Great Eagle (41) H1 2024 earnings summary

Executive summary

• Core revenue rose 4.4% to HK$3,791.0m, while core profit attributable to equity holders fell 33.7% to HK$735.8m.

• Statutory results swung to a HK$985.9m attributable loss from HK$478.7m profit, mainly reflecting fair-value losses on investment properties and derivatives.

• Interim dividend remained HK$0.37 per share.

Financial highlights

• Statutory revenue rose 4.2% to HK$5,293.5m; core operating income fell 16.8% to HK$1,364.5m.

• Statutory operating profit fell to HK$1,599.8m from HK$1,913.5m; statutory loss before tax was HK$1,168.7m.

• Investment-property fair-value losses were HK$1,739.6m versus HK$421.0m a year earlier; derivative fair-value losses were HK$180.5m.

• Core profit before tax fell 33.4% to HK$832.7m; core EPS was HK$0.98 versus HK$1.48.

• Operating cash flow was HK$1,462.9m, down from HK$2,041.1m; cash and cash equivalents were HK$6,359.7m at June-end.

Outlook and guidance

• Hotel performance is expected to remain stable as global air capacity improves; elevated operating costs remain a constraint and cost controls will continue.

• Office rents at Three Garden Road and Langham Place Office Tower are expected to remain pressured; Langham Place Mall is expected to stay resilient.

• Residential sales strategies will remain responsive to market conditions; medium-term Hong Kong property prospects are viewed cautiously optimistically, with rental demand expected to remain strong.

• Expected 2H 2024 rate cuts could ease borrowing costs and support Champion REIT profitability; global and Hong Kong market uncertainty remains.