Accordia Golf Trust, the business trust consisting of golf course assets in Japan has posted earnings for 1Q20 ended June of JPY 570 million ($7.4 million), 75.4% down from the JPY 2.32 billion in 1Q19.
There was no distribution per unit (DPU) declared for the quarter, as distributions are made to unitholders on a semi-annual basis, according to AGT.
Operating income for 1Q20 was JPY 10.66 billion, down 27.1% from the JPY 14.62 billion a year ago.
This was mainly due to the lower revenues for its golf course and restaurant segment, which saw 24.7% and 49.2% declines y-o-y to JPY 7.53 billion and JPY 1.79 billion respectively.
AGT says the performance of the portfolio golf courses showed a “significant” decline in 1Q20 due to the state of emergency declared in Japan to control the Covid-19 outbreak.
As a result, there were a high number of cancellations, with less money spent at the golf course, as many golfers stayed home during this period.
Operating expenses for the period fell 14.4% y-o-y to JPY 9.54 billion.
Other operating income saw a 221.6% y-o-y surge to JPY 492 million mainly due to the JPY 288 million in subsidies granted by the Japanese government for employees during the state of emergency.
1Q20 operating profit declined 67.9% y-o-y to JPY 1.11 billion.
Earnings per unit fell 75.4% to JPY 0.52 from the JPY 2.11 a year ago.
In its outlook statement, AGT forecasts that the performance of the golf industry will continue to remain “muted” in the coming months due to increasing unemployment levels in Japan, and a contracting economy.
As at 10.12am, units in AGT are trading 0.5 cents lower, or 0.7% down, at 73.5 cents.
