About Atlas Arteria

Atlas Arteria is a global operator and developer of toll roads.

In France, the company owns 25% of APRR toll road group and the smaller ADELAC business which connects to APRR, together comprising 2,318km motorway in the east and south east of France.

In the US, Atlas Arteria owns 100% of the Dulles Greenway, a 22km toll road in Virginia. In Germany, it owns 100% of the Warnow Tunnel in the north east city of Rostock.

Q3 Statistics

This morning, the company reported:

Weighted average traffic for Q3 2019 was 0.6% lower than Q3 2018, and 0.9% lower for the nine months ending 30 September compared with the same period in 2018. This result was expected and reflects the unusually strong traffic performance in 2018 that was caused by the French National Railway strikes, the overhang of which continued into July. Adverse weather also affected traffic in the recent Q3.

Weighted average toll revenue for Q3 2019 was 1.7% higher than Q3 2018, and 1.4% higher for the nine months ending 30 September compared with the same period in 2018, reflecting toll price increases and the traffic mix at APRR.

Are Atlas Arteria Shares A Buy?

The selling point of toll roads is that they can reduce travel time, make travel time more certain and reduce fuel consumption and carbon emissions. But, let’s face it, no one enjoys paying for tolls, and the price just keeps on increasing.

At its half year result, Atlas guided towards a first half distribution of $0.15 and a second half distribution of $0.16. At yesterday’s closing price of $8.33, the total distribution of $0.31 puts Atlas shares on a 3.7% dividend yield.

For yield investors, the reliable cashflow that Atlas Arteria produces each year may well be attractive. Transurban Group (ASX: TCL) is another consideration. However, if, like me, you prefer to invest in growth companies, sometimes at the expense of dividends, you may want to look at one of the companies in the free report below.