Slide 1: Great Eagle Holdings Investor Presentation Q1 2018
Great Eagle Holdings Investor Presentation Q1 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 2017 Final Results
Great Eagle Holdings Limited Financials Highlights of 2017 Final Results In 2017, the Group’s first Cordis hotel in China, the Cordis, Hongqiao, Shanghai opened in May 2017. Despite the absence of major disposal gains which were included in 2016’s core profit, 2017’s core profit was enhanced by the
Slide 4: 2017 Final Results
Great Eagle Holdings Limited Financials 2017 Final Results 2017 2016 Change HK#039;000 HK#039;000 HK#039;000 % Gross Revenue 350,325 350,325 Rental Income 227,584 243,538 (15,954) -6.6% Hotel Income - Overseas 3,793,211 3,548,727 244,485 6.9% - Others 164,466 166,271 (1,805) -1.1% Income from Champion REIT*
Slide 5: 2017 Final Results
Great Eagle Holdings Limited Financials 2017 Final Results 2017 2016 Change HK#039;000 HK#039;000 HK#039;000 % Net Operating Income Net Rental Income 172,941 180,984 (8,043) -4.4% Hotel Income - Overseas 621,994 611,721 10,273 1.7% - Others 104,667 108,904 (4,237) -3.9% Income from Champion REIT* - Asset man
Slide 6: 2017 Final Results
Great Eagle Holdings Limited Financials 2017 Final Results 2017 2016 Change HK#039;000 HK#039;000 HK#039;000 % Net finance costs Finance cost (139,425) (133,994) (5,431) 4.1% Interest income 70,513 42,080 28,433 67.6% (68,912) (91,914) 23,002 -25.0% Share of results of associates 570 438 132 30.1% Share of r
Slide 7: 2017 Final Results – Breakdown of Income from Champion REIT
Great Eagle Holdings Limited Financials 2017 Final Results – Breakdown of Income from Champion REIT 2017 2016 Change HK#039;000 HK#039;000 HK#039;000 % Asset management income 259,958 243,182 16,776 6.9% Dividend received 927,973 871,569 56,404 6.5% Agency commission income & 99,573 101,276 (1,703) -1.7% Pro
Slide 8: 2017 Final Results – Distribution from LHI
Great Eagle Holdings Limited Financials 2017 Final Results – Distribution from LHI 2017 2016 Change Distribution Per Share Stapled Unit declared in HK$ 0.216 0.255 -15.3% Share Stapled Units held by Great Eagle in 000 1,300,811 1,279,614 1.7% Share Stapled Units entitled to distribution 1,250,811 1,
Slide 9: Analysis on change on core income
Great Eagle Holdings Limited Financials Analysis on change on core income 2017 #039;000 Change in profit from core business after tax (122,443) Arise from: Decrease in current and deferred tax in the U.S. 226,099 Absence of impairment on investment in a startup company 199,143 Increase in dividend and
Slide 10: Discount to NAV
Great Eagle Holdings Limited Discount to NAV Financials NAV based on statutory accounting principles (Dec 2017) 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 7,233 10.5 11% Investment properties 7,233 10.5 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 65,383 (9,920) 55,463 15.2% 17.9% 2,943 525 5.6 Ove
Slide 12: Valuation – Investment properties
Great Eagle Holdings Limited Valuation – Investment properties Financials As at the end of December 2017 Hong Kong investment properties Valuation Change from GFA (Sqft) HK$/psf Cap rate end of Jun 2017 Great Eagle Centre Office 193,271 25,203 3.0% 11.0% Retail 55,944 9,688 4.5% 3.0% 3rd floor 20,95
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 – 2017 Operational Statistics
Great Eagle Holdings Limited Hotels Division Hotel portfolio – 2017 Operational Statistics YTD Occupancy YTD Average Room Rate YTD RevPar 2017 2016 Change 2017 2016 Change 2017 2016 Change Owned by subsidiary LHI Hong Kong The Langham, Hong Kong 88.8% 87.7% 1.1% $2,135 $2,092 2.1% $1,895 $1,834 3.3%
Slide 16: Hotel portfolio – 2017 Room and F&B revenue growth
