Ann: Sydney Airport Deleveraging Complete , page-3

Whilst I agree there is a ton of debt the asset generates very good free cash flow. What I do agree is that I would prefer a much more conservative distribution policy 13c dist results in $221million so if say 21c per annum than $358million is total distribution. I would rather they looked at the $2.10 value and pay 6% (eq to 12.6c - total saving $143million) whilst interest rates are low and then increase this over time. They could use these funds to repurchase units which ultimately enhances all unit holders investment.

Cannot see why management in highly geared companies seem to believe that the high payouts will protect their SP. These times are for conservative distributions and asset protection.

Disclaimer: I take no liability for the accuracy of my post. Do your own research prior to making any investment decision.