Great Eagle Holdings Limited · HKEX:41
Great Eagle — H1 2017 Earnings Presentation
31 slides from Great Eagle's earnings presentation, 2017
Slide 1: Great Eagle Holdings Investor Presentation Q3 2017
此文件只提供英文版本 Great Eagle Holdings Investor Presentation Q3 2017 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 Interim Results
Great Eagle Holdings Limited Financials Highlights of 2017 Interim Results During the first half of 2017, the Group’s first Cordis hotel in China, Cordis Hongqiao, Shanghai soft-opened in May 2017. In terms of development or redevelopment projects, we currently have a total of nine projects in vario
Slide 4: 2017 Interim Results
Great Eagle Holdings Limited Financials 2017 Interim Results 1H 2017 1H 2016 Change HK$'000 HK$'000 HK$'000 % Gross Revenue 350,325 350,325 Rental Income - HK 99,785 95,677 4,108 4.3% - Overseas 1,270 10,718 (9,448) -88.2% - Building mgt fee 12,725 12,603 122 1.0% Hotel Income - -Overseas Overseas 1
Slide 5: 2017 Interim Results
Great Eagle Holdings Limited Financials 2017 Interim Results 1H 2017 1H 2016 Change HK$'000 HK$'000 HK$'000 % Net Operating Income Net Rental Income - HK 86,028 84,010 2,018 2.4% - Overseas 407 3,211 (2,804) -87.3% Hotel Income - Overseas 252,493 205,860 46,633 22.7% - Others 45,385 30,002 15,383 51
Slide 6: 2017 Interim Results
Great Eagle Holdings Limited Financials 2017 Interim Results 1H 2017 1H 2016 Change HK$'000 HK$'000 HK$'000 % Net finance costs Finance cost (64,457) (67,455) 2,998 -4.3% Interest income 28,256 31,185 (2,929) -9.3% (36,201) (36,270) 69 -0.2% Share of results of associates 182 48 134 n.m. Share of re
Slide 7: 2017 Interim Results – Breakdown of Income from Champion REIT
Great Eagle Holdings Limited Financials 2017 Interim Results – Breakdown of Income from Champion REIT 1H 2017 1H 2016 Change HK$'000 HK$'000 HK$'000 % Dividend received 447,365 398,412 48,953 12.3% Asset management income 127,723 119,331 8,392 7.0% Agency commission income & 49,060 53,967 (4,907) -9
Slide 8: 2017 Interim Results – Distribution from LHI
Great Eagle Holdings Limited Financials 2017 Interim Results – Distribution from LHI 1H 2017 1H 2016 Change Distribution Per Share Stapled Unit declared in HK$ 0.103 0.117 -12.0% Share Stapled Units held by Great Eagle in 000 1,291,181 1,269,540 1.7% Share Stapled Units entitled to distribution 1,24
Slide 9: Analysis on change on core income
Great Eagle Holdings Limited Financials Analysis on change on core income 1H 2017 $'000 Change in profit from core business after tax + HK$ mn 116,655 Arise from: Increase in EBITDA from hotels division 62,016 Increase in distribution income and management fee income from Champion REIT 52,438 Increa
Slide 10: Discount to NAV
Great Eagle Holdings Limited Discount to NAV Financials NAV based on statutory accounting principles (June 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 6,638 9.7 11% Investment properties 6,638 9.7 10% Appraised
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 60,624 (9,293) 51,331 15.3% 18.1% 1,446 253 5.7 Ove
Slide 12: Valuation – Investment properties
Great Eagle Holdings Limited Valuation – Investment properties Financials As at the end of June 2017 Hong Kong investment properties Valuation Change from GFA (Sqft) HK$/psf Cap rate end of Dec 2016 Great Eagle Centre Office 193,271 22,709 3.3% 10.9% Retail 55,944 9,402 4.8% 0.0% 3rd floor 20,959 11
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 The Langham, Auckland Washington D.C. hotel Pipeline hotels: The Langham, Dalian The Langham, Tokyo Two Hotels in San Francisco Eaton Seattle The Langham, Pasadena The Lang
Slide 15: Hotel portfolio – 1H 2017 Operational Statistics
Great Eagle Holdings Limited Langham Hospitality Group Hotel portfolio – 1H 2017 Operational Statistics Occupancy Average Room Rate RevPar 1H 2017 1H 2016 Change 1H 2017 1H 2016 Change 1H 2017 1H 2016 Change Owned by subsidiary LHI Hong Kong The Langham, Hong Kong 85.6% 84.2% 1.4ppt $2,086 $2,078 0.
