Sunday, February 14, 2010

Long Term View: Auckland International Airport Ltd

In this new series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO.

The calculation of returns includes dividends and tax credits.

Starting at the beginning of the alphabet I am going to work my way down and see which NZX company comes off looking the best. I already have my own ideas in the back of my head as to which is the best long-term return on the NZX but will keep it to myself until I reach them.

Auckland International Airport [AIA.NZ] has treated shareholders well in terms of returns since its NZX listing in 1999. With 72 cents in net dividends (see chart above) paid and another 33% of that figure gained for those eligible for associated tax credits, an approx 400% return (see chart below for the share price percentage gain against the average of all NZX indexes) over the 11 year listing gives an approx annual net return of 36%.

This is nearly 4 times better than the return from the average of all NZX indexes.

Disc I own AIA shares

Long Term View Series

Auckland International Airport
Air New Zealand
Briscoe Group Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hellaby Holdings Ltd
Mainfreight Ltd
Metlifecare Ltd
New Zealand Refining Ltd
Port Of Tauranga Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sanford Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Telecom NZ Ltd
Telstra Corp Ltd
The Warehouse Group Ltd

Auckland International Airport @ Share Investor

VIDEO - Simon Moutter on Australian Airport Purchase
Auckland Airport Capital Raising a fair call
Auckland International Airport lands Australian Ports
What Infratil sale of Auckland Airport stake means...
Is another Auckland Airport bid likely under a business friendly Government?
Latest Airport coverage
Cullen's move on Auckland Airport has far reaching effects
Cullen's move on AIA tax plan Anti-Business
AIA profit stays grounded
Softening opposition to CPPIB bid for AIA
Directors of AIA bribe brokers not to sell
What is Auckland Airport worth to you?
Second bite at AIA by CPPIB might just fly
AIA new directors must focus on shareholders
Auckland Airport merger deal nosedives
The Canadians have landed
AIA incentive scheme must fly out the window
Government market manipulation over AIA/DAE deal
DAE move on AIA: Will it fly?

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c Share Investor 2010


  1. I think overall airports are a better investment than airports. This is despite their high debt, which is the norm for most infrastructure assets.

    I don't own any AIA shares, but do own AIX and MAP Airports.


  2. If you mean Airports are better investments than Airlines Tim then I agree with you 110%.

    The Focus of AIA management seems to be wavering of late into areas of expertise outside their experience.

    How are your Port shares going?

  3. Yes, airports over airlines!

    I bought shares in MAP Airports as the price fell over 2008, and held onto them even with an unrealised loss of about -50%. Now I'm up 20%! Since I bought AIX it's now up 30%.

    Btw, great blog Darren. I've been following it for a little while now.

  4. Airports around the world are very close to monopolies and that is what I like about them. AIA is closer to being a monopoly than most in my humble and not so humble opinion.

    Your investment outlook on the long term appears to be working for you.

    Thanks for the ups Tim.


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