Slide 1: Great Eagle Holdings Investor Presentation Q3 2018
Great Eagle Holdings Investor Presentation Q3 2018 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 Interim Results
Great Eagle Holdings Limited Financials Highlights of 2018 Interim Results The Group’s core revenue rose by 7.1% to HK$3,145.7 million in the first half of 2018. Mainly as a results of a 13.2% increase in revenue from the Hotels Division, and a 7.5% increase in income from Champion REIT, which compr
Slide 4: 2018 Interim Results
Great Eagle Holdings Limited Financials 2018 Interim Results 1H 2018 1H 2017 Change HK#039;000 HK#039;000 HK#039;000 % Gross Revenue 350,325 350,325 Rental Income - HK 101,368 99,785 1,583 1.6% - Overseas - 1,270 (1,270) n.m. - Building mgt fee 12,952 12,725 227 1.8% Hotel Income - -Overseas Overseas 1,972,9
Slide 5: 2018 Interim Results
Great Eagle Holdings Limited Financials 2018 Interim Results 1H 2018 1H 2017 Change HK#039;000 HK#039;000 HK#039;000 % Net Operating Income Net Rental Income - HK 90,142 86,028 4,114 4.8% - Overseas - 407 (407) -100.0% Hotel Income - Overseas 308,003 252,493 55,510 22.0% - Others 49,851 45,385 4,466 9.8% Inc
Slide 6: 2018 Interim Results
Great Eagle Holdings Limited Financials 2018 Interim Results 1H 2018 1H 2017 Change HK#039;000 HK#039;000 HK#039;000 % Net finance costs Finance cost (86,575) (64,457) (22,118) -4.3% Interest income 60,109 28,256 31,853 -9.3% (26,466) (36,201) 9,735 -26.9% Share of results of associates 362 182 180 n.m. Shar
Slide 7: 2018 Interim Results – Breakdown of Income from Champion REIT
Great Eagle Holdings Limited Financials 2018 Interim Results – Breakdown of Income from Champion REIT 1H 2018 1H 2017 Change HK#039;000 HK#039;000 HK#039;000 % Dividend received 480,787 447,365 33,422 7.5% Asset management income 141,211 127,723 13,488 10.6% Agency commission income & 48,877 49,060 (183) -0.
Slide 8: 2018 Interim Results – Distribution from LHI
Great Eagle Holdings Limited Financials 2018 Interim Results – Distribution from LHI 1H 2018 1H 2017 Change Distribution Per Share Stapled Unit declared in HK$ 0.090 0.103 -12.6% Share Stapled Units held by Great Eagle in 000 1,311,471 1,291,181 1.6% Share Stapled Units entitled to distribution 1,31
Slide 9: Analysis on change on core income
Great Eagle Holdings Limited Financials Analysis on change on core income 1H 2018 #039;000 Change in profit from core business after tax + HK$ mn 2,747 Arise from: Increase in EBITDA from hotels division 59,976 Increase in distribution income and management fee income from Champion REIT 46,727 Decrease
Slide 10: Discount to NAV
Great Eagle Holdings Limited Discount to NAV Financials NAV based on statutory accounting principles (Jun 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 7,501 10.7 11% Investment properties 7,501 10.7 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 68,481 (9,849) 58,632 14.4% 16.8% 1,523 280 5.4 Ove
Slide 12: Valuation – Investment properties
Great Eagle Holdings Limited Valuation – Investment properties Financials As at the end of June 2018 Hong Kong investment properties Valuation Change from GFA (Sqft) HK$/psf Cap rate end of Dec 2017 Great Eagle Centre Office 193,271 26,098 2.9% 3.6% Retail 55,944 9,939 4.5% 2.6% 3rd floor 20,959 12,
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 Pipeline hotels: The Langham, Tokyo Two Hotels in San Francisco Eaton Washington D.C. Hotel in Seattle Hotel in Dalian The Langham, Pasade
Slide 15: Hotel portfolio – 1H 2018 Operational Statistics
Great Eagle Holdings Limited Hotels Division Hotel portfolio – 1H 2018 Operational Statistics Occupancy Average Room Rate RevPar 1H 2018 1H 2017 Change 1H 2018 1H 2017 Change 1H 2018 1H 2017 Change Owned by subsidiary LHI Hong Kong The Langham, Hong Kong 90.6% 85.6% 5.0ppt $2,270 $2,086 8.8% $2,057
