"Macquarie Airports Investors Finally Come Out Ahead"

Thursday, June 10, 2004

MACQUARIE AIRPORTS INVESTORS FINALLY COME OUT AHEAD
Asia Pulse


SYDNEY, - Investors who bought into Sydney Airport owner Macquarie
Airports (MAp) (ASX:MAP) two years ago are finally in the money, after
the stock closed above its issue price for the first time today.

MAp's securities were issued at $2.00 each in April 2002, and closed at
$2.05 today, up seven cents or 3.5 per cent, as Citigroup joined the
growing number of analysts who have warmed to the stock.

The Macquarie Bank Ltd (ASX:MBL)-managed MAp has long said the effective
issue price was below $2.00, since it issued a second discounted tranche
of securities soon after the first.

But those who bought only the first batch saw their investment turn
profitable today.

"It's been a long time coming," said Commonwealth Securities analyst
Matt Crowe.

"There'll be quite a few investors there who'll be back in the black."

Investors who bought the stock for 82 cents in October 2002 will have
watched their investment skyrocket 146 per cent in 18 months - an
average growth rate of eight per cent per month.

Macquarie Bank also stands to benefit, even though it no longer has a
stake in MAp, since it waived the performance fees it took from MAp
until the stock traded above $2.00.

Macquarie Bank shares rose nine cents to $34.45 today.

In a report to clients, Citigroup boosted its price target for MAp to
$2.30 from $2.00, and said "the stock is at its sweetest spot with its
strong leverage to the growing global economy and supporting
distribution yield".

The brokerage also pointed to a forecast 10 per cent increase in
passenger volumes at Sydney Airport in 2004/05, as competition
intensified because of new capacity from Qantas Airways Ltd, its budget
offshoot Jestar, Virgin Blue Holdings Ltd and Cathay Pacific.

"Given continuing strong growth prospects from existing airports and
potential new acquisitions in Europe, we reiterate our strong BUY,"
Citigroup said.


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