Accordia Golf Trust Q4 loss per unit widens on impairment losses

ACCORDIA Golf Trust on Tuesday posted a loss per unit of 20.71 Singapore cents for the fourth quarter ended March 31, widening from a loss per unit of 3.19 Singapore cents for the year-ago period.

But for the six months ended March 31, it has declared a distribution per unit (DPU) of 2.13 Singapore cents, with a book closure date of June 12 and payment on June 21. This is down slightly from the DPU of 2.2 Singapore cents declared for the year-ago period.

The trust, which comprises investments in golf course assets in Japan, saw a net loss attributable to unitholders of 18,474 million yen (S$232.7 million) for the quarter.

Revenue was up 7.5 per cent at 10,121 million yen. But operating loss widened considerably to 19,052 million yen for the quarter, from 2,929 million yen in the year-ago period, due mainly to the impairment loss on several golf courses and goodwill. Stripping out the impairment loss, operating loss would have been 1,090 million yen.

Total distributable income available to unitholders for the quarter was 194 million yen, with higher reserve items at the end of the quarter offset slightly by higher cash and cash equivalents generated. The impairment losses had no impact on total distributable income as they were non-cash in nature, Accordia Golf Trust said.

For the full year, loss attributable to unitholders was 12,553 million yen.

Noting that visitor arrivals to Japan hit a record high of over 30 million in 2018, Accordia Golf Trust said it remains optimistic about the Japanese economy. "The golf industry is expected to remain resilient in the face of economic slowdown, underpinned by its healthy fundamentals and steady demand from senior golfers," it said.

Japan's golf industry continues to see more mergers and acquisitions, which Accordia Golf Trust deemed beneficial "as there are more reputable golf course operators with stronger balance sheets to face future headwinds".

But it added: "On the back of increasing uncertainties in the macroeconomic environment, we will adopt a cautious stance and exercise prudence in managing our operating costs."

Accordia Golf Trust units closed down 0.5 Singapore cent or 0.81 per cent at 61.5 Singapore cents on Tuesday before the results release.