Slide 16: Hotel portfolio – 1H 2018 Room and F&B revenue growth
Great Eagle Holdings Limited Langham Hospitality Group Hotel portfolio – 1H 2018 Room and F&B revenue growth (in local currency) Room revenue growth F&B revenue growth YTD-June 2018 YTD-June 2018 The Langham, London 12% 18% The Langham, Boston 1% -14% The Langham, Huntington Pasadena 1% -2% The Lang
Slide 17: Hotel portfolio – Profit contribution
Great Eagle Holdings Limited Hotels Division Hotel portfolio – Profit contribution 17
Slide 18: Hotel portfolio – Currency impact
Great Eagle Holdings Limited Hotels Division Hotel portfolio – Currency impact Jun-18 Jun-17 yoy change Variance in profit contribution (in HK$ mn) GBP 10.7796 9.7830 10.2% 5.8 CAD 6.1363 5.8364 5.1% 4.6 AUD 6.0450 5.8750 2.9% 1.4 USD 7.8378 7.7736 0.8% 0.6 NZD 5.6056 5.5034 1.9% 0.6 RMB 1.2305 1.13
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 Langham Place, Xiamen The Langham, Haikou Xiamen, China Hainan, China With 327 rooms With 249 rooms Opened in 2014 Opened in June 2016 Langham Place, Haining Zhejiang, China With 263 rooms Opened in July 2015 21
Slide 22: Hotel pipeline
Great Eagle Holdings Limited Langham Hospitality Group Hotel pipeline 2018 Rooms Status Eaton, Washington D.C. 209 Owned hotel The Langham, Hefei 322 Agreement 2019 Rooms Status The Langham, Colombo 50 Agreement The Langham, Chongqing 174 Agreement Cordis, Hangzhou 184 Agreement Cordis, Ningbo, Dong
Slide 23: Investment properties
Investment properties Great Eagle 23 Holdings Limited
Slide 24: 1H 2018 - Rental income breakdown
Great Eagle Holdings Limited Investment properties 1H 2018 - Rental income breakdown Gross rental income Growth Net rental income Growth 1H 2018 1H 2017 (%) 1H 2018 1H 2017 (%) (in HK$ mn) Hong Kong Investment Properties Great Eagle Centre 71.0 69.1 2.7 69.6 67.6 3.0 Eaton Residence Apartments 27.7
Slide 25: U.S. Fund
Great Eagle Holdings Limited U.S. Fund U.S. Fund The Austin, San Francisco The development project has completed in December 2017 and as at the end of June 2018, 78 out of a total 100 residential units have been sold, whereas the profitability of this small project would be minimal. Cavalleri, Malib
Slide 26: Development projects
Great Eagle Holdings Limited Development projects 26 Development projects Dalian Mixed-use Development Project During the first half of 2018, 64 apartments were sold at an average selling price of approximately RMB18,000 per sq. m., but as the majority of sales are at presale stage, revenue was reco
Slide 27: Outlook for the Group’s results
Great Eagle Holdings Limited Outlook Outlook for the Group’s results As for the Hotels Division, growth for EBITDA of the overseas hotels in the second half of the year is expected to continue, although its pace will become slower as there will be a one-off pre- opening charge for the Eaton, Washing
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 2018 1H 2018 1H 2017 HK#039;000 HK#039;000 HK#039;000 Gross Revenue 350,325 350,325 Rental Income - HK 101,368 101,368 - 99,785 - Overseas - - - 1,270 - Bui
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 2018 1H 2018 1H 2017 HK#039;000 HK#039;000 HK#039;000 Net Operating Income Net Rental Income - HK 90,142 90,142 - 86,028 - Overseas - - - 407 Hotel Income -
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 2018 1H 2018 1H 2017 HK#039;000 HK#039;000 HK#039;000 Operating profit before Dep. and Amortisation 2,036,937 1,290,716 1,273,631 Depreciation and amortisat
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 2018 1H 2018 1H 2017 HK#039;000 HK#039;000 HK#039;000 Net finance costs Finance cost (384,814) (86,575) - (64,457) - Exclude interest expense of CREIT, LHI