Roxy Pacific

Roxy Pacific: Earnings increased 29% to $11.7m mainly due to the recognition of revenues for six development projects. Group's revenues from its hotel segment declined 16% to $10.9m due to upgrading works at the Grand Mercure Roxy Hotel, which saw RevPAR declining 17% to $155 and occupancy rate of 79.2% vs 92.8% in 1Q12. Group is optimistic that the growth in tourism (forecasted growth of 4.7% for arrivals) for 2013 will translate into a similar growth in its hotel segment, as the group is nearing completion for its hotel upgrading program. On its residential property development segment, group sees resilient demand despite a significant moderation in the prices on the residential property market in Singapore. Private properties increased 0.6% in 1Q13 compared to a 1.8% increase in 1Q12, despite the recent govt cooling measures. The group has a total attributable gross floor area of ~185.6k sf for development. Gearing of 69% increased slightly from 66% in 4Q12. RNAV per share of 67.80¢, implied P/B of 0.9x.