A report in The Herald Sun says that Australia’s two largest listed airport funds yesterday unveiled record earnings on the back of soaring passenger traffic, with Macquarie Airports increasing its interim profit more than fourfold to $953 million as passenger traffic across its asset portfolio rose more than 5 per cent.
The impressive rise in the MAP bottom line was enhanced by the sales of the fund’s stakes in Rome and Birmingham airports, but scrip in Macquarie Airports fell yesterday after the company revealed that its interest-bearing debt now exceeded $9 billion. MAP’s ASX-listed stapled securities fell 4 to $4.25.
MAP chief executive Kerrie Mather said the company had delivered on all its key objectives and she defended the company’s high gearing ratio, saying net debt was fully hedged for the next five years.
MAP has a majority stake in Sydney Airport and big investments in airports at Brussels and Copenhagen.
While nervous investors mulled over the implications of MAP’s bulging debt profile, the market warmed to the less leveraged balance sheet of the Australian Infrastructure Fund.
The AIF posted a record annual profit of $168.2 million, up 54 per cent on the 2006 result. AIF’s ordinary stock, which has been among the most resilient in the past month, closed up 3 at $3.32. AIF has substantial exposures to Melbourne and Perth airports and is continuing to negotiate with Spanish airport operator Ferrovial to boost its interest in both facilities.
It is believed that AIF and Ferrovial have agreed on a deal for the latter’s stakes but that it has stalled because of tax implications.
AIF directors declared a final distribution of 8 per stapled security that is payable on August 30.
MAP paid an interim distribution of 13 a share on August 20.
Report by The Mole
