Notes to the Consolidated Financial Statements - Uni-Asia Finance ...

Realising A Sustainable Future
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HOTEL INCOME
Hotel income refers to all income related to Capital Advisers’ hotel business. Capital Advisers currently owns and/ or manages 14
limited service hotels in Japan with over 2,100 rooms. Hotel income totalled US$31.8 million. Hotel income would include hotel
operator fee and all income received from hotels owned and leased by the Group. Due to low occupancy and price competition,
Capital Advisers experienced losses from its hotel business.
INVESTMENT RETURNS
Breakdown of investment returns
FY2009 FY2008 %
us$’000 US$’000 Change
Interest on performance notes – shipping 620 5,595 (89%)
Interest on performance notes – distressed debt 87 25 248%
Realised gain on investment – shipping 11,056 - N/M
Realised gain on investment – hotel and residential 252 352 (28%)
Realised gain on investment – others 3 - N/M
Realised loss on disposal of properties for sale (1,861) - N/M
Property rental income 736 496 48%
Fair value adjustment on investment properties 252 405 (38%)
Fair value adjustment on investment – hotel and residential (5,982) (886) 575%
Fair value adjustment on investment – shipping 72 (2,794) 103%
Fair value adjustment on performance notes – hotel (25) (87) (71%)
Fair value adjustment on performance notes – shipping (171) 166 (203%)
Fair value adjustment on performance notes – distressed debt (262) (444) (41%)
Fair value adjustment on listed shares – hotel - (306) N/M
Fair value adjustment on listed shares – others (134) (75) 79%
Net gain / (loss) on forward currency contracts (1,041) 734 (242%)
Write down of properties for sale to net realisable value – residential - (2,762) N/M
3,602 419 760%
N/M: Not meaningful
Investment returns increased from US$0.4 million in FY2008 to US$3.6 million in FY2009 due primarily to the 50% interest disposal of
Prosperity in December 2009. Prosperity recognised net liabilities during the year due primarily to operating losses, fair value losses
on an interest rate hedge (charged to reserve) and translation losses from a yen loan. The Group de-recognised Prosperity’s net
liabilities of US$9.2 million and received sales proceeds of US$1.8 million, which resulted in a gain on disposal of US$11.0 million upon
the completion of the disposal. During the year, the Group also recognised interest on performance notes of US$0.7 million, negative
fair value adjustment of US$6.3 million arising primarily from revaluation of hotel and residential properties in Japan, realized losses
of US$1.9 million arising from our investments in properties in Japan, rental income of US$0.7 million and losses on forward currency
contracts of US$1.0 million during the year.