Slide 1: Great Eagle Holdings Investor Presentation 1Q13
Great Eagle Holdings Investor Presentation 1Q13 1
Slide 2: Highlights of 2012 Results
Great Eagle Holdings Limited Financials Highlights of 2012 Results 1. Core profit for the Group increased 6.8% year-on-year to HK$1,802 million in 2012 2. The key driver behind the increase in core profit was higher income from Champion REIT, followed by improved performance at the Hotels division a
Slide 3: 2012 Final Results
Great Eagle Holdings Limited Financials 2012 Final Results 2012 2011 Change HK#039;000 HK#039;000 HK#039;000 % Gross Revenue 350,325 350,325 Rental Income - HK 192,868 177,172 15,696 8.9% - Overseas 108,267 118,103 (9,836) -8.3% Hotel Income - HK 1,619,957 1,481,739 138,218 9.3% -- Overseas Overseas 2,417,55
Slide 4: 2012 Final Results
Great Eagle Holdings Limited Financials 2012 Final Results 2012 2011 Change HK#039;000 HK#039;000 HK#039;000 % Operating Income Net Rental Income - HK 154,232 129,406 24,826 19.2% - Overseas 42,192 46,388 (4,196) -9.0% Hotel Income - HK 642,692 562,662 80,030 14.2% - Overseas 378,913 429,562 (50,649) -11.8%
Slide 5: 2012 Final Results
Great Eagle Holdings Limited Financials 2012 Final Results 2012 2011 Change HK#039;000 HK#039;000 HK#039;000 % Net finance costs Finance cost (107,638) (100,027) (7,611) 7.6% Interest income 125,437 167,874 (42,437) -25.3% 17,799 67,847 (50,048) -73.8% Share of results of associates 39,061 19,540 19,522 99.9
Slide 6: 2012 Final Results – Income from Champion breakdown
Great Eagle Holdings Limited Financials 2012 Final Results – Income from Champion breakdown Income from Champion REIT 2012 2011 Change HK#039;000 HK#039;000 HK#039;000 % Asset management income 199,896 187,474 12,422 6.6% Dividend received 686,510 574,148 112,362 19.6% Agency commission income & 72,901 76,82
Slide 7: Analysis on change on core income
Great Eagle Holdings Limited Financials Analysis on change on core income 2012 #039;000 Change in profit from core business after tax + HK$ mn 114,983 Arise from: Increase in Income from Champion REIT 120,865 Increase in EBITDA from the Hotels Division 22,721 Increase in net rental income 20,630 Increa
Slide 8: Discount to NAV
Great Eagle Holdings Limited Discount to NAV Financials Book NAV (Dec 2012) Based on valuation for the underlying properties of Champion REIT % of % of HK$m HK$/psf HK$/shr Total HK$m HK$/psf HK$/shr Total Investment properties 5,975 6,652 9.46 16% Investment properties 5,975 6,652 9.46 14% Appraise
Slide 9: Gearing
Great Eagle Holdings Limited Financials Gearing Book Carrying Net (Debt)/ Loan to Net Int. Interest (HK$ Million) Value cash Net Equity Value Gearing EBITDA Exp. (Inc) Cover Group Total 37,150 (211) 36,939 * 1% 1% 2,082 ^ (32) NA Hotels are valued at depreciated historical cost * NAV = $58.50 per sh
Slide 10: Valuation – Investment properties
Great Eagle Holdings Limited Valuation – Investment properties Financials As at the end of December, 2012 Hong Kong investment properties Valuation Change from GFA (Sqft) HK$/psf end of June 2012 Great Eagle Centre Office 193,271 15,119 6.2% Retail 55,944 8,455 2.6% 3rd floor 20,959 7,348 8.5% Carpa
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: Completion in two phases from 2014/2015 onward 12
Slide 13: Langham Hotels International
Langham Hotels International Great Eagle 13 Holdings Limited
Slide 14: Hotel portfolio – 2012 Final Results Operational Statistics
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – 2012 Final Results Operational Statistics Occupancy Average Room Rate RevPar (local currency) (local currency) YTD-Dec 2012 YTD-Dec 2011 Change (ppt) YTD-Dec 2012 YTD-Dec 2011 Change YTD-Dec 2012 YTD-Dec 2011 Change 100% own
Slide 15: Hotel portfolio – 2012 RevPAR performance
