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SYD - Sydney Airport

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Re: MAP - Macquarie Airports


Yesterday when the share Price started to spike I put an ambitious sell in at $3.49. After reading an article this morning, implying that the Canadians were undervaluing the Bristol and Copenhagen assets and might need to increase the cash offer to get it over the line, I pulled the sell. Will take the div and see what unravels re the swap etc.

I calculated that the cash could represent as much as $0.45 capital return per share if MAP passes it all on. I read that 88% of the earnings per share making up the div comes from Sydney Airport. If Map are going to focus on the one airport, the income after any capital return (and resultant share price adjustment) could improve the price earnings ratio and make it more attractive.

Map went ex-div tonight (trades ex-div tomorrow) and will most likely drop by $0.11, could be a trade there for the quick. The missus put me in a xmas hold and made me buy another small parcel for the div and as a holder just in case. The missus considers MAP to be seriously undervalued at present levels.
 
Re: MAP - Macquarie Airports

Dropped from $3.35 to $3.18 after going exdiv, fluttered arround in the mid $3.20's then rebounded to test $3.34 - $3.35, all in the space of a week. Should have topped up when it dropped to $3.20 (should have, would have, could have but didn't



And the missus proves right yet again.
 
Re: MAP - Macquarie Airports

While the rest of the share market was sliding, the MAP share price held ground then rallied today to hit $3.47 interday and managed to close on the previous (recent) high of $3.45.



I guess when your income depends on people through the airports and numbers of take off's and landings the carbon tax impact is absorbed by the traffic without impairing earnings. The share price activity did make me wonder whether someone had some info on the proposed asset swap and likely capital return but that can't happen, eh? That would be insider trading wouldn't it? I think map should be worth holding onto until at least the next announcement.
 
Re: MAP - Macquarie Airports

The Asset swap to go ahead, subject to regulatory approval in the respective countries. Map to do an $0.80c special div in the fourth quarter of 2011. Map to try to increase it's holding of Sydney Airport above the 85% it would control after the swap.

Coincidently the German construction company Hochtief (Wal Kings mates that own a big chunk of Leightons) have put their international airport holding up for sale which includes a 12% interest in Sydney Airport.

Ms Maher also indicated that Map would continue to maintain a div of $0.21pa going forward. If the price drops after payment of the special div, the ongoing yield would be up arround the 8% p.a.
 
Re: MAP - Macquarie Airports

Someone poured cold water on Ms Mathers plans to swap the Brussels/Copenhagen component with the Canadians on the basis that Hochtief and/or MTAA have first right of refusal to acquire the parcel from the Canadians.

Hochtief is selling so they shouldn't be a problem. MTAA probably need to be cleared with as to whether they want to acquire the Canadian interest or are happy to pass at this time. Hopefully there will be some clarifiaction in the very near future. I kinda like the idea of an $0.80c div.



Understanderbly, today, the share price fell, rose, then fell away again into the close of $3.38. (Sorry, posted wrong chart). If it drops any further, i may consider topping up.
 
Re: MAP - Macquarie Airports

$3.30 on Thursday looked like a good point to top up, so i did. Then the share price fell to $3.25. Today the map share price tested $3.22 before recovering to close on $3.27.



Map released the Brussels figures showing further improvement. Seems the Canadians haven't done too badly out of the swap deal, assuming it goes ahead.
 
Re: MAP - Macquarie Airports

The saying goes "A week in the share market is a long time" so it makes sense two weeks is a very long time. Since the last post MAP dropped to close on Friday 04-08-2011 at $3.15. I figured it was way oversold given the special div of $0.80 coming up so I grabbed a small parcel in the auction for my SMSF a/c.



Naturaly I wasn't to happy when the brinkmanship/sovereign debt issue played out on Monday/Tuesday last week and MAP got caught up in the panic sell of to drop to $2.89.

White knuckles for a while but the special div seems to have brought a few buyers back in with the price rallying by close Friday 12/8. Only problem was I didn't have any spare cash to grab some more under $3.00.
 
Re: MAP - Macquarie Airports

The indecision in regard the means of returning capital to unit holders appears to have taken some of the gloss of map in the last couple of weeks.

The prospect of a share buy back was raised by map, however I see this as a problem in that the international shareholders would see their proportion go above the statutory 40% if they don't sell. Then map would need to exercise its' right to force sell the shares most recently purchased by international holders. Litigation anyone?



Personaly I would prefer a return of capital. Meanwhile the share continues to show volitality presenting opportunites for the stout hearted and insane.
 
Re: MAP - Macquarie Airports

This article in Sydney Morning Herald 22 July 2011 is worth a read if you are interested in MAp.

http://www.smh.com.au/business/maps-mather-ready-to-spread-her-wings-20110721-1hqse.html

I found it while I was looking for the article published over the weekend in the "Weekend Business". They ran a piece by "Nathan Bell" of the Intelligent Investor titled "Up and away for MAp Group". In it Mr Bell states "On a prospective yield of 6.6%, plus an 80c a share special distribution, thanks to the sale of European assets, MAp is a buy below $3.50 for up to 5 per cent of an inteligently diversified portfolio".

The 80c return to investors hasn't been decided yet as to how it will be returned to investors. Also the settlements from the European asset sales are not expected to be finalised before the end of December. Maybe he is looking at MAp from a long term buy and hold perspective rather then a shorter term trade opportunity.
 
Re: MAP - Macquarie Airports

It's hardly a vote of confidence for the Eurozone by the big Macs!
They should pay off debt before buying back or returning - No brainer.
 
Re: MAP - Macquarie Airports

notting said:
It's hardly a vote of confidence for the Eurozone by the big Macs!
They should pay off debt before buying back or returning - No brainer.
Click to expand...

