AIRPORT DEVELOPMENT GROUP

Transport

ASSET DESCRIPTION

  • Northern Territory airports of Darwin International and Alice Springs
  • 99 year concession (to 2098) under lease from Commonwealth Government
  • 22.6% equity interest
  • Palisade has Board representation

INVESTMENT FUNDAMENTALS

  • Strong growth potential in aeronautical and property development/fundamentals
  • Expanded terminals to cater for increased growth
  • Two airports with different demographics
  • Insulated from recent economic downturn through diverse passenger base
  • Joint user airport with Department of Defence which assists in ongoing maintenance costs

KEY RISKS AND MITIGATION

  • Key risk is passenger numbers, which impact landing charge revenues
  • Passenger spend (duty free, cafes, newsagency car rentals and car parking) impacted by passenger numbers
  • Property development initiative potentially hampered by Commonwealth Government policy
  • Operating costs management necessary to maintain comparatively high EBITDA margins