Accordia Golf Trust - CGS-CIMB Research 2020-06-30: Business Trust With Golf Assets


Accordia Golf Trust - Business Trust With Golf Assets

  • Listed on the SGX-ST, Accordia Golf Trust is a business trust comprising golf assets.
  • The trust reported a net profit of JPY1.7bn for FY3/20.
  • Accordia Golf Trust is trading at 0.86x FY20 P/BV, with a FY20 dividend yield of 6.72%.


  • Accordia Golf Trust (SGX:ADQU) is the first business trust listed on the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST) comprising golf course assets.
  • Accordia Golf Trust made its debut on the SGX-ST on 1 Aug 2014 (at an initial public offering price of S$0.97 per share) with a portfolio of 89 golf courses located across Japan. Approximately 70% of its portfolio is located in the three key metropolitan areas, namely, the Greater Tokyo region, the Greater Nagoya region and the Greater Osaka region.

Despite headwinds, AGT reported a profit for FY20

  • On 11 Jun 2020, Accordia Golf Trust reported its FY3/20 results. As per the management, despite poor weather conditions in 3Q20, which saw multiple typhoons, particularly Typhoon Hagibis in Oct 2019 (which resulted in closures of certain golf courses), and the Covid-19 outbreak (resulting in increased cancellations from golfers in the later part of Mar 2020), Accordia Golf Trust reported a net profit of JPY1.7bn for FY20 (compared with a loss of JPY12.5bn for FY19).

Outlook according to management

  • According to management, its business is likely to experience a potentially long-drawn recovery process from the Covid-19 outbreak. Management has guided that it will continue to streamline the group’s cost structure to align with the new norm and establish stringent health and safety protocols to restore consumer confidence and employee safety.

Announced acquisition offer on 29 Jun 2020

  • On 28 Nov 2019, Accordia Golf Trust publicly announced the receipt of a non-binding proposal from Accordia Golf Co Ltd (Unlisted), in connection with a potential transaction that may or may not lead to a divestment of Accordia Golf Trust’s interests in all of its golf courses. The indicative divestment consideration was publicly announced to be JPY63.2bn, plus various accompanying conditions. See Accordia Golf Trust Announcements.
  • On 29 Jun 2020 Accordia Golf Trust publicly announced that Accordia Golf Co Ltd will acquire 88 golf courses from Accordia Golf Trust for a consideration of JPY61.8bn, which translates into an implied purchase consideration of S$0.732 per unit. Accordia Golf Trust will convene an Extra-Ordinary General Meeting by 14 Sep 2020 to vote on the offer. Accordia Golf Co Ltd which owns 28.85% of Accordia Golf Trust has publicly announced that it will abstain from voting.

William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2020-06-29
SGX Stock Analyst Report NOT RATED MAINTAIN NOT RATED 99998.000 SAME 99998.000