The company anticipates a one-off expense of -$182m in FY19. This relates to an indemnity provided by Sydney Airport under the previous Macquarie Airports ownership structure and in relation to the sale of Copenhagen Airport in 2011.
Morgan Stanley notes Sydney Airport continues to support Copenhagen Airport’s position on the dispute, which may not be determined for several years.
No material impact on net operating receipts is expected. FY19 distribution guidance of $0.39 per security has been reaffirmed. Overweight rating. Target is $8.28. Industry view: Cautious.
Target price is $8.28.Current Price is $8.35. Difference: ($0.07) – (brackets indicate current price is over target). If SYD meets the Morgan Stanley target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).