Brokers' take

Accordia Golf Trust > Non-rated CGS CIMB Research, April 19 April 20 close: S$0.645

OVER April 16-17, Accordia Golf Trust (AGT) hosted two analysts and three investors for a tour of four of its golf courses in Nagoya, Japan. The key concerns raised were: 1) valuation of the golf courses; 2) pricing trends; 3) player visitorship numbers; 4) potential steps that can be taken to raise revenue; 5) acquisition pipeline, 6) competition, and 7) ability to benefit from the improving Japanese economy.

According to management, the ability to raise prices is still subject to competitive forces but management noted that the situation has been helped by the closure of some golf courses nearby. Generally speaking, we believe Nagoya courses are able to maintain or raise prices gradually due to their proximity to the expressways ... and their less challenging design, which favours casual players.