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$8.72 sydney airport

Why?, page-41

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Cain Treanor

1,034 Posts.

169

08/08/20

22:32

Post #: 46402443
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Originally posted by moppy_j: ↑

Remember that Sydney Airport Holdings (the parent company) has a lease on the airport till the end of the century.

So while debt is important, it's less significant for SYD because:

1. It's a monopoly.
2. The 99 year lease (from 2002)
3. You pay $6 for a coffee and $12 for a sandwhich and $15+ to park your car.

In normal times it prints money and returns approx 4.5% in dividends.

So in the short term it's speculative. But if you have a 5 year + hold strategy then it looks like good value. Air travel will return to normal, and it's better to get in now with a 5 in front of the price than a 7 or 8 in a years time.

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2, if they can’t pay their debt, the debt holders will take that 99year lease and sell it to some one else.

3, who is buying coffee or sandwiches there at the moment?

4, car parks are empty.

I am currently still holding my some what large position, and believe things will turn around eventually, but if you like our position is bullet proof you are wrong.

SYD Price at posting: $5.34 Sentiment: Hold Disclosure: Held
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0 Great analysis

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