Slide 16: Hotel portfolio – 1H 2017 Room and F&B revenue growth
Great Eagle Holdings Limited Langham Hospitality Group Hotel portfolio – 1H 2017 Room and F&B revenue growth (in local currency) Room revenue growth F&B revenue growth YTD-June 2017 YTD-June 2017 The Langham, London 40% 9% The Langham, Boston 0% 7% The Langham, Huntington Pasadena -5% -10% The Langh
Slide 17: Hotel portfolio – Profit contribution
Great Eagle Holdings Limited Langham Hospitality Group Hotel portfolio – Profit contribution 1H 2017 1H 2016 Change in HK$ Owned Hotels in 'mn in 'mn 1H 2017 Contribution to in LC in LC in 'mn hotel profits Europe £4.0 £2.3 74.1% 39.2 16% UK (The Langham, London) North America U.S. (The Langham, Bos
Slide 18: Hotel portfolio – Currency impact
Great Eagle Holdings Limited Langham Hospitality Group Hotel portfolio – Currency impact Jun-17 Jun-16 yoy change Variance in profit contribution (in HK$ mn) GBP 9.7830 11.1362 -12.2% (5.4) CAD 5.8364 5.8436 -0.1% (0.1) AUD 5.8750 5.6989 3.1% 1.0 USD 7.7736 7.7676 0.1% 0.0 NZD 5.5034 5.2614 4.6% 1.8
Slide 19: Langham Hotels International
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, Langham Place, Ningbo Culture Plaza Beijing Capital Airport With 143 rooms With 3
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. 224 Owned hotel The Langham, Chongqing 174 Agreement The Langham, Hefei 338 Agreement Langham Place, Dubai 437 Agreement Langham Place, Changsha 296 Agreement Cordis, Ningbo, Dongqian Lake
Slide 23: Investment properties
Investment properties Great Eagle 23 Holdings Limited
Slide 24: 2017 Interim Results - Rental income breakdown
Great Eagle Holdings Limited Investment properties 2017 Interim Results - Rental income breakdown Gross rental income Growth Net rental income Growth 1H 2017 1H 2016 (%) 1H 2017 1H 2016 (%) (in HK$ mn) Hong Kong Investment Properties Great Eagle Centre 69.1 69.8 (1.0) 67.6 68.1 (0.7) Eaton Residence
Slide 25: U.S. Fund
Great Eagle Holdings Limited U.S. Fund U.S. Fund The Austin, San Francisco The project is expected to complete in the second half of 2017. Since the first quarter of 2017, the residence units have been formally launched to the brokerage and buyer community. Thus far, they have received keen response
Slide 26: Development projects
Great Eagle Holdings Limited Development projects Development projects Dalian Mixed-use Development Project During the first half of 2017, 15 apartments in the first batch of pre-sold apartments were completed and handed to buyers, bringing the accumulated number of apartments sold to 242 as at the
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 the second half of 2017 will continue to be a mixed one. As operations at Cordis, Hongqiao continue to ramp up, revenue from the hotel will increase further in the second
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 2017 1H 2017 1H 2016 HK$'000 HK$'000 HK$'000 Gross Revenue 350,325 350,325 Rental Income - HK 99,785 99,785 - 95,677 - Overseas 1,270 1,270 - 10,71
Slide 29: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2017 1H 2017 1H 2016 HK$'000 HK$'000 HK$'000 Net Operating Income Net Rental Income - HK 86,028 86,028 - 84,010 - Overseas 407 407 - 3,211 Hotel In
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 2017 1H 2017 1H 2016 HK$'000 HK$'000 HK$'000 Operating profit before Dep. and Amortisation 1,903,870 1,273,631 1,142,241 Depreciation and amortisat
Slide 31: Reconciliation to core earnings from reported
Great Eagle Holdings Limited Core earnings reconciliation Reconciliation to core earnings from reported Reported earnings Core earnings Core earnings 1H 2017 1H 2017 1H 2016 HK$'000 HK$'000 HK$'000 Net finance costs Finance cost (313,222) (64,457) - (67,455) - Exclude interest expense of CREIT, LHI