Transaction! Accordia Golf Trust


Saw an opportunity after their earning report, so jump in before any recovery and now I'm just waiting for dividend payment.


After the earning report, share price dropped from $0.77 to $0.695 that as much as 10% drop. Such sell off is probably people in panic mode after seeing a huge loss due to unusual repayment of membership deposit.

Summary of their Q2 result.
  • Disappointing 2QFY18 results as it swung into distributable loss of ¥323m (2QFY17: ¥497m income) on an unusual large repayment of membership deposit and payment of upfront borrowing fee.
  • 1HFY18 distributable income to ¥1.47b (-27.3%) and reduced semi-annual DPS to 1.65¢ (-32.7%).
  • For 2Q, revenue edged up 3.1% to ¥13.38b on a 4.8% increase in visitors.
  • Operating margin widened 1.4ppt to 18.3%, attributable to higher course utilisation rate of 80.4% (+3.2ppt).
  • Loan-to-value ratio ticked 0.3ppt lower q/q to 28.7%.
  • Trades at 4.3% annualised 1HFY18 yield and 0.84x P/B.

So I swing around to look at their fundamentals and seems to be solid. I think this is very likely a one off event. Operating profit in fact has increased. NAV is at $0.90 with my purchase price at $0.705 it's a discount. Yield wise, if we looked at DPU this year which is $0.0359 and $0.0165 which will give us 7.4%. It is not 8% but we should see better results next year. 

Glad I've jumped into this but will keep a close eye on their next results.

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