Accordia Golf Trust posts maiden 5.71 cents DPU for eight months

SINGAPORE - Accordia Golf Trust (AGT), which debuted on the Singapore Exchange's mainboard last August, announced on Tuesday a distribution per unit (DPU) of 5.16 yen (5.71 Singapore cents) for the period from Aug 1, 2014, to March 31, 2015 (FY2014/2015).

This is 7.2 per cent lower than AGT's forecast DPU of 6.15 Singapore cents.

For the fourth quarter ended March 31, 2015, AGT recorded a net loss attributable to unitholders of 981 million yen (S$10.9 million), on the back of 9.8 billion yen in operating income, which was 524 million yen or 5.1 per cent lower than AGT's forecast.

"With the favourable weather conditions during the period except in January, the number of visitors to AGT's golf courses recorded was higher than the previous year and the forecast. However, as a result of lower average play fees due to the higher discounts given to attract more visitors in some golf courses, an overall lower revenue was recorded," said AGT.

For FY2014/2015, net profit attributable to unitholders came up to 2.6 billion yen. Total operating income stood at 33.4 billion, 2.2 per cent below AGT's forecast, due to "unfavourable weather conditions and discounts given during winter season to attract more visitors", said AGT.

Looking ahead, "As the Japanese economy shows signs of gradual economic improvement, coupled with a surge in inbound tourism, we anticipate that the demand for golf in urban regions will continue to increase.

"Looking ahead, Mr. Yoshihiko Machida, chief executive officer and executive director of the trustee-manager, said: "We aim to capture higher demand from the female golfers and foreign visitors. In addition, we expect the overall demand from senior golfers in Japan to continue to be strong over the next five to seven years."

Distributions to unitholders will be on a semi-annual basis for every six-month period ending 30 September and 31 March, the trust said.

The first distribution will be paid to unitholders on June 15, 2015.