Auckland Airport may value land as high as $2.7 billion, up $745 million from 2011
By Suze Metherell
July 30 (BusinessDesk) - Auckland International Airport, the nation's busiest gateway, says a revaluation of its property will lift the value of the assets by as much as $745 million.
The land portion of the company's property, plant and equipment will be revalued as at June 30 by between $725 million and $745 million, lifting the value to between $2.637 billion and $2.657 billion, the company said in a statement. Less than $5 million of the increase would be recognised in the company's income statement due on Aug. 26, it said.
"The revaluation is for accounting purposes only," said chief financial officer Simon Robertson. "It is not for regulatory purposes and therefore it has no impact on regulatory information disclosure or aeronautical pricing."
According to its 2013 annual report, land was valued at $1.912 billion, and was last revalued in June 2011. The company is increasing the amount of revenue it gets outside of airfield and passenger service charges. In the first half of the year, income from retailing made up 27 percent of revenue, while rental income amounted to about 12 percent.
Shares of the airport fell 1 percent to $3.79 and have advance 7.2 percent this year. The stocks is rated an average of 'hold' according to ten analysts surveyed by Reuters, with a median price target of $3.86.