North Queensland Airports Investment Overview
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Attractive Investment Profile
Expected equity internal rate of return on Auckland Airport's investment in North
Queensland Airports in the mid-teen percentages
Purchase price slightly above price paid to State a year ago in the depths of the
global financial crisis, and since then:
The A$200m Cairns domestic terminal upgrade has largely been completed and a new
strategic agreement with Jetstar has been announced
High recent capex positions Cairns well for "capex-lite growth"- meaning cashflow
is forecast to exceed accounting earnings
Superior growth prospects of Cairns/Mackay Airports as tourism and economic
conditions rebound and the full benefits of coming out of government ownership
emerge
Purchase price represents an implied prospective EV/EBITDA multiple higher than
Auckland Airport's trading multiple, reflecting the turnaround growth outlook
Likely to have small dilutive effect on Auckland Airport earnings per share which will
improve as Cairns Airport recovers from downturn in direct international passenger
numbers
A
Auckland
Airport
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