Accordia Golf Trust posts 585m yen distributable loss for Q4

ACCORDIA Golf Trust (AGT), which owns 88 golf courses across Japan, reported a total distributable loss of 585 million yen (S$7.6 million) for the fourth quarter ended March 31, 2020, reversing from a distributable income of 194 million yen a year ago.

This was mainly due to a higher quantum of reserved items during the quarter end, the business trust's manager said in results released on Thursday evening.

Specifically, 1.2 billion yen was set aside based on the projected business impact of the Covid-19 pandemic on the current fiscal year ending March 31, 2021 for compliance with financial convenants, including the maintenance of three billion yen in current deposits.

For illustrative purposes, the distributable loss attributable would translate to a distribution per unit (DPU) of -0.71 Singapore cents for the three months, versus a DPU of 0.22 cents in the year-ago period. AGT had entered into forward currency contracts for distributions to its unitholders.

AGT makes distributions on a semi-annual basis. For the half year ended March 31, 2020, it declared a DPU of 1.69 Singapore cents, down 20.7 per cent from the DPU of 2.13 cents in the corresponding period in the prior year.

This half-year DPU will be paid on June 29, after books closure on June 22.

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Meanwhile, revenue for its fourth quarter edged down by 0.1 per cent on the year to 10.11 billion yen, from 10.12 billion yen.

Operating income inched up by 0.9 per cent on the year to 10.17 billion yen for the quarter, from 10.08 billion yen. This was due to "good weather conditions" early in the quarter, resulting in more players and operating days, AGT's manager said.

However, the higher operating income was later offset by a slight decline in performance in March as the Covid-19 outbreak led to cancelled reservations at its golf courses.

Net loss narrowed to 4.62 billion yen for Q4, from a net loss of 18.5 billion yen in the year-ago period. The loss in the latest quarter was contributed by the recognition of impairment loss on property, plant and equipment, property tax expense, and slower business performance due to the winter season, AGT's manager said.

The trust recognised an impairment loss of 2.61 billion yen on property, plant and equipment having considered the "deterioration in performance of 19 golf courses and lower utilisation rates and prices in view of the Covid-19 outbreak", the manager added.

For the full year, DPU rose 14.1 per cent to 4.3 Singapore cents, from 3.77 cents a year ago. Total distributable income grew 7.9 per cent to 3.66 billion yen, from 3.39 billion yen.

Revenue edged up by 0.9 per cent to 51.21 billion yen for the year, while operating income was up 1 per cent to 51.67 billion yen.

AGT was back in the green in the full year, with a net profit of 1.66 billion yen versus a net loss of 12.55 billion yen in the previous year.

Units in AGT tumbled 4.5 Singapore cents or 7.3 per cent to 57.5 cents as at 9.35am on Friday.