256) (174,879) - (139,425) - Exclude interest expense of CREIT, LHI and US