Accordia Golf Trust 4Q FY 15/16 Result

Accordia Golf Trust posted their 4Q FY 15/16 earning report in summary below.

• Total Distribution per Unit (DPU) for FY 15/16 of 6.63 cents
• Second Distribution of 4.31 cents for FY 15/16
• Operating profit of JPY 8,828 million and Total Distributable income available for distribution was JPY 6,041 million
• Net Asset Value (NAV) stood at SGD $0.89
• Number of visitors to AGT's golf courses in FY 15/16 was 2.1% higher than the previous year

Japan Economy Outlook
1. The number of golf plays in Japan is expected to continue as golf continues to be a healthy leisure activities for the seniors.
2. Inclusion of golf as an Olympic sport in Year 2016 Rio de Janeiro is expected to enhance the popularity of golf in Japan.
3. Year 2020 Tokyo Olympics is expected to have positive impacts on the Japanese economy.

Inbound tourism in Japan
1. Estimated number of foreign visitors increase 47.1% y-o-y and reached 19.7 million in 2015.
2. Positive impact on demand for golf in the mid-to-long term.

Accordia Golf Trust has a very strong branding and is the largest golf operator in Japan. The operation team and management is very efficient in managing the golf course operation. Their strategy is to target middle class working people into playing golf in Accordia. They provide casual atmosphere with reasonable play fees. They had a large pool of loyal customers base that subscribed to their golf club membership.

With a strong set of good result from this FY 15/16, I am very happy to be vested in Accordia Golf Trust and they are rewarding me with a 10.4% income distribution yield. However they are at the mercy of weather conditions. Even if weather conditions is unfavorable to shareholders, I am positive they will be able to distribute good income distribution and there is still a potential growth in this counter.