Macquarie Airports (MAP) Update

Submitted by Craig Strzelecki on 30 April, 2007 - 18:01

Macquarie Airports (MAP) has a maintained Hold/High Risk broker call and a share price target of $4.21 from sharemarket analyst Citigroup Investment Research. Strong Result from Brussels: Hot on the heels of a solid result from Sydney Airport, Brussels Airport has reported a pleasing 12.6% EBITDA growth in 1Q07 to €36.3m –7.4% higher than the analyst's estimate of €33.8m. As it is early in the year and due to unforeseen events such as management's goodwill gesture of free landing and take-off every Friday in May after a strike on 13 April, the anlayst retains its FY07e EBITDA of €188m. Consequently, there is no change to the analyst's earnings estimates. Operating Leverage Evident: Strong result was driven by 4.4% growth in revenues and 4.4% reduction in operating costs (excluding security costs). Aero, Retail and Car Parking revenue grew between 5-8% – well above passenger growth rates of 3.8%. However, Property revenue declined 2.8% due to a loss of a customer lease with an offsetting lower utility cost. Key Focus on Property Development: The Board recently approved an €18m, 10,000 metres squared development for Phase-1 of Brucargo West project (Logistics development). All up 800,000–1,000,000m² of land has been earmarked for the development. Separately, there is a five-phase, 15-year program to develop Airport Village. Phase-1 of that project is expected to complete in c2010. Refinancing Should Net 20 cents per share: With the recent lift in bond yields in Europe, and the collapse of Sabena following 9/11 still in the minds of lenders, the analyst conservatively estimate the re-gearing of Brussels Airport at 7x EBITDA – yielding c$350m or 20cps to MAP in the next few months. Target Price of $4.21 Offers ETR of 15%: Near-term catalysts are the sale of MAP's interest in Birmingham and Rome airports and refinancings at Brussels and Copenhagen airports.

Macquarie Airports Limited is listed on the Australian Stock Exchange (ASX) under stock code MAP. You can view their investor website here. MAP was listed on the ASX on 2 April, 2002. Kerrie Mather is the CEO and Max Moore-Wilton the Chairman for Macquarie Airports. MAp is listed on the Australian Stock Exchange, and their objective is to invest in a portfolio of ports. In its IPO prospectus, MAp stated its intention to acquire significant shareholdings which provide influence over the key strategic, commercial and financial decisions affecting its investments. A previous recommendation for Macquarie Airports (MAP). Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade MAP. Check your charts and good luck with your share trading!

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