Ann: SYD $2bn Equity Raising and 2020 Half Year Result, page-36

Haven't look to much into the Management of SYD, what is everyones thoughts? Just from looking at face value I can't see how any board would be allowed to accumulate so much Debt. Yes, I understand that earnings prior to Covid-19 they have been very resilient due to there monopoly and because of the resilience of this QUALITY asset, management have just pumped up dividends with debt to artificially stimulate the SP growth. To me that just seems like really poor governance. Management should always be looking to the future and how to create value for shareholders 5-10 years from now, not to look for a great financing short term solution thats gonna cost shareholders 2 billion down the road. Prior to the anncoument of the Western Sydney airport SYD was arguably the highest quality infrastructure asset listed on the asx, it isn't supposed to be some ridicules tech stock growing at 20% a year. It is supposed to be a defensive assest that can be relied on and a corner stone of a lot of peoples portfolio's.

I realise nobody could predict Covid but surely some sort of prcautionary measures and analysis would be taken knowing that air travel can be extremely volatile easily effected by global events. Management seems like a bunch of bankers writing loans to shareholders through the form of dividends and now its time to pay them off, very irresponsible.


Could be wrong, just one mans opinion. DYOR