Analysis of Accordia Golf Trust

As of 4 Oct 2016, the price of Accordia Golf Trust stands at 0.68 cents.

• Price / NAV : 0.71 
• Dividend Yield : 11.08%
• Debt to Asset Ratio (Gearing) : 25.7% 
• Interest Coverage : 5.17  

Accordia Golf Trust is one of the very special business trust among the S-Reits, with the business of golf course assets and earning revenue from there. Here is my analysis on this REIT.

With 11.08% yield, I can say that this is the highest dividend yield REIT in SGX. Due to JPY getting stronger recently, this boost the income of the company due to appreciation of currency. With Price/NAV of 0.71, this REIT is 29% cheaper than its value.

I have also studied its historical price / NAV ratio with highest of 0.77. Therefore, there is still some room for this REIT to be on upside trend. The gearing of this REIT is also looks pretty good which is at 25.7%, much more lower than 35%.

The only concern I have is the currency exchange risk. The economy of Japan is not in good shape. Not sure if the Japan government will let Japanese Yen to depreciate in order to boost the economy. I will keep this REIT in view first unless I couldn't find other REIT with good statistics to invest with. 

**Risk: Japanese Yen Depreciation. Consumer spending lower as salary increment rate very low. No good for long term investment.
 **Good Points: Price/NAV attractive, financial condition is healthy. Yield is high.