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I checked my Facebook account earlier this morning and was greeted by a deluge of messages regarding Accordia Golf Trust.
Alamak.
How like that?
Reader #1:
hey AK can i ask you something regarding Accordia's latest results? One thing I didn't understand was, why is the DPU down so much from last year despite the profit and revenue being higher?
AK:
Due to repayment of membership deposit.
Reader #1:
hm I see.
meaning more of its members are withdrawing their deposits, i.e. revoking their membership.
AK:
At this moment, I am treating this as a one off event.
Management said it is unusual.
Reader #1:
yeah probably a large number of it hit the due date for withdrawals or something.
AK:
Probably the case. 🙂
Reader #2:
Hi AK, like to ask you about accordia golf trust.
In their recent results, they mentioned that "Total distributable income available during 1H FY17/18 was JPY 1,471 million, which was 27.3% lower than 1H FY16/17.
The decrease of distributable cash flow was due to payment of borrowing upfront fee and unusually large repayment of membership deposit.".
Any idea what the "unusually large repayment of membership deposit" refers to?
AK:
Members can call for repayment of membership deposits after a lock-up period of a certain number of years.
I am treating this as a one off event since the management said it is unusual.
If I have put all or most of my money in Accordia Golf Trust, this could be depressing.
Since I have a portfolio of many businesses generating income for me, I am able to look at this development with equanimity.
What now?
It is back to K-drama and MMORPGs for me.
Bad AK! Bad AK!
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