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – 2012 RevPAR performance RevPAR (in HK$) YTD-Dec 2011 YTD-Dec 2012 RevPAR yoy Growth 3,000 25% 2,638 20% 2,571 20% 2,500 15% 14% 1,927 11% 2,000 10% 1,732 1,838 RevPAR Yoy growth 7% 1,718 1,665 1,678 5% 1,500 1,559 0% 2% 1,26
Slide 16: Hotel portfolio – 2012 Final Operational statistics
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – 2012 Final Operational statistics Room revenue growth F&B revenue growth YTD-Dec 2012 YTD-Dec 2012 The Langham, Hong Kong 12% 11% Langham Place, Mongkok, HK 8% 6% Eaton Hong Kong 16% 6% The Langham, London 0% 11% The Langham
Slide 17: Hotel portfolio – Currency impact
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – Currency impact 2012 2011 yoy change Variance in profit contribution (in HK$ mn) GBP 12.3006 12.5336 -1.9% (2.8) CAD 7.7616 7.9026 -1.8% (1.4) AUD 8.0298 8.0664 -0.5% (0.4) USD 7.7575 7.8127 -0.7% (0.2) NZD 6.2811 6.1844 1.6
Slide 18: Hotel portfolio – Profit contribution
Great Eagle Holdings Limited Langham Hotels International Hotel portfolio – Profit contribution in Local Currency in HK$ 2012 2011 Change 2012 Contribution to Owned Hotels in mn in mn in mn hotel profits Hong Kong The Langham, Hong Kong $237.9 $211.2 12.7% $237.9 23% Langham Place, Mongkok, HK $280.
Slide 19: The Langham, London
Great Eagle Holdings Limited Langham Hotels International The Langham, London 2011 2012 Change Rooms Available 378 379 +1 Against financial uncertainties in the RevPAR £210 £209 -0.7% Eurozone, the hotel managed to grow total revenue by 3% in 2012. Room Rate £271 £274 1.0% Occupancy Rate 77.6% 76.3%
Slide 20: The Langham, Melbourne
Great Eagle Holdings Limited Langham Hotels International The Langham, Melbourne 2011 2012 Change Rooms Available 370 374 +4 Given softer demand from corporate RevPAR $208 $214 2.8% travellers in 2012, the hotel switched its focus to secure more weekend retail leisure Room Rate $266 $261 -1.7% trave
Slide 21: The Langham, Sydney
Great Eagle Holdings Limited Langham Hotels International 2012 Change The Langham, Sydney Rooms Available 95 n.a. RevPAR $229 n.a. The acquisition of the 96-key Observatory Hotel in downtown Sydney was completed Room Rate $296 n.a. and rebranded it as a Langham in August Occupancy Rate 77.3% n.a. 20
Slide 22: The Langham, Auckland
Great Eagle Holdings Limited Langham Hotels International The Langham, Auckland 2011 2012 Change Revenue in 2012 fell from the high Rooms Available 411 411 - base of 2011, when the Rugby World RevPAR $156 $127 -18.6% Cup was held in New Zealand. Room Rate $226 $181 -20.0% Overall demand from the cor
Slide 23: The Langham, Hong Kong
Great Eagle Holdings Limited Langham Hotels International 2011 2012 Change The Langham, Hong Kong Rooms Available 495 495 - RevPAR $1,732 $1,927 11.3% Room Rate $2,128 $2,239 5.2% Occupancy Rate 81.4% 86.1% 4.7 ppt Langham Hong Kong enjoyed continued growth in individual leisure tourist arrivals fro
Slide 24: Langham Place Hotel Hong Kong
Great Eagle Holdings Limited Langham Hotels International Langham Place Hotel Hong Kong 2011 2012 Change Rooms Available 649 653 +4 RevPAR $1,559 $1,665 6.8% Room Rate $1,788 $1,866 4.3% Occupancy Rate 87.2% 89.2% 2.0 ppt In 2012, the hotel witnessed an increase in corporate and leisure travellers f
Slide 25: Eaton Smart, Hong Kong
Great Eagle Holdings Limited Langham Hotels International Eaton Smart, Hong Kong 2011 2012 Change The underlying trend for demand Rooms Available 461 445 - 16 remained in place for the Eaton RevPAR $949 $1,138 19.9% Hotel in 2012. Room Rate $1,079 $1,198 11.1% There was not only increased demand fro
Slide 26: The Langham, Boston
Great Eagle Holdings Limited Langham Hotels International 2011 2012 Change The Langham, Boston Rooms Available 318 318 - RevPAR $162 $163 0.3% Although hotel business gained some Room Rate $234 $242 3.5% momentum in the second quarter of 2012 with increased activity in citywide Occupancy Rate 69.3%