Why? Surely an airport can sustain some debt. I would say a fully equity-funded infrastructure stock would be very un-attractive. If I was a holder I would rather them return my capital and remain geared. They can borrow a lot cheaper than I could.
 
Re: MAP - Macquarie Airports

skc said:
Why? Surely an airport can sustain some debt. I would say a fully equity-funded infrastructure stock would be very un-attractive. If I was a holder I would rather them return my capital and remain geared. They can borrow a lot cheaper than I could.
Click to expand...

If I read the last Annual Report correctly MAp is already holding close to $1billion in cash, for opportunities? The recent swap/sale of European assets for an increased stake in Sydney Airport and cash, means they will have surplus cash greater then the cash component being stumped up by the Canadians.

If I read correctly, the resultant cash holdings (current and from asset sales) is being used to reduce debt and return 80c to unit holders. Also it is intended that the ongoing dividend of 21c per stapled security will paid wholey from earnings.
 
Re: MAP - Macquarie Airports

Looks like Map will pay out $0.80 per share on 19 December 2011. Just in time for xmas. Then to top that off, Map will pay a dividend of $0.10 per share (Going exdiv before xmas and paying in February 2012)

The market seems to have taken the news on board and the share price jumped on Fridays close to $3.41. After the capital return the share should drop to arround $2.50 - $2.60. The ongoing dividend at $0.21pa will be even more attractive for those seeking good yields on long term holds.

Oddly enough the future fund chose to sell off their 4 million shares rather than take the capital return and ongoing dividends. I hope Mr Murray made a profit on his short term hold.
 

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Re: MAP - Macquarie Airports

MAP went up and down in November closing on $3.35 on Friday 25th. For some reason Incredible Charts and Big Charts seem to indicate that MAP track sideways at $3.35 as if it was suspended last week when in fact it trraded and rallied to close on Friday 02/12/11 at $3.50.




The published timetable for the return of capital follows:

5 December (Monday) - Effective date of the scheme;
6 December (Tuesday) - Trading of Group Securities commences on a deferred settlement basis;
12 December (7:00pm) - Record Date for determining Entitlement;
19 Decemnber - Implementation date, Cash consideration payment date;
20 December - Group Securities recommence trading on a normal settlement basis; and
22 December - "MAP" begins trading as "SYD"

Interestingly, while there is no mention of it in the timetable released on 23 November 2011, MAP have previously confirmed that they will pay a total dividend for 2011 of $0.21. This means there should be an announcement for a further $0.10 distribution in December payable in February 2012. With the security commencing on a normal settlement basis on 20 December 2011, there may be only a small window of opportunity for those traders looking to jump in for the dividend.

I am uncertain as to whether MAP trades ex entitlement on Monday or Tuesday and whether or not Friday last week was the last day you could buy into the scheme. From the surge of the share price up to $3.50 before close I suspect Friday may have been the last day you could buy in. It will be interesting to see whether or not MAP drops the full $0.80 to $2.70 when trading re-opens on Monday.
 
Re: MAP - Macquarie Airports

MAP went ex entitlement at close of trading on Monday and the share price finished up another 5c to close on $3.55. With the return of capital of $0.80 locked in, you would reasonably expect MAPDA to open on Tuesday arround $2.75.

However MAPDA opened at $2.83 (representing a new recent high equivilent to $3.63) then traded between $2.74 and $2.85 closing on Friday at $2.78. With the undertaking by map to pay an annual distribution of $0.21c per unit, unit holders will receive an unfranked yield on their $2.78 of 7.55%. Not bad for these times.

On Wednesday MAP announced the timetable for the December second half distribution:

Distribution: $0.10c per security;
Trade Ex-entitlement: 22 December 2011;
Record Date: 30 December 2011; and
Payment date: Around 16 February 2012.

On $2.78 this represents a quick gain of 3.6%. With the return of capital the nta per unit will drop from low $4.00,s to mid $3.00's. This means the share price at $2.78 is trading at a larger discount to nta than it was before the capital return. It will be interesting to see if the market factors this in and pushes the share price any higher.

On 21 December MAP will relisted on the ASX as SYD. DYOR and good luck if you hold.
 
Re: MAP - Macquarie Airports

in relation to the change of ticker and name, I have been wondering if future dividends will be fully franked. I have searched through the most recent announcements concerning the company restructure but I have not been able to find anything. It doesn't worry me either way but thought it might be on the cards with future earnings coming from Australia.

Does anyone know the answer to this?
 
Re: MAP - Macquarie Airports


Not sure on future franking. I haven't seen anything either. Franking credits relate to company profits and tax paid. Without intending to be cheeky, Macquairie originated companies seem to have a patern/history of tax minimisiation which isn't condusive to accumulating franking credits for the distributions to unit holders.
 
Re: MAP - Macquarie Airports

Having traded ex-entitlement since December 7th as MAPDA (with the return of $0.80c due to be paid on Monday 19th) I have added back the $0.80 to the current share price to track the overall worth of MAP on the chart (due to trade as SYD on Wednesday next week).



The close on Friday at $2.80 is a further $0.05c higher than the ex-entitlement close of $2.75. It is probable that the forthcoming dividends of $0.10 is propping the price up a little however, imo, it cannot detract from the performance of MAP over the last 3 years. MAP has consistantly improved where the most of the market has stalled and fallen back. It would not surprise me to see MAP stabilise and continue to improve from this level going forward. The discount to nta has been increased by the capital return and the yield ratio improved. If the share price retraces after it goes ex-div I would expect MAP to look even more attractive to the hedge funds and portfolio builders.
 
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