Accordia Golf Trust's Q1 DPU up at 1.82 Singapore cents

ACCORDIA Golf Trust's (AGT) distribution per unit (DPU) for the first quarter ended June 30, 2016, rose to 1.82 Singapore cents from 1.76 Singapore cents in the corresponding quarter last year.

Profit attributable to unitholders fell 7.5 per cent year on year to 2.22 billion yen (S$29.3 million) over the three-month period, while revenue slipped 2.5 per cent to 14.32 billion yen.

The trust, whose golf course assets are in Japan, said operating income for the first quarter was 14.42 billion yen - 2.3 per cent lower than the same quarter a year ago, mainly due to the heavy rain during the quarter, especially in June.

"The earthquake in the Kyushu area in April did not cause significant damage to the golf courses but together with the heavy rain in the area, revenues in golf courses are affected in Kyushu area. Even though the number of visitors to AGT's golf courses was 3.2 per cent lower than Q1 FY15/16, the overall demand for golf has been steady," said AGT.

Looking ahead, AGT acknowledged growing concerns about uncertainty in the Japanese economy, as well as the global environment, but said the demand for golf has shown resilience to economic conditions.

It added: "As for the mid to long-term demand, Japan's golf industry has been making efforts to expand its player base, from focusing currently on male and senior players to a more diverse base. Inclusion of golf as an Olympic sport in 2016 Rio de Janeiro as well as 2020 Tokyo is expected to increase popularity of golf in Japan, including (among) the younger generation.

"Booming inbound tourism to Japan would also have a positive impact on golf demand in mid to long term."