Slide 27: The Langham, Huntington Hotel & Spa, Pasadena
Great Eagle Holdings Limited Langham Hotels International The Langham, Huntington Hotel & Spa, 2011 2012 Change Rooms Available 380 380 - Pasadena RevPAR $138 $159 15.2% Room Rate $211 $219 3.9% The turnaround at this hotel in Los Angeles Occupancy Rate 65.5% 72.7% 7.2 ppt continued in 2012, benefit
Slide 28: Delta Chelsea Hotel, Toronto
Great Eagle Holdings Limited Langham Hotels International 2011 2012 Change Delta Chelsea Hotel, Toronto Rooms Available 1,590 1,590 - Both room rates and occupancy RevPAR $92 $88 -4.6% were under pressure for the hotel Room Rate $127 $125 -1.6% in 2012, given the stagnant lodging market and a lack o
Slide 29: The Langham, Xintiandi (33.3% owned)
Great Eagle Holdings Limited Langham Hotels International The Langham, Xintiandi 2011 2012 Change (33.3% owned) Rooms Available 211 350 + 139 RevPAR ¥808 ¥901 11.4% The hotel achieved healthy results Room Rate ¥1574 ¥1551 -1.4% with total revenue increasing by almost two-fold in 2012 from that Occup
Slide 30: Managed hotel owned by third parties
Great Eagle Holdings Limited Langham Hotels International Managed hotel owned by third parties 30
Slide 31: The Langham, Yangtze, Shanghai
Great Eagle Holdings Limited Langham Hotels International The Langham, Yangtze, Shanghai With 96 rooms Opened in May 2009 31
Slide 32: Eaton Luxe, Nanqiao, Shanghai
Great Eagle Holdings Limited Langham Hotels International Eaton Luxe, Nanqiao, Shanghai With 204 rooms Opened in April 2010 32
Slide 33: Langham Place, Beijing Capital Airport
Great Eagle Holdings Limited Langham Hotels International Langham Place, Beijing Capital Airport With 372 guest rooms Opened in August 2010 33
Slide 34: Eaton Smart, New Delhi International Hotel
Great Eagle Holdings Limited Langham Hotels International Eaton Smart, New Delhi International Hotel, Indira Gandhi International Airport, New Delhi With 93 rooms Opened in June 2011 34
Slide 35: 88 Xintiandi, Shanghai
Great Eagle Holdings Limited Langham Hotels International 88 Xintiandi, Shanghai With 53 rooms Opened in September 2011 35
Slide 36: The Langham, Shenzhen
Great Eagle Holdings Limited Langham Hotels International The Langham, Shenzhen Guangzhou, China With 352 rooms Opened in October 2012 36
Slide 37: Eaton Luxe, Xinqiao, Shanghai
Great Eagle Holdings Limited Langham Hotels International Eaton Luxe, Xinqiao, Shanghai With 214 rooms Opened in November 2012 37
Slide 38: Owned Portfolio Expansion: The Langham, Xintiandi, Shanghai
Great Eagle Holdings Limited Langham Hotels International Owned Portfolio Expansion The Langham, Xintiandi, Shanghai Interest: 33.3% Location: Xintiandi, Luwan District, Shanghai, PRC G.F.A. Approx. 52,000 sq.m. Rooms 357 rooms Status: The hotel opened in October 2010 38
Slide 39: Owned Portfolio Expansion: The Langham, Chicago
Great Eagle Holdings Limited Langham Hotels International Owned Portfolio Expansion The Langham, Chicago Interest: 100% Location: Downtown Chicago G.F.A. Approx. 375,000 sq.ft. Rooms 330 rooms Expected opening 3Q 2013 39
Slide 40: Owned Portfolio Expansion: The Langham, Sydney
Great Eagle Holdings Limited Langham Hotels International Owned Portfolio Expansion The Langham, Sydney Interest: 100% Location: Situated in the heart of Sydney CBD, close by The Rocks with easy access to Sydney Harbour Bridge and Opera House Rooms 96 rooms Status The acquisition was completed in Au
Slide 41: Owned Portfolio Expansion: Langham Place, New York
Great Eagle Holdings Limited Langham Hotels International Owned Portfolio Expansion Langham Place, New York The property: The building was completed in September 2010. The Hotel with 214 rooms is located in the lower half of the 60-story building Location: On Fifth Avenue between 36th and 37th Stree
