Atlas Arteria (ASX: ALX) declared the distribution of 15 cents per share for the first half of Fiscal 2019, reflecting a 25% improvement on the 12cps paid for 1HFY18.
The company informed that the distribution would be paid by both Atlas Arteria Limited (ATLAX) and Atlas Arteria International Limited (ATLIX). As per the ALX’s arrangement, the ATLAX distribution will comprise a capital return of 7.8 cps and an unfranked dividend of 0.2 cps while the ATLIX distribution will comprise a foreign dividend of 7.0 cps.
Further, it has been stated that the distribution of 15 cps will be payable to security holders entitled to receive the distribution as on the record date of 25 March 2019. The settlement of payment is expected to be made on 5 April 2019 and the stapled securities trade ex-entitlement date is set to 22 March 2019.
Today’s distribution declaration by ALX has come much earlier than planned which represents the sixth consecutive year that the company has grown distributions since paying its first distribution in 2013. The distribution of 15cps is also in line with ALX’s 2019 outlook that expects the distribution of 30 cps for the entire year ended 31 December 2019.
ALX equity accounts its investment in APRR and ADELAC and now consolidates both the Dulles Greenway and Warnow Tunnel, following the acquisition of the remaining 30% equity interest of German toll road, the Warnow Tunnel, consolidating the company’s ownership to 100% in September 2018.
On the back of receiving full year contribution from Dulles Greenway, ALX achieved the statutory net profit of A$59.9 million for the year ended 31 December 2018, up from $51.9 million in 2017. Further, the 2018 proportionate revenue and EBITDA of the company increased 4.1% and 4.8% respectively across the portfolio, reflective of traffic performance, toll increases and ongoing cost management across the portfolio.
In aggregate, it can be seen that ALX’s portfolio has reported positive performance in traffic, revenue and EBITDA in 2018, reaching a growth of 1.5% in weighted average portfolio traffic compared to the previous corresponding period.
ALX strategy is to invest in global infrastructure that delivers growing distributions and enhance the value of the company’s portfolio to offer resilient long-term performance through economic cycles. This translates the company’s holding in European toll road assets including 25.0% interest in APRR, 25.03% in ADELAC in eastern France and the 100% interest in German’s the Warnow Tunnel. It has also extended its footprints in the United States by acquiring 100% stakes in the Dulles Greenway in northern Virginia.
As at 31 December 2018, ALX’s cash balance stood at $186.468 million including net cash flows from investing activities of $250.21 million during the year.
ALX stock price slipped by 0.283% to close at $7.050 on 19 March 2019. The stock last traded at a Price to Earnings multiple of 79.980 x with a market capitalisation of $4.83 billion.
Over the past 12 months, the stock has witnessed an upside movement of 20.24% including a surge of 6.80% in the past three months.
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