Great Eagle Holdings Limited Langham Hospitality Group Hotel portfolio – 2017 Room and F&B revenue growth (in local currency) Room revenue growth F&B revenue growth YTD- Dec 2017 YTD- Dec 2017 The Langham, London 24% 15% The Langham, Boston 1% -5% The Langham. Chicago 7% 4% The Langham, Fifth Avenue
Slide 17: Hotel portfolio – Profit contribution
Great Eagle Holdings Limited Hotels Division Hotel portfolio – Profit contribution in Local Currency in HK$ 2017 2016 Change 2017 Contribution to Owned Hotels in mn in mn in mn hotel profits China Shanghai (Langham Xintiandi and Cordis, Hongqiao) RMB 62.3 RMB 88.5 -29.6% $71.9 12% Europe UK (The Lan
Slide 18: Hotel portfolio – Currency impact
Great Eagle Holdings Limited Hotels Division Hotel portfolio – Currency impact Dec-17 Dec-16 yoy change Variance in profit contribution (in HK$ mn) GBP 10.0442 10.5117 -4.4% (5.6) CAD 6.0181 5.8632 2.6% 3.9 AUD 5.9836 5.7755 3.6% 3.1 USD 7.7929 7.7622 0.4% 0.6 NZD 5.541 5.4146 2.3% 1.0 RMB 1.1538 1.
Slide 19: Managed hotel owned by third parties
Great Eagle Holdings Limited Langham Hotels International Managed hotel owned by third parties 19
Slide 20: Langham Hospitality Group managed hotels
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 managed hotels
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, Chongqing 174 Agreement The Langham, Hefei 322 Agreement The Langham, Dubai 437 Agreement The Langham, Changsha 296 Agreement Cordis, Ningbo, Dongqian Lake 162
Slide 23: Investment properties
Investment properties Great Eagle 23 Holdings Limited
Slide 24: 2017 Final Results - Rental income breakdown
Great Eagle Holdings Limited Investment properties 2017 Final Results - Rental income breakdown Gross rental income Growth Net rental income Growth 2017 2016 (%) 2017 2016 (%) (in HK$ mn) Hong Kong Investment Properties Great Eagle Centre 139.1 139.6 (0.4) 136.2 137.2 (0.7) Eaton Residence Apartment
Slide 25: U.S. Fund
Great Eagle Holdings Limited U.S. Fund U.S. Fund The Austin, San Francisco Construction work on the site had started in the first quarter of 2016 and the topping off of the building was celebrated in November 2016. The development project has completed in December 2017 and as at the end of 2017, 20
Slide 26: Development projects
Great Eagle Holdings Limited Development projects Development projects Dalian Mixed-use Development Project Sales volume had a significant pickup with 158 apartments sold in 2017, including 115 apartments sold under presale contracts and bringing cumulative sales to 395 apartments as at the end of 2
Slide 27: Outlook for the Group’s results
Great Eagle Holdings Limited Outlook Outlook for the Group’s results As for the Hotels Division, EBITDA of the overseas hotels in 2018 should improve as operations at Cordis, Hongqiao, continue to ramp up and revenue and profitability of the hotel will improve in 2018. Meanwhile, growth momentum sho
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 2017 2017 2016 HK#039;000 HK#039;000 HK#039;000 Gross Revenue 350,325 350,325 Rental Income - HK 227,584 227,584 - 243,538 - Income from the U.S. Fund 182,713
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 2017 2017 2016 HK#039;000 HK#039;000 HK#039;000 Net Operating Income Net Rental Income - HK 172,941 172,941 - 180,984 - Overseas 46,445 - - - - Ignore, core pr
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 2017 2017 2016 HK#039;000 HK#039;000 HK#039;000 Operating profit before Dep. and Amortisation 3,995,415 2,672,847 2,943,948 Depreciation and amortisation (620,
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 2017 2017 2016 HK#039;000 HK#039;000 HK#039;000 Net finance costs Finance cost (660,012) (139,425) - (133,994) - Exclude interest expense of CREIT, LHI and US