Pan Pacific Hotels

Pan Pacific Hotels: FY12 revenues increased 4% to $373m, earnings declined 21% to $71m; mainly due to a decline of 29% on fair value gains. Occupancy rate came off 2%, mainly due to its Singapore (down to 66% from 88%) and China (down to 39% from 55%) segment; net gearing decreased from 27% in FY11 to 19% in FY12. Mgmt stated that intra-regional travel in Asia is expected to grow in view of the growing middle class and increasing flight frequency by budget airlines. NAV/ share at $1.54; counter trading at a 61% premium to NAV based on the last closing price at $2.49 Dividends of 4¢/ share declared for FY12; indicative yield of 1.7%