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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!
(Added CRT at 78c and AGT at 51c.)
Bloggy Award
4 comments:
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."
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
Accordia Golf Trust full-year DPU falls 14% to 4.71 yen
Any concerns ?
http://www.theedgemarkets.com.sg/accordia-golf-trust-full-year-dpu-falls-14-471-yen
Hi betta man,
If it declines year after year, it would probably be a concern as it would become a trend.
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