- Are airports owned as REITs?
- No US REIT operates airports — US airports are overwhelmingly publicly owned by city, county, state, or regional authorities (Port Authority of NY/NJ, LAWA Los Angeles, MWAA Metropolitan Washington). International airports often operate as public-private partnerships and are publicly listed: AENA (AENA SM, Spain, 46 airports + LHR partial stake), Aéroports de Paris (ADP FP, Paris CDG + ORY + 25 international), Auckland Airport (AIA NZ), Fraport AG (FRA DE, Frankfurt + global), Beijing Capital International Airport (HK 0694). Sydney Airport (SYD) was taken private 2022. Brookfield Infrastructure (BIP) holds airport infrastructure stakes globally. The US airport authority financial structure (general obligation + revenue bonds) does not lend itself to REIT conversion.
- How do airports generate revenue?
- Airports generate two streams: aeronautical revenue (landing fees, gate rentals, fuel flowage fees from airlines, jet bridge fees) typically $8-$15 per enplaned passenger; non-aeronautical revenue (concessions — duty-free, F&B, retail, parking, rental car CFC fees, advertising) typically $10-$25 per enplaned passenger. Major international gateway airports (LAX, JFK, ATL, ORD) generate $35-$60+ total per enplaned passenger. Concession sales-per-square-foot at major airports ($1,000-$5,000 PSF) are among the highest retail PSF anywhere — even higher than top luxury malls. Customer Facility Charges (CFCs on rental cars) and Passenger Facility Charges (PFCs, capped at $4.50) provide additional capital funding.
- How are international airport operators valued?
- International airport operating companies are valued on EBITDA multiples (8-15x typical) reflecting passenger growth + concession growth + capital plan execution. AENA (~$22B mkt cap) trades at ~12x EBITDA reflecting Spain market dominance + post-COVID passenger recovery. ADP (~$13B mkt cap) trades at ~10x EBITDA. The valuation methodology incorporates regulated aeronautical revenue (often capped by national regulators), unregulated non-aeronautical revenue (commercial), capital expenditure cycle, and concession contract renewal cycles. Privatized airports typically trade at premium to authority-owned because of operating efficiency + commercial revenue maximization.