Auckland International Airport Limited (AIA)

[robbo24]

A very pleasant surprise.

Woohoo - AIA has been my little gem since the IPO.

[G on]

This is a first for me to have return of capital. Paying me for 1 share out of 10 but the holding proportion stays the same has what impact on cps on future divs? An increase of div? Any clarity would be much appreciated

[macduffy]

Earnings per share will increase over what it would otherwise have been. Dividends per share should, theoretically, increase. Of course, we will all now have 10% less shares than before!

[Toasty]

Capital return sounds good but would it have better potentially for them to invest that money into additional services or products that would grow the value and revenue instead. It seems to me that they have just effectively forcibly removed 10% of everybody's holding.

[Balance]

Earnings per share will increase over what it would otherwise have been. Dividends per share should, theoretically, increase. Of course, we will all now have 10% less shares than before!

History of capital returns is that institutions usually use a proportion of the capital returned to buy back the cancelled shares on market.

So imagine 50% of the $454m returned being used to buy back shares on market - very favorable for the share price.

Also a good way to pay out imputation credits which investors can use to offset tax in some instances.

This is the second capital return by AIA - first one was in 2010 and it was 1 for 16 at $1.65.

Then, there was the 4 for 1 split in 2005 so anyone who bought the share at the IPO for $1.80 (?) is now looking at a $13.80 share price equivalent!

Well done, AIA!

[G on]

Is it because their is essentially no tax to pay on R.O.C that it appeals?
As Mac states, and that makes sense to me, there should be a theoretical increase of future dividend by 10% so the same income but the original dollar amount invested has reduced by 10%. Is there an advantage in buying more shares to retain the original percentage?
I understand (correctly?) that because the company equity reduces by the same amount that it should not have an impact on the share price. I would have expected the higher yield to have some affect on the share price tho!

[Harvey Specter]

A bit annoying as I have recently sold down about 20% as I was overwieight. If I had know, I would have held on.

Disc: a good sort of annoyed.

[modandm]

A very pleasant surprise.
Well done AIA.
Better owning an airport than an airline?!!!!!!!!!!!!!!!!!!! lol.

In the last 5 years - 28 Nov 2008 to 27 November 2013 total return:

AIA - 141.29%
AIR - 141.23%

Source: Bloomberg

2014 PE ratio:

AIA: 27x

AIR: 8x


You know my preference.

[percy]

In the last 5 years - 28 Nov 2008 to 27 November 2013 total return:

AIA - 141.29%
AIR - 141.23%

Source: Bloomberg

2014 PE ratio:

AIA: 27x

AIR: 8x


You know my preference.

From Yahoo charts.
January 2000 to November 2013. AIR -19.71% ........ AIA + 433.85%
Guess my preference?!!

[modandm]

From Yahoo charts.
January 2000 to November 2013. AIR -19.71% ........ AIA + 433.85%
Guess my preference?!!

Thanks percy. You keep holding AIA I keep holding AIR. Shall we have a bet on who does best over the next 5 years?