Slide 42: Summary of managed hotels
Great Eagle Holdings Limited Langham Hotels International Summary of managed hotels 2009 Rooms Status The Langham, Yangtze, Shanghai 96 Opened in May 2009 2010 Rooms Status Eaton Luxe, Nanqiao Shanghai 204 Opened in Apr 2010 Langham Place, Beijing Capital Airport 372 Opened in Aug 2010 The Langham,
Slide 43: Hotel pipeline
Great Eagle Holdings Limited Langham Hotels International Hotel pipeline 2013 Rooms Status Langham Place, EDZ, Guangzhou 320 Agreement Eaton Luxe, Qingdao 500 Agreement Langham Place, Pazhou Convention City, Guangzhou 500 Agreement Langham Place, Ningbo 120 Agreement The Langham, New York - 100% own
Slide 44: Investment properties
Investment properties Great Eagle 44 Holdings Limited
Slide 45: 2012 Final Results - Rental income breakdown
Great Eagle Holdings Limited Investment properties 2012 Final Results - Rental income breakdown Gross rental income Growth Net rental income Growth 2012 2011 (%) 2012 2011 (%) (in HK$ mn) Hong Kong Investment Properties Great Eagle Centre 127.7 110.5 15.6 123.8 96.5 28.3 Eaton House 40.9 40.1 2.0 28
Slide 46: Great Eagle Centre
Great Eagle Holdings Limited Investment properties Great Eagle Centre Sustained demand for office space in the Wanchai North district, which has few tenants from the banking sector, has kept the occupancy of Great Eagle Centre at a high level throughout 2012. Rents achieved at Great Eagle Centre con
Slide 47: Eaton Serviced Apartments
Great Eagle Holdings Limited Investment properties Eaton Serviced Apartments On a portfolio basis, achieved rental per occupied square foot for 2012 was flat compared with that achieved in 2011 at HK$41.7 per square foot, and occupancy for our serviced apartments increased from 72.8% in 2011 to 77.8
Slide 48: US Investment properties
Great Eagle Holdings Limited Investment properties US Investment properties As the average passing rents in place of our San Francisco office properties are still at levels above spot rents, coupled with a lack of lease renewals, there is still negative rental reversion for the portfolio as whole. G
Slide 49: Investment in the Champion REIT (2778.HK)
Great Eagle Holdings Limited Investment in Champion REIT Investment in the Champion REIT (2778.HK) Note that subsequent to the reclassification of our investment in Champion REIT as an associate company from 23rd July 2010, our core profit will still be based on declared dividend from Champion REIT
Slide 50: Classification of our investment in the Champion REIT (2778.HK)
Great Eagle Holdings Limited Investment in Champion REIT Classification of our investment in the Champion REIT (2778.HK) In view of the application of the new accounting standard HKFRS 10 in year 2013, which governs disclosures of interests in other entities, the consideration on consolidating inter
Slide 51: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported 2012 2011 HK$ 000 HK$ 000 Net Profit 3,551,830 4,227,203 Adjustment items: Fair value changes on investment properties (435,021) (678,688) Ignored in core earnings calculation Fair value changes o
Slide 52: 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 2012 2012 2011 HK#039;000 HK#039;000 HK#039;000 Gross Revenue 350,325 350,325 Rental Income - HK 192,868 - 177,172 - Overseas 108,267 - 118,103 - 1 - Hotel Inc
Slide 53: 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 2012 2012 2011 HK#039;000 HK#039;000 HK#039;000 Operating profit before Dep. and Amortisation 1,615,520 2,302,030 2,138,445 Depreciation and amortisation (372,
Slide 54: 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 2012 2012 2011 HK#039;000 HK#039;000 HK#039;000 Net finance costs Finance cost (107,638) (107,638) - (100,027) Interest income (Classified as 140,041 125,437 -