Valuation uplifts of key airports in the Australian Infrastructure Fund’s (AIF) portfolio have propelled profits by 90 percent, the fund said today.
AIF, which is listed on Sydney’s stock exchange, has seen net profit nearly double in the year to June 30 thanks in part to traffic growth at Perth airport, as well as improved valuations for its investment in Melbourne and Launceston airports after upping stakes in the assets by 2.25 percent.
As well as owning major city airports, AIF – managed by Hastings Funds Management – also holds investments in three regional Queensland airports, which added to the better performance.
It said a mixture of additional investments, equity injections, and improved performance had led to overall 18 percent increase in value of its total portfolio to A$1.62 billion (€1.1 billion; $1.4 billion).
“Of this [18 percent portfolio] increase, A$76.6 million (or 5.6 per cent) was due to the acquisition of an additional 2.25 per cent interest in APAC, which owns and operates the Melbourne and Launceston Airports, and A$21.6 million (or 1.6 per cent) was due to additional investments or equity injections in other assets,” AIF explained.
The increased asset valuations generated A$141 million in unrealised gains and led AIF’s revenue to grow by 83 percent to A$116 million and its net profit to rise by 90 percent to A$191 million.
AIF’s Australian airports represent 94 percent of its portfolio value, although it also operates ports. The fund said in its results presentation that traffic across the Australian airports grew by 7.6 percent. Traffic across the entirety of its airports portfolio, which also includes Dusseldorf and Hamburg airports, has grown by 6.5 percent.
The fund said it was “cautiously optimistic” regarding growth in its European airports, expecting them to produce a “solid performance in the years ahead”.