SINGAPORE (Aug 14): The trustee-manager of Accordia Golf Trust (AGT) has declared a distribution per unit (DPU) of 1.63 yen (2 cents) for 1QFY17/18, about 17.3% higher than the DPU of 1.82 yen declared in 1QFY16/17 a year ago.
Total distributable income for the quarter grew 17.6% to 1.8 billion yen in 1QFY17/18 from 1.5 billion yen in 1QFY16/17, in line with higher operating profit.
Operating income grew 1.1% y-o-y to 14.6 billion yen over the quarter, mainly due to decrease in depreciation expenses as a result of impairment loss recorded in prior year.
Meanwhile, operating expenses decreased slightly by 0.6% to 11.4 billion yen on lower depreciation expenses, as a result of impairment loss recorded in the prior year.
Operating profit rose 9.9% to 2.5 million yen from 2.3 million yen a year ago.
In its outlook, the trustee-manager says it expects Japan’s economy to recover gradually, noting stable demand for the Japanese golf market as well as an increasing demand with the higher life expectancy of senior residents.
“AGT adopts profit maximisation strategy and promotes larger private group competition to achieve more stable revenue,” says the trustee-manager.
“Furthermore, AGT’s golf courses have started to install new GPS navigation systems on the golf carts and introduced ‘U-40 Passport’ which provides special additional points for under 40 passport holders, ‘L-Style’ including ladies golf circles to encourage ladies players and junior programs known as ‘Accordia Kids’ which supports younger generation. AGT has been making efforts to expand to a more varied player base to generate stable cash flow and distribution,” it concludes.
Units in AGT closed 0.7% higher at 70 cents on Monday.
