...

Sponsored Links

To retire by age 45, start with a plan.

"Is early retirement the right financial choice?" Jim Ellis discusses long-term financial growth strategies. I have blogged ab...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.

"E-book" by AK

Second "e-book".

Pageviews since Dec'09

Recent Comments

ASSI's Guest bloggers

Buying Croesus Retail Trust and Accordia Golf Trust?

Tuesday, January 24, 2017


Reader:
I am very interested in your views on Japan. I don't have any investment in Japan because everyone tells me the population is shrinking and the economy is dead. However, you seem to be doing well investing in Japan. I regret not investing in Saizen. I feel like investing in Croesus and Accordia now. Any advice?

AK:
Nope, I don't have advice for you. You could search my blog for my views on CRT and AGT if you like. The related post at the end of this blog could be a start. Know that these are investments primarily for income. Know what you want and see if these do the job.

Throwing some speculative flavor into the spin here. Bad AK! Bad AK!

Related post:
(Added CRT at 78c and AGT at 51c.)

2 comments:

AK71 said...

Why do people assume I have done something when prices move?

Friend:
"Did you rally your troops for Accordia?"

AK:
"bu yao hai wo."

Friend:
"Are you going to unload some?"

AK:
"Nope."

AK71 said...

AGT is managed by Accordia Golf Trust Management Pte Ltd (Trustee-Manager), which is 49% held by Accordia Golf Co. Ltd (sponsor) and 51% held by Daiwa Real Estate Asset Management.

We visited six of AGT’s golf courses in the Greater Tokyo region recently to learn more about the business as well as the culture of golf in Japan. AGT’s initial portfolio comprises 89 golf courses located across Japan with 86.0% of them (based on their appraised values as at 31 Dec 2016) located in the three largest metropolitan areas in Japan. The initial portfolio had an appraised value of JPY150.9b as at 31 Dec 2016. Utilisation rates in FY16 averaged at 77.9%, while the number of plays in Japan has remained stable over the years. A discernible trend, however, is the increase in proportion of plays by senior members.

Since AGT’s IPO in 2014, it has not added any golf courses to its portfolio. We understand that this is due to financing issues and most of its golf courses are already pledged as collateral to creditors. Should AGT be able to reach a refinancing deal with its lenders and achieve lower borrowing costs with the help of MBK Partners which recently privatised AGT’s sponsor, it may pave the way for more asset injections by the sponsor.

We understand that there are about 20 stabilised golf courses out of the 43 or so golf courses that the sponsor has but not yet injected into AGT. Based on Bloomberg consensus, the stock is currently trading at 0.78x FY18 P/B with a 9.2% forward dividend yield. We do not have a rating on AGT.

Source: OCBC Research - 7 Apr 2017

Monthly Popular Posts

Singapore Business

Business News

 
 
Bloggy Award