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
Visit the Airport Development Group website
